TRADE UNIONS (AMENDMENT) BILL

Order for Second Reading read.

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

Sir, the objects of the Bill are, firstly, to lower the minimum age for membership of a trade union and, secondly, to allow trade unions to invest their surplus funds in projects undertaken for the benefit of workers by the Singapore Labour Foundation (SLF) or its related companies.

Sir, under section 28 of the Trade Unions Act, the minimum age for joining a trade union is 18 years. This restriction was necessary in the earlier years when trade unions were often manipulated by undesirable elements to further their own objectives and young workers were, particularly, susceptible to such manipulation.

Sir, the situation has improved significantly. Besides safeguarding the interests of workers through collective bargaining, trade unions are providing a wide range of facilities and activities to meet the social, recreational and welfare needs of their members. With trade unions now playing a more constructive role in achieving higher productivity and economic growth, it is timely to allow younger workers to join the trade unions so that they can also enjoy similar benefits and protection of older workers.

Sir, in the Employment Act, a person who has attained the age of 16 years can be employed in any commercial or industrial undertaking without any restriction. Clause 2 of the Bill amends section 28 of the Trade Unions Act to lower the minimum age for union membership from 18 years to 16 years.

Sir, under section 49 of the Trade Unions Act, the funds of a trade union can only be invested in investments authorised by law for the investment of trust money, in interest-earning deposits, in banks or finance companies, or in the shares of co-operative societies established by any registered trade union. With the increase in membership and prudent management of the trade union funds, many unions are now financially strong. Most of them have invested their surplus funds in interest-earning deposits, in banks and in union co-operatives. Some have invested in trustee shares.

With rapid economic and social development, our workers now expect more varied and better social and recreational facilities for themselves and their families. In response to this, the Singapore Labour Foundation has launched a number of projects to meet the social and recreational needs of workers. One of these is the Pasir Ris Resort which has been a resounding success since it opened its doors several years ago. Other projects in the pipeline are the holiday chalets at Sentosa, the Orchid Country Club and further improvements and extensions to the Pasir Ris Resort.

Sir, to support the efforts of the SLF and to encourage unions to invest their surplus funds in worthwhile projects, section 49 of the Trade Unions Act has to be amended. Clause 3 of the Bill is to widen the scope of investment of union funds by allowing trade unions to invest in projects developed by the SLF or its related companies, subject to the approval of the Minister. A cautious approach is taken to confine such additional investments to approved SLF projects which will benefit workers and their families.

Sir, I beg to move.

Question proposed.

Mr Goh Chee Wee (Boon Lay): Mr Speaker, Sir, I would like to speak in support of the proposed amendments to the Trade Unions Act.

The Amendment Bill seeks to amend the Trade Unions Act for the purpose of:

(i) lowering the minimum age of union membership from 18 years to 16 years; and

(ii) allowing trade unions to invest their surplus funds in the Singapore Labour Foundation's projects.

NTUC has long voiced the concern that while a person is allowed to work in any establishment without any restriction at the age of 16 years, he is not permitted to join a trade union until he reaches the age of 18 years. During the Budget debate last year, I proposed that this anomaly be corrected. I am glad that the Ministry of Labour has accommodated the view of NTUC and had agreed to make the necessary amendment. With this amendment, more young workers will be able to join the trade unions and benefit from union membership.

Sir, I also support the legislative amendment to allow the trade unions to invest their surplus funds in SLF projects. The Singapore Labour Foundation was set up with the expressed aim of improving the welfare of workers in Singapore. Projects that have been undertaken by the SLF and its subsidiaries, such as the workers' resort in Pasir Ris, have directly benefitted the workers and their families. More of such projects would be undertaken to provide our workers with an even wider range of good quality, but affordable, recreational facilities. These facilities help to complement the unions' efforts to raise the quality of life of their members. It is, therefore, only proper that trade unions be allowed to support and to invest in such projects.

Sir, I support the Bill.

Dr Lee Boon Yang: Mr Speaker, Sir, I have to thank the Chairman of the GPC on Labour for his support of the Bill and since he did not raise any further query, I do not think I need to respond.

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. - [Dr Lee Boon Yang].

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