Wage increases must be left to market forces once PWM corrects wage suppression: NMP

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Mr Raj Joshua Thomas cautioned that mandated wage increases could backfire if put in place for too long.

The PWM is a wage ladder tied to skill and productivity improvements currently in place for lower-wage workers in seven sectors and two occupations.

“This is critical because otherwise the PWMs may become a crutch to workers – who will only be able to achieve wage growth due to interventions by the tripartite partners and not through themselves showing the value of their work, nor negotiating for it,” said Mr Thomas, who is president of the Security Association Singapore industry body.

While year-on-year wage increases, as is current practice, will not be mandated, he said the prevailing wage floors at the point of transition would continue to apply to this end.National Wages Council recommends pay rise of 5.5% to 7.5% for lower-wage workers If wages in a PWM 2.0 sector stagnate for some time after they are returned to the market, then the tripartite partners can step in again to prescribe wage increases, he said, referring to the three-way partnership between the Government, employers and the labour movement.

 

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