Factors to consider in review of Retirement Age Act exemptions
- The Straits Times (26 July 2010) : Factors to consider in review of Retirement Age Act exemptions
- The Straits Times (20 July 2010) : Let these workers be
Factors to consider in review of Retirement Age Act exemptions
- The Straits Times, 26 July 2010
We refer to your editorial "Let these workers be" (ST, 20 July 2010). We wish to explain that certain groups of employees were exempted from the Retirement Age Act (RAA) for a variety of reasons. For example, employees whose job requirements are physically demanding, and employees with retirement benefit schemes introduced before the enactment of the RAA in 1993, were exempted from the Act.
2. In practice, many employees who are exempted from the RAA have been offered opportunities by their employers to continue working beyond their contractual retirement age, subject to certain conditions. For example, more than 80% of the workers in the petrochemical industry who reached their contractual retirement age last year were given the option to continue working.
3. Nevertheless, the Ministry of Manpower (MOM) has embarked on a review of the exemptions under the RAA last year, given the focus on encouraging older workers to continue working through re-employment. We have been in close consultation with the relevant employers and unions with regard to the review to address some of the practical issues. For example, the exemption allows certain groups of employees (such as the group of workers in the petrochemical industry) to retire and receive their retirement benefits before the minimum statutory age of 62. Such arrangements were based on prior agreements entered into between the unions and the employers. The review will need to consider how these agreements and the retirement benefits of such workers would be affected, if the exemption is withdrawn. Another group of employees who are exempted from the RAA are those in jobs where age is a relevant consideration, such as policemen and firemen. Employers will need to decide if these employees could continue in these jobs, taking into account safety and performance factors.
4. The review therefore needs to consider carefully the concerns and interests of the various stakeholders. Our objective is to allow older workers to work longer, while preserving the flexibility where possible to achieve a win-win outcome for both the workers and their employers. MOM strongly encourages all companies to adopt the Tripartite Guidelines for the Re-employment of Older Employees, so as to provide more job opportunities for older workers.
Let these workers be
- The Straits Times, 20 July 2010
Some 500 middle-aged workers in the petrochemical industry are making heavy weather of their wish to stay in gainful employment beyond mandatory retirement. They deserve to have their worries eased. Because of a statutory exception called an 'exemption' in the Retirement Age Act, these workers' exclusion from indefinite, continued employment would be an anomaly when state policy is promoting a longer working life and coaxing older casual workers to take up full-time, paid work. Many heartlanders have responded to the call, filling jobs in retail, restaurants, hotels, in office cleaning and security services.
The oil industry workers in question are mainly service technicians and white-collar staff in six companies. They should be granted their wish when industry and house unions take their case up with the Manpower Ministry. They were employed before 1993 when the retirement age was first reset, from age 55 to 60. They could not then work past age 60, which is hard to justify either on grounds of 'taxing' physical demands or the policy bias towards working for as long as one is competent and able to. The retirement age is due to be raised yet again from the present 62 years to 65, in due course. What could be the clinching argument for the oil companies' staff is pending legislation under which employers will be required to retain those employees who are fit and have reasonable service records. The oil firms have in any case been rehiring some of the youngish retirees.
In the circumstances, the exemption clause in the retirement law which covers 26 categories of workers is looking out of sync with the times. Longevity has lengthened in the nearly two decades since its enactment. Work process improvements have lightened some jobs. With few exceptions - airline pilots being one case - it is harder to justify 'exempting' civil servants, uniformed personnel and doctors from the provisions. Oil industry workers (bar those working on rigs) are another odd kettle of fish on the list. In making its review, the ministry could consider the bold step of deleting it entirely. The different industries should be free to determine for themselves how long staff in physically demanding work, or cerebral work for that matter, should be permitted to carry on, with no concessions made to safety or performance. They know best their requirements and their duty to the paying public.
Age-critical sectors, like airlines and public transport, can be relied upon to be mindful of self-preservation and not push pilots and drivers to work beyond an age which is unsafe for their clientele and reputations.