Four Cornered Relationship between the Government, Employers, Trade Unions, and Laborers

Question:

Discuss About The Management Labor Relation In Singapore?

Of all the functions of the HR managers, Labor Management Relations (LMR) are defined as one of the most complicated set of relationships to manage. The labor relations in Singapore, unlike the rest of the world are a four cornered relationship between the government, the employers, the labor unions and the labourers (NTUC, 2017). The four parties involved need to coordinate and cooperate with each other to maintain a healthy balance between them. The success of Singapore and its growth and development can all be contributed to the healthy balance between these three and a collaborative LMR in the nation. This report has been written with an intent to better understand and explain the LMR and the various players that are responsible for the maintenance of the same for Singapore. This report plans to explore the roles played by the four key elements of the LMR namely; employers, employees, trade unions and the government. Singapore as a country provides an exceptional example of how these relations are established and maintained to guide the nation towards development. This report also plans to explore and conduct a factor analysis of what makes Singapore and their LMR an interesting and ideal case study. The report further studies about the competitive advantage that Singapore has as a nation because of their exceptional LMR and a synchronized approach to the relations of the four players of LMR (Yoon, 2009). The employees and employers are connected by the professional relationship that they share. The trade unions are the dependable support that both of them have. Harmonious LMR help in avoidance of conflict and the difficult situations like strikes, non cooperation, lock outs, etc can be easily managed and avoided with their help. The LMR also helps in analyzing the competitiveness, vulnerability and job satisfaction level of the employees in order to take timely action for their correction of things are amiss. Being ranked the country with the most co-operative labor-employer relationships by the World Economic Forum, Singapore is a competitive nation with every party involved pushing the others to perform their best (Leggett, Strategic choice and the transformation of Singapore’s industrial relations, 2005). This is the reason of the tremendous economic and social growth of the country and their people.

LMR is defined as a trilateral relationship between the government, the employers and the laborers. However, if we analyze it closely, there is another player who plays a key role in the maintenance and management of these relationships. The trade unions who organize the labor industry are also an important contributor in the LMR and their maintenance. Thus, the four key players that shoulder the responsibility and help in the maintenance of healthy LMR in Singapore are 1) Employers 2) Employees 3) Trade unions and 4) Government. Now understanding the role played by each of these in detail, the employers in Singapore are all a part of the union for employers named Singapore National Employers Federation (SNEF). Founded in the year 1980, it has the members count of over 2000 and is an autonomous body dedicated to help the employers in Singapore make their organizations more productive and profitable. It also helps the employers in the achievement of work-life balance. This organization works in sync with the other key players to help the nation in achieving industrial harmony. SNEF also works towards maintaining and monitoring healthy competition in the market. The second key player in the LMR are the employees or the building blocks of the nation (Commission, 2005). Employees are the players forming the basis of all the unions. The Labor Movement of the National Trades Union Congress (NTUC) was made an all inclusive movement by the people of Singapore tom unite for the rights of the employees. There is a need for sustainable development of the country at this time. Singapore need to train the people and make them skilled and at the same time create jobs for them. As the people get added to the labor market, job creation needs to go up as well. If this does not happen, it will lead to structural unemployment for the country resulting in wastage of resources (Kaur, 2012). The Trade Unions are a generally neglected, but crucial part of the LMR. Singapore is constantly working towards organizing the labor markets into unions and unionizing more and more workers has been the objective of the NTUC for very long now. Having 58 affiliated unions at present, and two affiliated associations which include the industrial, public, service and omnibus sectors it is the a trade unions working towards the accomplishment of all the objectives of the Labor Movement in Singapore. They also work for the protection of the rights of the workers and advocate for their best interests. They help in collective bargaining and support the employees and their rights. The fourth and the all-powerful player in the LMR is the government of Singapore. The government and the leading political party extend the support to all the other key players to maintain a healthy balance between them. The government leadership and support is required by all in order to actually contribute to the growth and development of the nation. The Singapore government has always worked towards providing the employers, employees and the trade unions, an environment where they can survive and thrive. The Industrial Relations (Amendment) Act 2015 which came into force on 1^st April 2015 has made a big difference in the LMR. The act has allowed the trade unions to represent employees belonging to the non-executive work functions. This has enabled the trade unions even more and has helped them to represent such employees collectively, which was earlier not possible. The second amendment made in the act was to enable the trade unions to represent executive employees on an individual basis, especially representing them on the issues related to re-employment (Natrss, 2013). The expansion implemented by the Amendment Act provides executives with an additional and less costly alternative for resolving re-employment matters, by settling re-employment disputes through union and management negotiations. The trade unions of Singapore are now likely to seek the recognition for representation of the executive employees. This has also helped the employers, who are now approaching the unions for collective discussion instead of individually contacting the employees. The Singapore government has realized that he key to a harmonious workplace is increased collaboration between the employees, the employers and the unions representing them. The increased competitiveness between the employees and the employers is ultimately going to benefit the country as it will increase the productivity and efficiency of the employees. Governed by the rules formed by the Ministry of Manpower (MoM), the employers, employees and trade unions of Singapore constantly help in maintaining harmonious LMR and work in a synchronized manner towards the growth and development of Singapore.

The Four Key Players in LMR (Employers, Employees, Trade Unions, and Government)

Singapore as a country has displayed resilience and stood strong even in the face of adversities as a result of strong LMR. The year 2008 was a year of global economic and financial crisis. Even when the world saw large organizations going bankrupt and countries recording negative economic growth, Singapore registered a growth in employment. This can also be contributed to the solidarity between the Singapore government, the employers and the laborers of the country. The present situation of the world is that of uncertainty and all the nations of the world are undergoing structural changes. Even in these turbulent times, the close ties of the government, the employers and the laborers are being leveraged to keep the Singapore economy from giving in to the pressure and keeping them in the global race to economic progress. Healthy LMR maintenance has helped Singapore in keeping the employees satisfied. The labor movement in Singapore has pushed the employees to perform better and increased their productivity by promising them fair wages. The unionized workers in Singapore enjoy a 4% wage hike and bonus payments just like the employees in the other organized sectors. This keeps the employees motivated and loyal to their unions (Leggett, The fourth transformation of Singapore’s industrial relations, 2007). The laborers are employed on the basis of their skills and productivity and their wages are also set according to that. The Labor Movement of Singapore has also taken care of the disputes and cases that require settlement. Every year they settle thousands of cases resolving the clashes and disputes among the key players of the LMR. They educate and make the employees aware about the rights and responsibilities. The employees, therefore, are more aware than ever before. The unionized workers and laborers have several other benefits enjoy. They have annual paid leaves, leaves on the demise of immediate family and leaves for personal reasons like marriage. The unions provide the employee’s child sick leaves, elder care leaves, family care leaves and paternity leaves. The unionized workers in Singapore also enjoy 5 days leave for their training  and development. These are just a few workplace benefits that the employees in Singapore enjoy (Singapore Government, 2010). The employees and employers are connected by the professional relationship that they share. The trade unions are the dependable support that both of them have. Harmonious LMR help in avoidance of conflict and the difficult situations like strikes, non cooperation, lockouts, etc. can be easily managed and avoided with their help. The LMR also helps in analyzing the competitiveness, vulnerability and job satisfaction level of the employees in order to take timely action for their correction of things are amiss. The grievance handling procedure also becomes easier and more organized when there is a healthy LMR maintained among the parties (Lee, 2013).

Role of Employers in Singapore

Harmonious LMR are a contributing factor in the growth and development of both the employees and the employers. They will foster peace and harmony and provide a constructive work environment for all the employees (Poh, 2015). The industrial democracy is also maintained in the system if all the key players are connected and have open discussions. It benefits all the members as it increases the productivity of the firms and consequently the nation. A competitive edge in the work environment can only help in getting the required work from the employees. So, if the healthy work environment or the healthy competition is required within the system, it is vital to provide employees with welfare schemes and concord. The Labor Movement  in Singapore is going strong even after 50 years of independence. As a country with a skilled workforce and harmonious industrial relations, Singapore enjoys a significant advantage. However, these relations need to be worked on continuously by all the parties involved and strengthened to continue enjoying this advantage. As the nation faces tough competition from the continuous technological advancement, it has much to do to maintain strong labor-management relationship (SHRI, 2017). The unionization of the employees which is generally avoided by other countries, as it leads to stagnation of the economy and exploitation of the workforce, has instead proved to be beneficial in practice, in Singapore.  The strong collaboration between the parties involved in LMR has led to increase in job-creation and a rise in the pay scale of the workers. The NTUC in Singapore works constantly to ensure that the skills of the employees are constantly upgraded and they get the pay and benefits from the employers as per their skills and capability.

Conclusion

This report has been written with an intent to better understand and explain the LMR and the various players that are responsible for the maintenance of the same for Singapore. The labor relations in Singapore are a four cornered relationship between the government, the employers, the labor unions and the laborers. The four parties involved need to coordinate and cooperate with each other to maintain a healthy balance between them. The success of Singapore and its growth and development can all be contributed to the healthy balance between these three and a collaborative LMR in the nation. This report has explored and conducted a factor analysis of what makes Singapore and their LMR an interesting and ideal case study. The report further analyzed the competitive advantage that Singapore has as a nation because of their exceptional LMR and a synchronized approach to relation of the four key players of LMR. The Singapore government has realized that he key to a harmonious workplace is increased collaboration between the employees, the employers and the unions representing them. The increased competitiveness between the employees and the employers is ultimately going to benefit the country as it will increase the productivity and efficiency of the employees.

References

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Kaur, A. (2012). Workers, Employment Relations, and Labour Standards in Industrialising Southeast Asia . Retrieved from https://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN021441.pdf

Lee, T. (2013). The story of NWC. Straits times press. Retrieved from https://www.tripartism.sg/assets/files/NWC%20book.pdf

Leggett, C. (2005). Strategic choice and the transformation of Singapore’s industrial relations. Retrieved from https://www120.secure.griffith.edu.au/rch/file/a8182e23-5684-7515-429a-e07a8100dd49/1/02Whole.pdf

Leggett, C. (2007). The fourth transformation of Singapore’s industrial relations. University of South Australia. Retrieved from https://airaanz.econ.usyd.edu.au/papers/Leggett.pdf

Natrss. (2013). Discussion on Labour Welfare. Retrieved from https://www.natrss.gov.in/documentn/dc_rm_lbwl.pdf

NTUC. (2017). Industrial relations landscape in Singapore . Retrieved from https://www.ntuc.org.sg/wps/portal/up2/home/industrialrelations/irlandscapeinsingapore

Poh, E. (2015). Tripartism is Singapore’s ‘significant advantage’ to excel: Chan Chun Sing. Retrieved from https://www.channelnewsasia.com/news/singapore/tripartism-is-singapore-s-significant-advantage-to-excel-chan-ch-8233598

SHRI. (2017). Going the Tripartite Way – A Showcase of Singapore’s Unique Business Model. Retrieved from https://shri.org.sg/going-the-tripartite-way-a-showcase-of-singapores-unique-business-model/

Singapore Government. (2010). Industrial relations act. Retrieved from https://www.aseanhrmech.org/downloads/singapore-Industrial_Relations_Act.pdf

Yoon, Y. (2009). A comparative study on industrial relations and collective bargaining in East Asian countries. Retrieved from https://natlex.ilo.ch/wcmsp5/groups/public/—ed_dialogue/—dialogue/documents/publication/wcms_158351.pdf