INDUSTRIAL RELATIONS (AMENDMENT) BILL

Order for Second Reading read.

4.20 p.m.

The Minister for Labour (Mr Ong Pang Boon): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

Sir, as in the case of the Employment (Amendment) Bill, the Industrial Relations (Amendment) Bill was committed to the Select Committee in the last Parliament after its Second Reading on 2nd June, 1972. In presenting the Employment (Amendment) Bill earlier, I have explained that it will be necessary to also amend the Industrial Relations Act to enable the implementation of the National Wages Council's recommendations. The Bill now before the House seeks to achieve this.

Under the present Industrial Relations Act, the tenure of collective agreements or awards is between three and five years. Both employers and trade unions represented on the National Wages Council have expressed the view that this period is unduly long and restrictive. The Government has accepted this representation, and therefore proposes to reduce the number of years for which a collective agreement or award is binding from three to five years to two to three years.

Section 31 of the Industrial Relations Act currently provides that the Industrial Arbitration Court shall have cognizance of a trade dispute where -

(a) all the trade unions and employers who are parties to a trade dispute jointly make a request in writing to the Registrar that the trade dispute be submitted to arbitration;

(b) the Minister by notice in the Gazette directs that the trade dispute be submitted to arbitration; or

(c) the President of Singapore by proclamation declares that by reason of special1 circumstances it is essential in the public interest that a trade dispute be submitted to arbitration.

In accordance with the recommendations of the National Wages Council, this section is being amended so that the Court shall also have cognizance of a trade dispute where a trade union or an employer who is a party to a trade dispute makes a request in writing to the Registrar that pursuant to subsection (6) of section 46 or subsection (3) of section 46A of the Employment Act, the trade dispute be submitted to arbitration.

Section 34 of the Industrial Relations Act ci4rrently provides that in determining a trade dispute the Industrial Arbitration Court may have regard not only td the interests of the persons immediately concerned but also to the interests of the community as a whole and, in particular, the condition of the economy of Singapore. It is now proposed that, in addition to the above, the Court also pays due regard to the recommendations made by the Minister in relation to wage increases. Such recommendations would be published in the Government Gazette from time to time.

The Bill also seeks to provide that on or after the 1st day of May, 1974, the parties bound by a collective agreement or award, made prior to the enactment of this Bill, may make an application to the Industrial Arbitration Court to vary the said agreement or award.

Sir, the Industrial Relations (Amendment) Bill was committed to the Select Committee before the dissolution of the last Parliament. All the representors have been heard by the Select Committee and some of their suggestions and proposals have been incorporated in the pill. As such, I do not propose to commit the Bill to a Select Committee again.

Mr Speaker, Sir, I beg to move.

Question proposed.

4.27 p.m.

Mr Lai Tha Chai (Henderson): (In Mandarin): Mr Speaker, Sir, talking about the fundamental effect that economic development has on our national construction, I would like to stress the point that as Singapore is a very small country we have no other alternative hut to rely on foreign investments in industries to promote our economy, so as to enable us to carry out the task of nation building. In the past the Government has spared no effort in promoting economic development, and we have achieved some brilliant success. An eloquent testimony to this can be found in the acute shortage of labour in Jurong. The achievement is all the more remarkable when we compare it with what we had a few years ago before independence. The present situation augurs well for nation building. The people of Singapore are well aware that as we have laid a sound foundation for industrial development in recent years we have to adjust our pace of progress in order to adapt to a new environment and to create a new model of society so as to establish harmonious and happy relationship among our people. As to when we will be able to succeed in our task, this will depend on the amount of effort put in by the people of Singapore.

Sir, I would like to cite a very well-known example. With the rapid progress in our economic development, there have been great changes in the method of production and business organisation which hitherto have been based on the family-kinship system. Under such a system the employer-employee relationship was poor. The workers were poorly paid for their loyal service. In the light of present day situation, this abnormal exploitation of man by man has become ever more evident. Such a family business organisation and discriminatory industrial relationship have, in fact, become out-dated as well as a stumbling block to our economic development. On the other hand, the great influx of foreign investors not only brings with it a great deal of investments which are beneficial and very much needed, hut it also brings in new and even unique styles of management techniques. In this new industrial era, if we are to maintain the pace of our industrial development and the rate of economic growth and if we are to improve the living conditions of the great masses of workers, it is of vital importance that the National Wages Council should play a very decisive role.

Apart from hoping that the National Wages Council will implement its policy effectively and firmly, I would also like to request the Government to embark on a comprehensive research into our industrial management techniques to find out what is suitable for local conditions, and to formulate new management techniques in order to encourage and popularise them as models for our society. For example, the management techniques used by the American entrepreneurs in Singapore are very successful. So are the management techniques used by the Japanese business concerns. Both these techniques are equally effective, although they may not be identical. There are both advantages and disadvantages in these management techniques. With the support of the Government, the people in Singapore can learn from these techniques in a very short time and adapt it to local conditions. It will then become a driving force in our economic development. At present, among the multitude of industrial workers, apart from a few who are satisfied with their lot, there is great mobility among the majority of the workers where a lack of discipline and responsibility exists. Such workers are opportunists. In other words, such a worker works in a factory only because he is better paid there. If another factory offers him higher wages, he will not hesitate to leave for a more lucrative employment. It is obvious that, before we can formulate an ideal set of working conditions, the people would consider monetary income as the sole criterion for employment. However, with the establishment of better working conditions, their concept will not change so easily.

Therefore, Mr Speaker, Sir, I would like to stress that although economy plays a decisive role in our nation building, it is not the only factor. Coupled with the general guidelines laid down by the National Wages Council, if we can evolve a certain work ethic or certain principles of employment, such as to imbue oneself with a love for work, a love for their workplace, and a love for their country, then we Singaporeans will be able to carve our destiny.

Mr Ong Pang Boon: Mr Speaker, Sir, I thought that the debate on the President's Speech is over and done with last week, and that there should not be any further debates on this.

However, Mr Speaker, Sir, the question of modernisation of management techniques is not the subject of debate. Nevertheless I hope the people most concerned with management will take note of the points raised by the Member for Henderson.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill.-[Mr Ong Pang Boon].

Bill considered in Committee; reported without amendment; read a Third time and passed.