Tripartism For A Competitive Economy and Inclusive Society - - PowerPoint PPT Presentation

Tripartism

For A Competitive Economy and Inclusive Society

Singapore 26 October 2015, Monday

Ms Diana Chia President of National Trades Union Congress

Industrial Peace & Labour Law Reform (1965 to 1979)

Separation from Malaysia (1965) Withdrawal of the British Troops (1967)

Social Unrest Industrial Unrest in 1960s Strikes

Priority: Attract Foreign Direct Investment, Create Jobs

 Export oriented industrialisation  Attract foreign direct investment  Job Creation as Top Priority  Revamp of Labour Law

GOVERNMENT

 Abandon confrontational approach  Constructive labour relations climate  Wage restraint

LABOUR UNION

 Investment  Create Jobs  Employment standards

EMPLOYER

Success of Industrialisation

Influx of Investment Tight Labour Market Pressures to Increase Wages

1st Tripartite Committee - National Wages Council (1972)

NWC plays an active role in setting guidelines for wage adjustments and policies

Industrial Peace

NUMBER OF INDUSTRIAL STRIKE PER YEAR & MAN-DAYS LOST 100 200 300 400 500 600 700 800 900 1000

1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

Strike Per Year Man-Day Lost

Securing industrial peace important for sustained growth and rise in living standards

Productivity and Wage Reform (1980-1997)

First Tripartite Productivity Drive

• Productivity not rising as fast as wages
• Competition from other countries
• Launch of Tripartite Productivity Drive

(1981)

• Skills Upgrading, Automation, Worker

involvement, Teamwork

1985 Recession

• First recession
• More than 90,000

workers were laid off

8.6 8.8

• 0.7

1.3 10.8

• 2

2 4 6 8 10 12

1983 1984 1985 1986 1987 Real GDP (%)

Department of Statistics, Singapore

Tripartite Response to 1985 Recession

• Cost-cutting measures

–Labour Movement agreed to cut Employer Provident Fund contribution from 25% to 10% –Wage freeze for many workers

25% 25% 25% 10%

1985 April-1986

Total Provident Fund Contribution Rate

Employer Contribution Rate Employee Contribution Rate

Causes of Recession

• Two internal causes of

recession :

− Loss of Business Competitiveness − Wage Rigidities

− Seniority Based Wage System

Wage Reform was part of the measures to tackle recession

• Tripartite committee set up to

undertake wage reform

• Key Principles

Wages to reflect value of job & be linked to productivity Narrow Salary Range Ratio to 1.5 Introduce variable component to pay

Post-85 Recession (1986-1997)

• 70% of companies implemented flexible

wage system

• GDP grew by 9% per annum
• Unemployment declined from 6% in 1986 to

below 2%

8.8

• 0.7

1.3 10.8 11.1 10.2 10 6.7 7.1 11.5 10.9 7 7.5 8.3

• 2

2 4 6 8 10 12 14 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997

Real GDP (%)

Department of Statistics, Singapore

Role of Tripartism in Singapore’s Resilience (1998-2009)

Dr Robert Yap President of Singapore National Employers Federation

Department of Statistics, Singapore

1997 Asian Financial Crisis

4.3

• 2.2

6.1 4.5

• 3
• 2
• 1

1 2 3 4 5 6 7 1997 1998 1999 2000 Real GDP (%)

• Massive retrenchment

in 1998

• Cuts in wages and

provident fund contribution

• Measures by tripartite

partners enabled Singapore to rebound from a decline of 2.2% in GDP in 1998 to a 6.1% growth in GDP in 1999.

Challenges in the 2000s

• Period of economic

volatility in the early 2000s

• Global financial crisis

2008/9

• SARS in 2003, H1N1

in 2009, haze in 2013 and 2015

9.1

• 1.2

4.2 4.6 9.2 7.4

• 2

2 4 6 8 10 2000 2001 2002 2003 2004 2005 Real GDP (%)

Department of Statistics, Singapore

• Fine-tuning provident

fund contributions

• Enhancing wage

flexibility to maintain competitiveness

• Developing Human

Capital

Economic Review (2001 to 2003)

3.7 4.8 5.2 4.4 1 2 3 4 5 6 2001 2002 2003 2004

Unemployment Rate (%)

Strong Economic Growth (2004 to 2007)

4.6 9.2 7.4 8.7 8.8 1.5

• 0.8
• 2

2 4 6 8 10 2003 2004 2005 2006 2007 2008 2009 Real GDP (%)

Department of Statistics, Singapore Sep 08 Lehman Bros Collapse

“Upturn the Downturn” (2008 to 2009)

15 Sep 08

• Lehman

Brothers Collapsed

19 Nov 08

• Released

Excess Manpower Guidelines

1 Dec 08

• Launched

SPUR

12 Jan 09

• Revised

NWC Guidelines

5 Feb 09

• Resilience

Package Including $4.5B Jobs Credit Scheme

29 Apr 09

• TRUST

Teams Provide Advice and Assistance

Resilience of Tripartism

Management taking the lead in cutting costs, saving jobs Avoid record retrenchments Avoid record unemployment Build capabilities

Prime Minister of Singapore Lee Hsien Loong at the May Day Rally 2010

It (2009 recession) has deepened the reservoir of trust and strengthened us for the next time whenever it comes.

Health and Environmental Issues

SARS 2003 Flu (H1N1) 2009 Haze 2013 and 2015

Positive Outcomes

• Economic Resilience

–Strong Economy

• Social Resilience

–Harmonious Industrial Relations

• Psychological Resilience

–Resilient Workforce –Responsive Employers

Resilience

Economic Social Psychological

Inclusive and Sustainable Growth (2010 onwards)

Mr Teo Ser Luck Minister of State for Manpower, Singapore

Our Operating Environment is Evolving

Slowing local workforce growth Better educated workforce, more professionals, managers, and executives (PMEs) Uncertain global economic climate Impact of technology and globalisation on jobs

26

Government Union Employers

• Skills for the future
• Fair employment practices
• Work-life harmony
• Support for older workers and

low-wage workers

• Transform businesses

Quality Jobs and Inclusive Growth

Tripartite Partnership in Priority Areas

SkillsFuture:

A national effort to develop skills for the future

Across the workforce covering all educational backgrounds and sectors

Help individuals make well-informed choices in education, training and careers Develop an integrated, high quality system of education and training that responds to constantly evolving industry needs Promote employer recognition and career development based on skills and mastery Foster a culture that supports and celebrates lifelong learning

1 2 4 3

SkillsFuture – selected initiatives

In School Starting Work Growing your Career

7

SkillsFuture Earn & Learn Programme

• For fresh polytechnic and

ITE graduates

• Opportunities to learn

through structured on-the- job training and institution- based training

• Those who successfully

complete this programme will receive industry- recognised qualifications and a sign-on incentive

Sectoral Manpower Plans

• Tighter collaboration

amongst tripartite partners

• Anticipate future skills

needed and set out a strategy to upskill the workforce

• To be rolled out in all key

sectors by 2020

Enhanced Internships

• Will be rolled out to

polytechnic and ITE courses over the next two years

• Help students make

better career choices through real-world exposure to the industries

• Fair opportunities in the

workplaces and career advancement

• Tripartite Alliance for Fair and

Progressive Employment Practices (TAFEP) set up in 2006 to promote the adoption

• f fair employment practices
• `

Promoting Fair Employment Practices

Encouraging Work-Life Harmony

• WorkPro Work-Life Grant

— Improve talent attraction and retention — Increase employability and job opportunities for workers

• Tripartite Committee on Work-Life Strategy

— Tripartite advisory on flexible work arrangements

25% 28% 28% 35% 38% 41% 44% 47% 0% 10% 20% 30% 40% 50% 2007 2008 2009 2010 2011 2012 2013 2014 Proportion Of Establishments Offering At least One FWA, 2007 To 2014

Source: Conditions of Employment Survey, MOM. *Survey before 2011 measured establishments offering informal and formal FWAs.

Increasing the Employability of Older Workers

• With an ageing workforce, it is crucial to ensure that older workers

remain employable, so that they can fulfil their potential, and we can continue to benefit from their experience

• Introduced re-employment legislation for

workers above age 62

• Promotional campaigns to change mindsets

towards older workers

• Incentivise the adoption of good age

management practices and job redesign

• Job search support (Career Support

Programme, WDA/e2i Career Centres)

Tripartite Efforts

Source: Comprehensive Labour Force Survey, Ministry of Manpower

66.3% employment rate for older workers in 2014 Residents aged 55-64 as at June 2014

Supporting Low Wage Workers (LWWs)

• Help LWWs deal with challenges of slow wage growth, impact
• f technology and globalisation on rank and file jobs
• Tripartite Efforts
• Improve the employment

standards and working conditions of low-wage workers

• Identify opportunities for income

growth and job mobility for low- wage workers

• Drive outreach and promotional

activities for low-wage workers, and raise awareness of avenues

• f help available

Supporting Low Wage Workers (LWWs)

• Progressive Wage Model – a wage-skill

ladder that ties wages to training and improvements in productivity.

• Developed by tripartite committees

comprising government agencies, unions, service providers/industry associations and buyers

• Tripartite-negotiated PWMs for the

cleaning, security and landscaping sectors are enforced through Government regulatory levers

Transforming Businesses

• Promote stronger business growth and better careers for

Singaporeans by supporting companies in their transformation efforts.

Lean Enterprise Development (LED) Scheme

Manpower lean Strong Singaporean core Better quality workers

f

Future-Ready

Union Employers Government

TRIP TRIPAR ARTISM TISM

Communication, Consultation, Consensus Building, Co-Creation and Co-Ownership