The Labour Movement will now adopt a progressive wage strategy to level up salaries of low-wage workers through the Inclusive Growth Programme (IGP).
NTUC Secretary-General Lim Swee Say said that this was a more pragmatic and effective approach of achieving higher and more sustainable real wage increases for these workers.
He said this strategy was set to first impact the group of 10,000 cleaners from four sectors – public cleansing, hawker centres’ cleaning, school cleaning and conservancy cleaning.
Elaborating on the all-win outcomes that this progressive wage system will achieve, SG Lim was addressing industry partners and union leaders at the Labour Movement’s Cleaning Journey held at NTUC’s e2i (Employment and Employability Institute) on 21 June 2012.
The Labour Movement’s immediate target for cleaners’ earning below $1,000 is to work with industry partners to bring up their salaries to $1,000. And for those who are already earning $1,000, the next target set is to aim for $1,200.
When workers have reached the $1,200 mark, the next mark is $1,500 and the progression goes on up the progressive wage ladder.
“Our philosophy is that every job can be improved in terms of skills, in terms of productivity and in terms of wages if we care enough. It will become the core strategy of the IGP," said SG Lim.
The Labour Movement prefers this approach to minimum wage implementations, which he cited as “too slow and sticky.”
When the minimum wage is too low, it will not solve the problem of the low wage workers. If it is set too high, some workers may be left unemployable. Furthermore, raising the minimum wage involves much negotiation and consultation thus making it a sticky wage.
Pointing out these concerns, SG Lim highlighted that “under the progressive wage strategy, the upgrading of wages is not through legislation but rather through mutual support.”
He also cited three all-win outcomes. Firstly, higher wages for workers; secondly, healthy competition among industry players and, thirdly, better value-for-money for service buyers.
