Lee Hsien Loong (Singapore Prime Minister) – NTUC National Delegates’ Conference (Nov 2023)
Chapters
Abstract
The Evolution of Singapore’s Labor Movement and Tripartism: A Reflection on Past, Present, and Future
Singapore’s labor movement, characterized by its close association with the People’s Action Party (PAP) and the National Trades Union Congress (NTUC), has been instrumental in shaping the nation’s socio-economic landscape. This article delves into the historical roots of this relationship, its impact on Singapore’s unique model of tripartism, and the future challenges and opportunities facing the labor movement. The narrative, drawing from Prime Minister Lee Hsien Loong’s address at the NTUC Delegates Conference, highlights key elements like the PAP-NTUC symbiosis, Singapore’s approach to public services and utilities, and the labor movement’s adaptation to technological advancements.
Historical Roots of the Labor Movement and PAP-NTUC Symbiosis:
The history of the labor movement in Singapore is intimately linked with the PAP and the NTUC. Prime Minister Lee Hsien Loong, in his address, reminisced about Mr. Lee Kuan Yew’s early years as a young lawyer dedicated to fighting for workers’ rights. This commitment was evident in Mr. Lee’s successful representation of the Postal and Telecommunications Uniform Staff Union during a 1952 strike, where he secured improved wages and employment terms for postmen. The founding of the PAP in 1954 saw significant involvement from unionists, with influential figures like Devan Nair and Fong Swee Swan playing key roles. Mr. Lee’s legal advisory role to nearly 100 unions, including left-wing pro-communist ones, was a testament to his dedication to the labor cause.
These early alliances, however, faced challenges when the PAP came to power. A division emerged, leading to the formation of the Barisan Sosialis and the Singapore Association of Trade Unions (SATU) by left-wing unions, which aimed for a communist Malaya, including Singapore. Their strategies involved strikes and unrest to destabilize the government. In response, Devan Nair and Ho See Beng founded the NTUC to unite pro-PAP unions. Despite initial challenges, including a smaller size compared to SATU, the NTUC and PAP eventually became dominant forces in Singapore’s labor and political landscape.
Tripartism: Singapore’s Unique Economic Strategy:
Tripartism in Singapore emerged from the struggles and crises faced by the PAP and NTUC. Their refusal to succumb to challenges, like political opposition for the PAP and economic downturns for the NTUC, fostered a strong bond. The Industrial Relations Amendment Act of 1968, which structured collective bargaining and dispute resolution, played a pivotal role in attracting investments and boosting economic recovery. NTUC’s support for this act was crucial in averting a crisis.
The Modernisation Seminar in 1969 marked a shift towards collaborative labor-management relations, driven by Mr. Lee Kuan Yew’s vision of unions as partners in nation-building and his belief in the dignity of workers. This model of tripartism, promoting industrial peace and collaboration, has been instrumental in Singapore’s industrialization, economic development, and workforce resilience. The National Wages Council’s framework for wage adjustments, balancing wage growth with economic stability, is a testament to this successful collaboration.
Tripartism in Singapore extends beyond wage issues, addressing structural challenges like flexible wages, support for lower-income workers, and worker retraining. For example, the modernization and automation efforts at PSA, despite resulting in job losses, were handled through tripartite collaboration, ensuring affected workers were supported and assisted in finding new jobs.
Focus on Economic Growth and Workers’ Well-being:
The PAP government has consistently prioritized economic growth while ensuring that workers reap the benefits. This approach aims to create a situation where all Singaporeans enjoy quality housing, healthcare, and education, heavily subsidized by the state. By educating and training workers for better jobs, the government has facilitated higher wages and improved living standards. Initiatives like Forward SG focus on uplifting lower-end workers, helping them catch up with their peers.
The stable and harmonious industrial relations in Singapore have attracted companies and investors, leading to a “Singapore Premium.” This premium allows Singaporean workers to earn more than their regional counterparts.
Efficient Public Services and the Role of Profit:
Singapore’s commitment to efficient public services is evident in its top-notch public transportation system, reliable utilities, and clean water, prioritizing efficient and affordable services over across-the-board subsidies. The government provides targeted assistance to low-income households, often amounting to significant financial support, while keeping the costs of government operations low to minimize taxpayer burden. The approach to essential public services like public transport, water, electricity, and healthcare involves running them efficiently and cost-effectively, with users paying reasonable charges. This strategy reduces the taxpayers’ burden and translates to cost savings for Singaporeans.
Prime Minister Lee Hsien Loong challenges the notion that public services should not aim for profit, arguing that reasonable profits incentivize service providers to reinvest, improve, and work more efficiently. He cites NTUC Enterprises, particularly NTUC Fairprice, as examples of how profit can drive improvement and growth, arguing that the need to make a surplus has led to successful operations and affordable products and services.
Adapting to Technological Change and Future Challenges:
The labor movement in Singapore is now facing the task of adapting to rapid technological advancements. The government’s recognition of the need for strong unions to negotiate better outcomes for workers amidst job market changes is crucial. Initiatives like the Every Worker Matters Conversations (EWMC) and Company Training Committees (CTCs) demonstrate a forward-looking approach. Prime Minister Lee’s call for the labor movement to reinvent itself and expand its representation across various workforce segments underlines the importance of staying relevant and inclusive.
Sustaining the Legacy and Embracing the Future:
The enduring significance of the labor movement, its partnership with the PAP, and the successful implementation of tripartism have contributed significantly to Singapore’s economic success. As the nation navigates the complexities of a rapidly evolving global landscape, the labor movement’s ability to adapt and innovate remains crucial. This ongoing evolution is essential for sustaining the legacy of Singapore’s unique labor model and ensuring its relevance in the future.
Supplemental Update:
PAP and NTUC’s Enduring Partnership: Fostering Workers’ Welfare and National Progress
The PAP and NTUC have maintained a cooperative relationship since the beginning, with the PAP advocating for workers’ interests and the NTUC providing political support. This partnership has been instrumental in the PAP’s electoral success and the implementation of policies benefiting workers. The PAP is committed to strengthening this partnership, with unionists actively participating in party activities and communicating national perspectives to the workforce. The upcoming General Election will see new party candidates from the labor movement, expected to effectively represent workers and contribute to political discourse.
NTUC’s Role in Supporting Workers and Businesses:
The labor movement continues to be a pillar of strength for workers and businesses, ensuring workers’ welfare and securing their share in economic growth. The Prime Minister expressed gratitude to outgoing Central Committee members like Sister Mary Liu and Brother Ong Hui Liang for their commitment to workers’ interests and strengthening tripartism.
Importance of Quality Leadership in NTUC:
The success of the NTUC hinges on the quality of its leadership. Leaders with integrity, competence, and a genuine concern for workers and the country are vital for
the NTUC’s continued success.
Encouraging Delegates to Vote Wisely:
The Prime Minister urged delegates to vote wisely, supporting new leaders with a vision and initiative to improve workers’ lives and maintain Singapore’s competitive advantage.
Creating a Better Future for Workers and Singapore:
By strengthening tripartism and supporting the labor movement, the PAP and NTUC aim to create a better future for workers and Singapore, contributing to a more inclusive and prosperous society.
Notes by: Simurgh