Source: CNA

1) Employers that have recovered or are recovering should restore cut wages

The National Wages Council (NWC) announced on Oct 29 that the first priority for employers that have recovered or recovering is to restore previously cut wages. The fixed-wage component should be restored first followed by variable wage components such as the monthly variable component and annual variable component. Wage-related cost-saving measures such as no-pay leave, temporary lay-offs, and shorter workweek should also be rolled back. NWC also called for organisations that are performing well to grant built-in wages increases and variable payments in tandem with the business performance, prospects, and productivity increase in line with employees’ contributions. Discretionary cost-saving measures such as cuts in allowances should also be rolled back.

For sectors facing uneven or adverse impact from the pandemic e.g. tourism and aviation-related industries, appropriate cost-saving measures such as reskilling can be implemented for talent retention while continuing to tap on government support for workforce and business transformation.

2) Built-in wage increase of up to $90 or 7.5 percent of gross salaries, whichever is higher, for lower-wage employees

NWC also recommended that companies of employees earning a gross monthly income of up to $2000 should include a built-in wage increase of 4.5 to 7.5 percent of gross wages of $70 to $90, whichever is higher. This is to narrow the gap between the salaries of lower-wage employees and the median wage level over time.

NWC also suggested adversely-impacted industries which are considering extending their wage-freeze to put in place a built-in wage increase of up to $50 for staff earning a gross monthly salary of $2000 and below. Those companies planning to implement further wage cuts should implement a wage freeze instead for this group of lower-wage workers.

3) Employers should offer structured training programs and work to transform their businesses

65.4 percent of companies provided staff training in 2020, a dip from 79.1 percent in 2019. Similarly, only 46.5 percent of employees received structured training in 2020, a decline from 2019’s 55.8 percent. In response to the falling figures, NWC called on employers to partner with the labour movement (NTUC) to set up company training committees to enhance in-house workplace learning capabilities to keep up with the transformation pace. Employers should work together with their staff to innovate and roll out productivity initiatives and move towards improved wages and skillsets. Such initiatives could include jobs redesign and staff reskilling and upskilling in order to support those with a higher risk of redundancy.

What do you think of the latest key recommendations proposed by the NWC? How do you think you could better support your employees to move towards enhanced business transformation and growth?