4.2% pay increment unlikely
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Dec 5, 20084.2% pay increment unlikelyNTUC chief and SNEF say Mercer's projection unrealistic
By Li Xueying, Political Correspondent UNIONISTS and employer group Singapore National Employers Federation (SNEF) have scoffed at a recent survey that shows wages next year will increase by 4.2 per cent.'It is highly unrealistic' was how NTUC secretary-general Lim Swee Say put it yesterday.
Also questioning the salary projection was SNEF president Stephen Lee, who said a study by his federation showed a 'very different picture'.
'Given the sentiments, this 4 over per cent seems to be too high,' he said.
The survey in question was conducted by human resource consultancy Mercer Singapore, which polled more than 230 companies here last month.
It shows base-salary increments next year will be 4.2 per cent on average. This is a drop from 5.1per cent this year.
Mr Bob Tan, chairman of Jurong Engineering, who is also vice-president of SNEF, started the dialogue yesterday with the first question, asking panel members Acting Manpower Minister Gan Kim Yong, Mr Lim and Mr Lee, for their opinion of the projection.
It met with this quip from NTUC president John De Payva: 'The unions sent bouquets of roses to Mercer and thanked them for their optimism.'
In his response, Mr Lim appealed to union leaders not to use the projection as a benchmark when negotiating with companies.
He noted the world's gross domestic product growth next year is projected to be 2 per cent. This is lower than the 2.5 per cent in 1998 during the Asian financial crisis, and lower than the 2.3 per cent in 2001 after the Sept 11 terror attacks in the United States.
At the same time, the International Labour Organisation has just projected that by the end of next year, there will be 210 million jobless workers all over the world.
'So in the labour movement, we are very concerned that with this rapid drop in the growth of the economy, many businesses will be affected and very badly, and many workers will be affected and quite badly as well,' said Mr Lim.
'If you ask me, are we concerned whether wage growth will be 4 to 5 per cent, my reaction is, it is highly unrealistic, and I hope that you, brothers and sisters, share my sentiment.
'If you go out to the companies and start negotiating for 4 to 5 per cent, we will do ourselves in. If companies cannot survive, we lose jobs.'
What is important is to ensure Singapore will not be among the first locations for companies to reduce their production capacity.
So Mr Lim urged the unions to work with employers on saving costs. He also appealed to employers to work with unions on saving jobs.
He added: 'For companies that are making money, they will pay, don't worry about wage increases.'
Meanwhile, with the global economic crisis escalating quickly, the full effect of the recession has yet to be felt, said Mr Gan.
'So it would be treacherous to try to predict wage increase for next year, better for us to save jobs and save businesses.
'When looking at salary adjustments next year... we have to be realistic.'
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everybody on the street must be thinking that it will be more like 4.2% pay cut!
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They will take the chance to cut...
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Actually the net effect is no cut.
There will be a perceived 4.2% increase next year of which employers will cut this 4.2% increase, thereby leading to no cuts actually.
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Accuse me, they might be referring to Minister's pay increases. 4.2% increment is still not sustainable for our Ministers. But better than getting a cut of nothing, they simply said it so that you guys don't be in for a surprise once they declare minister's pay increases.
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What is 4.2%? $42 every 1000? pathetic.
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Why Cut increment? Why Cut Pay? I thought our government put alot emphasis on valuing talents and providing a competitive payscales to keep them?? lol