Programme has resulted in pay hikes for 33,000 low-wage workers so far
By Amelia Tan, The Straits Times, 30 Apr 2012
ANOTHER $70 million of government money is to be pumped into a scheme that helps to give workers a pay rise by funding productivity projects in companies.
By Amelia Tan, The Straits Times, 30 Apr 2012
ANOTHER $70 million of government money is to be pumped into a scheme that helps to give workers a pay rise by funding productivity projects in companies.
Since the Inclusive Growth Programme was launched in 2010, about $30 million has been spent on more than 500 projects to help companies invest in equipment and redesign jobs.
As a result, about 33,000 low-wage workers have received increases to their basic pay averaging 10 per cent.
Convinced that the programme is working, the Government is injecting another $70 million over the next three years to help 70,000 more employees.
The scheme is run by the Employment and Employability Institute (e2i) of the National Trades Union Congress (NTUC).
Yesterday, Deputy Prime Minister Tharman Shanmugaratnam said Singapore must ensure that low-wage workers are the 'chief beneficiaries of our economic restructuring efforts'. He added that the productivity programme would help to achieve this goal.
Of low-wage workers, Mr Tharman said: 'We can and must do more for them. Do more to improve their working conditions. Do more to equip them with technologies and with better skills so as to enhance the value of the work that they do, and to reward them fairly.'
Speaking at the NTUC's May Day dinner at the Orchid Country Club, he said the scheme helps individual workers.
To illustrate his point, he used the example of food manufacturer People Bee Hoon. The firm bought two machines that streamlined the process of packing its bee hoon (rice vermicelli).
The machines also boosted the output of the workers involved in the process. The employees work fewer hours and can be deployed to other departments when they are done with their tasks. The company was able to raise the pay of 15 workers by 12 to 22 per cent.
Its director, Mr Desmond Goh, said: 'We were clear that we would not cut our workers' pay even though their working hours were shortened with the machines. So they saw working hard as an incentive, they could work shorter hours and earn more pay.'
The institute's chief executive, Mr Gilbert Tan, said he hopes to use the extra funds to get more companies involved in the scheme and encourage them to come up with innovative projects.
'The challenge is that some of the employers do not know how they can go about boosting productivity,' he added. 'So we are here to help them to develop their ideas.'
Mr Tharman, who is also the Minister for Manpower, said the Government will step up enforcement of employment laws and standards, especially for industries with a high proportion of low-wage workers.
He added: 'We want to make sure that they are treated fairly, and that employers are paying their Central Provident Fund. The CPF is extremely important. Once our low-wage workers are in the CPF, they will also get Workfare and other government top-ups, such as to their Medisave accounts.'
As a result, about 33,000 low-wage workers have received increases to their basic pay averaging 10 per cent.
Convinced that the programme is working, the Government is injecting another $70 million over the next three years to help 70,000 more employees.
The scheme is run by the Employment and Employability Institute (e2i) of the National Trades Union Congress (NTUC).
Yesterday, Deputy Prime Minister Tharman Shanmugaratnam said Singapore must ensure that low-wage workers are the 'chief beneficiaries of our economic restructuring efforts'. He added that the productivity programme would help to achieve this goal.
Of low-wage workers, Mr Tharman said: 'We can and must do more for them. Do more to improve their working conditions. Do more to equip them with technologies and with better skills so as to enhance the value of the work that they do, and to reward them fairly.'
Speaking at the NTUC's May Day dinner at the Orchid Country Club, he said the scheme helps individual workers.
To illustrate his point, he used the example of food manufacturer People Bee Hoon. The firm bought two machines that streamlined the process of packing its bee hoon (rice vermicelli).
The machines also boosted the output of the workers involved in the process. The employees work fewer hours and can be deployed to other departments when they are done with their tasks. The company was able to raise the pay of 15 workers by 12 to 22 per cent.
Its director, Mr Desmond Goh, said: 'We were clear that we would not cut our workers' pay even though their working hours were shortened with the machines. So they saw working hard as an incentive, they could work shorter hours and earn more pay.'
The institute's chief executive, Mr Gilbert Tan, said he hopes to use the extra funds to get more companies involved in the scheme and encourage them to come up with innovative projects.
'The challenge is that some of the employers do not know how they can go about boosting productivity,' he added. 'So we are here to help them to develop their ideas.'
Mr Tharman, who is also the Minister for Manpower, said the Government will step up enforcement of employment laws and standards, especially for industries with a high proportion of low-wage workers.
He added: 'We want to make sure that they are treated fairly, and that employers are paying their Central Provident Fund. The CPF is extremely important. Once our low-wage workers are in the CPF, they will also get Workfare and other government top-ups, such as to their Medisave accounts.'
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