It has been five years since the onset of the 2008/09 Global Financial Crisis. Unfortunately, we are still not seeing the end of the tunnel. In fact, this 102nd Session of the ILC is meeting amid signs of a spreading European recession. The impact on workers has been devastating and I agree with the Director General in his report in paragraph 150 that the problems of unemployment and under-employment, inequality and injustice are becoming more acute.
A number of countries have spent beyond its fiscal prudence for a long period and are now heavily in debt. Bold, drastic measures must be taken to bring debts down to more acceptable levels and achieve fiscal prudence.
As the saying goes, “a rising tide lifts all boats”. However, the fruits of labour are usually unfairly distributed in good times. Therefore, during difficult times like these, while the tripartite partners will need to bite the bullet together, governments should ensure that workers are not disproportionately bearing the costs of the recession and recovery. I am glad that the Director General rightly said in his report in Paragraph 146 that the ILO must give priority to the situation of those who are most disadvantaged in the world of work.
Similarly, governments must give special attention to the low-income and the vulnerable group of workers who have gained little during boom times.
SITUATION IN SINGAPORE
In Singapore, the economy is once again undergoing restructuring and entering a new phase of slower growth, which poses great challenges ahead. One of the challenges is to tackle the income inequality and make sure that wages, especially on the bottom rung, can continue to grow.
For wages to go up, the economy must grow, and it can only grow by moving towards higher-value industries and improving productivity while reducing the over reliance on foreign labour.
The Singapore government has put in place various schemes and fundings to encourage employers to make better use of technology, innovation and train workers to increase productivity.
As the saying goes, “you can take a horse to the water, but you can't make it drink”. The Singapore labour movement therefore urges employers to do their part and value every worker, as supply of unskilled foreign manpower dwindles in Singapore. Employers should waste no time in taking full advantage of the schemes available to help their companies re-structure and adapt to the new operating environment.
The Singapore labour movement will continue to work with employers to grow the pie and ensure that the fruits of labour are shared with all workers. We are committed to do more to help the vulnerable segments of the workforce including the low-income and older workers, as well as the increasing number of Professionals, Managers and Executives who will form two-thirds of the workforce profile by Year 2030.
PROGRESSIVE WAGE MODEL
To this end, the Singapore National Trades Union Congress has introduced the “Progressive Wage Model”, which is a wage structure to help Singaporean workers climb the four ladders of skills upgrading, productivity improvement, career advancement and wage progression.
NTUC work with companies to roll out the progressive wage model in 12 industry sectors, including hospitality, shipping, engineering, transportation and others.
We are pleased that the Singapore government, being the biggest employer and service buyer, has set the example incorporating the progressive wage model for the cleaning sector. It is now looking into the possibility of making it mandatory for cleaning companies to adopt the progressive wage model before they are allowed to operate.
The government has also pledged to do the same for the security industry and will take the lead in best-sourcing, which is an initiative put forth by the labour movement, whereby contracts are awarded not based on price alone or cheap sourcing but also on other factors such as quality of service, training and welfare of workers.
CONCLUSION
In conclusion, unions need to evolve with time and find new ways to work with their governments and employers and vice versa. Only then can unions continue to remain relevant and achieve the very purpose of their existence, that is, to improve the livelihoods of all workers.
Governments and Employers should also adapt in the true spirit of social dialogue and triparitism, the pillars and unique advantage of the ILO.
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