The Budget this year has only proved to offer a better platter for workers.
Incentives that drive productivity and innovation have been a given a bigger boost. Social assistance and support for families have been enhanced. With all good things in place for now, their hopes lies in an improving Budget year after year.
The special interest in this year’s Budget was, inevitably, the changes to the CPF contributions.
Speaking to reporters after the dialogue with about 200 unionists on 24 February 2014, SG Lim said: “They are very happy with the enhancements to CPF contribution rates."
“They also noted that the overall CPF contribution rate for workers less than 50-years-old will be 37 per cent, which is higher than the existing CPF framework of 30 to 36 per cent.”
“It may be now timely to look ahead to the next five, ten years, on what should be the CPF contribution target for the future. 36 per cent was set more than 10 years ago and may no longer be relevant. With longer lifespan, higher healthcare costs and need for more retirement savings, they feel it is time to sit down and formulate a longer-term position so that we can move towards that together, step by step taking into account overall economic climate” he said.
The other aspect in the Budget that always tugs at the hearts of union leaders is productivity.
“In terms of strengthening the productivity of our companies and the competitiveness of our economy, a lot more has to be done. It is an improvement to see our productivity moving up from minus two per cent in 2012 to zero per cent last year. However, if we are not able to improve our productivity gain into the positive range, then, in fact, we are losing ground to our competitors.
“So our union leaders feel that it is very important for us to step up our concerted efforts and improve productivity as widespread and as soon as possible. The union leaders are committed to do their part and they hope that management will also do their part.”
For The Past
Through the Pioneer Generation Package, the builders of modern Singapore have been honoured with well-deserved assistance and assurance. SG Lim added that while many union leaders are not in the pioneer generation, many would have parents who belong to this generation. They will all benefit directly or indirectly, and they welcomed that.
For The Present
Costs of living, healthcare and education are of concern to many workers. They are glad that Budget 2014 has offered some reliefs relating to education, healthcare, utilities and conservancy charges.
For The Future
The extension of the Productivity and Innovation Credit (PIC) and the introduction of PIC+ will help more companies to embark on the journey of business repositioning. Unionists felt that with more incentives to boost productivity; companies should now work more aggressively to increase their competitiveness.
