Changing pay-cut mindset: Govt-linked firms must take lead
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May 22, 2010 - ST Forum
Changing pay-cut mindset: Govt-linked firms must take lead
WHILE the joint reply by the Singapore National Employers Federation, the Ministry of Manpower and the National Trades Union Congress on Thursday is heartening ('Less than 3% of private firms cut older workers' wages'), how many government and government-linked companies implement the wage cut for older workers?
From our experience with Singapore Airlines (SIA), it was simply the extraction of the maximum cut permissible under the law, without any due regard given to the reasonable mitigation factors provided under the legislation.
It was really a case of no cut, no job. This was despite the fact that there was no change other than the pilot turning 60 years old.
What is worse is that of late, SIA Cargo has come up with a scheme that will employ a national pilot beyond age 62 only on a daily-rated basis. There is no assurance of any minimum level of monthly income. Effectively, that would be a wage cut beyond 10 per cent.
As pilots, we can work up to age 65, legally. Here is a company that has been struggling to stay above water, and yet it is willing to hire the more expensive expatriate pilot on a longer contract term, with the attendant costs such as housing and child allowances.
Why are they denying the national pilot, who helped build up the national icon, the same opportunity of a job until the end of his useful working life?
We are not asking for freebies, merely fairness and equity.
How can one, and a national at that, be denied a job, or even be offered unfavourable terms, just because of his age?
I know that efforts are being made at all levels to change the mindset and to discourage discrimination based on age, but for this lifelong employment initiative to really take off, all government and government-linked companies must be directed to take the lead and do the right thing.
Captain P. James
President
Air Line Pilots Association - Singapore -
p. james is a msian, is that? he is trying his luck with the old man.
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May 26, 2010 - ST Forum
Pay cut for older workers: What's SIA's policy?
THE joint reply by the Singapore National Employers Federation, the Ministry of Manpower and the National Trades Union Congress last Thursday ('Less than 3% of private firms cut older workers' wages') does not appear to take public listed companies into consideration.
Singapore Airlines (SIA), SIAEC (SIA Engineering) and all other SIA-affiliated companies practise 10 per cent across-the-board pay cut for all employees the moment they turn 60 years old.
Such employees can expect their salary the month after their 60th birthday to be 10 per cent less - with exactly the same workload as in the month before.
When queries are made to the human resource department about such cuts, especially in relation to the new government push to extend the working life of experienced older workers, the reply given is that it is 'company policy'.
This, at a time when SIA has great difficulty attracting and retaining younger workers to replenish the labour pool as people leave for various reasons.
It is time for these companies to rethink their human resource policies instead of waiting for a mandate from the authorities before more older workers choose to retire than stay and be exploited.
Jennifer Tan (Ms)
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it shows how much they value the worker after years of service huh. Cut ur pay by 10% when u hit 60.
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older, cheaper, faster?
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why doesnt SIA senior management take a 20% paycut? even 20% paycut, they still take home alot of money.
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May 29, 2010 - ST Forum
OLDER WORKERS' WAGESAdjustments help seniors stay employed
WE THANK Madam Ee Kit Heng ('CPF cuts based on age, which is not a reasonable factor', last Saturday) and Captain Rakesh Dir ('CPF cut a contradiction', Wednesday) for their views on the Central Provident Fund contribution rates for older employees.
While Singapore has seen the employment rate of older residents aged 55 to 64 rise from 43 per cent in 1999 to 57 per cent last year, it is still significantly lower than the overall employment rate of 76 per cent for all age groups. We have introduced various measures to improve the ability of older workers to stay employed.
In our labour market, wages still contain significant elements of seniority-based pay, where wages increase automatically with age regardless of workers' productivity and performance. This may result in older workers becoming less competitive. Some wage adjustment is, therefore, necessary in order to maintain the employability of workers as they age.
Singapore's approach is twofold. First, an adjustment through the CPF contribution rates for older workers, which applies to all firms across the board. Second, allowing employers to adjust the salaries of their workers as they reach age 60. However, employers should not do so automatically, but should take into account the ability and performance of their workers as well as other relevant factors.
In addition, since 2007, the Workfare Income Supplement has also helped to boost the annual income of older, low-income employees and make up for the lower CPF contribution rates.
The Ministry of Manpower will continue to work with the tripartite partners to enhance the employability of older employees, through training, skills upgrading and job redesign. This will reduce the element of seniority-based pay in wage structures, and hence reduce the extent of wage adjustments that older workers will face.
Farah Abdul Rahim (Ms)
Director, Corporate Communications
Ministry of Manpower -
not convincing.