SINGAPORE: The National Wages Council (NWC) has proposed that
employers give low-wage workers a built-in wage increase of at
least S$60. This applies to workers earning up to S$1,000 a
month.
In 2012, the council recommended a built-in wage increase of at
least S$50 for this group of workers. Eight in 10 unionised
companies heeded the call. However, only three in 10 non-unionised
ones did the same as of December 2012.
The council though said it is a "good start" in helping to uplift
the pay of low wage workers.
NWC chairman Professor Lim Pin said the quantum of at least S$60
was carefully considered by all parties.
He said: "I think that's the kind of target which we think is a
fair target and achievable. On the one hand, we urge the employers
to do more. On the other hand, it has to be achievable target and
not something wild!"
Companies that are doing well are also urged to grant an additional
one-off lump sum payment to help low wage workers cope with the
cost of living.
In releasing its recommendations on Friday, the council noted that
the income growth of low-wage workers still lagged behind the rest
of the workforce.
Contract workers were also mentioned. The council called on
employers and service buyers to incorporate the recommendations
into their out-sourced service contracts. This also applies to
older workers who are re-employed.
In granting wage increases, the council stressed that it must go in
line with productivity gains. Otherwise, the council said, any wage
increase is not sustainable and it would be detrimental to
Singapore's economic competitiveness.
Thus, the council recommends that real wage increases should
correspond with productivity growth over the long-term.
The council also urges employers to share productivity gains fairly
with workers. This includes giving built-in wage increases to
workers taking into account the companies' business performance and
prospects.
The recommendations cover the period from July 1, 2013 to June 30,
2014.
The government has accepted the recommendations.
- CNA/ac
