SINGAPORE: Workers earning S$1,100 or less a month, can expect a pay hike of at least S$60 this year, if employers accept recommendations by the National Wages Council issued for the 2015/2016 financial year.
This is the fourth year, where the council has proposed a minimum built-in wage increase for such workers. The council previously recommended a built-in wage increase of S$50 in 2012 and S$60 in 2013 and 2014.
This has resulted in fewer workers earning less than S$1,000 a month. The proportion of such workers has gone down from 9.8 per cent in 2012 to 6.8 per cent in 2014. In real terms, some 50,000 to 60,000 workers have crossed the S$1,000 threshold, over the same period.
Therefore, the NWC has raised the pay threshold from S$1,000 to S$1,100 to signal "serious support" to uplift wages and to cover more workers.
Over the last three years with the quantitative guidelines, we managed to get certain groups of people to actually move up from S$800, S$900 to S$1,000 today. But the biggest worry we have is that the moment they cross S$1,000," said Ms Cham Hui Fong, Assistant Secretary General of NTUC. "Although there is a qualitative guideline that we have to pay something that is equitable to them, but the reality is that if it is not clearly stated in the guideline, what is equitable?"
"And these are not the S$1,600, S$1,700 workers. These are really the S$1,050 cases. So if you look at the group of cleaners that we have managed to move up, beyond S$1,000 - what's next? Because they are already S$1,000 today," she said.
"Hence we thought if these group of workers are really vulnerable and they are indeed doing something to upskill themselves and management is also putting in the effort to improve productivity, then I think we ought to ensure that there is a reasonable wage increase for them," Ms Cham added.
As for other workers, the council stuck to its practice of recommending general guidelines,
urging employers to give built-in wage increases that take in account companies' business performance, prospects and sustainability.
Still, the council is mindful of upward pressure on salaries, and has called on companies to drive up productivity, as the only way to sustain wage increases.
The council, made up of representatives from the Government, employers and the union considered several factors in their deliberation. These include the performance and outlook of Singapore's economy, labour market conditions, inflation, and productivity.
The Singapore National Employers Federation welcomed the guidelines but also acknowleged that smaller firms may struggle to meet them. Only 31 per cent of companies last year gave a wage increase of at least S$60 to low-wage workers. This was down from 57 per cent in 2013. Reasons cited were because of poor business performance.
"Companies that fall behind, there are many reasons because they could be in the wrong industry - sunset," said President of the Singapore National Employers Federation, Robert Yap. "They have to look at how to transform and change. Otherwise it's just a matter of time. So the companies that are not doing as well, their other competitors are doing well, then they have to examine why they are not doing well," he said.
Dr Yap added that there are "a lot of productivity incentives, a lot of new ways of training" for workers and means of upskilling so the entire company becomes more competitive.
Chairman of the National Wages Council Peter Seah said: "Our objective is that over the long term, we must ensure that real wage increases are in line with productivity growth, otherwise as a nation we would suffer in competitiveness."
The guidelines take effect from the first of July till end June 2016. And they are applicable to all workers, from management, to rank and file staff and re-employed. older workers.
The Government has accepted NWC's recommendations for this year, saying it makes clear that there should be continued efforts to improve wage outcomes for low-wage workers.
Separately, tripartite partners have also urged employers to offer workers special one-off SG50 bonuses - even though that is not within the NWC guidelines. But in recognition of corporate achievements and contributions to national development, DBS Bank, for example, gave all employees below the rank of Vice-President S$1,000, while SMRT gave its workers S$500 worth of shopping vouchers. NTUC's Social Enterprises will give an SG50 gift to ell employees in cash or kind, over the next three months. The Government said it will consider "appropriate ways to recognise public officers' contributions towards nation-building".
- CNA/ly
http://www.channelnewsasia.com/news/singapore/national-wages-council/1879854.html
