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A Great Workforce A Great Workplace

Wage Policies and Tripartism. Sim Li Chuan Labour Relations & Workplaces Division 2 Aug 2011. A Great Workforce A Great Workplace. Policies to Ensure Competitive Wages. .

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A Great Workforce A Great Workplace

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  1. Wage Policies and Tripartism Sim Li Chuan Labour Relations & Workplaces Division 2 Aug 2011 A Great Workforce A Great Workplace

  2. Policies to Ensure Competitive Wages

  3. . NWC was mooted by Dr Albert Winsemius, a World Bank Economic Advisor to Singapore, in the early 1970s, to help Singapore in its industrialization programme. He suggested bringing together the 3 social partners to formulate wage guidelines to achieve orderly wage increases in line with industrialization and economic growth…

  4. Overview of the National Wages Council (NWC) Overview of the National Wages Council (NWC) • Tripartite advisory body formed in Feb 1972 to provide for orderly wage adjustments in line with Singapore’s long-term economic and social development • NWC reviews wages and wage trends yearly in relation to the economy’s performance and prospect • Recommendations are arrived at by consensus

  5. American Chamber of Commerce in Singapore Japanese Chamber of Commerce & Industry, Singapore Singaporean-German Chamber of Industry & Commerce Singapore Chinese Chamber of Commerce & Industry Singapore Indian Chamber of Commerce & Industry Singapore Malay Chamber of Commerce & Industry Government Representatives Ministry of Manpower Public Service Division Ministry of Trade & Industry Economic Development Board Singapore Workforce Development Agency Employee Representatives National Trades Union Congress Amalgamated Union of Public Employees Food, Drinks & Allied Workers Union Healthcare Services Employees Union National Transport Workers’ Union Singapore Teachers’ Union Singapore Port Workers Union United Workers of Electronic & Electrical Industries United Workers of Petroleum Industry Employer Representatives Singapore National Employers Federation Singapore Business Federation NWC – Composition 2011/2012 Chairman: Prof Lim Pin, Professor of Medicine, NUS

  6. Contributions of the NWC • NWC Guidelines provide a basis for wage negotiations and help prevent/ minimise wage disputes, foster labour-management cooperation at company level, and bring about industrial harmony and tripartite partnership • Ensure that workers are rewarded with wage increase/ bonus payment in good years and allow companies to freeze or reduce wages in difficult years to stay viable and preserve jobs • Laid down an important principle for wage negotiations – wage increase should lag behind productivity growth to maintain and enhance competitiveness

  7. NWC Average Nominal Wage Increases and Economic Growth (1974-2010) Moderate Wage Increase (1972-78) High Wage Growth (1979-84) Wage Restraint (1985-87) Qualitative Wage Guidelines (1988 onwards) Wage restraint guidelines in 1998, 2001 and 2009 due to economic downturn

  8. CPF Scheme CPF Scheme • The Central Provident Fund (CPF) is a fully funded social security savings scheme for Singaporeans. • Under the CPF Act, employers and employees must make the stipulated contributions to the Fund each month. • The CPF is for: • Retirement savings • Home ownership • Affordable healthcare

  9. CPF Scheme CPF Scheme • CPF contribution rates from Sept 1, 2011: • Lower CPF contribution rates for older workers aimed at increasing their employability by reducing their fixed wage costs.

  10. Conclusion • The NWC has provided a reference point for wage negotiations in order to minimiseor prevent wage disputes. It has ensured that the labour market has maintained its competitiveness by moderating wages according to the business cycle. • The CPF scheme has been used as a policy device to enhance the wage competitiveness of older workers.

  11. Policies to Ensure Positive Employment Relations

  12. History of Industrial Relations in Singapore No. of Strikes and disputes No. of Man DaysLost 1,000,000 946,354 No. of man days lost 875,000 845,637 750,000 625,000 500,000 410,889 388,219 No. of strikes 375,000 250,000 125,000 0,000 2009 2011 No. of strikes No. of man days lost

  13. Stages of Development in Industrial Relations 50s & 60s 70s & 80s 90s & 2000 2010 and Future Adversarial Relationship Mutual Tolerance Cooperative Relationship Synergistic Partnership ?

  14. Factors Contributing to Industrial Harmony Sound Legal Framework & Dispute Resolution Mechanism • Employment Act • Industrial Relations Act • Central Provident Fund Act • Retirement Age Act Industrial Harmony Economic Growth Job Creation Reasonable/ Enlightened Management Positive Unionism Tripartite Partnership Approach Alignment of Interests of employers and workers in Good/Bad Times

  15. Sound Legal Framework Prevents & minimises disputes Facilitates negotiations & dispute resolution to avoid industrial actions

  16. Dispute Resolution Mechanism • MOM provides conciliation and mediation service for both unionised and non-unionised workers to help resolve disputes amicably

  17. Procedures for Settlement of Industrial Disputes (Unionised Employees) PROCEDURES FOR SETTLEMENT OF INDUSTRIAL DISPUTES (Unionised Employees) SNEF (Employers Federation) • Voluntary Arbitration • Compulsory Arbitration Employer Collective Bargaining Conciliation at MOM Arbitration at IAC Union NTUC (Trade Unions Congress)

  18. Procedures for Settlement of Employment Disputes (Non-Unionised Employees) PROCEDURES FOR SETTLEMENT OF EMPLOYMENT DISPUTES (Non-Unionised Employees) Claim Lodged with MOM No settlement Adjudication by Commissioner for Labour (Labour Court) Conciliation Settlement Agreement reached and dispute resolved Appeal to High Court if dissatisfied

  19. Procedures for Settlement of Industrial Disputes (Tripartite Mediation) MOM accepts the case and mediates the dispute with assistance from Tripartite Mediation Advisors (TMAs) to facilitate an amicable settlement PME (Non-Ordinary Member) with employment dispute PME seek assistance from Trade Union or Federation Dispute settled? Yes Case closed No PME can pursue non-salary claim via civil suit Trade Union or Federation verifies if PME meets eligibility criteria Salary claim? No Yes Trade Union or Federation lodges dispute with MOM through TMOL* Adjudication by Labour Court (salary claims only)

  20. Reasonable / Enlightened Management • Sharing of information • Consultation with unions • Fair rewards for workers • Implementation of enlightened HR practices

  21. Positive Unionism • Objectives of trade unions: • Promote good IR • Improve working conditions • Raise productivity for benefit of workers, employers and economy • Long-term interests over short-term gains • Work with management to achieve win-win outcome

  22. Conclusion • Strong tripartite partnership has been Singapore’s competitive advantage in meeting economic, employment, and industrial relations challenges. • Tripartite dispute mechanisms have enabled Singapore to maintain positive employment relations.

  23. Purpose of Tripartite Mediation • Eligibility of PME • Types of Disputes • Employers Rights to Object • Snapshot of PME Framework • Workflow of PME Framework • Anticipated Issues Thank you A Great Workforce A Great Workplace

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