Daily Lessons from Life 12-13 May 2011 - MM Lee urges NTUC to help workers secure better jobs & wages

"MM Lee urges NTUC to help workers secure better jobs & wages - CNA 13 May 2011

SINGAPORE : Minister Mentor Lee Kuan Yew has challenged Singapore's trade union movement to keep up with the fast pace of economic transformation.

Speaking at NTUC's 50th anniversary celebrations and dinner on Friday night, Mr Lee also urged unionists to help workers secure better jobs, better wages and a better life for the years ahead.

The minister mentor said: "In government, I have never forgotten that it is in the interest of the workers and their unions that we must strive for growth and development.

"In other words, growth is meaningless unless it is shared by the workers - shared not only directly in wage increases but indirectly in better homes, better schools, better hospitals, better playing fields and, generally, a healthier environment for families to bring up their children."

MM Lee said he was glad that since stepping down as prime minister, successive leaders - first Mr Goh Chok Tong and now Prime Minister Lee Hsien Loong - have adopted pro-worker and pro-trade union policies.

"One thing that has changed, said Mr Lee, is the attitude of antagonism by employees towards their employers. What's in place now is a system of fair bargaining."

This has also led to cooperation in the National Wages Council.

Mr Lee said: "This is a unique system which has served us well. It has stopped unions from being adversaries - to squeeze employers out of business.

"Instead, they have teamed up with the government and employers in a tripartite system which has brought benefits to workers, the government and employers because industrial peace creates confidence and increases foreign investments. Whenever employers make above average rates of return on capital, profits are shared."

He added: "You have helped to create jobs and upgrade skills for our workers to live a better life in the first 50 years of the labour movement. Your challenge now is keep up with the fast pace of economic transformation, and help our workers - young and old, professionals and rank-and-file - to secure better jobs, better pays and live a better life for many more years to come." "

Singapore does has a very unique labour, employers and government relationship. It is how it should be, where the government facilitates fair treatment between the employers and the employees. Where the employees are treated fairly as the providers of their labor to make the businesses ticked and the employers being treated fairly as the providers of capital that funded the businesses.

What is fair is always debatable since everyone has different needs and wants and expectations. In either extremes, things will not last for a longer time. So, it must be balanced so that when either sides find it untenable, differences are voiced and consultation ensued with the objectives of creating a greater good for the majority and with disadvantages, if any, kept to the minimal for the minority!

Lessons for me are:

1. for this relationship to survive and flourish, there MUST be mutual trust between the parties. And this trust must be built with frequent dialogues of high quality where both sides listened to each other, back with concrete evidence of each points of view, and be open and willing to strike a balance without going into a confrontational stage;

2. the most effective way to remove mistrust and suspicion that wealth created are unfairly distributed, the employers must be mindful of sticking to the formulae of 'low to reasonable fixed pay' and a 'self-funding variable portion that demonstrate balanced distribution of it'. Of course, the providers of capital will need to make a decent return too;

3. ultimately, and unfortunately, if the workers perceived the distribution of wealth created is too lopsidedly in the favour of the employers, they being the majority, can create unfavourable situation for the employers and lead to conflict and loss of proper functioning of a business, and a loss of jobs due to poor businesses. We have not come to this stage. At the same time, as mentioned by MM Lee that the employees are more antagonistic towards the employers (due to already perceived or real bigger gap of income and wealth distribution?), we must guard against this.

This unique tripartite relationship can only be sustained if ALL strive to be true partners that listened to each other and adopt a problem solving approach that focused on creating a greater good for the majority in a sustainable manner.