Singapore
Over 24,000 low-wage workers earning up to S$1,300 might receive a pay hike and a special bonus if their employers accept the recommendations from NWC.
The National Wages Council puts forth wage recommendations for the the year, with an emphasis on low-wage workers and sharing productivity gains. (Photo: Fann Sim)
SINGAPORE: The proposal for companies to provide a one-off payment of between S$300 and S$600 for workers earning up to S$1,300 was the most difficult item for members of the National Wages Council to agree on, National Trades Union Congress assistant secretary-general Melvin Yong said on Thursday (May 31).
The recommendation, which was proposed for companies that have enjoyed productivity gains in 2017, was agreed upon after intense “negotiations into the early morning”, said members of NWC. The council is made up of representatives from employers, trade unions and the Government.
Mr Yong said: “But we all agree that the message we want to send is that when there are productivity improvements, we want to make sure that we share the productivity gains with the workers and to tell the workers … that we will work harder in the coming year to continue to strive for productivity improvements.
“Only with productivity improvements can we have sustainable annual wage growth.”
NWC chairman Peter Seah said that this is the first time a lump sum quantum has been proposed for productivity gains and it signals the council’s emphasis on productivity, especially because last year’s productivity growth was “very commendable”.
The Government and various tripartite stakeholders have accepted the NWC’s recommendations.
Apart from the one-off payment, the council also recommended a wage increment of between S$50 and S$70 for workers earning up to S$1,300.
Representing the Government, Permanent Secretary for Manpower Aubeck Kam said that the higher quantum of this year’s wage increase range reflects the improvement in general business conditions, while maintaining the flexibility for employers to provide wage increases.
“The Government supports the NWC’s move to build upon the success of earlier tripartite efforts to raise the wage threshold and cover more low-wage workers,” Mr Kam said.
With all 23 Industry Transformation Maps launched, NWC said that employers should continue or start to operationalise them to spur more productivity and transformation.
Singapore National Employers Federation’s President Robert Yap said that employers should tap on programmes and initiatives launched by tripartite partners to upskill workers and to develop an agile workforce to support their business transformation.
“The productivity gain in 2017 is terrific and we must ride on the momentum to press on with our productivity efforts. … Successful industry transformation will create better quality jobs, raise skills, pay better, sustainable wages as well as grow the economic pie,’ Dr Yap said.
