Boss! have you seen this? 
National Wage Council issues recommendations
Tue, May 25, 2010
Sustainable wage increases and productivity measures form the core of the recommendations of the National Wage Council (NWC) for the period from July 1 this year to June 30 next year.
After taking into account the strong and broad-based recovery of the Singapore economy, the NWC recommends that companies should grant sustainable wage increases to employees, taking into account company performance and prospects.
However, it said in situations where companies still face cost pressures, employees may be given variable payments instead.
In line with the scheduled increase in employers' CPF contribution, companies are also urged to note that companies and unions should take this into account as such contributions are part of the overall wage package.
The council also recommends that companies should continue to maintain and where possible, enhance flexibility in their wage structures, by building up the monthly variable component (MVC) from wage increases, and rewarding employees for their contributions through variable payments linked to performance and productivity.
It also turned its attention to low wage workers, who were especially affected by the high inflation in 2008 and the downturn in 2009. For this segment of workers, the NWC recommends that in granting wage increases, companies pay greater attention to low wage workers. As an example, it said companies could include a dollar quantum for built-in wage increases and/or variable payments.
Productivity growth the basis of sustainable wage growth
The wage council, in acknowledging that higher productivity would enhance Singapore's competitiveness which would translate into sustainable wage increases in the long run, 'strongly urges the tripartite partners to work closely together to raise productivity'.
It also welcomes the Government's initiative to set up the National Productivity and Continuing Education Council to oversee the nation's productivity efforts.
Management is urged to drive productivity measures and proactively look into enhancing productivity in their companies. Companies should reduce their reliance on low-skilled foreign manpower and take advantage of the various government initiatives, such as the Productivity and Innovation Credit and the National Productivity Fund, to raise productivity.
To engage employees in the productivity improvement process, the NWC also recommends that companies should share productivity gains with employees which could be in the form of productivity incentives or bonuses.
In line with this, companies are also encouraged to formulate appropriate, consistent and transparent Key Performance Indicators (KPIs), in consultation with unions/employees, that take into consideration employees' contributions to productivity gains and to reward employees accordingly.
Help for vulnerable segments of the workforce
Companies who need workers are urged to look at employing and retaining older workers and encouraging more women to join the workforce.
This is in line with the NWC's initiatives to enhance the employability and incomes of vulnerable groups, including low wage, contract and casual workers, older workers and, women wanting to join or return to the workforce.
With its endorsement of the Tripartite Guidelines on Re-employment of Older Employees, the NWC exhorts companies to to work with unions/employees to implement re-employment policies and systems as soon as possible by adopting the Guidelines, which will be implemented in 2012.
The council also recommends for the tripartite partners to step up efforts to help low wage workers, including contract and casual workers, so that they can benefit from the enhanced Workfare Income Supplement (WIS) scheme and the Workfare Training Support (WTS) scheme which will be introduced from 1 July 2010. Employers and workers are also urged to tap on these schemes.
The NWC recommendations are applicable to all employees, management, executives and rank-and-file employees, unionised and non-unionised companies in both public and private sectors.
National Wage Council issues recommendations
Tue, May 25, 2010
Sustainable wage increases and productivity measures form the core of the recommendations of the National Wage Council (NWC) for the period from July 1 this year to June 30 next year.
After taking into account the strong and broad-based recovery of the Singapore economy, the NWC recommends that companies should grant sustainable wage increases to employees, taking into account company performance and prospects.
However, it said in situations where companies still face cost pressures, employees may be given variable payments instead.
In line with the scheduled increase in employers' CPF contribution, companies are also urged to note that companies and unions should take this into account as such contributions are part of the overall wage package.
The council also recommends that companies should continue to maintain and where possible, enhance flexibility in their wage structures, by building up the monthly variable component (MVC) from wage increases, and rewarding employees for their contributions through variable payments linked to performance and productivity.
It also turned its attention to low wage workers, who were especially affected by the high inflation in 2008 and the downturn in 2009. For this segment of workers, the NWC recommends that in granting wage increases, companies pay greater attention to low wage workers. As an example, it said companies could include a dollar quantum for built-in wage increases and/or variable payments.
Productivity growth the basis of sustainable wage growth
The wage council, in acknowledging that higher productivity would enhance Singapore's competitiveness which would translate into sustainable wage increases in the long run, 'strongly urges the tripartite partners to work closely together to raise productivity'.
It also welcomes the Government's initiative to set up the National Productivity and Continuing Education Council to oversee the nation's productivity efforts.
Management is urged to drive productivity measures and proactively look into enhancing productivity in their companies. Companies should reduce their reliance on low-skilled foreign manpower and take advantage of the various government initiatives, such as the Productivity and Innovation Credit and the National Productivity Fund, to raise productivity.
To engage employees in the productivity improvement process, the NWC also recommends that companies should share productivity gains with employees which could be in the form of productivity incentives or bonuses.
In line with this, companies are also encouraged to formulate appropriate, consistent and transparent Key Performance Indicators (KPIs), in consultation with unions/employees, that take into consideration employees' contributions to productivity gains and to reward employees accordingly.
Help for vulnerable segments of the workforce
Companies who need workers are urged to look at employing and retaining older workers and encouraging more women to join the workforce.
This is in line with the NWC's initiatives to enhance the employability and incomes of vulnerable groups, including low wage, contract and casual workers, older workers and, women wanting to join or return to the workforce.
With its endorsement of the Tripartite Guidelines on Re-employment of Older Employees, the NWC exhorts companies to to work with unions/employees to implement re-employment policies and systems as soon as possible by adopting the Guidelines, which will be implemented in 2012.
The council also recommends for the tripartite partners to step up efforts to help low wage workers, including contract and casual workers, so that they can benefit from the enhanced Workfare Income Supplement (WIS) scheme and the Workfare Training Support (WTS) scheme which will be introduced from 1 July 2010. Employers and workers are also urged to tap on these schemes.
The NWC recommendations are applicable to all employees, management, executives and rank-and-file employees, unionised and non-unionised companies in both public and private sectors.
