NTUC leader: Most firms can afford inflation payout
Goh Chin Lian
Sat, Jun 21, 2008
The Straits Times
MOST companies should be able to afford giving something to help workers cope with inflation, NTUC deputy secretary-general Heng Chee How said yesterday.
His confidence lies in the performance of the economy, which is projected to grow by between 4 and 6 per cent this year.
'Generally, we know that the Singapore economy continues to do well. And even for this year, it would be reasonable growth,' he told reporters.
'We also know that even in the best of times, there will be some companies, some sectors, that may be struggling.
'But overall, we think most should be able to afford some kind of gesture, some kind of support.'
His comments came as the National Trades Union Congress (NTUC) revealed that 60 companies had taken up the National Wages Council's (NWC) recommendation last month to give a one-off lump sum payment to help workers cope with inflation - which is forecast to hit 5 to 6per cent this year.
Some 20 companies agreed just after the NWC released its recommendations.
That more companies were now doing so was 'a very good sign', MrHeng said.
'The momentum is building,' he added when reporters asked if the number was low given that there are 1,000 unionised companies here.
He said unions need time to inform bosses about starting talks on collective agreements and salary adjustments this year.
More companies will decide on the one-off payments in the next two to three months, he said, even as he urged them to join those who have already committed to doing so.
Said Mr Heng: 'The labour movement has done its part and continues to do its part, and the Government has also done its part. So it is right for employers, where they can, to play their part.'
One such employer is heavy-lifting and transportation company Mammoet, which has 50 employees here.
The company is giving a total of $6,100 in NTUC FairPrice vouchers to all its employees - except three senior management officers. Each employee will receive $100 to $300 worth of vouchers.
Said general manager James Giang, 57: 'It was a request from the union and we thought, why not. We can afford a bit this year. It's not a great deal, but it's to let the staff know they are not forgotten.'
Mr Heng believes that only a handful of firms will say 'no'.
Those that cannot afford to do so because of poor corporate results should share such information with their unions.
But he also assured workers in such companies that the unions will continue to look after their interests, from ensuring their jobs are secure to helping them improve their productivity.
They can also tap various help schemes offered by the NTUC and the Government.
The one-off payment suggestion comes at a time when unionists note that there is some pressure from workers to raise wages to cope with inflation.
But unionists also say that most workers accept that any increase must be sustainable.
Agreeing, Mr Heng said: 'After all these years, I think unions and workers understand that the idea really is to get the fairest possible deal for the workers that doesn't jeopardise the competitiveness of the company and therefore doesn't jeopardise the long-term job prospects of the workers.'