NTUC has spelt out its initiatives for its eight key programmes in this year’s work plans, which is the result of discussions and endorsements by union delegates during the National Delegates’ Conference in October last year. NTUC News outlines these work plans in this special feature.
IR for Competitiveness
Pushing ahead with wage reform
GIVING a boost to the reforming of wages, NTUC and its affiliated unions has got down to work with 75 companies to overhaul their wage systems. Discussions are under way with the management of these firms to make wages more flexible and link them to company targets or objectives.
Useful tools such as the monthly variable component (MVC) and competitive base wage system help the companies respond more quickly to changes in business conditions, as they deal with keen global competition and rapid changes in technology and business environment.
The wage restructuring exercise is part of the Industrial Relations for Competitiveness programme’s work plans for this year.
It is one challenge NTUC Deputy Secretary-General Matthias Yao, the programme director, is more than ready to meet.
“Looking forward, the economy needs a more flexible wage system that will help companies stay afloat in future downturns. NTUC aims to get 80 per cent of unionised companies to implement MVC in two years’ time. We also hope to get 400 companies to embark on the competitive base wage system,” he said in an interview with NTUC News.
While NTUC and unions are actively assisting companies in wage reform, Mr Yao stressed that restructuring of the wage system should be a management-driven initiative.
“Wage restructuring is not solely the role of unions. Employers must play a key role in the process in order to ensure that wages are competitive,” he noted.
Unions will help to ensure equity under the new system, by checking if the key performance indicators used are appropriate, and that there is a transparent performance management system in place to assess workers.
To help the process along, the NTUC industrial relations department (IRD) and some unions will organise union-management workshops to explain what wage restructuring is all about to branch officials and management.
Together with the Ong Teng Cheong Institute of Labour Studies, the department has also scheduled 10 half-day workshops on wage restructuring for union officials.
Focusing on relations
Living up to its title, the IR for Competitiveness programme will continue to focus on discharging IR consultancy and advocacy, with the IRD providing support to affiliated unions on IR-related matters. Fair compensation and benefits in collective agreements, said Mr Yao, are what the IRD will be advocating.
The department will also continue to help General Branch (GB) members resolve grievances. Between January and September 2003, it handled 232 grievances from GB members, and hopes to maintain the capability to handle up to 400 grievances per year.
At the same time, it is pushing ahead to enhance professional knowledge of IR practitioners and union officials to overcome future challenges. Initiatives include working with unions on managing knowledge and information on IR-related matters, and organising seminars on relevant IR topics.
As part of its aim to strengthen tripartite relations, the NTUC plans to reinforce links with relevant government and employer agencies such as the Ministry of Manpower and Singapore National Employers’ Federation, as well as its relationship with affiliates. Its plans include joint activities like the Tripartite IR Seminar and regular visits to unions.
These moves will help the labour movement and employers maintain a harmonious industrial relations climate and strengthen the tripartite partnership, which in turn will go a long way in helping to save and create jobs – a key thrust in industrial relations.
In addition, NTUC will continue to encourage unions in similar industries to keep enhancing the cluster formation and organise more cluster activities.
Mr Yao concluded: “We will continue to develop new strengths and capabilities to better protect and enhance workers’ interests, such as representing workers interest in areas like transport needs.”
Said Mr Heng: "I think of membership as an umbrella. It is something that can help workers keep dry in stormy weather. Depending on the size of the storm, some may or may not be completely dry. But I do see that the umbrella has been helpful. The idea is to make sure that every member, even as he moves from point to point, never loses that umbrella, so the continuity of the benefits is what we must do to help workers go through the difficult patch."
