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SINGAPORE – A new task force will be formed to study how to increase the wages of low-income workers and boost productivity growth.
This was announced by Human Resources Minister Josephine Teo and the Secretary General of the National Trade Union Congress (NTUC) Ng Chee Meng in separate Facebook posts on Sunday (October 11).
Ng said the Tripartite Working Group on Lower-Wage Workers will study how to expand the progressive wage model and associated companies to increase productivity and “foster mutual benefit for employers and workers.”
He added that this had been the result of a meeting with Ms Teo and the president of the Singapore National Employers Federation, Robert Yap, early Sunday.
Ms Teo wrote in her post that Deputy Prime Minister Heng Swee Keat had previously told the trio that such an effort would be “especially beneficial” for lower paid workers given the Covid-19 situation.
He added that it is important to maintain continuous wage growth in sectors where the progressive wage model is mandatory.
“We want to expand (the model) to include more workers and at the same time protect their employability. Their families depend on them, and we should not take this concern lightly or treat it academically. This is especially because the availability and nature of work is undergoing profound change at all levels, “he said.
Ms Teo added: “As we work towards the recovery of our economy, this is also a good time to ensure that our lower paid workers can also emerge stronger from the crisis triggered by Covid-19.”
Mr. Ng said that the idea of the progressive wage model was first raised by NTUC in 2012 and implemented in sectors with large numbers of low-wage workers.
“Currently, nearly 80,000 workers in the cleaning, landscape and security sectors have seen their income increase based on the annual wage increase incorporated as part of the (model),” said Mr. Ng.
He added that wages have also been increased further through other initiatives, such as the Workfare Income Supplement.
NTUC has also submitted a proposal to the Government on the development of the model in the waste management sector and has advocated for the development of adequate rest areas for contract workers, said Mr Ng, noting that this led to the Ministry of Manpower to announce the Workcare initiative. in 2019.
He said the new task force will allow NTUC to push forward the development of mandatory progressive wage models in more sectors, and will allow the study of other approaches to increasing wages and well-being for low-income workers, such as through benchmarks. sectoral or occupational wages. for sectors where it is more difficult to implement the progressive salary model.
“Together with tripartite partners and industry stakeholders, we will unite our minds and hearts to raise the wages and welfare of even lower-wage workers,” said Mr. Ng.
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