shm

SINGAPORE : Making business sense while offering re-employment to retired workers - that is what Singapore Food Industries is doing with its approach towards those above the age of 62, something Minister of State Gan Kim Yong has said can be further studied by other industries.

65-year-old Mohamad Sharif has been working at the Singapore Food Industries for the past 10 years.

He is currently pursuing a double degree programme at the Singapore Management University, and had no qualms about working beyond his retirement age of 62.

He said, "We are fit. In fact, we can always follow up on courses... The company allows you to take up courses also."

And he is not the only one. About 30 percent of the workers at Singapore Food Industries are 55 years old and above.

After the age of 62, workers who are re-employed take a 10 percent cut in salary, to correspond to their re-designed job scope.

Mr Gan said such adjustments will differ across companies, but the wages should reflect the job worth.

The Minister of State for Manpower said, "So it must make economic sense to the employers and it must also be sufficient and reasonable to motivate the workers to work. So it's an issue employers and employees have to sit down and work through."

Counselling is provided to workers just before retirement, and the company said it re-employs more than 90 percent of its workers who turn 62 on a yearly basis.

Over the next year, the Tripartite Committee on Employability of Older Workers will come up with guidelines on restructuring wages for those above 62.

The government intends to introduce re-employment legislation by January 2012. - CNA/ms