MANAGERS AND EXECUTIVES (Mistreatment by employers)

Mr Seng Han Thong asked the Minister for Manpower (a) how many cases did his Ministry receive of managers and executives being mistreated by their employers, for each of the years from 1998 to 2000; (b) what is the procedure to resolve their complaints; and (c) whether the present legislation is adequate in protecting their interests.

The Minister for Manpower (Dr Lee Boon Yang): Mr Speaker, Sir, the number of executives and managers who approached my Ministry for assistance in connection with their employment disputes with their employers is as follows: In 1998, 354; in 1999, 282; and in the year 2000, 157.

Most of these disputes were related to claims for compensation arising from the termination of services for reasons such as redundancy, work performance or on other grounds. Executives and managers are not covered by the Employment Act. Nevertheless, the Ministry took up their claims with employers and provided conciliation service with the view to resolving such disputes amicably.

Last year, 157 cases involving executives and managers, together with 14 cases carried forward from the previous year, were dealt with. Of these cases, some 35% were resolved amicably through conciliation. 14% of the claimants withdrew their claims before conciliation meetings were held as they had either resolved their disputes with their employer directly, or they had found a new job and decided not to pursue their claims. Some 12% of the claimants failed to attend the conciliation meetings arranged by the Ministry and hence their cases were closed. The remaining 39% decided to withdraw their claims after conciliation for various reasons, such as their companies were in a state of insolvency, their claims were weak or invalid, or the offers by their employers were not acceptable.

So, in general, employers are reasonable in dealing with their executives on employment issues and would accept the Ministry's recommendations for an amicable settlement. In situations where the executives' claims could not be resolved amicably through conciliation, they would be advised to pursue their claims further through legal action.

Sir, apart from the conciliation service provided by the Ministry of Manpower, the Tripartite Committee on Union Representation of Executives set up in 1999 has also recommended that junior and middle level executives without substantial managerial responsibilities be allowed to join and be represented by rank-and-file unions on an individual basis for retrenchment, dismissal and other related issues. The recommendation has been accepted by the Government and the Industrial Relations Act will be amended accordingly.

In its study, the Tripartite Committee also examined whether the scope of coverage of the Employment Act should be expanded to cover executives. The Committee noted that executives, by and large, are able to negotiate for their own terms of employment and hence do not need the protection of the law. Their employment problems arose from retrenchment and dismissal. Allowing executives limited representation by rank-and-file unions on issues of retrenchment and dismissal would provide executives with an additional avenue to address their employment problems without giving rise to conflict of interest or undermining management effectiveness. The Committee therefore felt that the scope of coverage of the Employment Act need not be expanded at this juncture, and that my Ministry should monitor developments and carry out a review at a later stage.

Since there are mechanisms available for executives to address their employment problems, including their representation by the rank-and-file unions on retrenchment and dismissal issues on an individual basis, their interests are already adequately served.