Transcript Upturn the Downturn The Labour Movement*s Response to the

Physical Size:
710.3 Sq Km
Population:
4.99 million
GDP:
US$187.9
billion
Per Capita GDP:
US$37,690
Total Trade:
US$529.8
billion
Export Oriented = More Vulnerable
GDP
Growth
(%)
16
14
4.4%
3.2%
2.9%
3.5%
World
12
10
8
6
4
2
0
-2
-4
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Export Oriented = More Vulnerable
GDP
Growth
(%)
16
14
9.3%
4.4%
7.5%
3.2%
7.6%
2.9%
4.9%
3.5%
S’pore
World
12
10
8
6
4
2
0
-2
-4
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Export Oriented = More Vulnerable
GDP
Growth
(%)
16
14
9.3%
4.4%
7.5%
3.2%
7.6%
2.9%
4.9%
3.5%
S’pore
World
12
10
8
6
4
2
0
-2
-4
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Export Oriented = More Vulnerable
GDP
Growth
(%)
16
14
9.3%
4.4%
7.5%
3.2%
7.6%
2.9%
4.9%
3.5%
S’pore
World
12
10
8
6
4
2
0
-2
-4
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Worst Global Recession in 60 Years
GDP
Growth
(%)
16
14
4.4%
3.2%
2.9%
3.5%
World
12
10
8
6
4
2
0
-2
-4
1970 1973 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
Singapore’s Year-on-Year GDP
Q1 2008 - Q1 2009
GDP
15
10
7.3
5
2.8
0.1
0
Q1
Q2
Q3
Q4
Q1
-5
-4.2
-10
-9.4
-15
2008
2009
ST 15 Apr 09
Global Unemployment Rate
%
6.8
6.6
6.4
6.6
6.4
6.2
6.4
6.2
6.3
6.0
6.0
5.8
5.7
5.6
5.8
5.4
5.2
1999
2000
2004
2005
2006
2007
2008
2009
Source: ILO, Global Employment Trends, Jan 2010
Singapore's Quarterly Unemployment Rate
3.5
3.2%
3.0
2.5
%
2.0
1.5
1.0
0.5
0.0
Q2
Q3
2007
Q4
Q1
Q2
2008
Q3
Q4
Q1
2009
Source: Ministry of Manpower, 30 Apr ‘10
Most Pro-Business Economy:
Most Pro-Worker Nation:
Others:
Singapore:
Priorities Set During The
Downturn:
Avoid Massive
Retrenchment
Upgrade
for Global
Recovery
Prevent Rapid
Rise in
Unemployment
Preserving Capacity
Jobs Credit Scheme
S$4.5 billion
Subsidies for 9% of payroll
Equivalent of 1.7% of GDP
Job losses minimized
in 2009, thanks to
government action
BT 4 Jan 10
Upgrading Capability
Employers receive:
Payroll
90%
Course Fees
• Turn excess capacity into new capabilities
Retrenchment == Unemployment
Management led by example –
Took earlier and deeper pay cuts
3 Dec 08, Channel NewsAsia
22% pay cut for senior civil
servants, ministers
The Business Times 27 Nov 09
21 Jun 09
Reuters
Labour Movement Carried the Ground
NTUC This
Week
16 Jan ‘09
NTUC This Week 10 Jan ‘09
Singapore’s Year-on-Year GDP
Q1 2008 - Q1 2010
GDP
15.5%
15
10
7.3
4.0
5
2.8
0.6
0.1
0
Q1
Q2
Q3
Q4
Q1
Q1
-5
Q2
Q3
Q4
Q1
-3.2
-4.2
-10
-9.4
-15
2008
2009
2010
2010
27 May 2010, ST
27 May 2010, ST
Singapore's Quarterly Unemployment Rate
3.5
3.0
3.3%
3.2%
2.5
2.3%
2.0
%
2.2%
1.5
1.0
0.5
0.0
3Q
4Q
2008
1Q
2Q
3Q
2009
4Q
3Q
1Q
2010
Source: Ministry of Manpower, 30 Apr ‘10
Topped BERI’s labour force
survey for the past 30 years
Labour-employer relations
Ranking
Country
Index
1
Singapore
6.3
2
Switzerland
6.1
3
Denmark
6.0
4
Sweden
5.9
5
Austria
5.8
Source: BERI’s 2009 Labor Force
Evaluation Measures (LFEM) report
Best labouremployer relations
Source: The Global Competitiveness
Report 2009-2010, World Economic Forum
Tripartite Priority in the Upturn
 2-3% productivity growth
 National Productivity Fund
Sustainable
and Inclusive
ST 2 Feb 2010
National Wages Council calls for
sustainable wage increases
ChannelNews Asia 25 May 10
Real Median Wages
$2,700
$2,500
$2,300
$2,100
$1,900
$1,700
$1,500
1996 1997 1998 1999 2001 2002 2003 2004 2006 2007 2008 2009
Year
Source: Ministry of Manpower, Labor Force Survey
Prime Minister
Lee Hsien Loong
“… because there is mutual trust between the
Government, between the workers and the unions and
the employers and they know one another… they know
that we have to tackle this problem together
because we are all in the same boat.”
“All the tripartite leaders are
very mindful to put in the effort
to enhance personal
relationships to strengthen
this common mutual trust.
Mr Gan Kim Yong
Singapore Minister for
Manpower
So you will find that we know
each other very well; not
just formally or officially but on
a personal level.”
Mr Stephen Lee
President
Singapore National
Employers Federation
“As employers, we need workers to take painful but
necessary measures such as wage cuts, shorter work
weeks and temporary layoffs to help us cut costs and
save jobs. But management must take the lead
and show by example.
Without mutual trust, such measures cannot be
implemented smoothly.”
Mr Lim Swee Say
Secretary General
Singapore National
Trades Union Congress
“The unity and trust of the
tripartite partners has ensured
that Singapore’s tripartism
is strong not only in good
times, but also bad times.”
Most ProBusiness
Economy
Most ProWorker
Nation