26 Oct 2010
1. NTUC’s e2i has unveiled a ‘Productivity Gallery’, to showcase the Labour Movement’s (LM) efforts to help workers earn higher pay, and attain Better Jobs and Better Lives. It will be a permanent display and resource for the LM to explain Singapore’s unique Tripartite Approach to its Union leaders, its management partners and international visitors. This latest effort follows recent discussions in the media on the advantages and disadvantages of a Minimum Wage system.
2. A delegation of 60 union leaders, led by NTUC Secretary-General Lim Swee Say, embarked on a Learning Journey to NTUC’s e2i to view the Gallery, to gain a better understanding of the tripartite partners’ approach to boost the skills, employability and wages of low wage workers in Singapore.
3. In summary, the Tripartite Approach comprises the following:
a. At the Economy level: ‘Workfare, not Welfare’.
The experience of other countries has shown that Welfare erodes the motivation to work and ultimately becomes a burden to tax-payers and the economy. The Tripartite partners thus opt for Workfare instead. The $400 Million Workfare scheme is targeted at more mature and lower wages Singaporeans. It encourages them to work and upgrade their skills through wage supplement and training subsidy.
b. At the Industry level: ‘Minimum Skills, not Minimum Wage’
Minimum Skills ensures that workers have the basic skills to do their jobs productively. This is the basic driving force for wage increases.
The Continuing Education and Training framework (CET) provides workers with the formal framework for skills upgrading. To date, there are 26 WSQ frameworks across industries to certify skills and lay progression pathways; and 480,000 workers have attained WSQ certification.
c. At the Service Buyer level: ‘Best Sourcing, not Cheap Sourcing’
The Labour Movement has been a keen proponent of Best Sourcing, pushing service buyers to award tenders based not only on price but also on quality. Service buying based on quality will incentivise companies to improve operations and bring their workers’ skills up to speed. As at October 2010, Best Sourcing has impacted more than 100 contracts and benefitted 4,200 workers.
d. At the Company level: ‘Productivity Improvement, not Manpower Expansion’
Manpower expansion is not a sustainable option for growing Singapore’s economy because there is a limit to the growth of local and foreign workers. Instead, every company needs to seek productivity driven growth. In August 2010, the Labour Movement launched a $40 million Inclusive Growth Programme (IGP) to drive productivity improvements. As companies innovate, re-design jobs, intensify the use of equipment and technology, and streamline their processes and operations, workers stand to gain from better skills, higher value jobs and better rewards. Through IGP, the LM aimed to help 25,000 workers over two years.
e. At the Worker level: ‘Better Jobs, Better Lives’
With the above approach, workers can better contribute and be effective at their workplace by participating in the workforce, upgrading their skills, and contribute in a productivity and quality-driven environment. This is the most sustainable way to bring about Better Jobs and Better Lives.
4. “Rather than debating about the advantages and disadvantages of a Minimum Wage system, NTUC’s e2i thought it would be better to put up a permanent display to showcase the Tripartite partners approach to help workers. It is an effective and comprehensive approach, involving a lot of hard work, and certainly much harder than if we simply legislate a Minimum Wage. But we believe it is the right approach, sustainable for the long term, and will help us achieve our Vision of an all inclusive workforce,” said Mr Ong Ye Kung, Chairman of e2i.
