SINGAPORE : Singapore's tripartite National Wages Council has
spelt out the annual wage guidelines for July 2005 to June
2006.
One group of workers it is concerned about is the low-wage earners
-- those who get $1,200 and below a month -- who have been
subjected to downward pressures on their wages due to
globalisation.
The NWC is urging companies that are granting wage increases to
give them higher payments.
This could be done by specifying a higher percentage
increase.
Another way is to include a dollar quantum, in addition to the
percentage increase in wages.
The NWC also called on companies to make greater use of bonuses to
reward workers for their contributions.
It says granting bonuses should be closely linked to the
performance of the company and the employees, based on objective
and fair criteria.
This will make for a more responsive and flexible wage
system.
Companies that do not have a performance management system linked
to employee rewards have been urged to quickly put them in
place.
And where a built-in wage is granted to workers, companies and
unions should use the increase to build up the Monthly Variable
Component where the target has not been reached.
The NWC says while both economic growth and employment growth are
expected to slow down this year, it is confident the wage
guidelines will help strengthen Singapore's international
competitiveness and reward workers fairly for their
contributions.
Other recommendations from NWC include:
- To contain the cost of doing business and cost of living, the
government and service providers should moderate non-wage costs
such as rentals, telecommunication and utility charges, transport
costs and government fees.
- Tripartite partners, led by the Singapore National Employers
Federation/Singapore Business Federation, should study and make the
necessary adjustments to facilitate the implementation of the
Portable Medical Benefits Scheme.
- Companies should work closely with unions, workers and the
government to step up skills training and upgrading to enhance the
capability of the workforce. They should also look into measures to
enhance employability of older workers. - CNA /ct