Speech at Food, Drinks and Allied Workers’ Union 44th Anniversary Dinner
Mr Gan Kim Yong, Acting Minister for Manpower, Meritus Mandarin Hotel
President Abdul Subhan
General Secretary Tan Hock Soon
Executive Secretary Heng Chee How
Executive Committee and Members of FDAWU
Good evening
Introduction
1. I am very happy to join you in celebration of your union's 44th Anniversary.
Economic and Employment Outlook
2. Singapore is beginning to feel the impact of the global economic downturn. GDP growth forecast for 2008 has been adjusted downwards to around 3% from the original forecast of between 4-6%. Our employment growth has eased from 71,400 in the second quarter to 57,800 in the third quarter of 2008. With the slowdown in the Singapore economy and the deterioration in the outlook for the global economy, the overall unemployment rate for 2008 will likely be higher than the 2.1% in 2007.
3. While the economic outlook appears uncertain in the short term, hotels and restaurants will continue to be important sectors in providing jobs for Singaporeans. With major projects, such as the Integrated Resorts scheduled to open in the next 2 years, there will continue to be demand for skilled manpower in this industry. In this regard, I am heartened to note that the FDAWU has collaborated closely with its management partners and the Workforce Development Agency (or WDA) to put in place programmes to help upgrade the skills of your members and improve industry employment practices. This would raise productivity, as well as retain more local workers.
Training and Skills Upgrading
4. One programme, which the FDAWU had supported and actively encouraged your members to participate in, is the Certified Service Professional Programme under WDA. This 5-day programme facilitates employees' entry into the tourism and service-related sectors, by equipping them with a strong service-oriented mindset and appropriate skills. To date, 600 workers had been trained and I urge more to do so.
Improving Employment Practices
5. At the same time, I understand that the union has been working with major hotels to improve its employment practices, in order to attract and retain more locals. This includes the introduction of the 5-day work week (of which the rest day need not be on a Saturday or Sunday), and flexible work arrangements. For example, to encourage more housewives back to work, the Royal Plaza@Scotts has worked with the union to introduce structured part-time employment. The union and its partners have also reviewed the structure of wages, such as bringing in the service-charge component into the basic pay, so as to raise the basic salary and better reflect the value of the job. For the food manufacturing sector, the union has also been working with companies to move from the existing seniority-based wage structure to a performance-based bonus system. This enables workers to be rewarded more equitably and motivate them to contribute their best.
6. The FDAWU and its management partners have also played an active role in promoting the re-employment of older workers beyond 62. I am pleased to note that 84 companies, represented by your union, have committed to re-employ older workers. This is a manifestation that the union's efforts have paid off and I hope more companies will come on board.
7. I am also pleased to note that the union is working closely with companies to improve their re-employment policies, encouraging the adoption of age-neutral wage structures, and actively redesigning jobs and workplaces to make them more age-friendly. For example, 16 hotels, with the support of the union, had tapped on ADVANTAGE! Scheme to install the Ezi-Maid bed lifting system that makes cleaning less strenuous for older workers. This in turn enhances both their productivity and wages. Amongst these hotels, the Crowne Plaza Changi Airport has seen a faster room turn-around time and decrease in absenteeism among its workers.
8. I am also told that Prima Limited has, together with the union, put in place a comprehensive HR policy for employees above 62 years old. One of its employees, Mdm Lim Gek Tee who is 68 years old this year, is an example of an employee who has benefited from this. She is given the opportunity to upgrade herself through various training programmes, to ensure that her skills remain relevant to her job.
Conclusion
9. To conclude, I would like to commend the FDAWU union leaders, members and management partners on their on-going commitment and efforts to improve workplace practices, as well as to enhance the employability of our workers. These efforts will not only enable us to overcome the economic downturn, but also better position our workforce to capture new opportunities when the economy recovers.
10. I wish you an enjoyable evening. Thank you.