SINGAPORE: Maybank Singapore and its unions – the
Singapore Bank Employees' Union and the Singapore Bank Officers'
Association – have signed a policy regarding the re-employment of
older workers.
It is one of the early movers in the unionised sector, leading the
way on a formal re-employment policy ahead of new laws in 2012.
Just on Monday, draft tripartite guidelines on the re-employment of
older workers were released to help bosses prepare for
it.
Maybank has 1,300 employees in Singapore and about one per cent of
them turn 62 years old each year. This may be a small number, but
the bank said on Friday that it wants to provide certainty to its
older employees as they approach the age of 62.
Under the bank's new policy, it will provide pre-retirement
counselling 12 months before the employee turns 62 and also give
three months' notice to inform them of their re-employment
status.
Wong Keng Fye, head of human resource, Maybank Singapore, said: "We
have also put in place the policy of outplacement of employees,
which in our view should be exercised only as a last resort, in the
event that we can't redeploy or offer re-employment within the bank
itself."
Moreover, if the bank has exhausted all avenues to help an employee
find alternative employment, it will offer him a one-off Employment
Assistance Payment.
Commenting on this, NTUC's deputy secretary-general, Heng Chee How,
said: "It shows us that what is discussed at the national
tripartite level is practical and can be implemented.
"So you have a very successful bank like Maybank working with their
two unions, looking at the value of their older workers and being
able to come to an agreement of the specific terms."
He added that this will benefit generations of workers who can
approach retirement with a peace of mind.
Maybank has also decided not to apply the discretionary reduction
of up to 10 per cent in wages for workers when they turn
60.
"Under the Retirement Age Act, there are reasonable factors
mentioned in the Act like productivity, retirement, job scope, the
seniority element in the wage structure. Every company should look
at those factors to decide whether there is a need to make any
adjustments to those factors," said Mr Heng.
"Today, Maybank has decided to remove the clause because they have
moved into a more performance-based reward system. So they've done
the calculation and there is no more need for this... it's a happy
thing for the workers – we support it."
In 2012, employers will be legally required to consider re-hiring
those who reach the retirement age of 62.
- CNA/so
------------------
I am indeed glad they have decided to stop cutting the old staff
salaries each year when they have aged beyond 60 years.
I can understand my 64 year old friend's frustration living on
$2K monthly salary after working more than 30 years for the bank.
His once cheerful demeanor has been replaced by lousy moods
and foul tempers.
Finally, the union took some actions to assist his welfare,
albeit little late to reinstate his income to a level that is
consistent with his experience and past contributions.