WAGE RESTRUCTURING

Mdm Ho Geok Choo asked the Acting Minister for Manpower in view of National Wage Council's recommendation for wage restructuring and the global competition that our companies are faced with, (a) will his Ministry facilitate the review of wages in both the local and global industries and provide a database of such reviews for companies to make informed decisions timely; and (b) how can his Ministry be better poised to partner industry players to carry out job profiling exercises which are essential in supporting wage restructuring and minimising tensions between employers and unions during restructuring exercises.

Dr Ng Eng Hen: Mr Speaker, Sir, as the Member rightly pointed out, in the face of stiff global competition, the NWC has, in its wage guidelines for July 2003 and June 2004, urged companies and unions to speed up wage restructuring to enhance wage flexibility and competitiveness. It has also recommended that a Tripartite Taskforce be set up to drive this process of wage restructuring.

The Government has accepted these recommendations and a Tripartite Taskforce has been set up to help companies in their wage reform. This Taskforce is chaired by my Permanent Secretary and will also include representatives from the unions and employers.

I thank the Member for her inputs and agree that more information regarding wage reviews should be provided periodically to industries. We have recognised that this is a deficiency and we will work towards that. In other words, we will provide market information more readily to companies to see what the hiring salaries are. We will take her inputs into account.

The Taskforce will provide companies with relevant information and analysis on wage cost, formulate flexible and competitive wage models, and highlight the experiences of companies in their wage reform. The Taskforce will also recommend measures and options that companies and unions can adopt in restructuring their wage system.

Together with the tripartite partners, my Ministry will work closely with industries, companies, unions and professional societies to implement changes to their wage systems and look into skills upgrading and industry transformation that would complement wage reform. The successful implementation of wage reform and the upgrading of our workers' capabilities will help enhance the competitiveness and employability of our workforce.

The Taskforce is expected to release its final report within six months.