NTUC proposes better protection for PMEs

It wants Employment Act amended to cover more rights of growing group

By Janice Heng, The Straits Times, 10 Nov 2012

THE National Trades Union Congress (NTUC) wants professionals, managers and executives (PMEs) working here to be more adequately covered by Singapore's main labour law, the Employment Act.

Currently, the Act covers PMEs solely in the area of salary payment, and only for those earning $4,500 or less a month.

The Government has said before that PMEs are not covered as they can negotiate their own employment terms. NTUC is proposing that the law be amended to protect a wider range of employee rights for this group, including unfair dismissal and sick leave.

It also said that the law should cover at least half of the 630,000 resident PME workforce here. Sharing this and other proposals yesterday, NTUC's director of legal services and PME unit Patrick Tay said negotiations among the tripartite partners had begun.

The Employment Act review was announced in April. Then, Acting Manpower Minister Tan Chuan-Jin said it was prompted by workforce changes such as a growing proportion of PMEs.

That trend is why "there is a serious need for the EA to cover PMEs in general," said Mr Tay yesterday, referring to the Employment Act. PMEs form about a third of workers, with this expected to rise to four in 10 by 2030.

Another key NTUC proposal is for more non-PME workers here to be covered under a special section of the Act which deals with overtime and rest days.

With median wages rising, NTUC wants to raise salary caps so more workers fall under Part IV of the Act. Currently, Part IV covers only workmen or manual labourers who earn up to $4,500 a month, and other workers making up to $2,000.

NTUC wants to raise the first cap so that almost all workmen are covered, and the second cap to at least the median basic salary.

It has asked the Manpower Ministry what those levels are, as figures are not publicly available.

While NTUC hopes the distinction between workmen and others can eventually be removed, it is not asking for the caps to be harmonised now. "To move from $2,000 to $4,500 is quite a big leap," and having a uniform cap below $4,500 would make some workers worse off, said Mr Tay.

NTUC is not pushing for PMEs to be covered by Part IV as it is hard to determine their overtime hours, said assistant secretary-general Cham Hui Fong.

The labour movement is also proposing that vulnerable workers be protected by making written contracts and monthly payslips mandatory. This would provide more certainty and help with disputes. Some low-wage workers such as cleaners are on verbal contracts, said Mr Tay.

Other proposals on NTUC's list include minimum rest periods after every 12-hour work shift and after in-camp training to avoid the danger of overwork.

It also wants to change the rule that employees with less than three years' service should not be entitled to retrenchment benefits. It said shorter employment terms are now more common.

The minister has said the review will have two phases, and NTUC plans to propose other changes later, such as better protection for outsourced workers, short-term contract staff and freelancers. As the workforce profile and wages continue to change, the Act should be reviewed more regularly - perhaps every two to three years, said Mr Tay.

The Singapore National Employers Federation said yesterday it is consulting employers and will make its views known next week.

For now, "higher in-employment costs, over-protection of benefits and more labour market rigidities are the three main concerns of employers, and especially so if certain EA provisions are extended to PMEs", said its executive director Koh Juan Kiat.

MOM consultation paper soon on Employment Act tweaks
Channel NewsAsia, 10 Nov 2012

The Ministry of Manpower will at the end of the month come up with a public consultation paper on proposed changes to the Employment Act.

Acting Manpower Minister Tan Chuan-Jin said the paper will take into account the important inputs raised by employers and unions with the aim of coming up with a fair and balanced package.

Mr Tan noted that the National Trades Union Congress (NTUC) had announced its wishlist for the Employment Act and many of the issues raised have been highlighted in the tripartite discussions.

The labour movement is pushing for the Employment Act to cover more professionals, managers and executives. Increased coverage will mean more white-collar workers can claim overtime pay and retrenchment benefits, among other things.

Mr Tan also noted the concerns of employers who are asking for flexibility.

He stressed that Singapore's secret weapon over the years, and up till today, remains the strong tripartism among the labour movement, employers and the government. This has helped to meet challenges head on.

"My message to the employers, unions in all the occasions I have met them is, going forward it is going to become even more important, the level of trust, the level of confidence that we can establish between the tripartite partners will have to increase," he said.

"We do feel the pressures, all of us will have to cater to the stakeholders, we need in our own way to be vocal and rightfully so, but as a result of that, we need a greater sense of commitment and trust between the three partners. And this working together is unified by a common sense of purpose and the common sense of purpose really is about how do we make things better for Singapore and how do we make things better for Singaporeans."

He noted that this year, the re-employment legislation which obliges employers to re-employ older workers up to the age of 65 was smoothly implemented.

Mr Tan said 97 per cent of the 11,500 local employees who were retiring at the end of June 2011 were offered employment beyond 62.

The acting minister was speaking at the Graduation Ceremony of the Ong Teng Cheong Labour Leadership Institute on Saturday. The event was attended by Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam, who is the chairman of the institute's Board of Governors, and NTUC Secretary-General Lim Swee Say.

Labour law review should strike balance, says SNEF

Employers' body wants it to protect workers, yet give bosses flexibility

By Janice Heng, The Straits Times, 17 Nov 2012

THE Singapore National Employers Federation (SNEF) has called for the review of Singapore's main labour law to strike a balance between protecting workers and giving bosses flexibility.

With business cycles now shorter, flexibility is important as employers "need to be nimble", said the SNEF in a statement yesterday. Flexibility also helps businesses manage their costs, it added.

The federation hopes firms can have the option of giving time off in lieu instead of overtime pay. It also wants flexibility in giving benefits to professionals, managers and executives (PMEs), if they are eventually covered by the Employment Act.

PMEs are now covered by the Act only in the area of salary payment, and only for those earning $4,500 or less a month. But the labour movement is pushing for them to be covered in more areas.

Public consultation on the review of the Act is due to start by the end of the year. The SNEF said it has consulted more than 1,000 employers since the review was announced in April.

Meanwhile, the National Trades Union Congress (NTUC) released a wish list for the review last week. One proposal is to raise the salary ceiling for workers covered by Part IV of the Act, which deals with work hours and rest days. Now, it applies only to workmen or manual labourers earning up to $4,500 a month, and other workers making up to $2,000.

But a third of SNEF members polled said that if the non-workmen salary ceiling was raised by 10 per cent, overtime costs would rise about 5 per cent on average.

SNEF sees the need to review salary ceilings, given rising pay, said executive director Koh Juan Kiat. But time off in lieu of extra hours worked "could be considered to help employers better manage costs, fluctuating business cycles and limited manpower".

It also wants companies to have flexibility in providing benefits for PMEs, noting that some small and medium-sized enterprises (SMEs) feel mandatory minimum benefits "could be a financial burden".

With the labour shortage, small businesses are especially vulnerable, said Association of Small and Medium Enterprises vice-president Kurt Wee. "If you make it harder to hire workers or raise business costs, then you may disadvantage SMEs more."

The NTUC's director of legal services and PME unit, Mr Patrick Tay, said the labour movement "is glad that SNEF acknowledges and agrees with the need to review and adjust provisions in the Act due to rising median monthly basic salaries, the changing nature of work and employment trends".

While the NTUC acknowledges that firms exercise flexibility in giving benefits to PMEs, it wants them to have "sufficient protection and basic employment rights" under the new Act, he said.

Mr Tay disagreed with some of SNEF's suggestions, like introducing a one- or two-year minimum period of service before employees dismissed during probation can appeal to be reinstated. "Existing workers covered should not be prejudiced with such a minimum service period," he said.

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