Speech at Ong Teng Cheong Institute of Labour Studies Graduation Ceremony

Mr Gan Kim Yong, Acting Minister for Manpower, Grand Ballroom, Orchid Country Club

Mr Tharman Shanmugaratnam,
Chairman, Board of Governors, Ong Teng Cheong Institute of Labour Studies and Minister for Finance,

Mr John De Payva,
President, NTUC,

Mr Lim Swee Say,
Secretary-General, NTUC and Minister in Prime Minister's Office,

Mr Bob Tan,
Vice-President, Singapore National Employers Federation,

Members of the Board of Governors,

NTUC Central Committee Members,

Graduands,

Ladies and Gentlemen,

Introduction

Good morning. I am pleased and honoured to join you on this special occasion. Firstly, let me congratulate the 73 graduands for successfully completing the Advanced Certificate in Industrial Relations and the Diploma in Employment Relations at the Ong Teng Cheong Institute of Labour Studies.

Current Economic Landscape

2.   As we celebrate this happy occasion, the recent tumultuous events in the financial markets would not be far from our minds. Singapore is beginning to feel the impact of the global economic downturn. Growth forecast for 2008 has been adjusted downwards to 3%, from the original forecast of between 4-6%. This will have an impact on businesses. Workers are understandably worried.

3.   However, if we were to look back over the last decade, we find many reasons for optimism. In 1997 and 1998, we experienced the Asian financial crisis. In 2003, we were hit by the SARS outbreak. On both occasions, the tripartite partners worked closely together to implement various measures to help businesses remain viable and to minimise job losses. This tripartite approach not only enabled us to overcome the crisis, but also allowed our economy to emerge more resilient.

Long-Term Perspective

4.   Compared to a decade ago, we are now better prepared to face the current crisis. Our strong economic fundamentals stand us in good stead to ride out this wave of volatility and uncertainty. Over the years, we have also been putting in place various programmes and tripartite initiatives to improve our labour market flexibility, as well as to enhance the employability of our workers. Instead of being overwhelmed by the short-term crisis, we should continue to stay focused on the longer-term imperatives to prepare ourselves well for the future when the economy recovers.

5.   As a small open economy, Singapore is vulnerable to the impact of globalisation. It is critical to ensure that our labour market remains flexible and responsive to the changing economic landscape. The tripartite partners have been working closely together towards this objective, including the implementation of flexible wage systems that will allow companies to flexibly adjust wages in accordance with business performance and outlook, thereby helping to maintain their cost competitiveness and preserve jobs.

6.   Second, our workforce needs to stay competitive and relevant. As our economy restructures and moves towards higher value-added manufacturing and services industries, many of the new jobs created will require different skill sets. We must therefore continue with our push to help workers upgrade and update themselves. In this regard, we have invested heavily in the training of our workers, under the Continuing Education and Training (CET) Masterplan launched earlier this year. NTUC has consistently played an active and important role in supporting skills upgrading and jobs re-creation, through the NTUC LearningHub, the Employment and Employability Institute (e2i) and the Jobs Re-creation Programme. These efforts should continue to be sustained during the down turn so that when the economy improves, we will not only have the quantity, but also the quality of workers necessary to capitalise on the new opportunities that emerge.

7.   Third, we must make sure vulnerable workers are given help to enhance their employability and employment. We have been actively working together to improve the employment conditions and opportunities for the lower-skilled, lower-income and older workers so that they too can make progress. We have also reviewed the Employment Act to strengthen the protection of such workers and to improve their employment benefits. To boost the income and CPF savings of low-wage workers, the government has put in place the Workfare Income Supplement (WIS) scheme. More than 300,000 low-wage workers have received a total of $300 million this year.  The labour movement, on its part, has also reached out to contract workers, and helped needy members through the food, utility and transport vouchers. We need to continue to help the vulnerable workers, particularly in enhancing their employability, so that they can become more self-reliant.

Importance of Tripartism

8.   Singapore's unique tripartite approach in dealing with employment and industrial relations issues has brought about a win-win outcome for both companies and workers. This will ultimately benefit Singapore as a whole. Our strong tripartite partnership facilitates the development and smooth implementation of the right economic and manpower policies. More importantly, it has helped to create a pro-investment and pro-growth  environment so that we can achieve sustainable economic growth and social progress. 

9.   To conclude, we have survived several crises in the past by working together. During the Asian financial crisis and SARS, the unions in partnership with employers and government, played an important role in helping companies cut costs and advising workers to accept wage freeze and reductions, thereby enabling businesses to survive the difficult periods. This brought about a quick economic recovery. Workers kept their jobs and benefited with their employment..The workers were subsequently rewarded with substantial wage increases and bonuses as a result of good corporate performance. The trust and synergy among the three social partners were reinforced in the process.

10.   As union leaders, it is essential that you understand the value of our tripartite partnership, and remain committed to our objective of achieving sustainable economic growth and social progress in the long run. In this regard, union leaders can play an important role in identifying the problems faced by workers, and work closely with the management to address workers' concerns and prepare them for the necessary adjustment. Your efforts at the company-level will be an important contribution to our overall tripartite efforts to meet the challenges ahead and to ensure that workers' long-term economic and social interests are safeguarded.

Conclusion

11.   Once again, let me congratulate the graduands for successfully completing your course of study. I hope you can make good use of the knowledge gained to enhance your career development, improve the well-being of your fellow workers and strengthen the tripartite spirit. Thank you.