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Thu, Nov 19, 2009
The Straits Times
Employers may exploit loopholes: Unionists

By Nur Dianah Suhaimi

WHEN Madam Lee Yin turned 62 this year, her employer did not ask her to go.

Instead, soya bean chain Mr Bean promoted her to be a supervisor - and gave her a pay rise as well.

Now a team leader, Madam Lee has extra responsibilities like handling paperwork, besides continuing to serve customers.

'I am very happy I can go on working,' the mother of three grown-up children told The Straits Times yesterday.

While companies like Mr Bean are already offering re-employment opportunities to workers on retirement, many others are less keen to do so, union leaders said at a dialogue yesterday.

They worry these companies will exploit what they see as potential loopholes in the draft guidelines on the re-employment of eligible workers beyond the retirement age of 62.

These proposals for public feedback were announced by Manpower Minister Gan Kim Yong before the dialogue attended by about 250 unionists and employers.

One of their big concerns is that employers who do not see the value in older workers can avoid re-employing them by citing such excuses as excess manpower and financial difficulties.

The vice-president of the Singapore Airlines Staff Union, Mr Bahauddin Kamaruddin, noted SIA's losses from the downturn and asked: 'How can companies assure us that...older workers will be re-employed?'

Another unionist, from the United Workers of Electronic and Electrical Industries, said some employers may offer an unreasonable contract in a bid to avoid rehiring older workers.

Replying, labour chief Lim Swee Say said that not every company can offer re-employment, like those with excess manpower. However, solutions can be worked out, he added.

'For SIA, I encourage the management and union to have a retreat to come up with solutions,' he said.

If re-employment is still not possible after negotiations, the workers can expect the company to give them a one-off payment to tide them over while they look for another job.

But Mr Lim warned employers not to use this Employment Assistance Payment as a form of severance payment and a convenient way to get rid of older workers.

'Case by case, we will look at the situation. If the management is anti-mature workers for no good reason, the unions cannot accept it. We will pursue the case,' he said.

His position was supported by Mr Stephen Lee, president of the Singapore National Employers Federation and chairman of Singapore Airlines.

Mr Lee added that human resource practitioners need to adopt a new approach, saying: 'It is a mindset change - that your workers will be with you till 65.'

The Ministry of Manpower's divisional director of labour relations and workplaces, Mr Ong Yen Her, also assured workers, including non-unionised employees, that they can approach his ministry when faced with an unreasonable contract.

'The offer must be reasonable. There cannot be a situation where the day you turn 62, your pay gets cut to 50 per cent.'

This article was first published in The Straits Times.

 

 
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