Economic restructuring 'may strain labour ties': DPM Tharman

But Singapore must not lose the special trust forged between tripartite partners, says DPM Tharman

By Aaron Low & Amelia Tan, The Straits Times, 30 Apr 2012

AS SINGAPORE restructures its economy, businesses will fold and jobs will be lost.

This could put a strain on the special relationship between the Government, labour unions and employers, warned Deputy Prime Minister Tharman Shanmugaratnam yesterday.

There is now greater expectation for the tripartite partners to speak out in public on employment matters and even be more adversarial.

But the challenge will be to avoid playing to the gallery and advancing positions for short-term gain, he added.

'This trust (between the partners) is one of Singapore's most valuable assets,' said Mr Tharman, addressing more than a thousand unionists at their annual May Day dinner last night.

'We must keep our advantage in Singapore by maintaining a frank, open and constructive dialogue, which is always aimed at the shared objective of meeting the long-term interests of Singapore and Singaporeans.'

Speaking at the Orchid Country Club, Mr Tharman - who is also the Manpower Minister - warned that economic restructuring will take 'at least the better part of this decade' to complete.

He said that companies may be phased out or move overseas, and productivity innovations at the workplace may also not work out as well as planned. This may pose problems to the tripartite relationship.

'The partners do not necessarily agree or take identical positions on many issues, and this has always been the case,' he noted.

'However, there are some calls for the partners to be more adversarial, to push their positions more openly and to let the matter be decided in a court of public opinion.'

Another challenge that the labour movement faces is to evolve with the profile of the Singapore workforce and cater to the needs of both low-wage workers and more educated executives, said Mr Tharman.

He said the Government will work to help low-wage workers benefit most from the economic restructuring.

One of the ways it is doing this is to inject another $70 million into a programme that helps firms raise productivity, on the condition that the firms share the gains with the low-wage workers.

As for the professionals, managers and executives (PME) group, Mr Tharman noted that many of their counterparts are facing high unemployment and low wages in the United States and Europe.

In the US, for instance, 44 per cent of those working on minimum wages in 2010 had either attended or graduated from college, he added.

'We must never get close to the situation that we see in these economies,' he said, noting that the Government has been expanding both job-matching and training programmes for PMEs.

Unionists interviewed yesterday agreed with Mr Tharman on the challenge of dealing with economic restructuring, but many still believe in a vocal public stance on a worthy cause.

'At the end of the day, we may reach a consensus because of our strong tripartite relationship, but it is important that there is a discussion and our views are heard and considered,' said Mr David Phang, executive council member of the United Workers of Electronic and Electrical Industries.

Mr Yeo Chun Fing, deputy general secretary of the Amalgamated Union of Public Employees, added that it was important to be seen by members to be representing them.

'I believe we can manage the relationship well so that the trust is not lost,' he said.

Last night, the labour movement paid its annual tribute to individuals who have contributed most to the union, giving out a total of 92 May Day awards.

Leading the list were NTUC president emeritus John De Payva and Manpower Ministry senior director Ong Yen Her, who were both given the highest Distinguished Service (Star) Award.