Labour Movement Budget 2017 Recommendations. National Trades Union Congress January 2017

Transcription

1 Labour Movement Budget 2017 Recommendations National Trades Union Congress January 2017

2 Our Unusual Labour Movement

3 OUR UNUSUAL LABOUR MOVEMENT About Our Unusual Labour Movement NTUC is at the heart of the Labour Movement, which comprises 59 affiliated unions, two affiliated associations, 11 social enterprises, six related organisations as well as a growing ecosystem of U Associates, enterprise, freelance and self-employed partners. 1 With an eye on the future, the Labour Movement will focus on growing its U network one that builds upon the union bedrock to include partnerships with professional associations and guilds (U Associate); small and medium-sized enterprise partners (U SME); and freelancers and self-employed (U FSE). The Labour Movement aims to be unusual by constantly reinventing ourselves to take care of ALL working people and always making sure that our working people remain competitive and enjoy a growing pie rather than fight over a shrinking one; and continuing to grow from strength to strength to buck the global trend of declining numbers and relevance of unions; as well as striving to remain as an institution that can value-add to Singapore s continued development. Our Unusual Labour Movement Network 1 The information on the Labour Movement network is correct as of December

4 OUR UNUSUAL LABOUR MOVEMENT Unions Our affiliated trade unions serve to protect our working people s rights and advocate for their interests, to ensure a fair and positive workplace for all. We engage our management partners to create win-win solutions that are progressive and sustainable, for the mutual benefit of the company and the workers. Collectively, our unions represent over 810,000 union members. NTUC U Associate is a key initiative by the Labour Movement to reach out to Professionals, Managers and Executives (PMEs) through professional guilds and communities. The U Associate ecosystem provides valuable networking opportunities among professional associations and across different sectors, creating avenues for cross-pollination of ideas and cross-application of skillsets and opportunities. The NTUC U Associate programme empowers PMEs across four areas: Protection, Progression, Placement and Privileges. At the sectoral level, NTUC collaborates with U Associates to develop careers and skills progression plans for PMEs. Through this, PMEs will become future-ready, thereby creating more opportunities for both themselves and the professional associations. NTUC works with their U Associates to roll out industry-specific programmes with the objective of addressing skills gaps and market needs. These programmes are practitioner-led and industry-backed to develop our PMEs for the new economy. U SME aims to help local Small Medium Enterprises (SMEs) to grow so that working people in SMEs will benefit. Working directly with the management of SMEs, U SME inked 87 MOUs with various associations and companies, covering over 13,000 SMEs and 300,000 working people. Under the MOUs, our SMEs will enhance their recruitment and employment practices and adhere to labour standards and Tripartite Guidelines. Annually, U SME organises the NTUC SME Symposium a platform for entrepreneurs to offer insights and discuss issues of relevance to SMEs. There are about 200,000 freelancers and self-employed in Singapore and this number will continue to grow. Passion, flexibility and industry norms are reasons why individuals choose freelancing, either on a fulltime, part-time or project basis. U FSE was set up in 2015 to support and empower freelancers and selfemployed in nurturing viable careers, and represent their collective interests as one united voice. 4

5 OUR UNUSUAL LABOUR MOVEMENT The NTUC Social Enterprises serve the interests of not only the working people, but also the broader interests of the Singapore community. Our critical target segments are the lower income group and the elderly, but we will also keep sight of the needs of the PMEs, the sandwiched class and the youth. The Social Enterprises provide a suite of integrated services throughout the lifecycle of our population. In tandem with the evolving needs of our Singapore community, our three core priorities are in the areas of Cost of Living, Ageing and Health. Our products and services meet a wide range of social needs: from stabilising prices of essential goods and services, to enhancing basic financial security, to caring for three-generational families. Collectively, the NTUC Social Enterprises serve 2 million customers annually. Good comes in more ways than one. We re a collective made up of many social enterprises, serving many different purposes, for one good reason. You. Find out more about all the good we do at ntucsocialenterprises.sg We re all for good Good value every day Be in good hands Stay in good health Good progress through life Together, we re keeping daily essentials affordable. Together, we re providing care and support when you need them most. Together, we re helping you eat and live better. Together, we re offering better opportunities for lifelong learning. 5

6 Labour Movement Budget 2017 Recommendations

7 FOREWORD Foreword Singapore has enjoyed significant economic growth and full employment over most of the past four decades. However, the economic outlook is increasingly uncertain and our businesses are facing cyclical and structural challenges along with intense competition. In addition, the slower economic and productivity growth is now coupled with new requirements for skills, changing employment structures as well as an ageing and shrinking workforce. The Labour Movement is particularly concerned with the ability of working people to maintain their competitiveness in an environment of rapid technological disruption. We need to develop a comprehensive and efficient system to help our working people through training, job matching and placement. The training has to be effective and targeted to enable working people to upskill and be more productive. As Singapore s employment landscape is undergoing a significant transition, the changes will impact working people at all levels while the lower skilled and mature working people remain to be most vulnerable. There is also an increasing pool of working people on non-traditional work arrangements such as contract workers and freelancers. Measures must be taken therefore to ensure that all working people transit successfully and thrive in the changing labour market. Ground issues and concerns were identified through focus group discussions and polls with Labour Movement leaders and partners. These included engagements with union leaders, U Associate leaders, employers from Small and Medium Enterprises (SMEs), representatives of various freelance professions, youth leaders and low-income earners. The Labour Movement would thus like to propose to the Government, our recommendations for Budget We will focus on 4 key themes: 1. Placement to address cyclical and structural changes 2. Progression for working people to move into new and future jobs 3. Productivity to unleash the potential of working people 4. Protection for working people in new forms of employment 7

8 Labour Movement Budget 2017 Recommendations: Placement

9 PLACEMENT Labour Movement Budget 2017 Recommendations: Placement 1. Placement to address cyclical and structural changes 1.1 Singapore, as with many countries worldwide, is experiencing the Fourth Industrial Revolution 2. New categories and types of jobs such as analytics and fintech have emerged, requiring new skill sets. By 2020, 5 million jobs worldwide will be lost as technology replaces human workers, and with 2.1 million jobs created in more specialised areas of expertise Leaders from the unions, associations and SME employers have articulated the need for a comprehensive system to identify future jobs and the required skillsets for working people to be ready for new jobs. Furthermore, they expressed concern about the lack of information on the skills to be trained for, and the adequacy of the training for the job functions. 1.3 In line with its objective to look after working people s interests and prepare them for future jobs, the Labour Movement has set up a new capability, the Future Jobs, Skills & Training (FJST) department. 2 The Fourth Industrial Revolution, Klaus Schwab, January Future of Jobs, World Economic Forum, January

10 PLACEMENT Recommendations A Comprehensive and Efficient System of Placement Training, job-matching and placement to minimise job mismatch, cyclical and structural unemployment 1.4 With the FJST department providing the Labour Movement with sensing- synthesisingsignalling capabilities, we call on relevant government agencies and employers to work closely and in partnership with FJST and have open and pro-active sharing of information on employment trends and developments in both industry and sectoral needs for future jobs, skills and training, as well as industries that are experiencing slower or negative growth. 1.6 We urge MOM to share the plethora of information in the Jobs Bank and work together with the Labour Movement, especially with e2i and the FJST department. This will enable the development of a comprehensive mechanism, together with employers, to enhance the placement of working people in relevant jobs, and identify employment trends to better customise and design modular, stackable training programmes. We urge the Ministry of Manpower to share the plethora of information in the Jobs Bank and work together with the Labour Movement 1.5 We are heartened by the mandatory retrenchment notifications that take effect on 1 January 2017 requiring employers to notify the Ministry of Manpower (MOM) within 5 working days after they notify affected employees of retrenchment. These notifications will provide timely retrenchment information, enabling Workforce Singapore (WSG), MOM, the Labour Movement and NTUC s e2i (Employment and Employability Institute) to better help retrenched employees find alternative employment and receive relevant training to enhance their employability. 1.7 We urge MOM to empower the Labour Movement through e2i with greater flexibility to run the Adapt and Grow programme to better support Professionals, Managers, Executives and Technicians (PMETs) in skills acquisition, job placement and career enhancement. This will allow the Labour Movement to better pilot new initiatives as well as mobilise to scale up support for the workforce. 10

11 Labour Movement Budget 2017 Recommendations: Progression

12 PROGRESSION Labour Movement Budget 2017 Recommendations: Progression 2. Progression for Working People to Move into New and Future Jobs Equipping both blue and white-collar workers so as to remain employable and businesses to be future-ready 2.1 Total employment in Singapore contracted by 3,300 in the third quarter of 2016 after slower growth in the previous two quarters. There was a broad-based slowdown in employment growth across manufacturing, construction and services and 4,100 working people lost their jobs compared to 3,460 working people in the same quarter in Skills upgrading and re-skilling will play an increasing role ahead to support the softening labour market. However, almost half of the working people surveyed did not attend training or upskilling courses in the past year 5. Most working people expressed willingness to upskill but shared that training courses are not readily available or are not relevant. The prerequisites of the Government initiatives such as the Professional Conversion Programme (PCP) and Place and Train (PnT) were also considered to be restrictive. 2.3 We need to continue to enhance the system of upskilling to facilitate improved adoption rates for both new entry and mid-career workers. This will help working people to remain employable and employers to remain competitive with the relevant and efficient training to equip working people for emerging and future jobs. 4 Labour Market Advance Release Third Quarter 2016, Ministry of Manpower, October Labour Movement Pre-Budget 2017 Poll, NTUC, November

13 PROGRESSION Recommendations Targeted and Relevant System of Upskilling 2.4 To make the labour market more flexible, the Labour Movement calls for a review of the requirements and prerequisites for jobs to facilitate progressive entry to help working people transit into available jobs quickly, and to review the entry criteria based on skills and not only on grades, especially in sectors which are critically short of workers. 2.5 Noting the trend in working people transiting into different industries after they are made redundant with 70% securing new jobs in a different industry from which they were laid off 6 it is imperative that working people are equipped through re-skilling for them to transit to other hiring sectors. 2.6 We call on the Government to review structural gaps in upskilling such as the duration of preenrolment programmes, the wages during training and the format of training of existing initiatives, such as the PCP and PnT, in sectors such as the Early Childhood, Healthcare and Aerospace sectors: Reduce the duration of pre-enrolment programmes and allow more on-thejob trainings to equip working people with the relevant skills to facilitate progressive entry to the jobs Provide direct wage support to employees during the PCP training period to match entry salary 7. The Labour Movement recognises that the PCP currently provides salary support at 70% of salary capped at $2,000 per month and enhanced salary support of 90% capped at $4,000 per month for Singapore Citizens who are unemployed for an extended period as well as mature PMETs. The Labour Movement calls for higher funding for all employees, and for PCP training salary levels to match the entry-level salary of that specific job. This is to encourage more mid-career adults to re-skill for new jobs without having a major pay cut. 6 70% of residents laid off in the first nine months of 2015 secured new jobs by December 2015 in an industry from different which they were laid off, Redundancy and Re-entry into Employment 2015, Ministry of Manpower, April Professional Conversion Programmes lower the employers cost of hiring new entrants and re-skilling for new jobs by providing salary support during the period of training at 70% of salary capped at $2,000 per month. Enhanced salary support of 90% capped at $4,000 per month will be applicable for SC LTU PMETs or mature SC PMETs aged 40 and above. Factsheet on Adapt and Grow Initiative, Ministry of Manpower, May

14 PROGRESSION We call on the Ministry of Education and SkillsFuture Singapore to work with the Labour Movement to enhance courses and training programmes through Institutes of Higher Learning Expand the private provider placement programme to help more working people to receive placement assistance under PCPs. In addition, with SMEs hiring 70% of Singapore s workforce, more PCP programmes can be launched in industries where SMEs have a significant presence such as food manufacturing Encourage more employers to leverage the PCP to hire mid-career switchers so that companies can develop a pool of talent with deep skills and knowledge. 2.7 We call on the Ministry of Education (MOE) and SkillsFuture Singapore (SSG) to work with the Labour Movement to enhance courses and training programmes through Institutes of Higher Learning (IHLs), in particular to re-design lectures and course materials into modular structures to increase the access to upskilling for working people. We also urge IHLs to partner the Labour Movement through the NTUC Education and Training Fund (NETF) to fund courses through course fees subsidies to enable working people to upskill or re-skill. 2.8 While the Labour Movement is heartened that the Government has provided the $500 SkillsFuture credit to encourage individuals to take ownership of their skills development and lifelong learning, we encourage the Government to enhance SkillsFuture in the following ways: Additional top up of the SkillsFuture credit to signal commitment in investing in working people s training Support companies by providing paid training leave to companies for working people to attend SkillsFuture courses Provide SkillsFuture allowance for unemployed workers to offset course fees during their unemployment period Expand the utilisation of the SkillsFuture credit to include career coaching services. Working people can benefit through personalised guidance on competencies which in turn can lead to greater productivity at the workplace Refine the courses in the SkillsFuture directory to be more relevant to tomorrow s jobs, including structuring courses for industry-specific skills Design courses that would help displaced PMETs enter adjacent jobs in industries such as Engineering and Infocommunications and Technology (ICT). 2.9 The Labour Movement urges the Government to redesign jobs through the Sectoral Tripartite Committee (STCs) and Council for Skills, Innovation and Productivity (CSIP). One way is the development of systems of apprenticeship We urge the Government to redesign jobs through the Sectoral Tripartite Committee and Council for Skills, Innovation and Productivity 14

15 PROGRESSION to support industries that face manpower shortage. The systems of apprenticeship can address both entry-level and career upskilling: At entry-level apprenticeship, the Labour Movement suggests a review of apprenticeship programmes such as Earn and Learn Programmes and Creative Craftsman Apprenticeship Programmes with the sectoral agencies playing a more strategic role. Companies that participate in these programmes should also be accredited by industry associations or sectoral agencies with training guidelines to maintain quality standards. Collaboration between IHLs and these companies can be enhanced to include a mentoring system For mid-career apprenticeship, the Labour Movement suggests systems of apprenticeship to be put in place across engineering fields such as transport, electronics and construction and across skilled trades such as technicians, electricians and welders, noting that the training participation rate for Craftsmen & Related Trades Workers has dropped from 31.3% in 2014 to 24.0% in We encourage public sector agencies such as Land Transport Authority (LTA) and Building Construction Authority (BCA) to take the lead in developing apprenticeship systems to raise the recognition level of technical skills and crafts The Labour Movement recognises the Government s continued commitment to help low-wage workers raise their skills and employability. We therefore urge the Government to introduce a Special Workfare Income Supplement (WIS) Bonus as a progressive retention incentive to encourage low-wage workers to stay employed in the same organisation for at least two years after undergoing training. This initiative will also encourage more companies to train them As the population ages, more mature workers will be joining the workforce and 91% of working people turning 60 years old would like to be re-employed given the opportunity 9. However, working people aged 50 to 64 have had the lowest training participation rate and shortest training duration compared to the total training participation rate and average training duration 10. We need to remain competitive by attracting, retaining and training mature workers. The Labour Movement therefore calls for the Government to help mature workers to stay employed through: Targeted support in specific growth industries identified by government agencies by incentivising companies who adopt upskilling and capability development of mature workers so as to retrain local workers in line with the Singapore Core Continued support for companies that employ and retain mature workers such as increasing the wage offset and removing the tiers of payouts for the different groups of wage earners for Special Employment Credit. 8 Labour Force in Singapore 2015, Ministry of Manpower, January U Live Turning 60 Survey, NTUC, July Workers aged 50 to 64 had the lowest training participation rate (26.3%) and shorter training time (1.7 mean days per adult) as compared to the total participation rate of 35.0% and average training duration of 4.0 days in 2015, Labour Force in Singapore 2015, Ministry of Manpower, January

16 PROGRESSION We call on the Government to fund a Returnship Programme for back-to-work women 2.12 The Labour Movement urges the Government to enable more women to return to workforce seamlessly through relevant upskilling programmes, noting that 184,700 women aged 24 to 54 did not participate in the labour force in We call on the Government to fund a Returnship Programme with pilot programmes in sectors such as Early Childhood & Social Services, specifically: Enhance the Professional Conversional Programmes to attract more back-to-work women by offering a job trial spanning two to four months akin to an internship. Upon completion of the job trial, the successful jobseeker would be offered the position and embark on actual PCP training Enhance the Work-Life Grant to enable companies offering the Returnship Programme and flexible work arrangements to tap on the Grant Incentivise employers through the Special Employment Credit to hire back-to-work women The Labour Movement urges employers to take advantage of the economic slowdown by placing greater emphasis on training and provide employees opportunities for upskilling and multiskilling. Employees must similarly embrace a can-do mindset of lifelong learning both in and outside of their workplace. 11 Labour Force in Singapore 2015, Ministry of Manpower, January

17 Labour Movement Budget 2017 Recommendations: Productivity

18 PRODUCTIVITY Labour Movement Budget 2017 Recommendations: Productivity 3. Productivity to Unleash the Potential of Working People Supporting Small and Medium Enterprises in their adopting of productivity solutions 3.1 Overall labour productivity in Singapore rose by 0.8% in the first half of 2016 over the same period in , with the manufacturing sector experiencing the highest productivity growth. By contrast, business services saw the most marked decline in productivity. Singapore s workforce growth also fell from 4% annually in to 2% in With the labour market expected to tighten further, businesses need to be supported in their efforts to adopt less labour-intensive practices. 3.2 The Labour Movement urges the Government to enhance existing productivity schemes, support the universal design of jobs and workplaces and continue to promote safe and conducive work environments so as to utilise the full potential of working people, thereby increasing productivity. 3.3 The Labour Movement recognises that approximately one-third of Singapore s total workforce comprises migrant workers. Hence, to complement the national productivity drive, we urge employers to recruit migrant workers with the right skills that can bring value to the job that they are hired to perform. 12 Labour productivity figures are based on a per worker basis. Quarterly labour productivity per actual hour worked are not released. Manufacturing sector had the highest productivity growth (4.0%), followed by Wholesale & Retail trade (3.3%) and Construction (1.5%). Business Services had the lowest (-2.7%), followed by Other Services (-2.0%). Statement on Labour Market Developments, Ministry of Manpower, September Parliament Speech by Mr Lim Swee Say at Minister for Manpower at Committee of Supply 2016, Ministry of Manpower, April

19 PRODUCTIVITY Recommendations Enhancement of Existing Productivity Schemes 3.4 The Labour Movement calls for the Government to enhance existing productivity schemes to assist companies in their productivity journey and ensure that productivity gains are fairly shared with working people: Grants such as Capability Development Grant and isprint Grant to be tied to wage increases, quantifiable transfer of skills to local working people and upskilling opportunities to improve work efficiency Funding to be targeted at sectoral projects especially in sectors with lower productivity such as Food & Beverages, Retail and Construction and involve property owners or retail chains for industry transformation Greater drive for asset pooling by identifying areas of collaboration for clusters of companies with similar products or services to improve productivity and cost savings. Shared distribution centres can be explored for smaller companies in the retail and logistics sectors As many unionised companies are multinational corporations (MNCs), the Economic Development Board (EDB) and Singapore National Employers Federation (SNEF) can work with the Labour Movement to identify MNCs within each sector on productivity projects to drive changes in their respective sectors. 3.5 We call for service buyers to structure contracts with a long term perspective so that productivity gains can be reaped and working people are rewarded suitably. We urge the Public Sector to take the lead in transforming the way contracts are structured, particularly in the low-wage sectors such as Cleaning, Security and Landscape. We call for service buyers to structure contracts with a long term perspective so that productivity gains can be reaped and workers are rewarded suitably Job and Workplace Redesign 3.6 More than 90% of LM leaders had expressed support for their work environment to be more age-friendly towards mature workers 14. We call on the Government to increase support for job redesign and the transformation of the workplace to enable productive employment for all age groups by: Enhancing the Age Management, Job Redesign and Work-Life components of WorkPro to help companies transform their workplace for working people of all ages, and to track their wage gains Increasing awareness of the various Job Redesign solutions that companies can adopt and encourage more companies to utilise such schemes to re-structure their workplaces so as to be age neutral. 14 Labour Movement Pre-Budget 2017 Poll, NTUC, November

20 PRODUCTIVITY Safe and Conducive Environment for All Working People 3.7 The Labour Movement is concerned about the increase in workplace fatalities and we urge the Government to step up efforts to create a safe environment for all working people. There have been 42 workplace fatalities in the first half of 2016, an increase from 30 in the same period in As of 1st November 2016, the number of fatalities has increased to We call on MOM and the Workplace Safety & Health (WSH) Council to: Focus 2017 efforts on the top two causes of fatal injuries, namely Falls (Falls from Heights & Slips, Trips & Falls) and Struck by Moving Objects, especially for the Construction and Transportation & Storage sectors Revert to Risk Management Assistance (RMAF) funding for SMEs to build up the competencies in risk management to create a conductive environment for work. Companies have noted that the current criteria for Capability Development Grant (CDG) funding which requires companies to attain bizsafe STAR Level (5 levels) within a year has been too onerous to achieve Put in place a system of reporting and monitoring near-misses and to incentivise companies for good Design for Safety concepts. 3.8 We urge MOM to place greater ownership and responsibility on the directors and senior management of companies to ensure a safe and healthy working environment, and to develop a case management system to give greater support to injured workers in injury management and to facilitate them in returning to work earlier. We urge the Ministry of Manpower to place greater ownership and responsibility on the directors and senior management of companies to ensure a safe and healthy working environment, and to develop a case management system to give greater support to injured workers in injury management and to facilitate them in returning to work earlier 15 WSH 2018 Plus, Workplace Safety and Health Council, October Speech by Mr Sam Tan at 14TH SISO (Singapore Institution of Safety Officers) Annual WSHO Conference, Ministry of Manpower, November

21 Labour Movement Budget 2017 Recommendations: Protection

22 PROTECTION Labour Movement Budget 2017 Recommendations: Protection 4. Protection for Working People in New Forms of Employment Fair work terms for working people on non-traditional work arrangements, especially freelancers and self-employed 4.1 The Labour Movement estimated that there are about 200,000 freelancers 17 in Singapore, a growing number that requires a complex ecosystem of support. Unlike employed workers, freelancers in Singapore are not legally entitled to statutory protection and benefits accorded to employees, such as Central Provident Fund (CPF) contributions, annual leave, medical leave, and rights under labour legislation such as the Employment Act and the Work Injury Compensation Act. 4.2 Many freelancers expressed concerns on payment issues, medical benefits and lack of an avenue to manage their workplace disputes. Additionally, we need to ensure freelancers have fair work terms and their retirement adequacy is addressed. The welfare of low-wage workers and outsourced workers must similarly be protected. 4.3 For all working people, the Labour Movement urges the Government to continue building a strong Singapore Core sector by sector and to closely monitor the progress of the Fair Consideration Framework. 17 Parliament Speech by Mr Ang Hin Kee at Debates on President Address, Parliament of Singapore, January

23 PROTECTION Recommendations Provisions for Freelancers and Self-Employed We urge the Government to review labour legislation that can be made relevant to freelancers and self-employed, and expand the role of TADM to include all working people including freelancers and their workplace disputes inside their framework 4.4 We call for the Government to ensure that the interests of freelancers and self-employed are protected. In particular, we urge the Government to review labour legislation that can be made relevant to freelancers and self-employed. 4.5 As freelancers do not have access to legislative channels or tripartite networks such as the Tripartite Alliance for Dispute Management (TADM) to resolve disputes, the Labour Movement call for the Government to expand the role of TADM to include all working people including freelancers and their workplace disputes inside their framework. 4.6 The Labour Movement urges the Government to review how freelancers can make CPF contributions and also receive support from the Government for contributing towards their own retirement adequacy. 4.7 We urge service buyers not to keep their manpower costs low by depriving freelancers of their CPF contributions. 23

24 PROTECTION Protection of Low-wage Workers and Outsourced Workers 4.8 We urge the continued efforts by the Government to protect the welfare of low-wage workers and outsourced workers by: Reviewing the wage levels in the three mandated Progressive Wage Model (PWM) sectors, namely the Cleaning, Security and Landscape sectors. We suggest to mandate annual wage increments and Annual Wage Supplement (AWS) and for the PWM wage scale in the three mandated sectors to adopt the National Wage Council s dollar quantum recommendations for income earners at the lowest 10th percentile. At the same time, we call for the review of the WIS eligibility to ensure that it moves in tandem with PWM wages Reviewing the Singapore Labour Foundation (SLF) Special Relief Scheme eligibility and pay-out to provide an immediate relief to affected workers suffering from workplace injury. We also suggest better publicity to workers on the Scheme s eligibility criteria so that workers know the support available to them in times of distress and need Amending the Government Procurement Act to shape procurement practices for outsourced services to include a principle of proportionality whereby the requirements and conditions of the contract must be in reasonable proportion to the procured services. This will ensure that clauses on liquidated damages are used as a professional tool to reasonably compensate service buyers for non-compliance of service standards. We also call for the Government to take the lead by adhering to the key principles before any amendment to the legislation. This will set in place industry standards that the private sector will be compelled to follow We also suggest the setting up of a tripartite mediation framework to resolve issues between service buyers and service providers. We urge the Government to amend the Government Procurement Act to shape procurement practices for outsourced services to include a principle of proportionality whereby the requirements and conditions of the contract must be in reasonable proportion to the procured services Incorporating compulsory rest areas and personal protective equipment for outsourced workers in new buildings. Outsourced workers should be provided with adequate protective equipment especially in working environments with potential health or safety hazards. 24

25 Labour Movement Budget 2017 Recommendations: Tripartism

26 TRIPARTISM Labour Movement Budget 2017 Recommendations: Tripartism 5. Tripartism 5.1 Tripartism has contributed greatly to Singapore s economic growth and stability. It is thus important for Tripartism to evolve beyond the national level and for cooperation to deepen at the sectoral level. We should promote a richer understanding and appreciation of Tripartism at all levels of society. Recommendations Deepen Tripartism at Sectoral Level We call on government agencies to institutionalise staff exchanges and crosslearning between the Civil Service, the Labour Movement and the Singapore National Employers Federation to strengthen mutual understanding and trust amongst the future generation of tripartite leaders, so as to sustain Tripartism as a competitive advantage for Singapore s continued success 5.2 We call on government agencies to institutionalise staff exchanges and crosslearning between the Civil Service, the Labour Movement and the Singapore National Employers Federation (SNEF) to strengthen mutual understanding and trust amongst the future generation of tripartite leaders, so as to sustain Tripartism as a competitive advantage for Singapore s continued success. 5.3 To ensure continued industrial peace, we suggest that Tripartism modules be incorporated in Human Resource (HR) courses offered by the IHLs so that HR practitioners can appreciate the Industrial Relations climate before embarking on their career. We also call on government agencies namely EDB to work with tripartite partners on a compulsory introductory course on Industrial Relations in Singapore for new foreign investors. We similarly call on HR practitioners and the HR Sectoral Tripartite Committee to incorporate modules on Tripartism and Industrial Relations into the National HR Professional Certification Framework to ensure that local HR practitioners appreciate the Industrial Relations climate in Singapore. 5.4 To strengthen Tripartism in the business environment, we urge the SNEF and the Singapore Business Federation (SBF) to include Tripartism in their foundation modules. We further urge HR practitioners to work with the Labour Movement to develop and implement progressive HR practices. 26

27 Labour Movement Budget 2017 Recommendations: Executive Summary

28 EXECUTIVE SUMMARY Labour Movement Budget 2017 Recommendations: Executive Summary 6. Conclusion The Labour Movement continually engages and provides feedback to the Government on issues faced by our working people. This paper has highlighted issues that working people face and proposed the following recommendations for Budget Placement to address cyclical and structural changes 1. Relevant government agencies and employers to work closely and in partnership with NTUC s Future Jobs, Skills and Training (FJST) department, and have open and pro-active sharing of information on employment trends and developments in both industry and sectoral needs for future jobs, skills and training, as well as industries that are experiencing slower or negative growth. 2. MOM to share the plethora of information in the Jobs Bank and work together with the Labour Movement, especially with NTUC s e2i (Employment and Employability Institute) as well as with FJST. This will enable the development of a comprehensive mechanism, together with employers, to enhance the placement of working people in relevant jobs, and identify employment trends to better customise and design modular, stackable training programmes. 3. MOM to empower the Labour Movement through e2i with greater flexibility to run the Adapt and Grow programme to better support Professionals, Managers, Executives and Technicians (PMETs) in skills acquisition, job placement and career enhancement. 28

29 EXECUTIVE SUMMARY Progression for Working People to Move into New and Future Jobs 4. Review of the requirements and prerequisites for jobs to facilitate progressive entry to help working people transit into available jobs quickly, and to review the entry criteria based on skills and not only on grades, especially in sectors which are critically short of workers. 5. Government to review the structural gaps in upskilling such as the duration of the pre-enrolment programmes, the wage during training and the format of training of existing initiatives such as Professional Conversion Programme and Place and Train. 6. a. MOE and SkillsFuture Singapore to work with the Labour Movement to enhance courses and training programmes through the Institutes of Higher Learning, in particular to re-design lectures and course materials into modular structures to increase the access to upskilling for working people b. IHLs to partner the Labour Movement through the NTUC Education and Training Fund to fund courses through course fees subsidies to enable working people to upskill or reskill 7. Enhance SkillsFuture: a. Additional top up of the SkillsFuture credit to signal the Government s commitment in investing in working people s training b. Support companies by providing paid training leave to companies for working people to attend SkillsFuture courses c. Provide SkillsFuture allowance for unemployed working people to offset course fees during their unemployment period d. Expand the utilisation of the credit to include career coaching services e. Refine the courses in SkillsFuture directory constantly to be more relevant to tomorrow s jobs, including structuring courses for industry specific skills f. Design courses that would help the displaced PMETs enter adjacent jobs in industries such as Engineering and ICT 8. Government to redesign jobs through the Sectoral Tripartite Committees and Council for Skills, Innovation and Productivity. One way is the development of systems of apprenticeship to support industries that face manpower shortage: a. At entry-level, a review of apprenticeship programmes such as Earn and Learn Programmes and Creative Craftsman Apprenticeship Programmes with sector agencies playing a more strategic role b. Companies that participate in these programmes should be accredited by the industry associations or sector agencies with training guidelines to maintain quality standards c. For mid-career apprenticeship, systems of apprenticeship to be put in place across engineering fields such as transport, electronics and construction and across skilled trades such as technicians, electricians and welders d. LTA and BCA to take the lead in developing apprenticeship systems to raise recognition of technical skills and crafts 9. Introduce a Special Workfare Income Supplement (WIS) Bonus as a progressive retention incentive to encourage low-wage workers to stay employed in the same organisation for at least two years after undergoing training. 10. Helping mature workers to stay employed through: a. Targeted support in specific growth industries identified by government agencies by incentivising companies who adopt upskilling and capability development of mature workers so as to retrain local workers in line with Singapore Core b. Increase the wage offset and remove the tiers of payouts for different groups of wage earners for Special Employment Credit (SEC) 29

30 EXECUTIVE SUMMARY 11. Fund a Returnship Programme with pilot programmes in sectors such as Early Childhood & Social Services: a. Enhance the PCP to attract more back-to-work women by offering a job trial spanning two to four months akin to internship b. Enhance the Work-Life Grant to enable companies offering the Returnship Programme and flexible work arrangements to tap on the Grant c. Incentivise employers through SEC to hire back-to-work women 12. a. Employers to take advantage of the economic slowdown by placing greater emphasis on training and provide employees opportunities for upskilling and multiskilling b. Employees to embrace a can-do mindset of lifelong learning both in and outside of their workplace Productivity to Unleash the Potential of Working People 13. Enhance existing productivity schemes to assist companies in their productivity journey and ensure that productivity gains are fairly shared with working people: a. Grants such as Capability Development Grant and isprint Grant to be tied to wage increases, quantifiable transfer of skills to local workers and upskilling opportunities to improve work efficiency b. Funding to be targeted at sectoral projects especially in the sectors with lower productivity such as Food & Beverages, Retail and Construction and to involve property owners or retail chains for industry transformation c. Greater drive for asset pooling by identifying areas of collaboration for clusters of companies with similar products or services d. Explore shared distribution centres for smaller companies in the retail and logistics sectors e. EDB and SNEF to work with the Labour Movement to identify MNCs within each sector on productivity projects to drive changes in their respective sectors 14. Service buyers to structure contracts with a long term perspective so that productivity gains can be reaped and working people are rewarded suitably. We urge the Public Sector to take the lead in transforming the ways contracts are structured, particularly in the low-wage sectors such as Cleaning, Security and Landscape. 15. Increase support for job redesign and transformation of the workplace to enable productive employment for all age groups by: a. Enhancing the components of WorkPro to help companies transform their workplace for working people of all ages and to track their wage gains b. Increasing awareness of the various Job Redesign solutions 16. Step up efforts to create a safe environment for working people: a. Focus 2017 efforts on the top two fatal injuries cause by Fall (Falls from Heights & Slips, Trips & Falls) and Stuck by Moving Objects especially for the Construction and Transportation & Storage sector b. Revert to Risk Management Assistance funding for SMEs to build up the competencies in risk management c. Put in place a system of reporting and monitoring near-misses and to incentivise companies for good Design for Safety concepts 17. MOM to place greater ownership and responsibility on the directors and senior management of companies to ensure a safe and healthy working environment, and to develop a case management system to give greater support to injured workers in injury management and to facilitate them in returning to work earlier. 30

31 EXECUTIVE SUMMARY Protection for Working People in New Forms of Employment 18. Build a strong Singapore Core sector by sector and to closely monitor the progress of the Fair Consideration Framework. 19. Review labour legislation that can be made relevant to freelancers and self-employed. 20. Expand the role of Tripartite Alliance for Dispute Management (TADM) to include all working people including freelance workers and their workplace disputes inside their framework. 21. Review how freelancers can make CPF contributions and also receive support from the Government for contributing towards their own retirement adequacy. 22. Service buyers not to keep their manpower costs low by depriving freelancers of their CPF contributions. 23. Protect the welfare of the low-wage workers and outsourced workers by: a. Reviewing the wage levels in the three mandated Progressive Wage Model (PWM) sectors b. Mandating annual wage adjustments and Annual Wage Supplement (AWS) and for the PWM wage scale in the three mandated sectors to adopt the National Wage Council s dollar quantum recommendations for income earners at the lowest 10th percentile c. Reviewing WIS eligibility to ensure that it moves in tandem with PWM wages d. Reviewing the Singapore Labour Foundation Special Relief Scheme eligibility and payout to provide immediate relief to affected workers suffering from workplace injury e. Better publicity to workers on Scheme s eligibility criteria f. Introducing amendments to the Government Procurement Act to include a principle of proportionality whereby requirements and conditions of the contract must be in reasonable proportion to the procured services g. Setting up a tripartite mediation framework to resolve issues between service buyers and service providers h. Incorporating compulsory rest areas and personal protective equipment for outsourced workers in new buildings Tripartism 24. a. Institutionalise staff exchanges and cross-learning between the Civil Service, the Labour Movement and the Singapore National Employers Federation (SNEF) b. Incorporate Tripartism modules in Human Resource courses by IHLs c. EDB to work with tripartite partners on a compulsory introductory course to Industrial Relations in Singapore for new foreign investors d. HR Practitioners and the HR Sectoral Tripartite Committee to incorporate modules on Tripartism and Industrial Relations into the National HR Professional Certification e. SNEF and SBF to include Tripartism as their foundation modules f. HR practitioners to work with the Labour Movement to develop and implement progressive HR practices 31

32 More About Our Unusual Labour Movement

33 MORE ABOUT OUR UNUSUAL LABOUR MOVEMENT More About Our Unusual Labour Movement NTUC s objectives are to help the working people remain employable for life; to enhance the social status and well-being of our members and the working people; and to build a strong, responsible and caring labour movement. Our Vision A better and more meaningful life where working people of all collars, all ages and all nationalities can work, live and play together in Singapore. Our Mission We help working people to earn a better living and live a better life. 33

34 MORE ABOUT OUR UNUSUAL LABOUR MOVEMENT 3 Key Thrusts We want to Care for our working people by helping to lessen the burden on their living needs, and so that they can look forward to having good jobs in a good working environment. We want to be Fair to our working people by protecting their interests and ensuring fair conditions at the workplace. We want to Grow with our working people by helping them grow in their careers for a better future, and for the working people to grow together with us as one Labour Movement. 34

35 MORE ABOUT OUR UNUSUAL LABOUR MOVEMENT Care We want to be a caring Labour Movement that helps to improve the lives of working people through better jobs, achieving higher income growth and helping families cope with the cost of basic necessities, and receive work-life support. We want to care for working people through the following ways: For our Social Enterprises to care for the working people and our members, to meet their emerging life-cycle needs in an integrated way To provide a Positive Work Environment for the working people and create better working terms and conditions for specific worker groups, especially women, mature, migrant and low-wage workers To strengthen Tripartism to create a positive environment for investment and good jobs, and enable us to take better care of our working poeple To introduce the implementation of the Progressive Wage Model beyond low-wage worker sectors to help all working people move up to have better jobs with better pay. 35

36 MORE ABOUT OUR UNUSUAL LABOUR MOVEMENT Fair The Labour Movement works closely with employers to create a better working environment for our working people. The Labour Movement does this through the following approaches: To achieve higher wage increase in the unionised sector through Collective Bargaining To protect workers rights and interests by resolving their workplace disputes through Dispute Resolution mechanisms To be the voice of working people and champion ground concerns on national policies and employment practices through Advocacy. 36

37 MORE ABOUT OUR UNUSUAL LABOUR MOVEMENT Grow The Labour Movement wants to help working people enhance their employability so that they can take on good job opportunities for better career growth. At the same time, we want to grow with our working people, by expanding our outreach and scope to cover the majority of the workforce, especially Professionals, Managers and Executives (PMEs). We aim to do this through the following: To improve unionisation rates and grow the Labour Movement with more PMEs, U Associates, freelancers and self-employed (FSEs) and small and medium enterprises (SMEs) to represent more Singaporean working people To strengthen engagement with working people and members through 3-Generation Communities To develop the next generation of leaders for the Labour Movement, strengthening the representation across all segments of the workforce To prepare working people to acquire Future-Ready Skills for the needs of tomorrow through SkillsFuture. 37