The NTUC and Secretary-General Ng Chee Meng diam diam on this

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Aren't the NTUC supposed to fight for the workers' rights?
Except when the interests of the PAP government is at stake?

Issues raised in bus drivers' suit against SBS Transit would affect larger class of workers: High Court​

The workers claim that they had been made to work without a rest day each week, and were also underpaid for overtime work.PHOTO: ST FILE

Selina Lum
Law Correspondent

June 10, 2021

SINGAPORE - Lawsuits brought by 13 bus drivers against transport operator SBS Transit over overtime pay involve important questions of law that would affect a larger class of workers in Singapore, a High Court judge said.
The workers claim in their suits, filed in 2019 and 2020, that they had been made to work without a rest day each week, and were also underpaid for overtime work.
In a written judgment allowing the case to be transferred to the High Court, Justice Audrey Lim on Thursday (June 10) noted that the Employment Act provides for mandated rest days and limits to hours of work to protect the rights of employees.
"The question of whether this can be 'overridden' in a case where an employee is deemed to provide essential services... is important, as it affects a larger population of workers in general and not just the immediate plaintiff or parties to the case," Justice Lim said.
A provision in the Act allows an employer to require employees in essential services to work in excess of the prescribed limit of hours or to work on a rest day.
The questions thus involve the interpretation of provisions in the Employment Act relating to whether a rest day can be scheduled such that an employee can be made to work for 12 consecutive days over a 14-day period, and whether bus drivers fall within the definition of employees providing "essential services".

Justice Lim said there would be potential ramifications on how such employment contracts are structured in terms of granting days off, computing overtime pay and determining work hours.
On Sept 20, 2019, five bus drivers each filed a magistrate's court suit against SBS Transit. Subsequently, eight others filed similar suits against SBS.
All 13 plaintiffs are represented by lawyer M. Ravi.
Last year, the parties agreed for the suit relating to one plaintiff to be heard as a test case, to save time and money.

This means the court's decision and findings on Mr Chua Qwong Meng's suit will be binding on all the plaintiffs.
Mr Chua claims that SBS had breached the terms of his employment contract, which commenced on April 3, 2017, and the Employment Act.
He alleged that SBS failed to give him a rest day each week.
He also alleged that he was underpaid for overtime work - which includes working on a rest day, for working beyond the prescribed hours and for working on a public holiday.

SBS, which is represented by Senior Counsel Davinder Singh, denies his claims.
It asserts that it has complied with its contractual obligations and the laws, rules or regulations pertaining to working hours, overtime pay and rest days.
In particular, the law provides that an employee providing "essential services" may be required to exceed the prescribed work hours, and to work on a rest day.
In March, Mr Chua filed an application to transfer the test case from the magistrate's court to the High Court.

 

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Dot already knows what the NTUC and its Secretary-General Ng Chee Meng will say:
"As the case is before the courts, we are unable to comment."

 

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Allianz-Income deal off in its current form, but Govt open to new arrangement: Edwin Tong​

Allianz on July 17 made an offer to buy a controlling stake of at least 51 per cent in Income, in a deal that was valued at $2.2 billion. ST PHOTO: SHINTARO TAY

Angela Tan
Senior Business Correspondent

Oct 15, 2024


SINGAPORE – The much-debated deal between German insurer Allianz and Income Insurance has been called off by the Singapore Government on concerns over the deal structure and the ability of the local insurer to continue its social mission.
The scrapping of the deal was announced in Parliament on Oct 14 by Mr Edwin Tong, who is Minister for Culture, Community and Youth and Second Minister for Law.
“The Government has assessed the proposed transaction and has decided that it would not be in the public interest for the transaction, in its current form, to proceed,” he said.
The Insurance Act will be amended on an urgent basis to allow the approval of the deal to be withheld. This will pave the way for the Monetary Authority of Singapore (MAS) to consider the views of the Ministry of Culture, Community and Youth (MCCY) in future applications related to insurers that are cooperatives or are linked to cooperatives.
Mr Tong said the Government does not have concerns over Allianz’s standing or suitability to acquire a majority stake in Income.
The concerns lie in the terms and structure of this specific transaction, particularly in the context of Income’s corporatisation exercise.
Mr Tong added that the Government is open to future new proposals, if the concerns are addressed.

The latest move comes three months after Allianz on July 17 made an offer to buy a controlling stake of at least 51 per cent in Income, in a deal that was valued at $2.2 billion.
The issue was then debated at a Parliament sitting on Aug 6.
After the sitting, MAS provided MCCY with new information submitted by Allianz, Income and Income’s parent NTUC Enterprise about optimising the capital of Income after the deal is completed.

The plan was for Income to run its insurance business more efficiently, without the need to hold as much capital as it currently does. Allianz thus projected that Income could return some $1.85 billion in cash to its shareholders within the first three years after completion of the transaction.
Mr Tong said MCCY had not seen this information earlier. These projections were submitted to MAS around the time the proposed transaction was announced in mid-July.
Mr Tong said MAS had reviewed the information based on “prudential grounds”, focusing on whether Allianz was a fit and proper institution, its financial strength and track record, so that the interests of Income’s policyholders would be safeguarded.
“Based on the plans submitted, MAS did not have reason for concern as Income was projected to continue to meet regulatory capital requirements with a healthy margin even with the capital reduction,” Mr Tong said.

However, after the August sitting, MAS saw that Income’s planned capital optimisation could be relevant to MCCY’s views on the proposed deal and shared the information with the ministry.
“It was at this point, after MCCY reviewed the information on the proposed transaction, that we became concerned,” Mr Tong said.
“We decided that there was sufficient basis for the Government to intervene in the proposed transaction, to protect the public interest, notwithstanding that the financial prudential requirements had been satisfied,” he said.
MCCY is not confident that the proposed transaction would not affect the ability of the co-op movement as a whole, or of Income itself, to carry out its social mission, the minister said.
When Income embarked on a corporatisation exercise in 2022 to change its legal form from a cooperative to a company, it told MCCY that it was aiming to build up capital resources and enhance its financial strength.
Income also sought and obtained an exemption to allow it to carry over a surplus of $2 billion to the new corporate entity.
If not for the exemption, the $2 billion sum would have gone to the Co-operative Societies Liquidation Account to benefit the co-op movement in Singapore as a whole. This is a requirement under the legal framework for the winding up of a cooperative.
More On This Topic
Allianz to consider revising Income offer after current deal blocked by Singapore Govt
ST Explains: What scuppered the Allianz-Income deal?
The proposed capital reduction runs counter to the premise on which the exemption was given, Mr Tong pointed out.
“MCCY has not seen any arrangement within the present transaction to account for the estimated $2 billion surplus that was carried over to the new corporate entity... There is no clarity on how this sum will be directed towards advancing Income’s social mission,” he said.
Second, MCCY is not convinced that Income can continue fulfilling its social mission after the deal.
There are no clear binding provisions or structural protections in the deal to ensure Income’s social mission will be discharged, said Mr Tong.
It is also not clear what Income might do after the capital reduction, be it adjusting or trimming its insurance portfolio, and what impact this could have on policyholders.
The above two factors, when taken together with the fact that Income’s parent company NTUC Enterprise will be a minority shareholder after the deal, cumulatively posed a risk that MCCY deemed “not to be acceptable”.
In response to several MPs’ concerns about how the Government plans to exercise its oversight going forward, as well as the mechanisms to protect Income’s social mission and capital surpluses, Mr Tong said MCCY may consider future legislative amendments to give the Government stronger levers over co-ops that may wish to be corporatised.
In response to Workers’ Party MP Jamus Lim’s (Sengkang GRC) concerns over the regulator’s reputation, Second Minister for Finance Chee Hong Tat said MAS takes its reputation very seriously, which is “why we want to handle this in an open and transparent manner”.
Mr Chee, who tabled an amendment to the Insurance Act after Mr Tong’s statement, explained that current legal provisions do not provide explicitly for the minister in charge of MAS, or MAS itself, to assess an application on non-prudential considerations.
In a Facebook post, Prime Minister Lawrence Wong said the Government supports having a strong partner for Income to strengthen its capital base and market position.
“We have no concerns over Allianz’s standing or suitability to acquire a majority stake in Income. Allianz is a major global insurance company and asset manager that can bring financial strength and expertise to Income.
“Our concerns are over the structure and terms of this specific transaction, particularly in the context of assurances which Income had given to MCCY when the former was corporatised in 2022. Though this transaction will not proceed, we remain open to a new deal that Income may pursue with Allianz or other partners, so long as our concerns are fully addressed.”


Former Income chief executive Tan Suee Chieh told The Straits Times that he had not expected the deal to be halted, and welcomed the decision to change the law to reject the proposal in its current state.
Professor Lawrence Loh, director of NUS Business School’s Centre for Governance and Sustainability, said: “I am very encouraged that the Government has the courage to reverse anything they see is not right.”
He added: “The merits of the deal are there, given what we knew since July, but with the new information on the capital reduction, that is contrary to the original intent and spirit of the acquisition. It is unacceptable, given that when Income was corporatised, it was exempted from returning the $2 billion surplus, which in my mind is public money.”
The second reading and third reading of the Bill will take place on Oct 16.

 

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The PAP MPs in NTUC's Central Committee: Ng Chee Meng, Heng Chee How, Desmond Tan,
The PAP MPs, former PAP MPs and ministers on the board of directors of NTUC Enterprise: Lim boon Heng, Lim Swee Say, Ng Chee Meng
are all sleeping!

NTUC central committee not aware of capital reduction plan in Allianz-Income deal: Desmond Tan​

NTUC Enterprise went into the deal to strengthen Income in the longer run as it recognised the challenges that Income had been facing. ST PHOTO: AZMI ATHNI

Goh Yan Han
Political Correspondent

Oct 17, 2024

SINGAPORE – The labour movement’s central committee did not know of the plan to return $1.85 billion to shareholders under the Allianz-Income deal before it was mentioned in Parliament on Oct 14, said NTUC deputy secretary-general Desmond Tan.
Speaking in Parliament on Oct 16, Mr Tan said the central committee had been briefed by Income Insurance and its parent company, NTUC Enterprise, on the strategic imperatives of the deal, but the capital reduction plan was not highlighted to it.
As Income is a non-listed public company, it would have to comply with the legal responsibility of non-disclosure of commercially sensitive information on Allianz’s plans post-acquisition, he said.
Mr Tan made the point in response to questions from Non-Constituency MP Leong Mun Wai and Nominated MP Raj Joshua Thomas during the debate on the Insurance (Amendment) Bill, adding that Income is subject to the Singapore Code on Take-overs and Mergers.
The capital reduction plan is a key factor in the surprising turn of events that saw the Government block the hotly debated $2.2 billion deal between Income and German insurer Allianz that was first made public in July.
Allianz had made an offer to buy a controlling stake of at least 51 per cent in Income.
On Oct 14 in Parliament, Minister for Culture, Community and Youth Edwin Tong said in a ministerial statement that the Government had decided it would not be in the public interest for the transaction to proceed in its current form.

While the Government does not have concerns over Allianz’s standing or suitability to acquire a majority stake in Income, the concerns lie in the terms and structure of this specific transaction, particularly in the context of Income’s corporatisation exercise, he said.
Mr Tong added that before the deal was raised in Parliament in August, his ministry had not seen the plan for Income to return some $1.85 billion in cash to its shareholders within the first three years after completion of the transaction.
During the debate on the Insurance (Amendment) Bill on Oct 16, Mr Tan explained why NTUC had supported the proposed deal.

When NTUC was briefed on the proposal, it was difficult for the unions to learn that Income was planning to sell a majority stake to Allianz, given the company’s history as the labour movement’s first social enterprise, said Mr Tan, who is Senior Minister of State in the Prime Minister’s Office.
But NTUC Enterprise went into the deal to strengthen Income in the longer run as it recognised the challenges that Income had been facing amid a more competitive and tightly regulated insurance landscape, he noted.
“The NTUC central committee agreed with the strategic intent and approached it in good faith,” he said.
He also clarified that NTUC, as a major shareholder of NTUC Enterprise, does not get involved in the day-to-day running of operations.

It delegates to the board of NTUC Enterprise the responsibility of making decisions pertaining to all businesses.
Mr Tan also noted that Second Minister for Finance Chee Hong Tat had acknowledged that NTUC had acted in good faith and in the interest of workers and members.
“If you look at it, the Government and NTUC share the same strategic intent and broader objectives for Income and the co-op movement,” said Mr Tan.
“But as far as the specifics of this transaction are concerned, there is now perhaps a difference in view,” he added, referring to the concerns Mr Tong had raised about the deal.
He added that NTUC has reviewed the matter and accepts the Government’s considerations and decisions on the proposed transaction.
“We note that the Government remains open to any arrangement that Income may wish to pursue, whether with Allianz or any other partners, so long as the concerns highlighted are fully addressed.”
Mr Tan added that Income has committed to study carefully the implications of the ministerial statement by Mr Tong and the amendments of the Insurance Act, and will work closely with the relevant stakeholders to decide on the next course of action.
“The labour movement – which includes NTUC Enterprise and NTUC – is united in (its) purpose and we will continue to do right by our people, and what is necessary for the longer-term interest to serve workers and the people of Singapore,” he said.
In a Facebook post on the evening of Oct 16, labour chief Ng Chee Meng said the decision to halt the Allianz-Income deal and its implications were of key concern to the labour movement and union leaders who had supported the deal.
He added that Deputy Prime Minister Gan Kim Yong, Mr Tong and Mr Chee held an “honest and productive engagement” with NTUC and union leaders to clarify issues after the Parliament sitting.
“NTUC respects and accepts the Government’s decision that the transaction cannot proceed in its current form,” he said.

 

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GE2025: Income-Allianz deal made in good faith, NTUC will do better, says Ng Chee Meng​

Labour chief Ng Chee Meng is campaigning to get back into Parliament by winning in Jalan Kayu SMC, where he faces WP candidate Andre Low.ST PHOTO: LIM YAOHUI
Sue-Ann Tan and Kimberly Kwek

SINGAPORE – The sale of NTUC’s Income Insurance to German insurer Allianz was proposed in good faith and seen to be reasonable, said labour chief Ng Chee Meng on April 27, in response to criticism that the labour movement had not spoken up against the deal.

Speaking at the PAP rally for Jalan Kayu SMC, the single seat that he is running in, he said: “We thought in the labour movement that it was a reasonable deal.”

Noting that Income’s market share had fallen from 20 per cent to 6 per cent in the past 10 years, Mr Ng said: “The proposed deal could strengthen Income and, most importantly, protect the interest of Income’s policyholders.”

A stronger Income would also enable the National Trades Union Congress to continue its social mission in areas besides insurance, he said.

However, the proposed $2.2 billion deal came under public scrutiny after questions were raised about Income’s ability to continue its social mission after the sale, and the Government eventually put a stop to it in October 2024.

A Bill was also passed in the same month to amend the Insurance Act so that the Monetary Authority of Singapore would have to consider the views of the Ministry of Culture, Community and Youth when an application for regulatory approval involves an insurer that is either a cooperative or linked to one.

“NTUC couldn’t have known (that) the law would be changed. But we sincerely respected the Government’s view and accept it,” said Mr Ng.

He added: “(We) humbly acknowledged the public feedback that we have received. I’ve initiated a review in NTUC Enterprise so that we can learn the right lessons.

“In NTUC, we will do our best, and sometimes, I’m sorry that it is not good enough, but... we will do better.”

Mr Ng, who led the PAP team that lost to the Workers’ Party in Sengkang GRC at the 2020 General Election, is campaigning to get back into Parliament by winning in Jalan Kayu, where he faces the WP’s Mr Andre Low.

In recent days, the WP has questioned NTUC’s support for the Allianz deal.

At a rally in Tampines on April 26, WP chief Pritam Singh noted that not one of the labour MPs had asked questions about the deal in Parliament, and called the labour movement a “guaranteed trampoline” for losing PAP candidates.

In response, Mr Ng said there is “no safe harbour”, adding that he had to stand for re-election in 2023 to continue as NTUC secretary-general, a role he was elected to in 2018.

“I stand before you because I want to serve, not with any safety net. As ironic as it sounds, when I stand to fight and champion workers’ interests to anchor job security, I am, interestingly, the only one without real job security,” he said.

Mr Ng said he knew “it would be a hard fight” coming into the 2025 General Election. “I know the opposition would drag these issues up, just as it’s happening now,” he said.


On losing in Sengkang GRC in 2020, he said: “The loss had a big personal impact not only on me, but also on my family, my union brothers and sisters, and the PAP. I had to ask myself in that time, ‘What should I do?’ Some have asked me to ‘jiayou’ (‘press on’ in Mandarin) and carry on, others say it is time to move on.”

But he added that he could not walk away from helping workers, who were losing their livelihoods during the Covid-19 pandemic.

“I understood then, what it meant to stand in the gap between desperation and hope. I’m just glad that the NTUC, together with our employers, partners and the Government, we were able to bridge the gap and... emerge stronger,” he said.

Besides Mr Ng, the PAP candidates for Ang Mo Kio GRC as well as Kebun Baru and Yio Chu Kang SMCs also spoke at the rally at Fern Green Primary School.

At around 9pm, Mr Ng had to pause his speech to call for paramedics after a woman in the audience fainted.

“Make space, give the person some air, please,” he said.

She was conscious when stretchered off and received medical attention in an ambulance at the rally site.

The last speaker of the night, Senior Minister Lee Hsien Loong, who is leading the PAP team in Ang Mo Kio GRC, endorsed Mr Ng in his speech.

Mr Ng had the “grit and sense of responsibility” to continue serving as labour chief, he said, and “proved himself reliable, trustworthy, committed” during the Covid-19 crisis.

Calling the proposed Income-Allianz deal “a serious matter”, SM Lee said the labour movement had deemed the sale reasonable and that the Government had also initially supported it because it met regulations.

But the Government later changed its mind after looking further into the matter, he said, and changed the law to block the deal.

“NTUC cannot do that. The Government has to do that. But it shows we are brothers with them – a symbiotic relationship. You make a decision. I look at it impartially, objectively, afresh. There is no groupthink,” he said.

SM Lee noted that while the labour MPs did not ask questions about the deal in Parliament, six PAP MPs and one WP MP did.

He added that the WP had abstained from voting when it came to the legislation to block the deal.


Mr Abdul Samad Abdul Wahab, an NTUC vice-president and a union leader, also spoke up for Mr Ng at the rally.

He said Mr Ng had helped to get pay rises for workers who go for training, better pay for lower-wage workers, laws to protect taxi drivers and private-hire drivers, as well as flexible work arrangements, among other things.

“These are real actions, real outcomes for workers that make a difference (to the) lives of workers,” he said. “Imagine if he gets into Parliament, he can do even more.”

 

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GE2025: Labour chief Ng Chee Meng plans to draw on NTUC experience to help Jalan Kayu residents​

Mr Ng Chee Meng said he is looking into innovative ways to reach out to younger workers, especially those under 35.ST PHOTO: CHONG JUN LIANG

Sue-Ann Tan
Apr 29, 2025

SINGAPORE - Labour chief Ng Chee Meng plans to tap his experience working with the unions and drawing up creative solutions for workers when it comes to helping Jalan Kayu residents with their job concerns.

His work as National Trades Union Congress (NTUC) secretary-general also means he can make policy ideas more accessible to workers on the ground, he added.

Mr Ng, 56, who is facing off against Workers’ Party candidate Andre Low, 33, said he has new ideas and is looking into innovative ways to reach out to younger workers, especially those under 35 and professionals, managers and executives (PMEs).

“Maybe with that dose of age, of having seen different things, I am able to translate fresh ideas into real possibilities,” he said. For instance, Mr Ng was involved in helping private-hire drivers get Central Provident Fund (CPF) contributions.

Speaking to The Straits Times at a coffee shop in the Jalan Kayu area, Mr Ng fielded questions on his political experience, his plans for the district should he be elected, and the ups and downs of NTUC life.

One key issue he raised is how young residents have concerns about job security, and the long wait for Build-to-Order (BTO) flats. Residents of all ages are also concerned about the rising cost of living, he added.

Meanwhile, the elderly struggle with municipal issues like needing more lifts and sheltered walkways, he said.

Asked what he can bring to the table, Mr Ng said: “On the NTUC side, I have experience running a big organisation, understanding the macro picture and translating what matters to the residents. I think that will be a key value-add.

“If you really want to go for jobs upskilling, what will be the most relevant to a resident? What are the things that are practical to your profession... I can definitely bring that to Jalan Kayu.”

He added that one of the most important things he has learnt at NTUC is “matching head and heart” in policymaking, and making trade-offs.

“If I’m all head in making policies and don’t know what’s happening on the ground, then we are not really fulfilling the mandate the people have given to us. If I’m all heart on the ground, I could be destroying the system... with unsustainable policies,” he said.

For instance, there is a need to maintain the delicate balance between supporting the local workforce and bringing in foreign labour, he said.

“If we reject foreigners, our economy will collapse, but it’s about how we can trust, build on foundations... and always make sure that when there is success, there is always an element for the workers to share,” he said.

He was also asked about NTUC’s aborted Income-Allianz deal, especially the criticism from former NTUC Income chief executive Tan Suee Chieh, who has raised questions on the issue in a letter that has been circulating online.

Mr Ng said he had already addressed the issue at a Jalan Kayu rally on April 27.

The Government halted the deal in October 2024 after questions were raised about Income’s ability to continue its social mission after the sale.

In his rally speech, Mr Ng said he has initiated a review in NTUC Enterprise – the parent entity of Income – so “we can learn the right lessons humbly”.

“In NTUC, we will do our best, and sometimes, I’m sorry that it is not good enough, but... we will do better.”

Mr Ng also said he has learnt lessons from his 2020 election loss, when the WP won Sengkang GRC.

He said: “The most important one is the humility that one learns over 10 years in political service. You do your best, and really listen more and more.”

As for WP chief Pritam Singh’s remarks about the labour movement becoming a “guaranteed trampoline” for losing PAP candidates, he said: “I very much prefer fair, respectful contests. At the end of it, after the election period, we must come back together regardless, so that we can position Singapore to face challenges.”

Will Mr Ng remain in the labour movement if he is returned to Parliament? He said: “I’d be happy to, if Prime Minister Lawrence Wong deploys me in the labour movement, but I can’t tell exactly... But whatever I do, I will make sure I get the blessings from those in the unions.”

Still, he will continue to push for policies that will help workers, Mr Ng said. “Our basic philosophy is, a good job is the best way to ensure that you can cope with any costs, because if you have real wage growth, it means you are beating inflation.”

His message to Jalan Kayu residents is a simple one, he added.

“I hope through the interactions, they will see me, not so much from my professional life, but see me as a person, as part of their community.”