The early 1980s saw the NTUC restructuring our unions. Omnibus unions were transformed into industry-wide unions. Later, house unions were formed to bring about better rapport between labour and management.

In the mid-1980s, Singapore went into a recession because, for some years, wage increases had outstripped productivity increase. To help the country recover, our unions decided to forgo the 1985 wage increases recommended by the NWC. As part of a general wage restraint, the unions accepted cuts in the employers' contributions to workers' Central Provident Fund. Government and business leaders have credited NTUC's actions for our quick recovery from the recession.

The next step was to improve our wage payment system, linking it to productivity growth and profitability. A flexible wage system was introduced - with full support from the labour movement.

Significant strides were made in the social development of the labour movement. NTUC Club was started to take over the social and recreational needs of workers. Resorts were built to give workers amenities previously open only to the higher income.