05 May 2004
Update On The Efforts Of The Tripartite Taskforce On Wage Restructuring
1 The Tripartite Taskforce on Wage Restructuring has in the past months continued its push for wage reform in Singapore. The Taskforce is pleased to announce the following positive developments:
1) Three new Working Groups to champion wage restructuring in the Food Manufacturing, Insurance, Banking sectors have been formed.
2) The Tripartite reStructuring Wages AcTion (SWAT) Team has held discussions to facilitate wage restructuring with more than 500 companies employing over 270,000 employees; including 23 companies which have implemented wage reform with the support of their unions.
3) 525 companies have signed up their HR personnel for wage restructuring workshops.
2 “The Taskforce is encouraged by the optimistic response of companies, unionists and workers to the drive for wage reform. It is committed to and will continue to provide a convening platform for all parties to engage in open and sincere dialogue, and provide guidance and support to implementing flexible and competitive wages,” said Ms Yong Ying-I, Chairman of the Tripartite Taskforce on Wage Restructuring.
Formation of New Sectoral Working Groups Targets more than 21,400 Workers
3 The Taskforce’s experience with the first four working groups - Electronics, Hotel, Chemicals and Land Transport - proved invaluable in addressing the problems and concerns of specific sectors. By adapting a generic wage model to meet their needs, they demonstrated to companies and employees that flexible and competitive wages is an achievable goal. The three new Working Groups – Food Manufacturing, Insurance and Banking – will similarly customise the Taskforce’s recommended wage model to meet the requirements of their respective industry. The work groups comprise representatives of key companies and trade unions in the respective sectors.
4 The Food Manufacturing Working Group is co-chaired by Mr Peter Tay (CEO & President, Singapore Food Industries Ltd) and Mr Tan Soon Yam (General Secretary, Food, Drinks & Allied Workers Union). The Insurance Working Group is co-chaired by Ms Jenny Wong (HR Director, Prudential) and Mr Terry Lee (President, Singapore Insurance Employees Union), while Mrs Ong-Ang Ai Boon (Director, Association of Banks in Singapore) will be the Convenor for the Banking Working Group. The Insurance and Banking Working Groups, totalling about 14 companies, will cover about 21,400 employees. The composition of the Food Manufacturing Working Group is still being finalised. All three Working Groups will release their recommendations on wage restructuring for their respective sectors in a next two to three months time.
Outreach by SWAT Team to 500 companies
5 The SWAT Team has held discussions to facilitate wage restructuring with more than 500 companies employing over 270,000 employees. This includes 23 companies which have implemented wage reform with the support of their unions. Advice and assistance is offered to companies on a one-to-one basis or in clusters. Some clusters include companies from the Retail, Petro-chemical sectors as well as the SIA group of companies.
Response to Wage Restructuring Workshops for Human Resource Managers
6 The response to the wage restructuring workshops for HR managers has been positive with 525 companies signing up for these workshops. To date, a total of 223 companies have attended the workshops and another 29 workshops are scheduled for the next four months. Companies have also submitted applications for the wage restructuring coaching grant , offered by the Singapore Workforce Development Agency, to assist them in implementing a flexible and competitive wage system.
Other Promotional Efforts
7 To raise public awareness of wage restructuring, the Tripartite Partners have also embarked on promotional activities such as seminars, workshops which have reached 225 companies and 1540 unionists. For instance, NTUC has conducted 17 workshops for 928 union leaders and another 376 participants having signed up for these workshops. In addition, the Tripartite members are stepping up its efforts to explain wage restructuring to workers with a public education programme – to increase workers awareness of the need for wage reform and dispel the common misconceptions they may have about it. The Taskforce will reach out directly to workers through the media.
- Jointly issued by the Tripartite Taskforce on Wage Restructuring and the Singapore Workforce Development Agency
Footnotes:
1. SWAT members are experienced industrial relations consultants from MOM, Singapore Business Federation (SBF)/Singapore National Employers Federation (SNEF) and the National Trades Union Congress (NTUC).
2. The 2-day wage restructuring workshop is conducted by SNEF and NTUC. The objectives are to help HR managers understand need for, and principles of, wage restructuring; undertake wage restructuring in a fair and equitable manner and communicate changes to employees and manage employee morale when making changes to the wage system
3. This grant helps defray cost incurred in restructuring their wage systems through the engagement of a HR Consultant. The funding support for the coaching is at 50% of the consultant’s fees, or $8,500, whichever is lower.
4. These workshops have three basic objectives: to equip union leaders on the basic knowledge, key issues and the application concerning wage restructuring; to facilitate the implementation process for companies to embark on a wage restructuring exercise; and to promote the implementation of a flexible and competitive wage system.
