NTUC sees better bonuses, pay rises ahead
By Kor Kian Beng
WORKERS can expect at least 2.7 months of bonus this year, with those in the buoyant financial and shipping sectors getting more, according to the labour movement.
The amount, which includes the 13th-month annual wage supplement, is a spike over the 2.2 months paid out last year when the economy was less rosy.
Pay rises too will be better, with increments of 3.5 per cent to 4 per cent likely to be handed out in the new year compared to 0.98 per cent this year.
These upbeat numbers were disclosed yesterday by the National Trades Union Congress (NTUC), based on talks it had with about 1,200 unionised companies.
These companies were held up as role models by labour chief Lim Swee Say yesterday when he urged employers to follow in their footsteps and treat workers fairly amid the sharp rebound of the Singapore economy.
He was speaking at a labour dialogue where Mr Stephen Lee, president of the Singapore National Employers Federation (SNEF), made a similar call.
Citing a Straits Times report yesterday that 271 out of the 304 listed companies were profitable in the third quarter, Mr Lee said workers can look forward to better bonuses and pay increments.
Allaying worries that not all employers would do right by their workers, Mr Lee said the SNEF would be proactive in urging them to rethink their actions.
'SNEF will be the first to tell companies that if their profits are better, they should reward workers better. We're prepared to take that stand,' he said.
Lending his support, Mr Lim cautioned these bosses of the damage they do to the trust among tripartite partners.
He said: 'In a downturn, employers told workers to tighten belts. When good times come, some may tell workers that there is a need to continue to tighten the belt because bad times are coming soon.
'If you operate on this basis, there will be no trust, and tripartism will not last.'
Both leaders were responding to concerns raised by a unionist at the Singapore Tripartism Forum, attended by 300 business and union leaders.
In welcoming their reassurances, Mr Victor Pang, general secretary of the Singapore Airport Terminal Services Workers' Union, also said workers need to be realistic in their expectations, in the light of economic uncertainties next year.
He added: 'Workers should try to pick up new skills to ensure they continue to earn good bonuses and pay increases.'
Other issues discussed included ways to improve the flexible wage system and to get more companies to share with workers savings gained from productivity improvements.
Manpower Minister Gan Kim Yong, one of the panellists, said gainsharing was a key element of Singapore's 10-year push to raise yearly productivity growths from 1 per cent to 2 to 3 per cent.
This was the reason for the Government rolling out initiatives to train more productivity managers to implement systems to raise productivity and share gains with workers, he added.
Mr Lim said NTUC was also stepping up efforts to promote a performance-based wage system with a new target: narrow the minimum-maximum salary ratio from the current 1:1.56 to 1:1.3. But he did not give a timeframe.
A narrower ratio better reflects the actual value of a job and ensures Singapore wages remain competitive.
Gainsharing, added Mr Lim, would help Singapore achieve real wage growth as workers, motivated to be productive, would earn more over time.
SNEF's Mr Lee also urged bosses to lead the productivity charge, saying that in the current tight labour market, workers could 'do nothing' about improving their skills and still get higher wages.
Employers contacted yesterday appeared keen to reward their workers. Among them is Mr Desmond Wong, group human resources manager at Tiger Balm maker Haw Par Corporation.
He said the company's 130 workers can expect more than the three months' bonus it gave them in January this year.
By Kor Kian Beng
WORKERS can expect at least 2.7 months of bonus this year, with those in the buoyant financial and shipping sectors getting more, according to the labour movement.
The amount, which includes the 13th-month annual wage supplement, is a spike over the 2.2 months paid out last year when the economy was less rosy.
Pay rises too will be better, with increments of 3.5 per cent to 4 per cent likely to be handed out in the new year compared to 0.98 per cent this year.
These upbeat numbers were disclosed yesterday by the National Trades Union Congress (NTUC), based on talks it had with about 1,200 unionised companies.
These companies were held up as role models by labour chief Lim Swee Say yesterday when he urged employers to follow in their footsteps and treat workers fairly amid the sharp rebound of the Singapore economy.
He was speaking at a labour dialogue where Mr Stephen Lee, president of the Singapore National Employers Federation (SNEF), made a similar call.
Citing a Straits Times report yesterday that 271 out of the 304 listed companies were profitable in the third quarter, Mr Lee said workers can look forward to better bonuses and pay increments.
Allaying worries that not all employers would do right by their workers, Mr Lee said the SNEF would be proactive in urging them to rethink their actions.
'SNEF will be the first to tell companies that if their profits are better, they should reward workers better. We're prepared to take that stand,' he said.
Lending his support, Mr Lim cautioned these bosses of the damage they do to the trust among tripartite partners.
He said: 'In a downturn, employers told workers to tighten belts. When good times come, some may tell workers that there is a need to continue to tighten the belt because bad times are coming soon.
'If you operate on this basis, there will be no trust, and tripartism will not last.'
Both leaders were responding to concerns raised by a unionist at the Singapore Tripartism Forum, attended by 300 business and union leaders.
In welcoming their reassurances, Mr Victor Pang, general secretary of the Singapore Airport Terminal Services Workers' Union, also said workers need to be realistic in their expectations, in the light of economic uncertainties next year.
He added: 'Workers should try to pick up new skills to ensure they continue to earn good bonuses and pay increases.'
Other issues discussed included ways to improve the flexible wage system and to get more companies to share with workers savings gained from productivity improvements.
Manpower Minister Gan Kim Yong, one of the panellists, said gainsharing was a key element of Singapore's 10-year push to raise yearly productivity growths from 1 per cent to 2 to 3 per cent.
This was the reason for the Government rolling out initiatives to train more productivity managers to implement systems to raise productivity and share gains with workers, he added.
Mr Lim said NTUC was also stepping up efforts to promote a performance-based wage system with a new target: narrow the minimum-maximum salary ratio from the current 1:1.56 to 1:1.3. But he did not give a timeframe.
A narrower ratio better reflects the actual value of a job and ensures Singapore wages remain competitive.
Gainsharing, added Mr Lim, would help Singapore achieve real wage growth as workers, motivated to be productive, would earn more over time.
SNEF's Mr Lee also urged bosses to lead the productivity charge, saying that in the current tight labour market, workers could 'do nothing' about improving their skills and still get higher wages.
Employers contacted yesterday appeared keen to reward their workers. Among them is Mr Desmond Wong, group human resources manager at Tiger Balm maker Haw Par Corporation.
He said the company's 130 workers can expect more than the three months' bonus it gave them in January this year.
:o
