RULINGS OF INDUSTRIAL ARBITRATION COURT

Mr Tong Kok Yeo asked the Minister for Labour, in view of the importance of the Industrial Arbitration Court as an institution for the maintenance of labour-management relations and industrial peace in Singapore, if he will take steps to ensure that the rulings of the IAC are respected by all parties involved including unions, employers and the government.

Dr Lee Boon Yang: Mr Speaker, Sir, the Industrial Arbitration Court is an important component of our industrial relations system. The decisions of the IAC are binding on the parties concerned. This is provided for in section 39 of the Industrial Relations Act. Since the setting up of the IAC in 1960, employers, unions and the Government have always complied with the Court's decisions.

Sir, given the high level of tripartite cooperation and the over-riding importance of maintaining industrial harmony, I am confident that the IAC will continue to command respect and that all employers and unions will comply with its rulings.

Mr Charles Chong (Eunos GRC): Sir, before asking my questions, I would like to declare my special interest as Vice President of the SIA Staff Union and as a panel member of the IAC.

Sir, would the Minister not agree that recent criticism of an IAC ruling by the Singapore National Employers Federation creates a dangerous precedent whereby unions in future may also be encouraged to criticise IAC rulings should these rulings go against them, and this leads to a long-term erosion of respect for the IAC?

Dr Lee Boon Yang: Mr Speaker, Sir, the Singapore National Employers Federation (SNEF) had made a comment on the IAC's decision. I do not see the SNEF's comment as having set a dangerous precedent for employers or unions in responding to future IAC's decisions.

Sir, as I see it, SNEF has not urged SIA to disregard the decision or the award made by the IAC. It reiterated that the NWC's recommendation to link wage increase to productivity gain should be supported and that employers and unions should continue to pay attention to this particular recommendation. This recommendation to link wage increase to productivity growth also has the full support of the unions.

Sir, the SIA case has demonstrated that our good industrial relations are quite a fragile thing. We have enjoyed harmonious industrial relations for many years and we should take care not to cause any stress or strain. The cooperation and trust which exist now between unions and employers should not be treated lightly.

Although I disagree with the view that SNEF had set a dangerous precedent by commenting on the Industrial Arbitration Court's decision, I would urge all employers and unions to abide by the spirit of the Industrial Relations Act and to refrain from unnecessary comments which may result in an atmosphere of mistrust or, worse still, cause damage to the climate of industrial harmony.

Mr Tong Kok Yeo (Nominated Member): Sir, does the Minister not agree that the SNEF's statement went beyond expressing a concern or merely criticising the appropriateness of the IAC award, but tantamount to a disrespect and rebuke of the Court, and would the Minister censure SNEF for making such remarks?

Dr Lee Boon Yang: Mr Speaker, Sir, let me reiterate that despite its public comment, despite its unhappiness or concern with the decision of the IAC, SNEF has not at any point challenged the decision of the IAC. It had merely urged employers and unions to view the decisions as "decisions specific to the complex issue in the dispute between two parties, namely, SIA and its unions." And it urged all parties not to quote this award as a precedent.

Sir, under the circumstances, SNEF's comment cannot be said to be disrespectful to the IAC, nor can it be said to be in contempt of the IAC. The Attorney-General has also advised my Ministry that the statement issued by SNEF does not amount to contempt of the IAC, nor did it violate the Industrial Relations Act. Therefore, the Member's call to censure SNEF is unnecessary and uncalled for.

Dr Toh Keng Kiat: Sir, is there any formal Court of Appeal for any party which is dissatisfied with a ruling of the IAC besides making public statements in the press?

Dr Lee Boon Yang: Mr Speaker, Sir, as I understand it, the Industrial Arbitration Court is the highest authority on matters of industrial disputes. And unless there are points of law that need to be raised, there is no other higher Court of Appeal.