Speech at United Workers of Petroleum Industry (UWPI)'s 50th Anniversary Dinner & Dance

1. Good evening. It gives me great pleasure to join you today for the 50th Anniversary Dinner and Dance of the United Workers of Petroleum Industry (UWPI).
   
   Introduction
2. Formed on 10th January 1961, UWPI has come a long way in representing the interests of workers in the petrochemical industry and enhancing their well-being. The earlier years were difficult, when labour-management relations were adversarial. I was told that in the 1980s, a collective agreement case was referred to the Ministry for conciliation when agreement could not be reached between both parties after more than 50 sessions of negotiations. Even then, the case was only concluded after many more rounds of conciliation at the Ministry.
3. Union-management relations have improved over the years, particularly in the last decade. More dialogues and consultation between union leaders and management lead to stronger trust and deeper understanding. As a result, many industrial relations issues have been avoided or resolved at the company level. In contrast with earlier decades, now there are hardly any disputes that need the Ministry's intervention. Union-management cooperation has also brought about better teamwork and higher productivity for the industry, thereby contributing to higher incomes and better working conditions for workers.
4. I am pleased to note that UWPI has been a strong supporter in many national initiatives. One good example is the implementation of the flexible and performance-based wage system. With close cooperation between union and management, a flexible and variable component linked to performance is now a common feature of the wage system in the petroleum industry. This has enabled companies to make adjustments to wage costs nimbly in response to fast-changing business needs, and enhanced the job security of workers at the same time.
   
   Re-employment of Older Employees
5. UWPI and its management partners are also early adopters of the tripartite guidelines on re-employment, to enable older employees to be re-employed up to age 65. With the re-employment policy in place before the law comes into effect in 2012, companies in the industry will be able to continue to tap on the expertise and experience of older employees. On the part of older employees, they are given the opportunity to continue to contribute to the organisation as well as earn a regular income to better prepare themselves for their retirement needs. With good preparation work by both the Union and employers, I am confident it will be a seamless transition when the re-employment legislation takes effect in 2012.
   
   Productivity and CET Drive
6. Another key challenge that will require unions and management partners to work closely together on is improving productivity. The Government's goal is to achieve productivity growth of 2-3% per annum over the next decade, up from around 1% over the past 10 years. This is a challenging target; but not impossible if we have the cooperation and collaboration of the tripartite partners, from management in companies down to the individual worker on the ground.
7. Employers need to take the lead and drive productivity improvements in their enterprises. To help them achieve greater productivity, the Government has introduced a series of initiatives that employers can tap on. For example, companies can benefit from the Productivity and Innovation Credit in the form of enhanced tax deductions when they invest in activities relating to innovation and productivity.
8. Workers – from managers and supervisors to technicians and operators – should proactively upgrade themselves and leverage on the wide suite of WSQ training programmes to enhance their skills and become more productive. These programmes, such as the WSQ training in process technology and operations, will help workers improve their operational performance and effectiveness as well as soft skills at the workplace. As they become more productive, employers and workers will both benefit, creating a win-win outcome.
9. UWPI can play an important role as a bridge between employer and employee, to ensure that there is a concerted and sustained push towards higher productivity. This is not an easy task, but I am sure that UWPI will rise to the occasion, as it has so many times in the past.
   
   Workplace Safety and Health
10. Even as we strive towards higher productivity, Workplace Safety and Health (WSH) remains a key concern of the Government. I am pleased to note that the petroleum sector has achieved a zero fatality record for two consecutive years, in 2009 and 2010. Maintaining an injury-free record though was a challenge as the sector continued to see some 20 reportable work injuries over that period. Any operational incidents in this sector could be catastrophic and may impact not only the workers, but the environment as well. For instance, in 2005, in Buncefield, United Kingdom, the over-filling of a storage tank led to a series of explosions and the subsequent fire destroyed large parts of the Buncefield oil storage and transfer depot¹. It is therefore important for the petroleum sector, to not just have good systems in place, but also to train and equip staff so that they can detect and diagnose problems before they escalate.
11. In 2008, Prime Minister Lee Hsien Loong set us a target, to reduce the workplace fatality rate to 1.8 fatalities per 100,000 employed persons by 2018 and to have one of the best workplace safety records in the world. I am confident that with close collaboration, UWPI and management partners can work together to achieve this national goal.
12. UWPI can also work with management partners from smaller companies to raise their awareness on the importance of WSH. With the assistance of larger industry players, they would then be able to grow their WSH expertise in overall process management. The Union can also encourage members, both workers and supervisors, to develop and improve their competencies. They need to understand that a more skilled and knowledgeable workforce will ensure better safety management and safer workplaces. Last but not least, UWPI can help to instill a safety culture among workers.
13. I also note that Mr K. Karthikeyan, General Secretary UWPI, is the Chairman of WSH Council (Chemical Industries) Committee. I would like to urge the Union to keep up its efforts in helping to ensure a safe and healthy workplace for workers.
    
    Conclusion
14. To conclude, I would like to take this opportunity to commend UWPI for its many contributions to industrial harmony, workplace safety and the overall employment conditions of workers in the petrochemical sector. Looking back, the past five decades have been an illustrious journey for UWPI. I am confident that under the strong leadership of the Executive Committee, the Union will continue to play an effective role in representing the interests of workers and enhancing their well-being.
15. On this note, I would like to congratulate UWPI and wish your members a Happy 50th Anniversary and a happy New Year.
    
    Thank you.

¹ More information on the Buncefield incident is available here.