SINGAPORE : Minister Mentor Lee Kuan Yew says Singapore's port cannot afford to be complacent, even though it has turned the corner from stormy waters a few years ago.
Speaking at the port workers union's dinner on Friday, Mr Lee explained PSA Corp could not afford to stand still, and that it would face keener competition ahead.
Mr Lee stressed that PSA is a cornerstone of Singapore's economy and has to succeed.
This means management and staff have to wok together, so what it did with the retrenchment exercise in 2003, which many people still remember, was painful but necessary for Singapore's future.
These days, competition in the shipping industry is no longer simply between port and port; it has become one between port-shipping line alliances.
Not seeing that, PSA started losing out from 2000, when shipping line Maersk tied up with the Malaysian port of Tanjung Pelepas.
In the years following that, PSA has had to make some hard decisions.
"Working together with the management, union agreed that sacred cows had to be slaughtered. The no-retrenchment deal had to go. 24 February 2003 was a sad day when union officials cried together with the retrenched workers," Mr Lee said.
Mr Lee assessment is that the worst is over, and PSA has shot back up in the world rankings.
He attributed PSA's comeback to its continuous investments, and the workers' commitment and training.
All these have resulted in more jobs, and better pay from bonuses and overtime.
Said Mr Lee, "My RC chairman in Spottiswoode Park, Tan Eng Loke, is an active SPWU Council member. He told me there is so much overtime work, workers now ‘complain’ to him they have little time for themselves. I say this is a happy problem. I hear that with the low price of cars, some port workers are now buying new cars.
"The SPWU has now got to deal with problems beyond industrial relations, like solving car park problems for some of these workers with management."
Mr Lee has had a long history with Singapore's port and its workers.
In 1955, he chose to stand in Tanjong Pagar because he had fought for the welfare of port workers there, and he has also worked with its union for a long time.
He stressed that the port remains a cornerstone of Singapore's economy.
It creates jobs for more than just the 4,000 plus workers it hires directly and its 3,000 contract workers.
Looking ahead, PSA has to continue to adapt to change, as shipping lines consolidate to form alliances and mergers.
Mr Lee said, "Looking ahead, we cannot afford to be complacent. PSA will face even keener competition. The shipping lines, like those in banks and airlines, are consolidating. These huge shipping lines will exert pressure on all ports, including PSA, to deliver cheaper cost per box and faster time to destination services."
Mr Lee also pointed out four major challenges for PSA in the years ahead.
The first was building trust between workers and management.
He said this helped a lot during restructuring operations, adding that it was good when workers joined unions because problems were best solved by unionists, who were closer to the ground.
The second was that management must invest in worker training and welfare.
Equipment can be bought off the shelf but not human capital; training and relationship-building takes time.
The third was that management must invest in new facilities and increase productivity to remain ahead of the competition.
And fourthly, their labour must remain flexible. Last June, Mr Lee noted how when volumes surged, workers volunteered to come back on their days off. – CNA/ct
