He'd rather cut Sporns pay woh!
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Dec 22, 2008
</TR><!-- headline one : start --><TR>CPF cut not the way to go <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Zakir Hussain
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'We have learnt from past recessions that the use of the CPF cut is a blunt instrument,' said Mr Lim, who is Minister in the Prime Minister's Office. -- ST PHOTO: STEPHANIE YEOW
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<!-- START OF : div id="storytext"-->FORMER labour chief Lim Boon Heng has ruled out a cut in CPF rates - which was the case in past severe economic downturns - for now.
There is already a lot that can be done to trim wage costs, as the wage system has become more flexible, he told unionists on Friday night.
'We have learnt from past recessions that the use of the CPF cut is a blunt instrument,' said Mr Lim, who is Minister in the Prime Minister's Office.
That is why a flexible wage system had been developed over the years.
'For rank-and-file workers, 20 per cent of the annual wage is in flexible bonuses and 10 per cent is in the monthly wage component (MVC). (So) 30 per cent of the annual wage is flexible. For executives and managers, the flexible component is even higher,' he noted.
'Therefore there is already a lot that can be done to trim wage costs. Apart from using the flexible wage system, companies can also use shorter work weeks. We developed this flexibility so that we do not need to use the CPF cut.
'We should therefore see how the flexible wage system works in this downturn. A CPF cut is not justified at this point in time.'
Mr Lim's remarks at a dinner on Friday night, and released to the media today, came days after the National Wages Council (NWC) announced it would take the unusual step of meeting next month to revise wage guidelines it set earlier this year.
That announcement prompted some speculation among economists that there would be a cut in contribution rates to the Central Provident Fund, the national social security savings plan.
But Mr Lim quashed this speculation in his speech at the 27th anniversary dinner of the Singapore Industrial & Services Employees' Union (Siseu), one of the largest unions here with 54,000 members.
He acknowledged that companies need to trim costs to survive the downturn, but said Singapore was fortunate to have built up a flexible wage system over the years.
'Bonuses can be cut. The monthly variable component (MVC) can also be cut if needed. Other measures include a shorter work-week with corresponding reductions in wages,' he pointed out.
'This is our advantage. There is no other country I know that has such a range of options open to employers, with unions that are willing to support such measures. 'I believe all employers here know that the proposed bail-out of the US car manufacturers failed because the unions were unwilling to concede on wage cuts. Our unions are willing to accept cuts, because when companies do well, employers will pay our workers their dues.'
=> In other words, no where in the world can the people be screwed in so many ways while the govt is the BEST PAID in the world!
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Dec 22, 2008
</TR><!-- headline one : start --><TR>CPF cut not the way to go <!--10 min-->
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Zakir Hussain
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
'We have learnt from past recessions that the use of the CPF cut is a blunt instrument,' said Mr Lim, who is Minister in the Prime Minister's Office. -- ST PHOTO: STEPHANIE YEOW
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"-->FORMER labour chief Lim Boon Heng has ruled out a cut in CPF rates - which was the case in past severe economic downturns - for now.
There is already a lot that can be done to trim wage costs, as the wage system has become more flexible, he told unionists on Friday night.
'We have learnt from past recessions that the use of the CPF cut is a blunt instrument,' said Mr Lim, who is Minister in the Prime Minister's Office.
That is why a flexible wage system had been developed over the years.
'For rank-and-file workers, 20 per cent of the annual wage is in flexible bonuses and 10 per cent is in the monthly wage component (MVC). (So) 30 per cent of the annual wage is flexible. For executives and managers, the flexible component is even higher,' he noted.
'Therefore there is already a lot that can be done to trim wage costs. Apart from using the flexible wage system, companies can also use shorter work weeks. We developed this flexibility so that we do not need to use the CPF cut.
'We should therefore see how the flexible wage system works in this downturn. A CPF cut is not justified at this point in time.'
Mr Lim's remarks at a dinner on Friday night, and released to the media today, came days after the National Wages Council (NWC) announced it would take the unusual step of meeting next month to revise wage guidelines it set earlier this year.
That announcement prompted some speculation among economists that there would be a cut in contribution rates to the Central Provident Fund, the national social security savings plan.
But Mr Lim quashed this speculation in his speech at the 27th anniversary dinner of the Singapore Industrial & Services Employees' Union (Siseu), one of the largest unions here with 54,000 members.
He acknowledged that companies need to trim costs to survive the downturn, but said Singapore was fortunate to have built up a flexible wage system over the years.
'Bonuses can be cut. The monthly variable component (MVC) can also be cut if needed. Other measures include a shorter work-week with corresponding reductions in wages,' he pointed out.
'This is our advantage. There is no other country I know that has such a range of options open to employers, with unions that are willing to support such measures. 'I believe all employers here know that the proposed bail-out of the US car manufacturers failed because the unions were unwilling to concede on wage cuts. Our unions are willing to accept cuts, because when companies do well, employers will pay our workers their dues.'
=> In other words, no where in the world can the people be screwed in so many ways while the govt is the BEST PAID in the world!
