1980 NWC RECOMMENDATIONS (Second Tier payment)

Mr Sia Khoon Seong asked the Minister for Finance whether the Government will pay only a one-time second tier National Wages Council (NWC) payment for the NWC year ending 30th June, 1981 to deserving civil servants and whether this 1980 second tier NWC payment will not be paid in each subsequent year in the way it is implemented in the private sector, and, if so, why the Government, as an employer, appears to have departed from its original position when it accepted the 1980 NWC recommendations in toto.

The Minister for Finance (Mr Hon Sui Sen): Mr Deputy Speaker, Sir, the Member for Moulmein is right that Government will be paying the second tier NWC wage increase for 1980 as a one-time lump sum to deserving civil servants.

As to the second part of his question, I am not aware that the private sector has adopted any uniform way of implementing the second tier NWC payment. However, the NWC recommendations for the 1981 NWC year may be of some interest in this connection. The NWC has recommended that the second tier payment could be made as a one-time payment or built into the wage structure, as the employer wishes. Where payment is a one-time payment and not incorporated into the wage structure, the equivalent quantum of the second tier should be set aside for payment to meritorious performers in subsequent years. Those who receive the second tier payment in any year would not necessarily receive the payment in a subsequent year. The intention is clear. The second tier wage increase will be paid for performance and not as of right. My Ministry is therefore considering how best the NWC guidelines can be implemented in the civil service.

With regard to the final part of his question, I should like to remind the Member that in its application to employees in the public sector, Government's acceptance of NWC guidelines is usually stated as subject to modifications to take into account the special requirements of the public service.