What are the implications of the Budget 2013 for the Labour Movement? To address this, the Ong Teng Cheong Labour Leadership Institute’s (OTC Institute) held a Singapore Budget 2013 Discussion hosted by NTUC President Diana Chia and NTUC Secretary-General (SG) Lim Swee Say recently.
Union leaders discussed the broader aspects of the Budget and representatives from the Ministry of Finance (MOF) were also there to give a deeper explanation on the Wage Credit Scheme.
In her opening address, Ms Chia said that this year’s Budget is about a better Singapore and the Labour Movement’s call to value every worker and value every job will shape and contribute to a better Singapore.
In the spirit of valuing every worker, Singapore Airlines Staff Union (SIASU) General Secretary Logannaathan wanted to know why foreign workers are excluded from the Wage Credit Scheme even though they contribute to improving the productivity of a company.
An MOF representative explained that the Transition Support Package is a way for the Government to pass the money collected from the Foreign Worker Levy increases back to companies in a way that will benefit workers.
While there is a lot of attention on the Wage Credit Scheme, the Productivity and Innovation Credit (PIC) and PIC Bonus are also an important part of the Package. Companies that invest in new technology to train their workers, regardless of nationality, can benefit from the PIC.
SG Lim added that productivity gain should not be limited to only Singaporean workers, and foreign workers must also be involved in the drive towards productivity.
The Wage Credit Scheme is eligible for workers who are earning less than $4,000 a month. This covers about 70 per cent of workers here and it is important to help them achieve real wage increase to cope with the cost of living. The remaining 30 per cent of workers from the higher income group get help from the Government in this year’s Budget through other ways, such as lower domestic worker levy.
To further help workers with the cost of living, Sembawang Shipyard Employees' Union (SSEU-Sembawang) Deputy General Secretary Ariffin Urip suggested that the National Wages Council (NWC) guidelines should include a mandatory lump sum payment, in quantum value instead of percentage, to offset rising costs.
In response, SG Lim shared his concern that whether last year's NWC recommendation on $50 wage increase for low wage workers had been adopted in a widespread manner. In the unionised sector, a vast majority of unionised companies with workers earning $1,000 or less granted them a built-in wage increase of at least $50. Hence his concern was more with non-unionised companies.
SG Lim also encouraged unionists to work with the companies and push them to give at least a $50 increase to workers, as that is the minimum amount to qualify for the Wage Credit Scheme.
For the second part of this feature, please check out: Working together in the interest of all workers
