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SINGAPORE: Maybank Singapore and its unions – the Singapore Bank Employees' Union and the Singapore Bank Officers' Association – have signed a policy regarding the re-employment of older workers.
It is one of the early movers in the unionised sector, leading the way on a formal re-employment policy ahead of new laws in 2012. Just on Monday, draft tripartite guidelines on the re-employment of older workers were released to help bosses prepare for it.
Maybank has 1,300 employees in Singapore and about one per cent of them turn 62 years old each year. This may be a small number, but the bank said on Friday that it wants to provide certainty to its older employees as they approach the age of 62.
Under the bank's new policy, it will provide pre-retirement counselling 12 months before the employee turns 62 and also give three months' notice to inform them of their re-employment status.
Wong Keng Fye, head of human resource, Maybank Singapore, said: "We have also put in place the policy of outplacement of employees, which in our view should be exercised only as a last resort, in the event that we can't redeploy or offer re-employment within the bank itself."
Moreover, if the bank has exhausted all avenues to help an employee find alternative employment, it will offer him a one-off Employment Assistance Payment.
Commenting on this, NTUC's deputy secretary-general, Heng Chee How, said: "It shows us that what is discussed at the national tripartite level is practical and can be implemented.
"So you have a very successful bank like Maybank working with their two unions, looking at the value of their older workers and being able to come to an agreement of the specific terms."
He added that this will benefit generations of workers who can approach retirement with a peace of mind.
Maybank has also decided not to apply the discretionary reduction of up to 10 per cent in wages for workers when they turn 60.
"Under the Retirement Age Act, there are reasonable factors mentioned in the Act like productivity, retirement, job scope, the seniority element in the wage structure. Every company should look at those factors to decide whether there is a need to make any adjustments to those factors," said Mr Heng.
"Today, Maybank has decided to remove the clause because they have moved into a more performance-based reward system. So they've done the calculation and there is no more need for this... it's a happy thing for the workers – we support it."
In 2012, employers will be legally required to consider re-hiring those who reach the retirement age of 62.
- CNA/so
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