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From industrial relations to manpower planning: the transformations of Singapore's industrial relations. Mia Casey. The strategic choice model. Analysis of industrial relations systems of America vs. Singapore
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From industrial relations to manpower planning: thetransformations of Singapore's industrial relations Mia Casey
The strategic choice model • Analysis of industrial relations systems of America vs. Singapore • Strategic choices are included together with values and historical as well as current structures, and a three-tier map of industrial relations parties and activities at different levels Can the strategic choice model of American Industrial Relations be really applied to Singapore? Some would say no: • Development of IR in America is evolutionary, not a transformation • Does not discuss HRM Defense: systematic nature of change – a transformation, strategic choice were based on environmental factors = Strategic Choice Model – a tool for analyzing and understanding IR developments not just in America • Relocation of strategic initiatives, reinterpretation of welfare state, assessments of changes in social protection = Understanding institutional stability inseparable from evolution = Systems of IR emerge differently in different nations • Singapore’s IR – driven by political pragmatism “all aspects of life to be instrumentally harnessed to the pursuit of development”; different from other Asian NIC’s
SINGAPORE • https://www.youtube.com/watch?v=O12Lwol3iaY • https://www.youtube.com/watch?v=AifICO7Ri6Y • 1819 – Singapore was discovered by Sir Stamford Raffles • 1826-67 - Singapore became part of Straits Settlements • 1867-1941 – became part of Crown Colony; progressed from coaling station for steamships to an entrepot especially for Malayan rubber • 1942 – Japanese defeats British during World War II
SINGAPORE • 1946 – liberation from Japanese occupation, return of British administration; political rivalry between Leftist forces backed by Communist Party of Malaya & others seeking a non-communist, social democratic polity. • 1955 – part self-government • 1959 – full self-government; PAP (alliance of Leftist and democratic politicians) led by Lee Kuan Yew was elected into office • PRAGMATISM – government’s social control, transition from 3rd world to developed market economy • Rapid industrialization as response to MNC’s
Transformation of IR’s over time Colonial Administration to Regulated Pluralism (1960-1967) • Anti-colonialism, nationalist and pro-communist political collaboration and rivalry, rapid labor-intensive industrializing • Economic communities demobilized • Trade Unions Ordinance 1940 – compulsory registration of union, Trade Disputes Ordinance 1941 – intimidation illegal, regulate picketing, Criminal Law Ordinance – regulated industrial action in essential services, conflict management through piecemeal regulation, Central Provident Fund (CPF) Ordinance 1955 – state superannuation • Industrial Relations Ordinance 1960 – collective bargaining, Industrial Arbitration Court (IAC) • 1961 PAP nationalist leaders – National Trade Union Centre vs. revolutionary intellectuals Singapore Association of Trade Unions (SATU) • 1964 – National Trades Union Congress • 1966 – unlawful strike
Transformation of IR’s over time Colonial Administration to Regulated Pluralism Strategic choices and initiatives of nationalists and pro-communists involving unions in an anti-colonial struggle, 1945-63; PAP full-self government, 1959-65; within the Federation of Malaysia 1963-65 PAP sovereign government, 1965 British Colonial Office, 1867 Strategic choices and initiatives of nationalist leaders for the regulation of employees and unions, 1960-67 Strategic choices and initiatives of colonial administrators for the regulation of labor, 1816-1959 Entrepot and commerce Industrialization through MNCs
Transformation of IR’s over time Regulated Pluralism to Corporatism (1968-1978) • Employment Act 1968 & Industrial Relations (Amendment) Act 1968 • 1969 NTUC Modernization seminar – high norms of productivity • 1972 tripartite National Wages Council (NWC) – wages should be regulated in line with economic growth, centralized wage fixing and determination of superannuation • Corporatism – national interest *MNCs • 1975 – Ministry of Labor’s preventive mediation, compulsory arbitration • 1977 – Metal Box workers strike
Transformation of IR’s over time Regulated Pluralism to Corporatism Federation; independence; colective bargaining constraints; union modernization; Bristih military withdrawal; full employment; oil price hikes PAP upgrade of Singapore economy Nationalists outflank pro-communists, 1963 Corporatist regulation of trade unions, wage determination, peaceful industrial relations, 1968-78 Nationalist leaders’ regulation of plurality of workers and employers, 1960-67 Strategic initiatives of nationalist leaders by government and unions Labor-intensive rapid industrialization based om MNCs investment decisions
Transformation of IR’s over time Corporatism to Corporatist Paternalism (1979-86) • Complement restructuring of labor-intensive, low technology, low value-added economy to capital-intensive, high technology, high-value added • 1979 – 1981 – NWC boosted wage levels with the intention of slowing employment growth and raising productivity *unions • 1980 – NTUC Progress into the 80s seminar – bring technocrats into NTUC leadership • Union restructuring – industry-wide unions • 1982 – redefinition of trade unions forbidding breakaway unions • http://blogs.wsj.com/searealtime/2013/08/26/the-strike-that-rattled-singapore-a-wsj-investigation/tab/interactive/ • 1986 – recession
Transformation of IR’s over time GDP growth fell from 8.2% in 1984 to -1.8% in 1985, unemployment reached 5%
Transformation of IR’s over time Corporatism to Corporatist Paternalism (1979-86) • Complement restructuring of labor-intensive, low technology, low value-added economy to capital-intensive, high technology, high-value added • 1979 – 1981 – NWC boosted wage levels with the intention of slowing employment growth and raising productivity *unions • 1980 – NTUC Progress into the 80s seminar – bring technocrats into NTUC leadership • Union restructuring based on Japan – industry-wide unions, tidied up tripartite structure • 1982 – redefinition of trade unions forbidding breakaway unions • http://blogs.wsj.com/searealtime/2013/08/26/the-strike-that-rattled-singapore-a-wsj-investigation/tab/interactive/ • 1986 – recession – cuts to the CPF and severe wage restraint - NWC recommendations were variously related to company performance
Transformation of IR’s over time Corporatism to Corporatist Paternalism Economic restructuring from low technology, low-calue added manufacturing to high technology, high valu-added production interrupted by economic recession, 1985-86 New blood to replace ‘Old Guard’ Nationalist leaders’ regulation of plurality of workers and employers, 1960-67Corporatist control of trade unions, wage determination, and peaceful industrial relations, 1968-78 Strategic initiatives by government and unions Corporatist paternalism influenced by Japanese employment relations and trade union structures, 1979-86 From labor to technology-intensive industrialization based om MNCs investment
Transformation of IR’s over time Industrial Relations to ‘Manpower Planning’, post 1997 • Increasing globalization • 1997 Asian Crisis
Transformation of IR’s over time Annual growth slumped from 10.4% to 0.2%
Transformation of IR’s over time Industrial Relations to ‘Manpower Planning’, post 1997 • Increasing globalization • 1997 Asian Crisis • 1998 – conversion of Ministry of labor to Ministry of Manpower (MOM) • Manpower planning - human resource planning/management • Investment in people – knowledge economy
Transformation of IR’s over time 1987-97 and post 1997 Economic rowth until 1997; 1998 recession; 1999-2000 recovery. 2001-04 low growth Economic recession, 1986 Industrial relations interregnum, 1987-97 Corporatist paternalism Tripartite strategic intitaives from 1997 Manpower Planning MNC and Singaporean company ebtreprenurial efforts towards a dynamic global city and knoweldge economy
SINGAPORE http://app.singapore.sg/about-singapore/sg-facts