Model ID: 7335c3f3-d2fa-4720-86b5-c3a7cbd780a0
Sitecore Context Id: 7335c3f3-d2fa-4720-86b5-c3a7cbd780a0;
Madam Deputy Speaker,
INTRODUCTION
The Labour Movement welcomes the Government's support for workers in this year's Budget - a bold and balance Budget, a forward looking, a Forward SG Budget that reflects our social compact and our workers’ compact. A Budget that addresses and takes into account NTUC’s recommendations following our #EveryWorkerMatters Conversations (#EWMC) report that was tabled in September last year.
GEOPOLITICAL TENSIONS AND TECHNOLOGICAL DISRUPTIONS AFFECTING SINGAPOREANS
At the joint press conference on 6 February, NTUC Sec-Gen Ng Chee Meng and President of the SNEF Dr Robert Yap warned that we could expect a challenging year ahead. Great power contestation and regional conflicts have disrupted global supply chains and reshaped economic activities, leading to rising inflation, affecting both businesses and individuals around the world, including Singapore.
NTUC conducted its annual Economic Sentiments survey from December 2023 to January 2024, about 2,000 respondents. About two-thirds noted their income hadn't kept up with living costs, especially affecting our seniors.
Amidst doubled retrenchment figures and slowing wage growth, the survey revealed worrying trends, with 40 percent of workers expressing the likelihood of job loss in the next three months, up from 25 percent in 2023. This suggests prevailing insecurity, fear of job cuts, and potential uptick in retrenchments in 2024.
So what do all these mean for our workers and for NTUC as the Labour Movement? We will have to brace for tougher times, and seize opportunities for change and transformation. It is times like this that NTUC remains steadfast in our unwavering commitment to providing support for all workers.
My fellow LMPs will cover a range of topics that address the needs, aspirations and concerns of different segments of our workforce.
My speech will focus on three key areas:
First, amidst uncertainties, how the Labour Movement and NTUC will continue to journey with our workers. I will make a call for workers and companies to join the union, for better protection and business success.
Second, I will give an update on NTUC’s efforts to support workers’ upskilling through different schemes and initiatives.
Finally, I will continue to speak up for our middle-aged and mid- career workers who are facing significant challenges.
PART 1 – WHY SHOULD WORKERS JOIN THE UNION - NTUC IS HERE TO PROTECT YOU
First, why join a union?
Recent wave of layoffs globally and locally has heightened apprehensions among workers about job losses. An example is the Lazada Singapore retrenchment which has brought into focus the role and value that unions offer for both workers and companies. Allow me to elaborate.
After the abrupt lay-off, Lazada Singapore Pte Ltd and the Food, Drinks and Allied Workers Union (FDAWU) eventually reached an amicable settlement and are now focused on building a strong partnership for the mutual benefit of the company and workers affected. The resolution includes an enhanced support package and training fund for affected members under union’s scope of representation, many of whom are PMEs. Lazada's commitment to maintaining open communication with FDAWU is encouraging, underscoring the vital role unions play in securing favorable terms for our workers, particularly during retrenchments.
I mentioned that many of the Lazada employees are PMEs and with 51% of NTUC members now being PMEs, NTUC will continue to represent all workers regardless of Collars, Age or Nationality, what we often say as ALL CAN! Let me cite another example of how NTUC and union have helped another PME.
A senior account manager worked for 10 months and resigned in June 2023. During the period, she managed to close sales target for two separate teams, but she was told that if she were to leave earlier, she will not be eligible for any commission for her first team if she resigned. She sought the assistance of the Singapore Industrial and Services Employees’ Union after failing to convince the company herself. The Union represented her case and met with the management. The management investigated and agreed to pay the commission by the end of last year. In the end, the member was grateful for the union’s help and maintained a positive relationship with the company. PMEs or not, union members can benefit from NTUC membership on workplace issues.
But it is not just a matter of supporting our workers. NTUC believes in achieving win-win outcomes, by supporting businesses to grow the pie so that workers can benefit from sharing the gains. NTUC leans forward to support our unionised companies in hiring, job placements, upskilling and training and more recently in business transformation.
Allow me to cite an example of how NTUC supported our unionised company, Dyna-Mac Engineering Services Pte Ltd. During the Oil Price Crunch and the COVID-19 pandemic, the company was experiencing a business downturn. The newly appointed Executive Chairman and CEO, Mr A.C Lim, shared that he was at his wit’s end trying to turn the business around. When Shipbuilding and Marine Engineering Employees' Union (SMEEU) introduced him to the NTUC Company Training Training (CTC) initiative. Dyna-Mac took the leap of faith, formed a CTC and embarked on the Operations and Technology Roadmap. Through the process, Dyna-Mac reaffirmed their business direction and goals, and received support from the CTC Grant. Today, Dyna-Mac is in the black and workers are sharing the gains. When I joined Mr Lim on a panel dialogue on CTC, he expressed strong appreciation for how NTUC has helped his businesses and workers. Unions around the world may not understand how a union can support businesses or employers, but with NTUC and Singapore, because of our unique tripartism, we were able to secure better outcomes for workers by not just supporting workers directly, but also going upstream to support businesses.
It is in tough times that the value of NTUC will come to the fore, in protecting our workers and in helping companies grow their businesses. I urge companies and workers to seriously consider joining the NTUC family, so that as brothers and sisters, we will grow the business together and secure better wages, welfare and work prospects for all workers.
PART 2: PROGRESSION THROUGH SUPPORT FOR WORKER’S UPSKILLING
Next, I will speak about how NTUC plans to continue our support for workers’ upskilling. This is not new, NTUC has always maintained that for our economy to grow, our core competitive advantage must be a skilled, quality workforce that is future-ready. But why is there an urgency now to step up our efforts in training and upskilling?
According to the World Economic Forum's 2023 Future of Jobs report, over 75 percent of companies are planning to integrate big data, cloud computing, and AI technologies in the next five years. While these advances are expected to enhance productivity and drive growth, there is an anticipated short-term impact on workers and their livelihoods. Based on NTUC’s annual Economic Sentiments survey, three percent already experienced negative impacts on their jobs due to AI; 15 percent are worried that they will lose their jobs; of these, two-thirds are PMETs.
Last year in the United States, one of the longest labour disputes involving over 10,000 Hollywood Television and Movie Writers represented by the Writers Guild of America (WGA), along with 160,000 actors affiliated with other guilds brought the entertainment industry to a standstill.
The writers' main concern was the extensive use of generative AI, like ChatGPT, to create scripts, raising fears that studios might exploit AI to replace screenwriters and reduce fees. After negotiations, Hollywood writers secured control over AI to prevent its use as a tool to replace them.
Additionally, white-collar layoffs, seen in companies like Google, Duolingo, and UPS, are increasingly tied to productivity-boosting technologies like machine learning. This trend highlights AI's role in automating routine tasks, affecting both blue and white-collar jobs. The rise of AI and automation may lead to job displacement across sectors, including those with a high percentage of PMETs, who form 60 percent of Singapore's workforce today. This underscores the need for a Just Transition, ensuring that as AI changes work, society, and the economy, the transition is managed fairly, equitably, and with consideration for all workers and communities.
To navigate this transition, it is imperative for workers to engage in continuous learning, consistently updating their skills.
Our founding father, Mr. Lee Kuan Yew, once referred to a letter from the former Chairman of the Japan Productivity Centre, Mr. Kohei Goshi, who played a significant role in fostering a culture of productivity in Japan.
Mr. Goshi drew on the wisdom of the Chinese Philosopher Guanzi – “一年之计，莫如树谷；十年之计，莫如树木； 终身之计，莫如树人” translated, it means one may grow grains or trees for short term gains, but for long term rewards, one has to invest in growing men or developing talents.
As we chart our way forward, NTUC pledges to continue championing our workers’ interests, to take action for them, and with them. I am heartened to share that despite the uncertainties of technological disruptions, 52 percent of workers foresee the need to upskill to adapt to the rise of AI based on NTUC’s annual Economic Sentiments survey. NTUC LearningHub has recently launched the 'X for Everyone' series of courses, addressing emerging technologies crucial for modern workplaces such as Generative AI, Cybersecurity and Cloud Computing as part of its Tech Talent Academy. I encourage all workers to update their skills to remain proficient in the face of the rapid advancements in these vital technologies.
NTUC CTC UPDATE
Another initiative NTUC is working relentlessly to promote upskilling is to drive the Company Training Committees (CTCs) initiative, an institutional complement to SkillsFuture, and an initiative between our unions and employers to support business transformation that can lead to company-initiated training and skills upgrading for workers.
Since its inception in 2019, we have made tremendous progress, and I am happy to update that we had
• formed over 1,900 CTCs,
• approved 168 companies’ CTC Grant projects,
• helped over 2,600 workers receive an average of 5% wage increment or benefit from career development plans.
And equipped over 125,000 of our workers with skills to secure better wages and work prospects.
I would like to share an example of a successful CTC collaboration with a progressive employer, Hydroflux Marketing, a homegrown company specialising in water filtration solutions. Through OTR, Hydroflux formulated a strategic business roadmap, identifying areas for digitalization, talent development, and growth opportunities. With support from the Singapore Manual and Mercantile Workers’ Union, the company successfully secured a 70% grant approval for its CTC project, benefiting 38 workers with 12 receiving an 8% wage increment and 26 impacted by the implementation of a Career Development Plan. Prior to the CTC initiative, sales staff faced limited career advancement opportunities, but with the new plan in place, Hydroflux is committed to providing career development structures, exemplified by success stories like Ms Elisa Lim, who transitioned from an air stewardess to a sales role. Ms Lim's dedication led to her promotion to a Senior Lifestyle Specialist role, showcasing the positive impact of CTC and the implemented strategies.
We hope more companies will work with NTUC in forming CTCs and developing strategic plans for both business and workforce development. NTUC urges companies to tap on the CTC Grant that helps to navigate trends such as AI, support workers’ upskilling, and enhance business productivity.
Besides partnerships with our employers, NTUC also worked closely with the SkillsFuture Singapore. In June 2023, SSG piloted the Workplace Skills Recognition (WPSR) programme with NTUC and the National Centre of Excellence for Workplace Learning (NACE) in the Retail and Food Services sectors.
NTUC has been working closely with SSG and NACE to introduce CTC companies within the two pilot sectors to embark on the Workplace Learning:READY Mark certification. With good ground feedback and success from the companies, including Kings Cart Coffee Pte Ltd, NTUC will continue to work with SSG and NACE to onboard more companies and CTCs to the initiative. In this regard, we hope that the
WPSR can be expanded to more sectors and availed to more companies for their benefit.
NTUC remains committed to offering comprehensive support for workers navigating through career transitions.
Today, I am pleased to announce that starting from 1 April 2024, NTUC’s Employment and Employability Institute (e2i) will assume an expanded role in the personalised placement landscape through the transfer of designated Career Centres and Jobs and Skills Centres from Workforce Singapore (WSG).
With more strategically located career and job services touchpoints across Singapore, NTUC’s e2i will bring personalised career coaching, job matching and skills upgrading services closer to individuals in the heartlands and help ALL Singaporeans across diverse worker types island-wide to find employment opportunities.
More details about this development will be shared by e2i and WSG at a later date.
PART 3: SUPPORT FOR MID-CAREER WORKERS THOURGH PLACEMENT
Finally, I will speak about the support for a segment of workers that faced significant challenges; the middle-aged, mid-career working people. In my campaign speech in 2020 on National TV, I spoke about this segment and that I will do my utmost to support them in their livelihood, greater purpose and dignity. I did so in Pasir Ris, bringing job opportunities, organising job fairs, career networking sessions and working with Government agencies. Despite these efforts, many still struggled, and I met them across the constituency.
I met this gentleman who was in his late 50s when he decided to return from overseas to Singapore because of his son’s National Service. He was confident he would secure a job easily, given his extensive experience in sales and management. He applied for numerous jobs, during COVID-19, got a few replies and couple of interviews but zero job offers for two years. Though not explicit, he sensed that companies find his age a barrier, some even said he was “over-qualified” for the posts he applied for. This gentleman was not looking for a high paying job, he was prepared to take a pay cut, prepared to enter new areas, learn and start all over. But he was just not given the opportunity. His wife has a health problem, his two children are not yet working, he still has to put food on the table. He turned to drive Grab, at least it helped him feel useful and contribute to his family. After a year, he was finally offered a job, at a fraction of his last drawn pay, even below what he could earn by driving Grab. He could not accept the offer. As time passed, his confidence in himself and the job market dipped. I recall receiving a message from him at 4 am: “Mr Tan, am still struggling to get back to normal employment to deal with life. Ageism is very real. Having worked so many years and so much effort to upgrade myself to stay relevant, why are people like me still struggling?”
He finally landed a job after nearly 3 to 4 years. His persistence has paid off. In between, he upgraded himself, took some courses and continued to persevere. His struggle is real, and I am sure he is not the only one. We have to do more for people like him, especially with our aging workforce and manpower shortage.
That was why during Budget last year, I called for the Government to provide more support for mid-career workers by expanding the SkillsFuture Career Transition Program (SCTP) to more sectors so that more workers can benefit from the scheme and introducing training allowance, that was introduced during Covid-19, for trainees under the SCTP. I also called for the Government to review training funds and allowances, to support our workers in alleviating their concern for the lack of time and finances, and opportunity cost when attending training.
So I was particularly excited when Deputy Prime Minister and Minister for Finance Lawrence Wong announced a significant training boost for mid-career workers during his Budget speech. I thank the government for the decisive move in Budget 2024 to recognise that our mid-career workers who are above 40 years old need more help.
In my interactions over the last 2 weeks with many workers, including the gentleman I spoke about just now, these announcements are very welcomed and timely. Many commented that the schemes announced were well thought out and decisive, for a group of workers really facing difficulties. We look forward to more details to be announced at the COS by the Ministries.
CALL FOR COMPANIES
Now that Government has made significant moves, and NTUC has stepped up our upskilling and job support efforts, in the spirit of Tripartism,
I hope that the employers will do their part to better support our mid-career workers – to hire more of these workers, and pay them fairly based on their skillsets and experiences, to provide protected time-off for training, and consider ways to recognise our workers’ acquired skills.
Madam Deputy Speaker, in Mandarin please.
各位 国会同僚，2024的 财政 预算案 公布 以来，我们收到 工友许多 正面的反馈。政府提出许多措施 和计划支持 中途转业者、提升 低薪工友、帮助 年轻工友和他们的家人、帮助 中年工友 获得更多退休保障，以及帮助国人 应对 生活开销。这些措施和计划，是在听取了工友的 反馈和心声后而提出的，并且采纳了职总 “同心同行 共创未来”对话会报告的建议。
我们的工友 将从 政府的 各项 计划和措施 当中 受惠。另外，我们也衷心 希望 更多工友 能够 做到这三点：首先，加入工会，为自己的职业和生活带来更多保障。第二，善用“技能创前程”培训补助，提升技能，跟上经济转型的步伐。第三，我们恳请中年工友以及中途转业的工友，善用 新的“ 技能创前程 进阶计划” 所提供 的补助来修读专业课程， 加强 就业能力。所有40岁及以上的新加坡人，都可以获得 额外 4000 元 的补助。
职总会继续 支持 工友 提升 技能， 获取 更好 的 工资， 福利 和 工作 前景。也 鼓励 工友 善用 政府 和 职总 所 推出 的 计划和措施。相信大家听过：学习如逆水行舟，不进则退。打拼事业也是一样的，不进则退。社会要进步，经济要增长，工友必须提升。劳资政三方，必须同心同行，步伐一致、团结一心，帮助工友提升，才能够共创更美好的未来。
PART 4: CLOSING
The year 2024 is expected to bring challenges for both workers and businesses. However, echoing Deputy Prime Minister Lawrence Wong's sentiment, "Singapore can take heart that the country had navigated similar external disruptions and shocks in the past, and each time had emerged stronger than before." Our resilience is evident in successfully weathering recent challenges, such as the Covid-19 pandemic, with Tripartism at the very core of our efforts. NTUC remains committed to our partnership with the government and industry stakeholders, with an unwavering focus on workforce development because every worker matters. We encourage workers to join NTUC, call for more companies to collaborate with us through CTC, and extend our gratitude to the Government for their substantial support for mid-career workers in this Budget.
Madam Deputy Speaker, I support the budget. Thank you.
