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Source:
www.mom.gov.sg |
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GOVERNMENT ACCEPTS NWC¡¯S WAGE
GUIDELINES FOR 2005/2006 |
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The Government has accepted the National Wages
Council (NWC)¡¯s wage recommendations for July 2005 to June 2006. |
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Agree with the greater use of variable bonuses
to reward workers |
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Real wage growth has lagged behind productivity
growth in the past 3 years. However, the cumulative real wage gains since 1989
outstripped productivity in the earlier years prior to the Asian financial
crisis. |
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We must continue to ensure that our built-in wage
increases lag productivity growth. Singapore¡¯s cost competitiveness over the
long term can be sustained if we achieve strong productivity growth and
moderate wage increases. |
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In this regard, and in consideration of the global
competition and economic uncertainties, the Government accepts the NWC¡¯s
recommendation that companies make greater use of variable bonuses to reward
workers for their contributions. |
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Built-in wage increases could be given if they are
sustainable and as the Monthly Variable Component (MVC), so that in severe
business downturns companies can use this component to reduce wage costs,
instead of CPF cuts. |
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Special attention to be given to help low wage
workers |
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The Government agrees with the NWC that low wage
earners will require attention and assistance. Their wage increases have
lagged behind other workers as a result of greater downward wage pressures due
to globalization. |
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It therefore supports the NWC¡¯s recommendation
that companies giving a wage increase should grant these workers a higher
increase and that companies should actively redesign these jobs to enhance the
job worth and enable low wage workers to earn more. |
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The Government will give special attention to this
group of workers. It has put in place various measures to help these workers
cope with economic restructuring, such as supporting the unemployed to find
and stay in new jobs through initiatives such as the Re-Employment Assistance
Programme (REAP), as well as stepping up the skills upgrading of these
workers. The Government will actively look into other measures to help this
group. |
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Working closely with tripartite partners to drive
wage restructuring, strengthen HR practices and in implementing PMBS |
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The Government supports the NWC¡¯s call to continue
with wage restructuring efforts and to strengthen HR practices. |
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The Ministry of Manpower (MOM) will work closely
with the tripartite partners to drive the implementation of wage restructuring
across all sectors and companies. This will ensure that our wage structures
allow companies to respond quickly to changing business conditions. |
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The Government will also work together with the
tripartite partners to adjust the Portable Medical Benefits Scheme (PMBS) to
facilitate its implementation. This will complement the revamped MediShield
scheme to better meet the needs of Singaporean workers. |
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Conclusion |
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With the strong partnership established amongst
the tripartite parties, the Government is confident that the NWC wage
guidelines will be implemented smoothly and help to further enhance our
international competitiveness. |
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Source:
Ministry of Manpower Press Release 31 May
2005 |
Government accepts NWC's wage guidelines for 2005/2006 
