Incentivise industries that build S’porean core: NTUC

SINGAPORE — The National Trades Union Congress (NTUC) has called on the Government to incentivise industries to build a strong Singaporean core and review the Employment Pass criteria in view of the varying manpower needs of different sectors, as part of its Budget 2016 recommendations submitted to the Ministry of Finance on Thursday (Feb 25).

Companies “which have shown commitment towards building a Singaporean core should be differentiated from those which have not”, the labour movement said.

“This is to ensure our workers have fair opportunities at their workplaces. At the same time, the Government should tighten enforcement on companies which show no intent to develop a Singaporean core of workers.”

NTUC assistant secretary-general Patrick Tay told TODAY that the labour movement can directly help companies and industries keen on building a strong Singaporean core, such as providing enhanced funding when they “upskill, reskill and deep skill their Singaporean employees at all levels from entry, mid to C-suite staff”.

“This will provide greater opportunities for them to move up in their skills and careers ladders and even take up C-suite positions,” he added.

NTUC said that it supports the Ministry of Manpower’s intent to keep the overall ratio of Singaporeans to foreign workers at 2:1, despite many industries requesting the Government to increase their foreign worker quota because of a manpower crunch.

NTUC’s recommendations, aimed at helping workers face current challenges and better prepare for the future, cover the areas of strengthening the Singaporean core, improving productivity, enhancing training and skills upgrading, and improving retirement adequacy.

Among other things, NTUC proposed that the Government consider making it compulsory for employers to pay low-wage workers annual increments and wage supplements.

NTUC assistant secretary-general Zainal Sapari said this move could reduce the widening income gap between workers from the 20th percentile — who earn a gross salary of S$1,800 — and those from the 50th percentile, who earn about S$3,460.

“Ideally, we want those in the 20th percentile to be earning two-thirds of the 50th percentile … Potentially, we are looking at 38,000 cleaners, 28,000 security officers and 3,000 landscape workers who could be affected (by this move),” Mr Zainal told TODAY.

The Government could also study moving away from the current structure of a single retirement age — set at 62 years old — to a more varied one, in order to “meet the diversity in capabilities of workers and industry”, the NTUC said.

It noted that there are already workers on the exemption notification list to the Retirement and Re-employment Act, and agreements that allow workers to work beyond 62 years of age.

NTUC deputy secretary-general Heng Chee How said this is to give industries and companies “more incentive to fully tap the capable and experienced manpower source, and not just depend on the Government to decide by fiat a global figure for everyone”, taking into account the demand and supply of manpower, as well as a basic national statutory minimum retirement age.

“Official retirement ages vary among countries, so there is no universally correct age to retire. In many countries, including those without an official retirement age, the retirement ages tend to correlate with industry or company realities,” he added.

Finance Minister Heng Swee Keat will deliver the Budget statement in Parliament on March 24.