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Source:
www.gov.sg |
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GOVERNMENT ACCEPTS NATIONAL
WAGES COUNCIL¡¯S RECOMMENDATIONS FOR 2007/2008 |
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The Government has accepted the National
Wages Council (NWC)¡¯s wage recommendations for 2007/2008. |
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Sound wage policies for sustainable and
shared economic benefits |
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The Government notes that last year, total
wages increased by 4.5% in tandem with our strong economic growth and
tight labour market. |
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Basic wages grew by 3.6% last year compared
to 3.1% in 2005. But labour productivity growth fell from 2.1% in 2005
to 1.2% in 2006, causing the growth in real wages (both total and basic
wages) to outpace productivity growth for the second consecutive year in
2006. |
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However, over a longer period, growth in
productivity still outpaced increases in real total and basic wages,
though the gap has narrowed in recent years. |
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The Government supports the NWC¡¯s
recommendation that companies grant wage increase to workers for the
good corporate and economic performance achieved. |
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The Government also agrees with the
NWC that wage increase and bonus payment should be more closely
linked to company and individual performance. |
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Despite current short term pressures
on wages to rise in tandem with a tight labour market, it is
important that wage increases should continue to lag behind
productivity growth over the long term to be sustainable. |
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NWC¡¯s call for employers and
unions/workers to work together to achieve higher productivity and
innovation is therefore timely. This forms the basis for sound
wage policies that will help maintain our economic growth and cost
competitiveness, leading to sustainable and shared economic
benefits for all Singaporeans. |
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Enhancing older workers¡¯
employability and helping low wage/informal workers to benefit
from economic growth |
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The Government welcomes the NWC¡¯s call
for companies to implement policies and programmes to facilitate
the employment, retention and re-employment of older workers. |
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The Government strongly urges
employers to do so quickly, to help meet their manpower needs in a
tight labour market. Companies can tap on the ADVANTAGE! Scheme
for funding support to implement such programmes. |
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The Government also supports the NWC¡¯s
recommendation for a tripartite effort to help self-employed and
low wage/informal workers benefit from the Workfare Income
Supplement (WIS) scheme. |
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In response to the recommendation, the
Government will form a Tripartite Committee chaired by MOS Gan Kim
Yong and comprising senior representatives from employers, unions
and government, to spearhead outreach efforts and encourage CPF
contributions by low wage workers and self-employed persons, so
that those eligible can benefit from the WIS. |
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The Tripartite Committee will also
address how to safeguard other basic employment terms and
work-related benefits for such low wage workers and self employed
persons. |
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Accelerating implementation of
flexible wage systems |
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The Government notes that wage
restructuring has made further progress. It agrees with the NWC
that wage restructuring efforts should be stepped up. |
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Companies should narrow the max-min
salary ratio further to 1.5 or below. This will pave the way for
companies to move to job-based, competency-based and/or
performance-based wage systems, and away from seniority-based
wages. |
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Companies should also ride on the
positive economic outlook to build up the Monthly Variable
Component (MVC) quickly. The Government will continue to work
together with the unions and employers to push ahead with wage
restructuring. |
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The Government also supports the NWC¡¯s
call for companies to continue with the practice of sharing
corporate information with their employees to strengthen the
linkage between reward and performance. |
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Conclusion |
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The Government is confident that our
strong tripartite partnership will enable the NWC wage guidelines
to be successfully implemented by employers and unions. |
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This strong tripartite cooperation
will enable us to sustain Singapore¡¯s competitiveness, continued
economic growth and the creation of good jobs for Singaporeans. |
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23 May 2007 |
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Source:
www.gov.sg News Release 23 May
2007 |
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FrontPage Edition: Wed 23 May 2007
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