$Unique_ID{COW03179} $Pretitle{384} $Title{Singapore Chapter 4E. Employment and Wages} $Subtitle{} $Author{Ministry of Communications and Information} $Affiliation{Embassy of Singapore, Washington DC} $Subject{members cent per workers employment industrial employers unions years cpf} $Date{1990} $Log{Table 21.*0317901.tab Table 22.*0317902.tab Table 23.*0317903.tab Table 24.*0317904.tab Table 25.*0317905.tab Table 26.*0317906.tab Table 27.*0317907.tab } Country: Singapore Book: Singapore, Facts and Pictures 1990 Author: Ministry of Communications and Information Affiliation: Embassy of Singapore, Washington DC Date: 1990 Chapter 4E. Employment and Wages Types of Employment There were 1,277,300 working persons aged 15 years and over in June 1989 comprising 1,093,700 employees, 70,000 employers, 96,000 own account workers and 17,600 unpaid family workers. The majority worked in the manufacturing (369,900), commerce (291,500), community, social and personal services (273,500), and the transport, storage and communications (126,200) sectors. Employment Service The Employment Service Department helps job-seekers find jobs, and employers secure workers. In 1989, it registered 5,371 job-seekers and successfully placed 1,599 of them in employment. It also monitors the labour market and disseminates information on job vacancies. Terms of Employment Employees generally work a 44-hour week with a rest day. They enjoy 11 paid public holidays a year and have at least seven days of annual leave for the first year of service and an extra day for every subsequent year up to a maximum of 14 days. The labour ministry conducts regular inspections on establishments to ensure compliance with the statutory requirements relating to terms and conditions of employment. It also provides advisory services to employers and employees on such matters. Industrial Relations The ministry promotes labour and management co-operation through the provision of preventive mediation, conciliation and advisory services to employers, workers and unions on matters relating to industrial relations. It also promotes and facilitates wage reform and the extension of retirement age. Trade Unions In 1989, there were 86 registered employee trade unions with 212,874 members, five employer unions with 1,207 members and one federation of employee unions, the National Trades Union Congress (NTUC). Industrial Arbitration Court The Industrial Arbitration Court (IAC), which has the status of a High Court, maintains industrial peace through the regulation of the conduct of industrial matters and the impartial arbitration of trade disputes. Depending on the nature of the dispute to be heard, the court may be constituted by the president alone or together with two other members, one each from the employers' and the employees' panels. Besides arbitrating on trade disputes, it certifies collective agreements made by employers and trade unions on industrial issues. Through its registrar, the court also provides mediation services to the disputing parties. [See Table 21.: Cases Handled By IAC] National Wages Council The National Wages Council (NWC), a tripartite body comprising Government, employer and union representatives, was formed in 1972. It advises the Government on wage policies and issues wage guidelines in line with long-term economic objectives. The NWC's recommendations, when accepted by the Government, serve as a basis for wage negotiation between employers and trade unions. The Singapore economy recovered fully from the recession and achieved an economic growth of 11 per cent in 1988. For 1989, the NWC recommended a reasonable wage increase comparable to that of 1988 if company and individual performance justified it. In their negotiations for wage increase, unions and employers were urged to take into account the increase in the employers' rate of CPF contribution of three percentage points and the reduction in the employees' rate of one percentage point. The NWC also reaffirmed that wage increase for the year should like the previous year, be given in two parts-a moderate built-in increment and a variable bonus linked to company and individual performance. This would be in line with efforts to make wage system more flexible. A flexible wage system would enable companies to be more responsive to changing economic conditions and workers to enjoy greater job security. Industrial Safety About 39 per cent of the total workforce are employed in factories, which are inspected regularly by the ministry to ensure the safety of workers. In 1989, there were 12,495 manufacturing establishments, which included factories, constructions sites and places of industrial undertaking. Industrial accidents that cause death or injury which prevents workers from working for more than three days or results in their hospitalisation for more than 24 hours for observation or treatment must be reported. [See Table 22.: Industrial Accidents] Industrial Health The ministry carries out programmes to prevent and control occupational diseases and keeps a check on working environment. Workers exposed to arsenic, asbestos, benzene, cadmium, compressed air environment, lead, manganese, mercury, noise, organophosphates, raw cotton, silica, tar, pitch, bitumen, creosote or vinyl chloride are required to undergo statutory medical examinations. [See Table 23.: Confirmed Cases of Occupational Diseases] Occupational Safety and Health, Training and Promotion The ministry conducts safety training courses for workers in the building construction industry, and shipbuilding and repairing industry. 19,272 workers in these two industries were trained in 1988. Some 1,627 safety officers, designated factory doctors, industrial hygiene technicians, industrial first aiders, safety committee members, supervisors and managers also attended safety and health training courses conducted by the ministry. Workmen's Compensation Department The Workmen's Compensation Act, Chapter 354, provides for the payment of compensation to workmen who are injured or afflicted with occupational diseases in the course of work. The maximum compensation for death is $45,000, while that for injury, resulting in total permanent incapacity is $60,000. The minimum compensation is $15,000 and $20,000 respectively. If a worker is hospitalised, the employer has to pay for the hospitalisation, the costs of artificial limbs and surgical appliances supplied to the worker. Labour Force Singapore's labour force in June 1989 totalled 1,305,400 persons aged 15 years and over. The labour force participation rate was 63.1 per cent. The unemployment rate improved from 3.3 per cent in June 1988 to 2.2 per cent in June 1989. [See Table 24.: Labour Force] Employment of Seamen The National Maritime Board regulates the employment of seamen. All seamen seeking employment on board merchant ships are required to register with the board. At December 31, 1989, there were 2,306 seamen on the register, with 1,179 at sea and 1,046 in the active reserve pool waiting for employment. The remaining 81 were in the inactive reserve pool, that is, they were not immediately available for shipboard employment. Although employers can offer jobs to any registered seamen and while seamen can approach shipping companies personally for employment, the board's approval is required before a seaman can sign on the ship's articles of agreement. The board administers a group insurance scheme for life and personal accident coverage for seamen and their families. A seaman up to the age of 60 can be insured for $10,000 life and up to $15,000 personal accident coverage for a total premium of $50. Those between 61 and 65 can be insured for $1,000 life and up to $1,500 personal accident coverage for the same premium. In all cases, the board contributes $20 towards the premium payable. [See Table 25.: Employed Persons by Occupation, June 1989] [See Table 26.: Employed Persons by Gross Monthly Income, June 1989] Central Provident Fund The Central Provident Fund was set up in 1955 to provide financial protection for workers in their old age or when they are no longer able to work. Over the years, it has evolved into a comprehensive social security scheme which provides for a member's retirement, home ownership and health care needs. Both the employer and employee contribute to the fund. The long-term contribution rates are 40 per cent for employees below 55 years of age, 25 per cent for those from 55 to 59 years old, 15 per cent for those in the 60 to 64 years age group and ten per cent for those 65 years old and above with equal contributions coming from the employee and his employer. Besides providing for CPF members' needs, these rates also encourage the continued employment of older workers. On July 1, 1989, the contribution rate for workers below 55 years of age was increased from 36 per cent to 38 per cent, with employers and employees contributing 15 per cent and 23 per cent respectively. Monthly contributions are subject to a maximum of $900 for the employer and $1,380 for the employee, based on a salary ceiling of $6,000 a month. The rates for older workers were also adjusted as follows: [See Table 27.: Central Provident Fund] Transition to the long-term contribution rates will continue to be made through yearly reviews, taking into account economic performance and international competitiveness. Each CPF member has three accounts with he fund - his Ordinary, Medisave and Special Accounts. Since July 1989, 30 per cent of his contribution is retained in his Ordinary Account while six per cent goes into his Medisave Account. The remaining two per cent goes into the Special Account. CPF members receive a market-related interest rate on their CPF savings. The interest for January to June 1990 is 3.77 per cent. CPF members can withdraw their savings on reaching 55 years of age, leaving Singapore or Peninsular Malaysia permanently, or becoming permanently disabled or of unsound mind. In 1989, 32,100 members withdrew $786.7 million under these circumstances. Another $54.2 million was released to the beneficiaries of 3,964 deceased members. Those who reached 55 in 1989 have to set aside $7,500 in their Medisave Accounts to meet hospitalisation needs in retirement. The Minimum Sum Scheme and its Topping-Up, introduced in 1987, give members greater financial security in retirement. In 1989, 4,031 members had set aside a total of $65.8 million under the Minimum Sum Scheme. $5,310 accounts amounting to $55.6 million were also topped-up by CPF members for their parents in 1989. Two new schemes were introduced in 1989. The Dependents' Protection Insurance Scheme implemented on May 14, 1989, provides CPF members and their dependents with some money to tide them over the first few years should the members become permanently disabled or die. The Approved Education Scheme introduced on June 1, 1989, helps members to finance their children's or their own tertiary education at the four local institutions. CPF members can also use their CPF savings for the following: - buy Government-built flats or private residential properties; - buy a mortgage-reducing insurance cover on their flats; - pay hospitalisation expenses incurred by them or their families; - invest in approved shares, loan stocks, unit trusts and gold; and - buy non-residential properties. Singapore Labour Foundation The Singapore Labour Foundation (SLF) was established in December 1977, to improve the welfare of union members and further the development of the trade union movement. At December 31, 1989, the foundation had a membership of 75, comprising four NTUC co-operatives and 71 NTUC affiliated unions with a total union membership of 209,193. The foundation is funded by affiliation fees of its members, donations and contributions from unions; private and public companies and individuals, and fund-raising projects. Total net assets of the foundation stood at $50.3 million as at December 31, 1989. For the financial year 1989/90, the foundation allocated $350,000 for the activities of NTUC; $150,000 for unions' educational, social, cultural and recreational activities and $30,000 as study loans/grants for union members and their children. It also expended about $105,000 on financial assistance and educational tour towards during the period of review. The foundation embarked on two new projects. The first project is the establishment of some holiday facilities on Sentosa for workers. A 6,000 sq m site near the sea has been leased for 30 years from Sentosa Development Corporation for the development. The second project is the development of a country club for workers. The proposed country club would provide golfing facilities as well as a wide range of recreational amenities which non-golfing members can enjoy. A site at Sungei Seletar Reservoir has been identified for the proposed development. The foundation wholly owns six companies: SLF Properties Pte Ltd for the development of the SLF Complex; VICOM Pte Ltd, which operates a vehicle inspection centre; General Automotive Services Pte Ltd, which runs one of the largest car-servicing workshops in Singapore; Transcom Enterprises Pte Ltd, whose business is mainly in wholesale and retailing of transport and communications equipment: Pasir Ris Resort Pte Ltd for the development of the Pasir Ris Resort and holiday facilities on Sentosa: and SLF Leisure Enterprises Pte Ltd which was incorporated in January 1989 to take charge of the development of a country (golf) club.