sky1234

SINGAPORE: Raising wages to address the issue of rising costs may be an enticing option but that is not the right solution, said Acting Manpower Minister Gan Kim Yong.

He said adjusting wages upwards to meet rising prices would only result in a "price-wage spiral" and Singaporeans should look at the bigger picture.

"What is more important is for us to have a realistic expectation of wages that reflect the underlying economic strength of our industries and also of our productivity. That will allow us to ensure that our economy will be able to sustain its growth momentum," said Mr Gan.

Since the last two recessions, tripartite partners – the government, unions and employers – have been working hard to encourage companies to restructure their wage systems and to make them more flexible. This would allow companies to respond quickly when there is an economic downturn.

One component that has been built into the structure is the monthly variable component (MVC). Mr Gan said this has worked well but more needs to be done.

He said: "It is not an easy instrument to introduce because companies have to put in place certain mechanisms, particularly in the small and medium enterprises. Many of them take the position that in any case, their wages are quite flexible because they are small and nimble, and are able to adjust the wages as they go along.

"We do acknowledge that some of these companies already have a flexible wage system in their own structure... but it is also important for us to look at other flexible components of the wage system, including reducing the ratio between minimum and maximum wages."

A major preoccupation of the Manpower Ministry is to finalise Singapore's reemployment legislation which is expected to come into effect by 2012.

Mr Gan has assured that it would not be a top-down approach – there will be widespread public consultation with both employers and unions before the final legislation is crafted.

The acting manpower minister also said the feedback received so far has indicated that employers welcome the initiative and see the benefit of employing older workers.

In fact, the employment rate of those aged between 55 and 64 went up by 3 percentage points from 2006 to reach almost 56 percent last year. The tripartite partners hope to achieve a 65 percent target by 2012.

Mr Gan said: "Employers are ready and willing to give it a try, and we are now helping them to introduce this system even ahead of the introduction of the legislation.

"Drafting the legislation is not so difficult. What is difficult is to decide what are the criteria, terms within the legislation and this is something we have to work with the industry and unions so that we can arrive at some common understanding how reemployment is to be implemented."

A tripartite work group has also been set up and it will visit companies to enhance the consultation process before the final law is introduced.


- CNA/so

Huaikong

when i listen to this news this evening i nearly choke on my rice.wth he is toking when he is getting huge rise every yr.his share alone can give pay rise to dunno how many pple liao....

GeneKoh

So can the top take the lead and re-structure their wage systems? Reduce their basic salaries and introduce monthly variable components into their pay...

inle

i tot our leaders shld at least lead by example...

too bad tis is not happenin....
or at least wont b happenin....

the rest r jux excuses crafted into a very nice way....

i like to START A MATURE THEMED FORUM for MATURE issues...
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haunted2

i dun even think that both issue links. One says that the problem of rising cost the other productivity it is misleading. They might as well dun get pay raise as well.

Check this out ------>
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WestPunx

They just need to cover the rising costs and stop talking so much.

sky1234

They just want your salary to remain the same forever. Better still lower your expectation or salary. While their salary continue to increase and increase with no limit. Their pockets is more important than anybody else.

Huaikong

they got 2 mouth so can anyhow say what they like.....

hooolahoop

they say of course easy lar. they are the ones getting tonnes of money every month, and they call it peanuts... then what are our wages man???! AMOEBA AR? che! say so much.... why not cut their wages by 50% and use it to help us through this crisis? maybe then they will feel our pain...

cugzai

i sense bull shiting.

sarcastic

tok cock sing song....

like a rich man telling a poor man is not gd to be rich.

好梦幻.....

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love is dead

cutie1302

Raising wages to address rising costs not a right solution really sucks!!
if our pay never increase, and we are still paying those damn expensive stuff, where got money left over?? nowadays.. food price increase, transportation increase, rental increase, monthly income $2k pun not enough lah!! siao!! for those foreigners (including me), even go to see doctor, got no subscription, the consultant fees is double compare with the local! local = $9, foreigner = $21!! Ask workers/employees to work like shit, push the economic higher, but wat we get at the end?? Low pay!

n_o_r_i_k_o

they just wanna see their fellow singaporeans suffering from the rising cost of living...

Raising wages to address rising costs not a right solution = bull shit..

lol..
we work so hard... and we can just barely cover our daily expenses....
if the cost of living continue to rise without proportionate increase in our wages...
cant imagine what goin to happen to us le...

and those MPs are sitting there... shake leg...
telling ppl "Raising wages to address rising costs not a right solution"

*ar bish*

hooolahoop

haiii.... they pro lor, give what gst-offset package... then they tax our money.... WALAO. is our money that is being given to us de lor... our money come in, then go to them, then they give us, then we give them again, then they give us again.... PIANG. so stupid de lor.... and the worst part is, we give 100%, they give back 60%... then our money keep shrinking sia...

stevewonder

The clan of millionaires acts only on the interest of the powerful employer federation and not for the interest of workers.

shypineapple

GST5%+no service tax in restaurant, i happy liao... LOL =x

My mind fails to understand
What my heart tells me to do
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mynazman

i dont agree wif the news.. wif all the prices going up, surely we need more money to cover our expenses.. sumtime i feel that it's becoming more n more expensive to live in singapore..what if we fall sick n do not have enough money?? who going to pay our bill?? with increase in salary, we can save more for our future.. take a look at japan, eventhough their medical fee is much more expensive than singapore, but the people down there earn much more to cover their expenses.. i dunno what will happen in the future if price keep increasing..