Changes and Developments in Employment Relations in Singapore over the Past Decade - Coursework Example

Changes and developments in employment relations in Singapore over the past decade Contents Contents 2 Introduction 3 Discussion 4 Changes and development in employee relation of Singapore over the past decade 4 Change and developments constitute, in Leggett’s (2007) terms, a ‘transformation’ of Singapore’s employment relations 5 Employment Act 7 Update of the Employment Act 8 Conclusion 9 References 11 Introduction The employment act in Singapore was enacted in the year 1968 for seeking changes and the development in the employment standard that is required for maintaining a balance in the business and remaining competitive. The ministry of manpower in Singapore has undergone various amendments , changes and developments in relation to the employment act for extending proper and better protection to the respective workers of the organization ,improving the employment standards and allowing flexibility to its employers in relation to its practical business operations. Singapore has experienced and undergone an economic growth and development over a long decade and the modifications in the employment relation are not transformational. The dispute settlement and the collective bargaining methods have been implemented. The continuous harmony and success of the employment relation is mainly dependent on the culture that is collectivist in nature and is embodied by the employees or the workforce in the organization. The concerned ministry of Singapore has established and developed a framework for implementing the policies and regulations. The main objective of this paper is the application of the strategic model for the development and the transformation of the employment relation of Singapore. The employment relation and its transformation in Singapore is the result of the world economy and the transformation is raising debate about the employment relation in the economy. The strike was considered as the turning point in the industrial history of Singapore and it decided to prepare its workers for the modifications in the labour laws by the government. Discussion Changes and development in employee relation of Singapore over the past decade Employment relation is considered as the relation that integrates the human resource management and the industrial relations which in turn widens and broadens the boundaries that comprises of the stakeholders and the environmental factors. The employment relation is the development of the tripartite contract between the government, unions and the employers. Period of transformation: The four period of transformation in the employee relation of Singapore includes The colonial administration that is transformed or converted to regulate pluralism in the period between (1960 -1967) which explains that during the colonial rule the main objective was maintaining the dependency of the worker and also suppressing the conflict. The increase in the industrial conflict has enforced and resulted in the infiltration of the Malaysian communities. The unsuccessful suppression and dominate has resulted in the formation of the economic trade union that is regulated and controlled by the union registration The Regulated pluralism is again transformed and converted to Corporatism in the period between (1968- 1978) has lead to the regulation of the industrial relation and also employment relation according to the terms and conditions by the law. The withdrawal by the British military has lead to the economic challenges that is mainly required for attracting the business of the multinational companies that is required to industrialize. The government legislature has been formulated for attracting the workforce in Singapore and also attracting the investors. The transformation has lead to the establishment of the tripartite national wages council which mainly includes the NTUC and SNEF (Tan and Pan, 2002). The Corporatism is then converted or transformed to Corporate Paternalism from the period between (1979- 1997). Corporatism can be defined or explained as the political structure that mainly integrates the organization of the socio economic group through the mutual interaction of the cooperative at the leadership level and through the system of representation at the mass level which includes the social control and mobilization . The main aim and the objective of the government is restructuring the economy of Singapore towards the increase or improvement in the high tech, capital intensive and value added business. The NTUC was engaged in restructuring the industry union and then restructuring the enterprise unions. The transformation has lead to the adoption of the HR policies according to the paternalism and also in terms of long term employment (Wah, 2012). The transformation from Industrial planning to Manpower planning : The transformation of the Singapore government has lead to the development of the long term strategy and its transformation into a knowledge economy which mainly includes the development of employability and long term learning, the collaboration of strong tripartite agreement, the integration of manpower planning, the wage system that is mainly competitive based and the augmentation for pooling the talents. The manpower planning mainly deals with developing the workforce and meeting or fulfilling the requirements of the industry through maintains and balancing the various sources for the supply of manpower required for the flexible and the efficient labour market (Siddiqui, 2010). Change and developments constitute, in Leggett’s (2007) terms, a ‘transformation’ of Singapore’s employment relations The changes and the four phases of transformation in the industrial relation in Singapore constitute in Leggett’s (2007) terms towards the transformation of the employment relation of Singapore. The changes that includes or comprises of the transformation of the industrial relation of Singapore has been more significant for solving the major debate related to the research that is conducted in industrial relation over the past decade on the issue whether the transformation has been occurring or not in the industrial relation system of various countries according to the increase in the diversity of work force, technological innovations and the response towards internationalization in the market. The government of Singapore has undergone a transformation of the Ministry of Labour into the Ministry of Manpower (Leggett, 2007). The manpower planning strategy of the government mainly includes the development of the lifelong employability and learning , the transformation in the working environment, the integration in the manpower planning, redefining the partnership, the development of the manpower industry, augmentation for pooling the talents. The Ministry of Manpower is assigned with the responsibilities for the development of health and safety, providing compensation to the workmen and the amendments in the employment act that will provide greater flexibility (Barnard and Rodgers, 2000). The strategy of NTUC for manpower planning includes five pillars or base for the labour movement that includes strengthening the competitiveness, enhancing the employability for life, developing the labour movement, building healthy mind and health and on the concept of caring more. The changes in the structure are mainly focused on the industry basis union. This strategy mainly deals with multinational function that comprises of maintenance of the union agency, development of the human resources, growth of the membership, management of the employee and social development, operating at various levels which comprises of work place, society and work community and integrating the functions which comprises of the management and development and maintenance of the labour movement (Leggett. and Le Queue, 2013). Wage system that is competitive base which includes the increase in the wages which is termed as the variable component and restructuring the wages on the basis of Tripartite Task Force (Min, 2012). Employment Act The employment act has been introduced in the year 1968 for maintaining employment standard. The amendments of the employee relation mainly include the following. Providing better protection services for its workers which comprises of extending protection to the non workmen which includes the salaries that is offered to the non workmen such as the frontline service staff and the clerical staff, extending protection to the managers executives and professionals which includes providing various benefit such as sick leave in addition to the offering of salary, increasing the standards and benefits of the employment includes the deductions from the salaries of the employees for offering services, accommodation and amenities for safeguarding and preventing excessive deduction from the salaries of the employees (Singapore’s Employment Act, 2014). Flexibility provided to the employers includes the authority of the employers in allowing the grant for leave in lieu of the PME for the employees who are willing to work during public holidays and the employers are not bound or compelled to bear the expenses for medical examination of the employees for cosmetic procedures and consultations. Reimbursement of the medical cost facility is provided Complying with the Employment standards the penalty for the default in the payment of salary to the employees will be increased according to the employment act and the penalty or the fine has been increased 1000$ to $ 5000 and it provides the employment inspectors the right to arrest any person whom he finds guilty or offensive and the partners, directors of the company will be made more accountable and responsible for the employment act offenses or guilty that is mainly committed by the company (Kuruvilla and Erickson, 2002). Foreigners in the labour force this explains that the increase of the foreigners in the labour forces compels the requirement of anti discriminatory laws and maintain a watch dog such as the tripartite alliance for practicing fair employment by the employers who prefer the foreigners over the local and the anti discriminatory law that is adopted will assist in protecting the rights and authority of all the parties that are involved for prevention and safeguarding the discrimination or bias that exist in relation to gender, religion , race, age and nationality (Waring and Lewer, 2013). Providing more contractual jobs explains that with the increase in the employment contracts the outsourcing of the employees are also developing and the contract workers has the benefit of enjoying the protection as the full time employees enjoying the flexibility in their employment. Update of the Employment Act The overtime rate that is payable to the non workman has been reviewed at a salary level of $2250 and the benefit of 3, 00, 00 PME will be modified and the salary protection up to $4500 will be safeguarded and protected under the provision of employment act and the transfer of the employees which deals with restructuring the employees, transfer of the employees and the rights of the employees are protected in accordance with the collective agreement (Huat, 1996). Resolving the disputes For resolving the disputes Singapore has adopted tripartite meditation that will strengthen the partnership between the Singapore National employers Federation, Ministry of Memorandum and National Trade union congress and this tripartite meditation has been formed for resolving the common disputes which is presently dealt by the civil court. Singapore for updating of the employment act and fulfilling the tripartite meditation process has focuses on the issues for resolving the disputes which includes payment for retrenchment benefits, salary claims and the issues related to the individual employment contract. The collective bargaining is being considered and regarded as an important element of the tripartite agreement. The Leggett terms of employment relation also focused on the framework for fair consideration which has facilitated the companies to post the vacancies of their job under the ministry of manpower and has emphasized on resolving the conflict between the employers and the employees and providing more employment opportunity and security (Kuruvilla .and Ranganathan, 2008). Conclusion Singapore has emerged from the third transformation and development from the corporatism to the corporate paternalism that is refined and modified rather than transformation. The strategic step for the transformation is mainly vested with the government but it is mainly implemented through the program that is supported by ministry of manpower and it is shared with NTUC and SNEF that is mainly implemented and formulated through the complex institution that is established and developed in the transformation of the industrial relation of Singapore. In consideration to the industrial relation activity and the tripartite agreement has been focused on the policies related to wages and the difficulty that is encountered in the transformation of industrial relation of Singapore is the NTUC and PAP undergoes similar experience and the attitude of the workers. Collective bargaining is mainly supported by the partners of the tripartite agreement, the recommendations and advice of the National Wage Council provides better wages to the workers with lower income and the establishment of the progressive model for wages for providing security and covering low income workers from different sectors which mainly include the hospitality industry. References Barnard, M. E. and Rodgers, R. A., 2000. How are internally oriented HRM policies related to high-performance work practices? The International Journal of Human Resource Management, 11(6). pp. 1017-1046. Huat, T. C., 1996. Employee relations in Singapore ‐ current issues and problems. Employee Relations, 18(3). pp. 48-61. Kuruvilla, S. and Erickson, C.L., 2002. Change and Transformation in Asian Industrial Relations. Cornell University, 41(1). pp. 171-228. Kuruvilla, S.and Ranganathan, A., 2008. Economic development strategies and macro and micro-level human resource policies: Industrial and Labor Relations Review, 62(1). pp. 40-43. Leggett, C. and Le Queux, S., 2013. Striking a balance: Singapore’s foreign labour in the Asian Century’, Seminar paper presented at IRES, Paris, June 2013. Leggett, C., 2007. From industrial relations to manpower planning: the transformation of Singapore’s industrial relations. International Journal of Human Resource Management, 18(4). pp. 642-64. Min, S.T., 2012. The Future of Tripartism in Singapore: Concentration or Dissonance. Civil service College. 11(1). pp. 102-111. Siddiqui, K., 2010. The Political Economy of Development in Singapore. Research in Applied Economics.2(2). pp. 7-10. Singapore’s Employment Act. 2014. A summary of the amendments. Available at: < http://www.mom.gov.sg/employment-practices/Pages/amendments-to-the-employment-act.aspx> [Accessed on 16 February 2015]. Tan, C. W. and Pan, S.L., 2002. 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