By Naseema Banu Maideen
It was a significant ceremony - one which highlighted 12 employers and a union with progressive thinking. United Workers of Petroleum Industry (UWPI) garnered management partners of its 12 branches to ink their agreement on a Memorandum of Understanding (MOU) on re-employing older workers at no pay cut. This commitment, which was sealed on 4 November 2011, will benefit about 1,300 employees in the petrochemical industry.
UWPI, which has always been firm in its belief towards re-employment, has also been up on its feet to explore viable measures with employers since the buzz on the re-employment legislation started. Said UWPI General Secretary Karthikeyan Krishnamurthy: “We strongly advocate for no pay cuts when our workers reach the retirement age. If they are still fit and able to do their jobs, then we believe they should be re-employed without a cut in their wages.”
All companies who signed the agreements will not make any pay cuts. Some companies - Infineum Singapore Private Limited, Oiltanking Singapore Limited & Oiltanking Odfjell Terminal Private Limited as well as Vopak Terminals Singapore Private Limited - have agreed that there will also be no cuts in all other benefits for re-employed workers.
The other companies would take away minor benefits such as medical insurance and annual leave. These benefits that they will reduce are those that are based on a worker’s length of service with the company and are not related to the job scopes, explained Mr Karthikeyan.
Mitsui Phenols Singapore Private Limited & Mitsui Elastomers Singapore Private Limited have promised to give their re-hired workers a lump sum which equates to the same amount lent to insurance premium, as it can no longer offer them term life insurance as its insurer had imposed an age limit on the workers covered. The union also welcomed this gesture.
“The signing of the MOU by these companies is a good move; they have now become outstanding role models for other companies in the petrochemical industry,” shared Mr Karthikeyan. The law that will kick in next year states that re-employed workers may receive pay cuts. He added that it is very encouraging that these branches have committed to have no pay cuts at all.
UWPI is currently negotiating with 13 other companies to sign similar agreements and is confident that nine of them will give the thumbs up before the end of the year.
