The Young Working Population of Singapore - Essay Example

Abstract The essay gives a commentary on five specific news stories which have occurred recently. The comments try to provide an incisive and objective view of the five events. If the demographic studies conducted in Singapore are to be believed, there is every possibility of the country’s population becoming extremely aged by the year 2050 (Channel News Asia, 2013). If the total fertility rate of Singapore does not show an upward movement, the current median age of Singapore’s population will rise from the existing 39 years to 55 in 2050. This rapid increase in the elderly population (who instead of contributing to the society become a liability on it) will have direct effect on the country’s productive workforce and thus, the economic benefits derived (Freedman, 1970). The major reason behind these dismal fertility rate figures is the reluctance on part of the Singapore residents to get married and have children (Magnus & Chappell, 2009). According to a marriage and parenthood survey conducted by National Population and Talent Division (NPTD), nearly 83% of the total respondents revealed that they had no immediate plans to get married or have babies. The main reason cited for this kind of behavioral pattern was the rising financial costs as well as lack of time to look after the children. The newly expanded Baby Bonus Incentives, introduced by the Government of Singapore, seem to be an answer to this slow growing yet an unproductive trend (Channel News Asia, 2013). These incentives have been launched with an aim to entice its citizens to get married and have babies. This enhanced package of marriage and parenthood will help the couples raise adequate amount of money by having children, along with an introduction of paternity leaves. The Baby Bonus cash gift has been increased by $2000 and now settles at $6000 for the first two births and $8000 for the next two. In addition to this, there will also be creation of a Medisave account having $3000 in the name of each Singaporean baby (Channel News Asia, 2013). This will provide further financial assistance to the parents to plan for the healthcare needs of their children. Also, plans are to extend MediShield so as to cover congenital and neonatal conditions. As far as the non-monetary benefits are concerned, the government has made a provision for faster and easier housing facilities so as to support early marriages and births (Liu et al, 2002). Under the Parenthood Priority Scheme, there will be priority allocation of Housing and Development Board (HDB) flats to the couples married first time having children. In addition to this, for the purpose of helping married couples with children to create a healthy balance between their work and family commitments, the Singapore government has introduced 1 week of Government-paid Paternity leave, 1 week of shared Parental Leave (in which fathers can share 1 week of paid Paternity leave from the mother’s leave entitlement), 16 weeks of paid Maternity leave for mothers, 4 weeks of Adoption leave (Government Paid) for working mothers, extended protection during pregnancy so as to avoid retrenchment or dismissal of pregnant women employees without sufficient cause and finally, 2 days of annual Child Care leave (Government paid) for parents having children aged 7-12 years (Channel News Asia, 2013). The introduction of all these Government paid marriage and parenthood incentives is bound to be received with a lot of positivity by the citizens of Singapore (Li et al, 2004). These comprehensive set of measures, aim at addressing the concerns of the young working population of Singapore. Also, it is quite heartening to observe that the Government has shown equal amount of concern for the relatively small group of working mothers who have adopted children (Wong & Leong, 1992). When it comes to fathers, the government paid paternity leave is bound to add on to their joy. However, it is yet to be seen whether these prospective fathers are satisfied with the 1 week of government paid leave, or they desire to spend more time with their kids. Also, the proposal of granting Paternity leave out of their mother’s leave entitlement may be welcomed with a mixed reaction. This is because most of the mothers already feel that the 16 weeks of maternity leave is not enough and the whole idea of giving up an entire 1 week out of it may not be readily acceptable. Finally, when it comes to housing issues, the allocation of new HDB flats, it will definitely work as a boon to the couples married first time; but might not have any considerable impact on marriage and parenthood. SNEF COMMENTS ON PROPOSED AMENDMENTS TO EMPLOYMENT ACT POSTED The Singapore Employment Act (EA) was enacted in the year 1968 and aims at providing basic employment benefits like minimum employment terms, salary protection and resolution of disputes for certain categories of employees (Kuruvilla, Erickson & Hwang, 2002). Additionally, it also puts forth the fundamental rights and obligations enjoyed by both employers and employees along with shaping the responsibilities and harmonizing the interests of the parties involved. The first major review of the Employment Act was conducted in the year 2008, which became effective from January 1, 2009 (Channel News Asia, 2013). It made certain changes so as to extend a greater amount of protection to the vulnerable employee groups by making them eligible for most of the benefits. Although, these changes were quite applicable during that period, a significant evolution in the profile of today’s workforce has made the Ministry of manpower (MOM) realize the need for another review to the Employment Act so as to maintain the pertinence of the statute along with being responsive to the changing workforce profile. MOM aims to conduct the current EA review in 2 phases. Phase 1 will extend from Nov 2012 till the first quarter of 2013 and will include extension of EA’s coverage, improvements in the standard of employment as well as employee benefits and augmenting the flexibility of EA for employers (Channel News Asia, 2013). Phase two is expected to begin in the fourth quarter of 2013 and will encompass more complicated issues such as enhanced protection for employees in non-traditional arrangements of work like self employment and contract workers and providing an improved mechanism for dispute resolution between employers and employees. The MOM has been working in close association with The Singapore National Employers Federation (SNEF) as well as National Trade Unions Congress (NTUC), representatives of the employers and employees respectively (Channel News Asia, 2013). It is important for the Ministry to take into account the views of both the involved parties and to observe probable reactions from them on the various policy issues (Nyaw & Chan-leong, 1982). This needs to be done so as to maintain peaceful employment relations within the country and to avoid any one of the parties feeling overburdened or left out. Since time immemorial, the Employers Federation and the Trade Unions have been at opposite ends of every agreement, with each party trying to gain a larger share of benefits for its members (Yeoh, 2006). As far as the current review of the Employment Act is concerned, the NTUC wants an enhancement in the amount of protection extended to the PMEs (Professionals, Managers and Executives) under the current Act. Also, to keep pace with rising salaries, changing workforce profile and evolving nature of work, the NTUC has proposed to do away with the distinction between non-workmen and workmen. An increase in the median salary needs to be reflected in an increase in the salary ceiling of non-workmen so that more workers can enjoy the benefits of part IV (Channel News Asia, 2013). Additionally, the Labor Movement does not want to compromise on the needs of the existing workers and demands greater protection for them in terms of retrenchment benefits, valid pay slips and employment contracts, clarity on hours of work and rest, etc. On the other hand, although SNEF identifies the need for enhanced employment protection, it wants the labor market to be more flexible so as to keep pace with the dynamic economic environment (Gan, 2012). If the salary ceiling for non-workmen is raised, it will affect the overtime costs as well. SNEF proposes an option of time-off in-lieu of extra hours worked which will help the employers manage their costs, limited manpower and fluctuating business cycles. Also, SNEF feels that extending EA benefits to PMEs will raise their employment costs. Additionally, SNEF feels that extending protection to vulnerable workers should not result in a drastic rise in employment costs (Gan, Morgan & Sheldon, 2012) The current changes in EA will lead to changes in the attitudes of both employers as well as employees along with affecting employment costs, work arrangements and compensation and benefits management. Depending upon the kind of reaction and adjustments made by all the parties involved, the stage for the next review will be set. SIA PILOTS THREATEN STRIKE Another case of Industrial unrest within the aviation sector of Singapore saw the Singapore Airlines (SIA) Pilots threatening the company with serious industrial action over the issue of taking in-flight rest and meals in the economy class (YTL, 2013). The root cause of this enormous industrial unrest among the Singapore Airlines pilots is the introduction of Spacebed seats in the business class area. These new seats have larger dimensions as compared to the earlier ones and occupy more area within the business class, thus resulting in fewer seats for the pilots. As a result, the pilots have been asked to take their in-flight meals and rest in the economy class, if the business class does not have any empty seats. However, this is being considered as a breach of the collective agreement between the Singapore Airlines pilots and the Company’s management according to which the pilots were entitled to take rest in the business class area. Some of the pilots also felt that if they did not get adequate amount of rest, the flight safety could be at stake and they would also feel exposed to security risk in the economy class. The Airlines Pilots Association of Singapore (ALPA-S), which consists of 90% of SIA’s 1600 pilots have decided to hold an extraordinary general meeting (EOGM) so as to vote on 3 issues, namely, condemnation of the Company’s policy to shift the pilot’s in-flight resting area from business class to economy class, condemnation of the SIA’s move to sack two SQ6 pilots and finally, whether or not to take industrial action which will include “withdrawal of goodwill” as well as “work to rule” action (YTL, 2013). The bringing forth of all these issues is a strong indication of the high level of unhappiness and discontent amongst the SIA employees which, in turn, has resulted in an all time high rate of employee turnover. It has been a general observation that the unions in Singapore do not enjoy a very strong foothold (Wong & Ho, 2011). Probably this is the reason that even after several rounds of talks between the SIA pilots and the Company management, they have failed to bring out any proper resolution. However, the general level of discontent arising out of differing interpretations on the Collective Agreement of 1988 is quite high (Huat, 2010). In addition to this, the sacking of 2 pilots who were engaged in Taiwan crash two years ago, which resulted in the loss of 83 lives, is also being seen as an extreme punishment (Shu-ming, Min & Lu, 2011). ALPA-S feels that disciplining the pilots in an appropriate manner would have been a better punishment. They are also not happy with the fact that the Company does not provide them with any backup, in case an accident happens. If the motion carried out by ALPA-S is passed, it will be for the first time since 1980 that there will be some sort of industrial action on part of the SIA pilots (YTL, 2013). In 1980, when after several rounds of negotiations no resolution was passed on the claims for higher salaries and benefits, the pilots forced an unofficial work to rule (Leggett, 2011). It was only after the personal involvement of the Prime Minister Lee Kuan Yew that the matter was finally settled (YTL, 2013). Hence, it would be quite safe to assume that in the present scenario also, the Singapore government will step in so as to avoid an undesired showdown. Also, there is an observation that Singapore has always taken pride in its strike free record and they will take all the necessary measures to protect this reputation (Baum, 2010). They will try to reach an amicable agreement with the Pilot’s union and if that does not work, they may even resort to some strong tactics. Also, this sort of proposed industrial action may work like a wake-up call for the SIA’s management, making them realize that they must do something to protect their management culture as well as personnel policies. SIA CARGO PILOTS STRIKE DEAL The recently concluded deal between the national carrier Singapore Airlines and its cargo subsidiary once again brings forth the power of labor unions in making the employers give in to their demands. In the year 2001, SIA cargo was set up as a separate entity and since then has been experiencing its own share of ups and downs (Wong & Ho, 2011) The Global economic slowdown along with the vagaries of trade flows resulted in the continuous rising and falling of SIA cargo’s profitability (O'Connell & Williams, 2011). An operating loss of around $245 million was reported at the end of March 2009 along with forced payments of around $202 million to US and EU regulators over the alleged price fixing issue on cargo operations (Berchtold, 2012). The burden of all these losses fell directly on the shoulders of the pilots who operate the 11 freighter planes of SIA. As a result of this, some 50 odd cargo pilots were laid off and most of the pilots were asked to take voluntary leave without pay. In addition to this, there was a cut in the monthly variable payments, productivity payments were slashed and service increments were frozen. These tough operating conditions and the increasing atrocities on part of the management, as a result of its cost and capacity management exercises, made it difficult for the SIA cargo pilots to continue working with the same level of commitment and efficiency. Thus, they were forced to present the Company with their own set of demands. The Company management was presented with the Service increment wherein the pilots demanded a 2.5 per cent pay rise whereas the SIA was ready to pay only a straight lump sum payment. Besides the service increment, the cargo labor also demanded benefits such as bonuses, location meal allowances as well as transport allowance (Channel News Asia, 2013). In addition to this, there was a lot of disparity in the treatment given to SIA cargo pilots in comparison with the mainline pilots. As per the Cargo pilots labor union, this subsidiary of Singapore Airlines was subjected to lower pay, benefits and perks as compared to the mainline pilots, despite the existence of the same exacting conditions, standards and licensing requirements throughout SIA (Channel News Asia, 2013). This sort of unequal treatment on the part of the Company increased the discontent among the cargo workers. The negotiations between Singapore Airlines Cargo pilots union and the Company were spanned over a long duration of several months, with both the competing parties holding their grounds. When the pilot’s union did not see any substantial resolution coming their way, they even wrote a petition to the Branch Committee to hold an extraordinary branch meeting (EOBM). The main aim behind holding such an EOBM was to decide the appropriate industrial action that should be taken in the event of the non-resolution of a prolonged dispute. In the wake of such a disruptive situation prevailing within the Company, better sense prevailed at the end of the Company’s management and they decided to give in to the demands of the pilot’s union. The Company realized that if this dispute would reach the Industrial Arbitration Court (IAC), it would result in a potentially divisive and acrimonious showdown, which in turn would adversely affect the reputation of the Company (Elias, 2010). Hence, in good faith and understanding, the longstanding issues regarding the outstanding service increment were resolved. In addition to this, the benefits and payments of the cargo pilots were brought in line with the mainstream pilots. The fact that the SIA cargo pilot’s deal was resolved barely a week after the settlement of the Service Increment of 2012 between SilkAir pilots union and their Company in an out of court settlement reveals the effect of the settlement of claims by one Union over another having similar demands (Derigs & Friederichs, 2012). So, one can safely assume that the signing of the MoA between the SilkAir pilots and their Company acted as a trigger for the SIA cargo pilots union to drive their negotiations towards an out of court settlement by putting pressure on the company’s management. SMRT SACKS 3 DRIVERS ALLEGEDLY INVOLVED IN NOV STRIKE One of the recent cases of alleged industrial dispute between the Singapore Mass Rapid Transit (SMRT) management and its drivers culminated in the sacking of 3 Chinese bus drivers He Jun Ling, Gao Yue Qiang and Liu Xiang Ying (RikVin, 2013). It was alleged that these three drivers were actively involved in the strike which took place in Nov 2012, for which they were even facing criminal charges. The main reason behind dismissal of their services was that even after being released from the prison, they refused any direct communication with the company even though they continued getting paid as per their terms of employment (Sloan, et al, 2013). Another driver, Wang Xianjie, also faced similar charges but his contract of employment with SMRT expired in January, this year. The month of November last year saw the beginning of workplace agitation in which more than 100 bus drivers, employed with SMRT, got together in their dormitories in Woodlands and refused to go to work. A major chunk of these drivers were from China. The alleged strike was to demonstrate their unhappiness over the recent pay increase of Malaysian drivers (Chin, 2010). The drivers from Malaysia supposedly got a month’s bonus and an increment of around $275 (RikVin, 2013). On the other hand, the Chinese drivers were not given any bonus and a very small increment of only $75 (OMY, 2013). In addition to this prevailing income disparity, the drivers from mainland China also exhibited their unhappiness over the cramped living conditions provided by the company. Although, SMRT maintained that it extended salary increments and bonuses to all its workers as per their duration of service, there was still a lot of unrest among the Chinese drivers (Erath et al, 2012). This kind of an agitation is being observed as an issue of discrimination between the drivers belonging to different countries (White, 2010). Although, one of the terms of employment of any organization and in any country holds that there would be no discrimination between employees on the basis of their caste, creed, sex or religion, the recent showdown is being observed as a breach of the employment contract (Lau, 2011). However, at the same time, it is also being observed that if the Chinese drivers were unhappy due to their employment conditions with SMRT, they could have chosen to express this unhappiness in another, more peaceful manner, particularly when SMRT claims that its lines of communication with the upper management are always open (Channel News Asia, 2013). This is because this sort of agitation resulted in the breakdown of the public transportation system, thus affecting the daily commuters. Even after the management held day-long discussions with the bus drivers who were on strike and asked for a week’s time to look into the whole matter, the drivers did not report back to work on the following day as well (OMY, 2013). Hence, SMRT was left with no other option but to take serious action against the offenders and a police complaint was lodged, citing serious breaches of the law. At the same time, the company decided to conduct internal investigations to ascertain whether there has been any breach in the terms of employment. Such an action on part of the Chinese drivers may result in a revolting behavior by the Singaporeans who pride themselves on efficiency as well as law and order issues. At the same time, it might even deter low-skilled foreign workers from coming to Singapore, thus disrupting its industrial activities as most of the low level jobs are done by these foreign workers. REFERENCES Baum, T. G. "From upper-class to underclass. 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