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