"Improving productivity critical to higher wages, job security: NTUC - CNA 15 January 2015
SINGAPORE: A manpower crunch is expected this year in light of further tightening of foreign manpower quotas, according to the Labour Movement in its outlook for the unionised sector. It also raised concerns about declining productivity growth in recent quarters.
Productivity fell by 0.5 per cent in the first three quarters of last year. With an expected manpower crunch, the National Trade Union Congress (NTUC) wants firms to act fast to improve their productivity.
NTUC Assistant Secretary-General Cham Hui Fong said: “If companies do not come forward to be really forthcoming in identifying the areas of gaps, to redesign the job and to review the work processes, then we are not very hopeful that we can have any quantum leap improvement in productivity."
Ms Cham believed: “We don't think it has gone down deep enough to the ground, to really allow the companies within the same industry to really learn from one another.”
Improving productivity is also critical when it comes to preventing companies from closing down and the consequent retrenchment, NTUC said. Last year, 2,212 workers in the unionised sector were laid off, fewer than the 3,038 workers retrenched in 2013. Two-thirds of those laid off were from the manufacturing sector. High costs, poor business and ongoing restructuring led to eight manufacturing companies moving their operations out of Singapore last year and relocating to countries such as Thailand, Malaysia and China.
Ms Cham said: “We can accept that as long as there is ample communication with the workers so that we can prepare the workforce for other jobs when the companies move out." "
I find it STRANGE to suggest that wages will go up just because the labour is tight due to restriction placed on hiring foreign talent/workers.
Lessons for me are:
1. as noted by NTUC, some businesses SIMPLY cannot survive in Singapore and compete internationally regardless of what productivity measures are taken e.g. those manufacturers that had to relocate to Thailand, Malaysia and China. So, this type of businesses are lost causes;
2. if productivity is measured by Output Value divided by # of Workers (White-, Gold- or Blue-collared), it will be a MISTAKE as the measurement should be Output Value divided by Total Wages of Workers to be meaningful. Reasons: cheap FT/FW were in abundance before the restriction kicks in due to complaints by the Local Talent/Workers could are willing and able but could not find jobs that commensurate with their experiences and qualification.
For the businesses, they want to throw MORE BODIES and careless about the Output Value divided by # of workers going down as they see $$ in the measurement of Output Value divided by $$ of Workers!!
That is the problem. So, without the FT/FW, and assuming wages of Local goes up, the PRODUCTIVITY measurement will STILL NOT show improvement. Yes?;
Also, SOME industries are easier to have automation and raise the Output Values while SOME are NOT so easy. Hence, the 'solution' cannot be at the macro level but at the micro level into each industry and each company. Of course, within the same industry, there should be some leveraging of 'common lessons learned and best practices shared';
3. when businesses go out of business, there is NO job security to talk about. So, if the businesses are in a crisis and 'on-the-rope' mode, I will be very surprised with the management and workers do not feel the urgent needs to change and make every effort to ensure the business will turnaround. Unless the workers are all jumping ship within the same industry as their companies are simply the WORST of the lot! My take is that the companies that are 'NOT taking actions' are those that got too used to using CHEAP FT/FWs and refused to face the reality that they need to 'find other ways to improve productivity like automation and innovation'!
2015 is going to be tough as some experts say. So, buckled up, sit tight and hold firm... and STREAM as the drop starts ...
SINGAPORE: A manpower crunch is expected this year in light of further tightening of foreign manpower quotas, according to the Labour Movement in its outlook for the unionised sector. It also raised concerns about declining productivity growth in recent quarters.
Productivity fell by 0.5 per cent in the first three quarters of last year. With an expected manpower crunch, the National Trade Union Congress (NTUC) wants firms to act fast to improve their productivity.
NTUC Assistant Secretary-General Cham Hui Fong said: “If companies do not come forward to be really forthcoming in identifying the areas of gaps, to redesign the job and to review the work processes, then we are not very hopeful that we can have any quantum leap improvement in productivity."
Ms Cham believed: “We don't think it has gone down deep enough to the ground, to really allow the companies within the same industry to really learn from one another.”
Improving productivity is also critical when it comes to preventing companies from closing down and the consequent retrenchment, NTUC said. Last year, 2,212 workers in the unionised sector were laid off, fewer than the 3,038 workers retrenched in 2013. Two-thirds of those laid off were from the manufacturing sector. High costs, poor business and ongoing restructuring led to eight manufacturing companies moving their operations out of Singapore last year and relocating to countries such as Thailand, Malaysia and China.
Ms Cham said: “We can accept that as long as there is ample communication with the workers so that we can prepare the workforce for other jobs when the companies move out." "
I find it STRANGE to suggest that wages will go up just because the labour is tight due to restriction placed on hiring foreign talent/workers.
Lessons for me are:
1. as noted by NTUC, some businesses SIMPLY cannot survive in Singapore and compete internationally regardless of what productivity measures are taken e.g. those manufacturers that had to relocate to Thailand, Malaysia and China. So, this type of businesses are lost causes;
2. if productivity is measured by Output Value divided by # of Workers (White-, Gold- or Blue-collared), it will be a MISTAKE as the measurement should be Output Value divided by Total Wages of Workers to be meaningful. Reasons: cheap FT/FW were in abundance before the restriction kicks in due to complaints by the Local Talent/Workers could are willing and able but could not find jobs that commensurate with their experiences and qualification.
For the businesses, they want to throw MORE BODIES and careless about the Output Value divided by # of workers going down as they see $$ in the measurement of Output Value divided by $$ of Workers!!
That is the problem. So, without the FT/FW, and assuming wages of Local goes up, the PRODUCTIVITY measurement will STILL NOT show improvement. Yes?;
Also, SOME industries are easier to have automation and raise the Output Values while SOME are NOT so easy. Hence, the 'solution' cannot be at the macro level but at the micro level into each industry and each company. Of course, within the same industry, there should be some leveraging of 'common lessons learned and best practices shared';
3. when businesses go out of business, there is NO job security to talk about. So, if the businesses are in a crisis and 'on-the-rope' mode, I will be very surprised with the management and workers do not feel the urgent needs to change and make every effort to ensure the business will turnaround. Unless the workers are all jumping ship within the same industry as their companies are simply the WORST of the lot! My take is that the companies that are 'NOT taking actions' are those that got too used to using CHEAP FT/FWs and refused to face the reality that they need to 'find other ways to improve productivity like automation and innovation'!
2015 is going to be tough as some experts say. So, buckled up, sit tight and hold firm... and STREAM as the drop starts ...
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