1. Role of the Labour Movement in Strengthening Social Security in Singapore Presented By: K T Mathew OTC Institute

2. SNTUC’s Priority Concerns  Ensure workers access and opportunity to: Decent jobs Education Skills training and Lifelong learning Quality healthcare  The above are essential for workers to remain employable with regular income during their working life.

3.  By Being Worker-Centric  What is being worker-centric ? How Did We Deal With the Priority Concerns

4. Protecting Workers From Unemployment  Cyclical & Structural Unemployment  Basic Education for Skills Training (BEST)  Work Improvement through Secondary Education (WISE)  Skills Redevelopment Programme (SRP)  Functional vs Developmental Training  From SRP to Employability Skill System (ESS) to Workforce Skill Qualification (WSQ)

5. Funding For Training  Skills Development Fund (SDF)  Absentee Payroll Funding  NTUC Education and Training Fund (NTUC-ETF)  Union Training Assistance Programme (UTAP)

6. 6 Company 1 Company 2 Job Seekers, Re-employed, Retrenched, under-employed etc Same IndustryNew industry Move into a job Move up Move between Company 3 Move Across Thru’ Upgrading Thru’ Re- skilling Thru’ New skills 4 M framework Enabling Employability & Employment of our workers

7. 7 To Drive Future Growth Ensure the availability of globally competitive workforce to support & drive the manufacturing & exportable services industries –RIGHT capabilities –In RIGHT quantities –In a TIMELY fashion

8. With better skills -> Sustainable Wage Increases Productivity Wages Pro- Skills Skills Jobs Best welfare Pro-Productivity Higher productivity Sustainable wage increases

9. Back-to-Work for Women  540,000 women aged 25 & above economically inactive  Excellent manpower source for Singapore tight labour market  Women as an important source of income for family in view of rising cost of living

10. Bring Women Back-to-Work Initiatives & Strategies to Help More Women Return to the Workforce:  30 Mins to Work  Flexi and part-time work options  Job Preparation Exercise  Screen-Train-Place-Train Programme

11. Bringing Women Back to Work Bring women back to work Achieve work-life balance From LM initiative has become a national effort.

12. Re-employment of Older Workers  Aging of the Singapore Population  Raised retirement age from 55 to 60 yrs  Again raised to 62 years  There has been talk of progressively raising retirement age in response to longer life expectancy

13. Re-Employment - Learning From the Japanese  Core concept of re-employment Not necessarily same job Not necessarily the same pay Reemployed in a way that makes sense for both the company and the worker  80-85% of companies in the unionised sector are already adopting this practice

14. Why Job Recreation Programme (JRP)? Workers earning $1,200 or less per month!

15. The main objective of Job Recreation is to improve the career prospects for low- wage workers JRP improves the image of jobs through better job profiling and by getting  Better pay and benefits  Better working conditions  Workers to take training to take on the new jobs Job Recreation Programme

16. Falling birthrate – Not enough new workers Ageing Workforce  Above 50 years from 22% in 2004 to 29% in 2015  1 in 11 above 65 year now to 1 in 5 in 2030 Inadequate savings for retirement  Only 40% met CPF Minimum Sum in 2004. Longer life expectancy  Increase from 64.5 years in 1965 to 80 year today Past efforts raising retirement age did not increase employment rates of older workers significantly Why Job Redesign for Older Workers?

17. Part of a Move to Raise the Effective Retirement Age that includes efforts to: Move from Seniority to Competency-based Wages Better Manage Medical Cost through Portable Medical Benefits Re-train to Provide Higher Value to Jobs Re-employ Retired Workers Job Redesign for Older Workers

18. Mechanize/ Simplify Processes to help older workers take up jobs SembWaste  Mechanises refuse collection process  Physically less demanding for older workers McDonald’s  Use pictures instead of words on ordering machines Job Redesign for Older Workers

19. Before Re-design After Re-design Job Redesign for Older Workers

20. Why Customer Centric Initiative (CSI)? Service sector contributes two-third of Singapore GDP and three- quarters of employment Global Competitiveness Report (GCR) ranked Singapore’s service standard 17 th in 2005 (8 th in 1998) Service standards need to go beyond the basic pleasantries of G-S-T. CCI is a national tripartite effort to transform Singapore’s service quality

21. Tripartite Response Recommend measures to Help workers stay employed beyond age 62 Shape perceptions & mindsets of employers, employees & customers towards employment of older workers

22. 22 Enhance Cost Competitiveness of Older Workers ADVANTAGE! Scheme –Up to $400,000 per company to change HR practices or job processes to recruit, retain and re-employ older workers WOW! Fund & Flexi-Works! Schemes Flexi-Works! –To encourage those aged 35 and above who have been economically inactive, such as older workers and housewives back to the workforce. Higher Workfare Income Supplement (WIS) Payout is given to eligible older workers above age 55 & 60

23. ADVANTAGE! Projects

24. Re-employment of Older Workers

26. Challenges in the New Economy Playing field has changed –Globalization has intensified competition Other countries have emulated Singapore in attracting investments Some offering similar value at lower costs –Singapore’s product offering is also facing constraints: –No longer low cost –Limited, heavily built-up land space –Ageing population –Shortage of talent

27. Challenges in the New Economy Employment Volatile business cycles Lifelong employment? Employability Structural Unemployment Ageing Population –Health & retirement savings Changing Social Needs & Aspirations

28. Key Initiatives of the Labour Movement CBF Economy 4M Framework to enhance employability Job re-creation for low value jobs Job re-design for older workers Best sourcing initiative Customer centric initiative Training for low wage workers Job placement services & support Bringing women back-to-work scheme Helping workers stretch their dollar

29. 29 Re-Skill Up-SkillMulti-Skill All CAN Workforce Faster CBF Economy Better Cheaper A CBF Economy powered by an ALL CAN workforce

30. 30 Faster CBF Economy Better Cheaper A CBF Economy powered by an ALL CAN workforce Better Job Better PayBetter Life All CAN Workforce

31. Tools to drive higher productivity BSI >> emphasis on quality instead of price Job Redesign >> support companies to leverage on technology etc WSQ >> implement WSQ to professionalise the sectors & create career paths Performance-related pay >> review remuneration structure to incentivise workers Professional Development & Training >> training for low skilled & build special expertise for PMETs

32. To transform service level of companies in key service sectors & improve service ranking Impactful and visible outcomes to local consumers and tourists 20,000 retail workers in 20 companies in 900 retail establishment in CCI Pilot Achievement has attracted 12 more retailers and 7 shopping malls, adding 20,000 service staff to CCI Customer Centric Initiative

35. Versus Younger Higher Foreign Older Lower Local LABOUR MOVEMENT

36. Younger Higher Foreign Older Lower Local LABOUR MOVEMENT

37. Thank you