UPLIFTING WORKERS WHO EARN LESS

Lovely morning at HomeTeamNS Khatib Clubhouse!

NTUC Sec-Gen Ng Chee Meng, Singapore National Employers Federation President Robert and I caught up over coffee to update each other on issues important to employers and workers. Here we are outside ManCave B on Level 5.

Two+ years ago, in a conversation much like this, we had identified the need to map out the plan for seniors in our workforce. This led to the setting up of the Tripartite Workgroup on Older Workers, which resulted in a 10-year roadmap to extend the runway for those who wish to remain working.

The consultation took about 15 months from when the idea was mooted to when the full set of recommendations were tabled. In between, there were many rounds of useful engagements with stakeholders - unions, workers, employers, business groups, academics. It was a meaningful exercise to build a consensus on the way forward, out of diverse views.

Given the impact of the Covid-19 pandemic, DPM Heng Swee Keat recently shared with us his belief that a similar effort for lower-wage workers will be especially beneficial now.

Along with the introduction of Workfare in 2007, tripartite partners have found different ways to uplift lower-wage workers.

We have made much progress. Wages for the worker at the 20th percentile have grown faster than the median worker, most markedly in the last five years. This wage growth has been supported by the Progressive Wage Model (PWM), which sustainably raises wages of workers in some sectors in tandem with productivity.

Workfare has been enhanced four times, most recently in January this year. Together with the Special Employment Credit, it has raised wages by up to 40% and strengthened retirement adequacy through cash and CPF top-ups. MOM worked closely with the Ministry of Finance to enhance Silver Support coverage and payouts, which will take effect from 1 Jan 2021.

In addition, as part of the Workcare initiative, the tripartite partners have been guiding service buyers and employers to improve workers’ welfare e.g. in providing reasonable rest areas for their outsourced workers. We will also launch the Workcare Grant to support the provision of such rest areas.

Our work is not done.

Workcare initiatives should become ground-up and pervasive. In sectors where PWM is mandatory, it is important to sustain continued wage growth. We want to expand PWM to cover more workers while protecting their employability. Their families depend on them, and we must not take this concern lightly or treat it academically. This is especially because the availability and nature of work is going through deep change at all levels.

We agree with DPM Heng that a tripartite workgroup will once again bring together key stakeholders to examine the issues holistically and refresh the consensus on what will work best for our workers and businesses.

It may take a while for the renewed consensus to form. As we work towards recovery of our economy, this is also a good time to ensure our lower-wage workers too can emerge stronger from the crisis brought about by Covid-19.

Chee Meng, Robert and I agree to discuss the idea with our respective teams and see how best to get this new tripartite workgroup going soon, and shape a national movement to uplift workers who earn less.

We share the conviction that this is important for Singapore. Will have more to update later. – Jo Teo