Speech by Mr Tharman Shanmugaratnam, Minister for Education and Second Minister for Finance, at the Singapore Industrial and Services Employees' Union's (SISEU) 26th Anniversary Dinner and Dance 2007 on Wednesday, 28 November 2007, at 7.30 pm at Orchard Hotel

SPEECH BY MR THARMAN SHANMUGARATNAM, MINISTER FOR EDUCATION AND SECOND MINISTER FOR FINANCE, AT THE SINGAPORE INDUSTRIAL & SERVICES EMPLOYEES’ UNION’S (SISEU) 26TH ANNIVERSARY DINNER AND DANCE 2007 ON WEDNESDAY, 28 NOVEMBER 2007, AT 7.30 PM AT ORCHARD HOTEL

Mr John De Payva,
NTUC President

Mr Tan Peng Heng,
President of SISEU

SISEU Council of Advisors and Executive Committee

Distinguished Guests, Ladies and Gentlemen

Good evening

Introduction
1. Let me first extend a warm greeting to all of you tonight at SISEU’s 26th Anniversary Dinner & Dance. I would also like to take this opportunity to congratulate all the newly elected Central Committee members of NTUC following the recent National Delegates’ Conference held in October 2007.

2. Since assuming Chairmanship of SISEU Council of Advisors early this year, I have been impressed by the diversity and robustness of SISEU and its strong union spirit, both of which I’m sure have been driving forces in achieving the success it enjoys today.

3. The road has not been easy. Tough decisions have had to be made along the way. The economic crises of 1989 and 2000 were trying times for Singapore, when SISEU took on the difficult task of helping workers find jobs and negotiating with companies for retrenchment benefits. Similarly, during the SARS crisis, it had to convince companies that had been badly hit, such as those in the hospitality sector, to retain jobs. Members themselves had to make sacrifices. They took unpaid leave and accepted wage freezes in order to help companies remain viable.

4. Due to these sacrifices and tireless efforts, we have managed to make a remarkable recovery, and, achieve strong economic growth. This year, we are expected to grow by 7.5 to 8.0%, and 4.5 to 6.5% next year[1]. With this strong economic outlook comes a great demand for workers. Unemployment has fallen to 1.7%, the lowest in nearly ten years. In response to the tight labour supply, wages have also increased correspondingly. These are on the whole good times for our workers.

Challenges ahead
5. However, we must remain prepared for challenges to surface at any time even though the economy is booming. The global economy and financial system is currently facing greater uncertainty than anytime since the tech bubble burst in 2001. How the sub-prime problem or oil price situation develops will have an impact on the world, and on Singapore’s growth next year. Even in this current times of prosperity, therefore, SISEU must stay alert to unexpected challenges ahead, and be quick to address them.

6. One challenge that persists is our need to bring all our workers with us in this time of growth. It is a reality that as we move into a knowledge-based economy, there will be fewer low-value jobs. As we surge ahead, there will be a group of workers who are not able to move in tandem with the rest. These workers are the ones most in need of assistance to upgrade their skills.

7. SISEU has an important role to play in encouraging its members to improve their job value. SISEU and the NTUC are leaders in this regard. Through collaboration with our tripartite partners, the employers and the government, we have to push for the continued training and upgrading of workers.

8. Another challenge lies with our greying population. In the coming future, our average worker will live longer. How do we help them to ensure that living longer is for the better, and not for the worse? How can they continue to contribute meaningfully to Singapore and to make sure they put aside enough to enjoy retirement? Certainly, one answer lies in improving the employment prospects for older workers.

9. Here I am glad to see the efforts of SISEU in collaboration with its branches to advocate the employment of older workers. More than 60% of its Collective Agreement with the companies that SISEU represents now have re-employment clauses or have entered into a Memorandum Of Understanding (MOU) to show their commitment to the re-employment of older workers. Already, more than 500 workers have benefited, and I look forward to seeing this number increase with time.

SISEU Efforts and Initiatives
10. Helping our older workers continue to enjoy active ageing is part of NTUC’s greater vision of building an inclusive movement that reaches out to workers of all collars, ages and nationalities. I note that SISEU supports NTUC’s “Labour Movement 2011” (LM 2011) through its five “dragonboats”: the Singapore Tripartism Forum (STF), Uth Movement and the 3 collars respectively: No collars, Silver Collar, and Gold Collar. Today, I am pleased to be presenting awards to the individuals and companies who have shown strong support for SISEU’s LM 2011 vision, and extend my congratulations to the winners. My congratulations also to the recipients who are receiving their Long Service Awards tonight — have an enjoyable time tonight, you’ve certainly earned it!

11. This brings me to how SISEU continues to strive to keep itself dynamic and useful for its members. SISEU has done very well in becoming the second largest union in Singapore, having started with 3,600 members and 81 branches in 1981, and growing to more than 53,000 members and 156 branches today. This is testimony to the passion and indefatigable energy of our unionists and the value they have created for their members. But I am pleased to observe that SISEU does not rest on its past achievements. It has been actively introducing new initiatives to keep itself up-to-date and relevant.

12. As an instance of this, one of SISEU’s initiatives to enhance Labour Management Relations has been a series of ‘CEO breakfast talks’ with chief executives from the various sectors to discuss issues which affect their industries, as well as the economy and workforce in general. The breakfast talks provide an informal platform for all to share and exchange views and I myself have found this to be very useful. Not only does it allow the union to get timely and invaluable feedback from the management perspective, it also gives SISEU the opportunity to introduce and gather support for its latest programmes and initiatives.

13. SISEU also places much emphasis on leadership training. I understand it has sent more than 7,000 unionists for training over the past 25 years at institutions such as the Ong Teng Cheong Institute of Labour Studies, and introduced a SISEU Youth Wing in 2005 to bring in young leaders. These are all good steps to ensure leadership renewal and a balance of experience and vibrancy in the organisation. Aside from this, I also understand that SISEU plays a part in the development of regional ASEAN union leaders as well, having hosted regional delegates on a number of occasions.

Conclusion
14. In recognition of SISEU’s achievements, I would like to take this opportunity to congratulate the leadership of SISEU’s Executive Committee and its branch leaders. With a good team in place, I believe SISEU will have more good years ahead. On this auspicious occasion, I end with a call to all of you here, being a part of the tripartite groups — union leaders, management and industry partners, to support SISEU LM 2011 and to work in concert for its success.

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[1] From MTI press release on Q3 growth:

http://app.mti.gov.sg/data/article/11602/doc/ESS_2007Q3_PR.pdf