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Source:
www.mom.gov.sg |
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Salary dispute resolved with MOM¡¯s intervention |
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The salary arrears and related disputes
between the L&M Group of Companies and its workers represented by the
Building Construction & Timber Industries Union (BATU) have been
resolved with Ministry of Manpower¡¯s (MOM) assistance and all workers
have since received their pay. |
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Facts of the Case |
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Three companies in L&M Structural Division -
L&M Precast, L&M Prestressing and L&M Concrete Specialist - faced great
financial difficulties and cashflow problems in the face of the severe
business downturn and the sharp increase in material costs in the
construction industry in 2001. |
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The companies were unable to honour the
payment of annual wage supplement (AWS) for 2000 in accordance with the
collective agreement with the union. They were also unable to pay the
salaries of about 300 workers on time. |
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The workers, represented by the Building
Construction & Timber Industries Union (BATU), met many times with the
management of the company to negotiate for the payment of AWS and salary
arrears. |
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However, frequent changes to the top
management of the companies delayed negotiation of payments. BATU
subsequently referred the dispute on the AWS to the Labour Court under
MOM. |
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The Court ordered the company to pay the
workers their AWS in accordance with the collective agreement. When the
company failed to comply with the judgement, BATU proceeded to enforce
the order in the Subordinate Court and successfully secured the AWS
payment for the workers. |
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In Oct 2004, BATU was ready to file the
salary claims at the Labour Court. On the issue of salary arrears, BATU
and MOM took into consideration the financial difficulties faced by the
companies and recognised that, if the companies were to fold up, the
workers would be made jobless. |
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The Ministry met with BATU and the
management several times. With the concurrence of the union, the
Ministry granted the companies some time to settle the arrears amounting
to about $650,000 for 300 workers for 2 months¡¯ of arrears; failing
which severe action, including prosecution, would be taken. |
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The companies cleared the salary arrears and
also complied with the requirement of paying workers¡¯ their salaries on
time. The Ministry will be monitoring the prompt payment of salaries by
the companies to its workers. |
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Salaries must be paid on time |
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The Ministry would like to remind all
employers that, under the Employment Act, the salary earned by an
employee for work done should be paid within 7 days after the salary
period. |
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Employees who have not been paid their
salaries should bring the matter to the Ministry¡¯s attention. Union
members can do so through their unions while non-union members can
approach the Ministry¡¯s Labour Relations Department. |
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The Ministry will assist the employees to
recover their unpaid salary and take necessary actions, including
prosecution, against employers. |
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Source:
www.mom.gov.sg Press Release 5 Oct 2005 |
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FrontPage Edition: Sun 16 Oct 2005
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