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Ah, the FAPee TRAITORS' motive becums clear now! They just wanna suck more of Sporns' already paltry pay into the Familee's insatiable GREEDY coffer!
<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 26, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Employers ready to back partial CPF restoration
Labour leaders agree that any CPF rate hike will be factored into wage adjustment
By CHUANG PECK MING
(SINGAPORE) With a final government decision expected soon - as early as this week, some say - employers have yielded to the call for a partial restoration of the employer's CPF contribution rate.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Slowly: SNEF wants any CPF rate hike to be gradual, with bosses given enough notice </TD></TR></TBODY></TABLE>This came after labour leaders conceded that any increase in the rate must be taken into account in wage adjustments.
But in giving in to the call from the National Trades Union Congress (NTUC), the Singapore National Employers Federation (SNEF) has continued to maintain that the restoration of the Central Provident Fund rate must be gradual - and bosses must be given enough notice.
'It would be helpful if any CPF restoration is done gradually with sufficient notice given,' SNEF president Stephen Lee said over the weekend in an e-mail response to BT's query.
Welcoming the labour movement's concession to tie wage hikes to any rise in the CPF rate, Mr Lee said: 'I think there is room for some wage increases to be channelled into the CPF Medisave and retirement accounts. This will also help to ease any wage-induced inflation.'
Pressure on wages is mounting with a strong economic rebound, tight labour market, low unemployment and high inflation.
'Productivity is likely to pick up this year, as is usually the case after a recession, and there may be additional pressure on companies to make higher wage adjustments to meet worker expectations,' SNEF said.
The federation said the labour movement's positive attitude would help ease employers' fear of rising wage costs and falling productivity over the past few years. It added that companies which have not fully recovered from last year's recession 'could make adjustments in their total wages should there be an increase in the employer CPF contribution rate'.
The call to restore the CPF rate, which caught employers by surprise, was made nearly two weeks ago by NTUC secretary-general Lim Swee Say, who is also Minister in the Prime Minister's Office.
Speaking to reporters a day after the government announced 13.1 per cent economic growth in the first three months - the biggest quarterly jump in 16 years - Mr Lim said there is scope to raise the employer CPF rate by 1.5 percentage points to the long-term CPF target rate of 36 per cent. But he said NTUC is not seeking to restore it at one go.
Currently, the CPF rate is 34.5 per cent, with employers contributing 14.5 per cent and workers 20 per cent.
Most chief executives BT polled over the week, while acknowledging that it's only fair to workers to restore the CPF rate, felt it is premature at this point in time to do so. Many industries have yet to fully recover from the recession - and some dark clouds still hang over the economic rebound, they said. The CEOs urged at most a partial restoration - and to do it gradually, in stages.
'As an employer, we are taking a cautious approach as we believe there are still downside risks to a sustainable global recovery,' said Jackie Cheng, CEO of Hisaka Holdings.
Added Stefanie Yuen Thio, joint managing director of TSMP Law Corporation: 'The SEC's (Securities and Exchange Commission) charges against Goldman Sachs have rocked the market further, with many wondering how many other companies will be prosecuted. Natural disasters like the Icelandic volcano have added to the crisis.'
There are exceptions. Advocating an immediate full restoration of the CPF rate, David Leong, managing director of PeopleWorldwide Consulting said: 'One swift prick is better than many irritable tiny pricks for employers. The government can use other monetary and fiscal policies to help employers cope with wage loading in poorer times, like taxation reliefs for wage components.'
Lim Soon Hock, managing director of Plan-B ICAG, thought July would be a good time to restore the CPF rate. 'By then the economic outlook would be more certain,' he pointed out.
Both SNEF and NTUC felt a decision on the restoration should be made before the National Wages Council finalises its wage guidelines, so that any increase in the CPF rate would be factored into its recommendations. The NWC is expected to unveil its guidelines in June.
</TD></TR></TBODY></TABLE>
<TABLE border=0 cellSpacing=0 cellPadding=0 width=452><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 26, 2010
</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Employers ready to back partial CPF restoration
Labour leaders agree that any CPF rate hike will be factored into wage adjustment
By CHUANG PECK MING
(SINGAPORE) With a final government decision expected soon - as early as this week, some say - employers have yielded to the call for a partial restoration of the employer's CPF contribution rate.
<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD>
</TD></TR><TR class=caption><TD>Slowly: SNEF wants any CPF rate hike to be gradual, with bosses given enough notice </TD></TR></TBODY></TABLE>This came after labour leaders conceded that any increase in the rate must be taken into account in wage adjustments.But in giving in to the call from the National Trades Union Congress (NTUC), the Singapore National Employers Federation (SNEF) has continued to maintain that the restoration of the Central Provident Fund rate must be gradual - and bosses must be given enough notice.
'It would be helpful if any CPF restoration is done gradually with sufficient notice given,' SNEF president Stephen Lee said over the weekend in an e-mail response to BT's query.
Welcoming the labour movement's concession to tie wage hikes to any rise in the CPF rate, Mr Lee said: 'I think there is room for some wage increases to be channelled into the CPF Medisave and retirement accounts. This will also help to ease any wage-induced inflation.'
Pressure on wages is mounting with a strong economic rebound, tight labour market, low unemployment and high inflation.
'Productivity is likely to pick up this year, as is usually the case after a recession, and there may be additional pressure on companies to make higher wage adjustments to meet worker expectations,' SNEF said.
The federation said the labour movement's positive attitude would help ease employers' fear of rising wage costs and falling productivity over the past few years. It added that companies which have not fully recovered from last year's recession 'could make adjustments in their total wages should there be an increase in the employer CPF contribution rate'.
The call to restore the CPF rate, which caught employers by surprise, was made nearly two weeks ago by NTUC secretary-general Lim Swee Say, who is also Minister in the Prime Minister's Office.
Speaking to reporters a day after the government announced 13.1 per cent economic growth in the first three months - the biggest quarterly jump in 16 years - Mr Lim said there is scope to raise the employer CPF rate by 1.5 percentage points to the long-term CPF target rate of 36 per cent. But he said NTUC is not seeking to restore it at one go.
Currently, the CPF rate is 34.5 per cent, with employers contributing 14.5 per cent and workers 20 per cent.
Most chief executives BT polled over the week, while acknowledging that it's only fair to workers to restore the CPF rate, felt it is premature at this point in time to do so. Many industries have yet to fully recover from the recession - and some dark clouds still hang over the economic rebound, they said. The CEOs urged at most a partial restoration - and to do it gradually, in stages.
'As an employer, we are taking a cautious approach as we believe there are still downside risks to a sustainable global recovery,' said Jackie Cheng, CEO of Hisaka Holdings.
Added Stefanie Yuen Thio, joint managing director of TSMP Law Corporation: 'The SEC's (Securities and Exchange Commission) charges against Goldman Sachs have rocked the market further, with many wondering how many other companies will be prosecuted. Natural disasters like the Icelandic volcano have added to the crisis.'
There are exceptions. Advocating an immediate full restoration of the CPF rate, David Leong, managing director of PeopleWorldwide Consulting said: 'One swift prick is better than many irritable tiny pricks for employers. The government can use other monetary and fiscal policies to help employers cope with wage loading in poorer times, like taxation reliefs for wage components.'
Lim Soon Hock, managing director of Plan-B ICAG, thought July would be a good time to restore the CPF rate. 'By then the economic outlook would be more certain,' he pointed out.
Both SNEF and NTUC felt a decision on the restoration should be made before the National Wages Council finalises its wage guidelines, so that any increase in the CPF rate would be factored into its recommendations. The NWC is expected to unveil its guidelines in June.
</TD></TR></TBODY></TABLE>
