Manpower Minister Gan Kim Yong says wage increases must come with
increased productivity.
And he adds that the National Wages Council, which makes the annual wage
recommendations in May is also mindful of this.
He was addressing comments made at a tripartism forum today.
The forum heard concerns about productivity putting pressure on wage
costs.
Chairman of the Singapore Business Federation, Tony Chew, says when
workers go for training to help them increase their productivity,
companies face manpower shortage.
At the same time there are work disruptions and operational delays.
And trained workers would demand higher wages.
These he said are the realities.
Responding, Manpower Minister Gan Kim Yong, stressed that increase in
wages must be accompanied by improvements in productivity.
"If we keep on increasing wages without actual improvement in
productivity, we will lose our cost competitiveness and it will not be
sustainable in the long term. So we need to watch wages, wage costs, at
the same time watch the productivity improvements. Both of them have to
be in line."
Chief Executive of the Singapore International Chamber of Commerce
Philip Overmyer, pointed out that even though companies want to keep
wages affordable, it's important to share productivity gains with
workers :
"In the process of improving productivity, the company sees higher
output because of the improved productivity and most good companies
recognise that you have to share the amount of benefits that goes to the
company and the benefits that goes to the employee who of course have
developed better skills."
However, gains from such productivity improvements may not necessarily
lead to higher wages.
But it could come in the form of a productivity bonus.
Secretary-General of NTUC Lim Swee Say cited the example of SIA
Engineering.
"Phase one of the operation, they saved $10 million. Now the next
question is what happens to this savings. So the union and management
came to an agreement that 24 to 33 per cent of the savings will be
shared with the workers in the form of a quarterly productivity bonus
and their target is to save $50 million a year by the end of this year.
If they can achieve that then the quarterly productivity bonus for the
workers could be as much as $1,000 per quarter."
The tripartite partners also agree that management has to take the lead
in enhancing productivity.
Managers too need to attend training, to improve work processes.
-- 938Live
please apply that with the minister lah before making statement about wage with productivities!!!
How do the local government measure their productivity to decide they get the remuneration of millions?
Originally posted by Arapahoe:please apply that with the minister lah before making statement about wage with productivities!!!
I am immortal and you are mortal...!!!!