SINGAPORE - With more companies now paying workers based
on performance rather than seniority, the labour movement feels
it's time to review the need for a provision that lets employers
dock 10 per cent off a worker's salary when he or she is
re-employed upon hitting the retirement age.
The cut was introduced when the retirement age was
officially raised to 62 - back in 1999, most companies were still
paying workers based on seniority.
But it was also understood then that there would be "less reason"
for the cut when more employers moved towards performance-based
pay, said NTUC deputy-secretary general Halimah Yacob on
Thursday.
"Therefore, based on that understanding, the delegates have asked
that this be reviewed in the new legislation (the Re-Employment
Act) coming onstream in 2012, and also in the tripartite guidelines
that we will be formulating," she said.
The tripartite partners are likely to announce their guidelines on
re-employment at the end of this year.
Of the unionised companies, more than 700 are committed to
re-employment, and more than 5,000 workers have been re-employed.
About 20 per cent of the firms do not cut wages when a worker is
re-employed.
- TODAY/ir