NTUC's RESPONSE TO ST FORUM LETTER

We refer to the letter, "Have minimum wage that matches inflation" (ST 6 Aug 07) by Ms Ong Hwee Peng.

Implementing minimum wage may seem like an appealing way to help low wage workers. However, it is not necessarily a workable and sustainable solution. We need to bear in mind that in some countries, minimum wage could also mean maximum wage for low skilled and low wage workers. If the minimum wage is set too low, it will cause hardship to low wage workers. If it is set too high, it will reduce their job opportunities.

The National Trades Union Congress (NTUC) believes that the best way to help our low wage workers is to help them improve productivity, as it is productivity that should determine wages. It is for this reason that NTUC has been championing a sustained effort to upgrade the skills of our workers, and re-designing low paying jobs into better jobs with better pay. We also support the recent move by the Government to help low wage workers through the Workfare Income Supplement.

The Job Re-creation Programme (JRP) is a joint initiative of NTUC and the Singapore Workforce Development Agency (WDA). Launched in 2005, the JRP helped more than 4,600 low skilled job seekers to secure jobs that would pay them a more decent salary of around $1,000 per month or more. The starting salary of each job category is determined by productivity and job worth.

Through a series of initiatives that re-designed jobs and re-skilled workers under a $50 million fund provided by WDA and the Singapore Labour Foundation, we expanded the JRP to assist over 12,000 workers in 2006. For example, in the security and landscaping sectors, our efforts have helped increase starting pay from $900 to $1,300, and $800 to $1,100 respectively. For 2007, our target is to help 15,000 low wage workers to earn higher salary through better skills and improved productivity.

Another example is conservancy cleaning. 14 PAP Town Councils, led by Mayor Teo Ho Pin, have partnered NTUC, WDA and NTUC Learning Hub to raise the skills level and productivity of 4,000 conservancy workers. 300 of these workers are already slated for training. With better skills and a more professionalized conservancy sector, these workers can expect about 10% increase in their wages.

NTUC, together with WDA and our industry partners, will continue to re-create low paying jobs into more productive jobs, and upgrade the skills of low wage workers so that they can take on better jobs with better pay.

Ang Hin Kee
Director, Employability Enhancement Department
National Trades Union Congress