Property giant CapitaLand’s decision to restore wage cuts for its executives and management staff has the thumbs up from Manpower Minister Gan Kim Yong.
Yet given early signals of economic improvement here, he said it was up to companies to set the pace to restore pay cuts, adding that imposing a deadline would not be ‘practical’ at this stage.
Mr Gan made these remarks on the sidelines of an event yesterday to reward winners of a Junior Chef competition, organised by Teck Whye Secondary School.
CapitaLand last week reversed pay cuts of between 3 and 20 per cent made in January, based on indications that business prospects now look more promising.
Companies need to look at issues from their perspective, yet must recognise they could lose good workers if they are not seen as acknowledging ‘the contribution of workers in a fair manner’, Mr Gan said. This could be in different forms, he said, such as giving a one-time bonus or a small increment. He added that companies in favour of giving an increment should include it in the variable component of the pay packages.
Those facing financial difficulties should still talk to their workers ’so there is common understanding’, he noted.
Reacting to reports of some companies cancelling annual leave or forcing workers to work for 12 or more hours a day, he said his ministry would step up enforcement and urged workers to reach out to his ministry if rules were flouted.
Last week, the head of a cleaning company was convicted of failing to give his workers annual leave while seven other local employers went to court for making their staff work on shifts of 12 hours or more.
On the issue of foreign labour, he said these workers will continue to play an important part in supplementing the labour market, though their size cannot continue to grow because of physical constraints.
There are nearly one million foreign workers – about a third of the labour force, he noted, adding that the more important issue is to ensure the quality and productivity of the labour force continue to improve.
Source : Sunday Times – 8 Nov 2009





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