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The latest National Wages Council (NWC) Guidelines for 2021 to 2022 have taken into consideration that the labour market has improved in the first three quarters of 2021 and retrenchments fell to pre-COVID-19 levels during this period. However, economic recovery continues to be uneven across different sectors and uncertainties remain as we move into 2022.
NTUC shares the view of tripartite partners that wage growth needs to be balanced and sustainable in this current economic climate to ensure job security and income stability for our workers. At the same time, employers should recognise the contributions and sacrifices of workers during this difficult period.
NTUC has been a strong advocate for improving the lives of all workers, including Lower-Wage Workers (LWWs). We call on employers to reward their workers fairly in tandem with the company’s business performance and outlook, and to pay special attention to uplifting our LWWs. This is an important part of our social compact for Singapore to remain cohesive as one united people.
We encourage employers to work with NTUC and our affiliated unions through the formation of Company Training Committees (CTCs) to invest in productivity improvements and skills upgrading. It is equally important that our workers support employers’ transformation efforts with continuous training and lifelong learning to keep themselves relevant and stay competitive.
Looking out for and Protecting our Lower-Wage Workers
We are glad that tripartite partners have agreed to Progressive Wage growth guidelines with built-in wage increases of 4.5% to 7.5% or a dollar quantum of $70 to $90, whichever is higher, for LWWs earning a gross monthly wage of up to $2,000. This higher quantum of increases is important to narrow the gap between LWW’s wages and the median wage level over time.
We thank the NWC for accepting NTUC’s proposal to have a minimum dollar quantum range of $70 to $90 to ensure that the lowest-paid employees will receive a proportionally higher increase in wages. NTUC encourages employers who are doing well to aim for the upper bound of the range to provide faster and higher wage growth for LWWs.
NTUC understands that some sectors are still facing economic headwinds and there are employers who are unable to provide wage increments for workers. To better protect LWWs earning a gross monthly wage of up to $2,000, we call on employers who are freezing wages for employees in general, to consider a built-in wage increase of up to $50 for their LWWs. For employers looking to further implement wage reductions due to poor business performance, they should implement a wage freeze for their LWWs instead.
Differentiated Treatment for Workers, Flexibility in Implementation for Employers
For businesses that continue to be adversely impacted by the pandemic, NTUC encourages such employers to work with the unions to explore non-wage cost-saving measures and tap on existing Government support measures. Employers should engage the unions before implementing any temporary wage cuts to minimise retrenchments, after exhausting all other cost-saving measures. As far as possible, employers should pay workers the Annual Wage Supplement as this will help employees, especially LWWs, cope with expenses towards the end of the year.
For businesses that are recovering or have recovered, NTUC encourages such employers to restore wage cuts implemented earlier into the fixed wage component first, as well as roll back wage-related cost-saving measures.
For companies that are doing well, they should reward their employees fairly, in recognition of their contributions since the onset of COVID-19.
Transforming Jobs and Upskilling Workers to Improve Productivity
The NWC Guidelines encourage employers to remain forward-looking by upskilling workers in preparation for the next bound of growth in an endemic COVID-19 world. To ensure that wage increases remain sustainable, employers should continue to enhance productivity and invest in skills upgrading for their workers.
Employers are encouraged to work with NTUC and our affiliated unions to set up CTCs to support their enterprise and workforce transformation efforts. Companies can tap on NTUC’s capabilities and resources in carrying out Operation & Technology Roadmapping to review business processes, redesign jobs and train their workers.
Ms Mary Liew, NTUC President said, “The COVID-19 pandemic has indeed been a difficult period for all our workers, including our professionals, managers and executives (PMEs). The brunt of cost-cutting measures has also been felt most acutely by our Lower-Wage Workers. As our economy recovers, we need to recognise the important contributions of all our workers by ensuring that their wages do not stagnate and that their wages will continue to be uplifted. In line with the latest NWC guidelines, I encourage employers to review their business recovery plans as they make wage adjustments in a fair and timely manner so that our workers’ livelihoods are protected, and we can thus emerge stronger together as a nation.”
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Additional Quotes from Union Leaders
1. Mr Tan Richard, NTUC Central Committee Member and General Secretary of the United Workers of Electronics & Electrical Industries (UWEEI)
The manufacturing sector has seen promising recovery largely supported by the activities related to the semiconductor and med-tech clusters. At the same time, companies are mindful of ongoing supply chain disruptions and manpower challenges inhibiting their growth prospects. We have gradually seen companies rolling back cost-saving measures and granting higher built-in wage increases and variable payments to workers compared to 2020. We’re heartened to know that workers are valued even as business improves. The latest National Wages Council guidelines recognises uneven recovery across sectors. I urge companies that have been doing well to continue to share their gains with workers and look at upskilling and transformation initiatives. For companies that are recovering, I hope that they will reward their workers fairly, in a timely manner.
2. Ms Julie Cheong, President, Food, Drinks and Allied Workers Union (FDAWU)
The hospitality sector has provided many employment opportunities for workers, and we are thankful that many of them continue to keep their jobs. Despite the challenges arising from COVID-19, our unionised companies continue to pay workers the Annual Wage Supplement. The road to recovery for the sector is still uncertain and will take some time. We will continue to engage with our unionised companies to take into consideration the wage growth of our lower-wage workers and to allow periodic adjustments of their wages so that we can protect the workers most at risk. We encourage companies and workers to take a proactive approach in their skills upgrading and business transformation plans for long term growth.
3. Mr Shawal Bin Surati, Branch Official, Singapore Industrial & Services Employees’ Union (SISEU)
At the onset of COVID-19, the aviation sector was badly hit with travel bans and restrictions, followed shortly by a ripple effect on the aerospace industry. Many companies implemented cost-cutting measures and underwent retrenchment exercises as a result. However, we have seen a gradual recovery in these sectors - companies are beginning to push forth, while continuing to be prudent with expenses. We know that our workers have made many sacrifices to support companies through the pandemic. We hope that employers will recognise the efforts of their workers tangibly as the economy gradually picks up.
