SPEECH BY MR CHAN SOO SEN, MINISTER OF STATE FOR EDUCATION & COMMUNITY DEVELOPMENT AND SPORTS, AT THE ST ELECTRONICS  LTD’S NATIONAL DAY OBSERVANCE CEREMONY   ON   FRIDAY, 6   AUG  2004,  AT   8.15  AM  AT  24 ANG MO KIO ST 65

Mr Seah Moon Ming,
President of ST Electronics Ltd

Mr Mohd Noor bin Mahmood Noor
President of ST Electronics Employees Union

Distinguished Guests

Ladies & Gentlemen

Good morning

       I am very happy to join you this morning at your National Day Observance Ceremony.

2     Year 2004 is a refreshing year for us.  Our economy is showing very encouraging signs of recovery.  Economic figures are looking up.  We have experienced strong growth since the beginning of this year in most sectors of the economy.
There is a stronger feeling of confidence about this year’s prospects.  Companies are recruiting again. Unemployment rates are showing signs of improvement.  Your sector grows well. I hope this translates into greater profits for your company and higher bonuses for our workers. 

3     There are some dark clouds at the horizon.  Threats from international terrorism still looms.  Situation in the Middle East remains tense.  Oil prices are up, putting pressure on costs.  Situation at Taiwan Straits is tense.  Taiwan is having Legislative election.  China is watching closely.  Hostilities can break out if sensitive lines are crossed. 

4     All these dark clouds bring anxiety and uncertainty. They may even bring some rain and storm.  However, if we show the same spirit of solidarity and confidence, we will pull through together and see beautiful sunshine.    

5     We have shown a unique spirit of solidarity and resilience through tripartism, with the government, employers and the labour movement working together, consulting each other, working out and implementing measures to restructure and reposition our economy, while aiming for win-win-win.          

6     Our workers have made sacrifices, accepting painful but necessary changes such as CPF cuts, GST reform, wage restructuring, downsizing, and skills retraining.  In the process, we made Singapore and our companies more competitive, better positioned for growth in the coming years.

7     We are confident about our future.  We see strong growth in USA, Japan, China, India, and Southeast Asia. The longer term growth of our region is also promising, with China and India becoming bigger players.
In fact, I would say we are located in a region of dynamic growth in the coming decades.  Competition will be strong, but opportunities are plentiful. If we remain nimble and responsive, adopting tripartism as our foundation of strength, we will benefit from the region’s growth and scale new heights.

8     Tripartism has been doing well. In most companies, labour movement relations have been excellent.  However, as a union official myself, I do observe some disturbing behaviors.  

9     I am not naming names, and I would like to say from the onset that I have not observed, and am not observing, your company.

10   Some companies bypass the unions.  Some cut-back union leave. Some put obstacles on unionists conducting union business.
Some cut back sponsorship on the ground of costs. Much of these are done at operational level, away from views of senior management.

11   Unionists feel these are attempts to erode their standing in the eyes of the workers. Let me remind these companies that we are in tripartism for a long haul.  To undermine the unions, whether deliberately or unwittingly, undermines tripartism.  

12   Our unionists have played a key role to convince our workers to accept the bitter medicine to help our companies and our economy.  They had a very tough time doing so in the last 2 to 3 years of wage restraint.  They had to swallow bitter medicine like everyone else. In addition, they had to explain the need for bitter medicine to their workers. While doing so, they had to bear with the strong reactions, and the occasional ridicules, from their colleagues.  

13   Without the hard work of our unionists, we could not have made such major adjustments so quickly, with our workers supporting or at least accepting the adjustments.  We must ensure our unions retain their high standing in the eyes of our workers so that they can remain effective when we need them again.         

14   Hence as we enter into better times, our employers should remember the important roles played by our unions during the bitter times. Continue to work with them, facilitate their work, and develop their people for the good of tripartism. I would also like to urge the senior management to communicate this to operational levels.           

15   There will be some small costs in the short-term.  Please treat this as investment with potential for big returns in the longer term.  NTUC-affiliated unions are committed to win-win-win, and are committed to Singapore.        

16   We are all on the same ship “RSS Tripartism”.  Let us work together to sail this ship towards a brighter future for everybody.

Have a Happy National Day! Maju-lah Singapura!