SINGAPORE: Unionists have cheered the National Wages Council's (NWC) proposal for companies to give rank-and-file workers a one-off lump sum to help them cope with inflation.

While most companies agree that it is a good idea to give a lump sum to low-wage workers, there is no guarantee that all employers will eventually do so.

Stephen Lee, president of the Singapore National Employers' Federation, said: "There's really no way of making sure that companies pay (a minimum sum), so we have decided not to be overly prescriptive...

"Through our own briefings, through our own contacts with our members, we'll continue to urge them to do so. We are quite sure that many companies will do it."

While most companies do not want to be pinned down on a quantum for the one-off payment, some unionists said a fair amount will be anything up to 3 percent of a low-wage worker's annual salary. For some, this could be as much as S$700.

However, the NWC stressed that the actual quantum should depend on the company's performance.

G Muthu Kumar, general secretary, Amalgamated Union of Public Daily Rated Workers, said: "I hope that employer will understand that at this present stage, the low-wage worker really needs whatever they are going to give. I hope the employer will come up with a good figure and help the low-wage worker."

Some unionists are also concerned that employers may take advantage of this special one-off payment to cut annual bonuses.

Francis Lim, president of the United Workers of Electronic and Electrical Industries, said: "I do have my concerns, but we will work with the companies and we will also explain to them that bonuses or variable bonuses that are profit-sharing should not be cut because what we are asking in this NWC guideline is to help the low-wage worker."

Furthermore, some people have questioned if the one-off payment is enough to help those who are struggling to cope with rising prices.

One worker said: "I think this is feasible only in the short run because it's one-off, but what about in the long run? Inflation is going to keep rising, it's not going to be just for this period."

"Inflation is always going up, but salary doesn't go up so fast," another added.

The NTUC said given the uncertain economic climate this year, workers should moderate their expectations when it comes to wage increases and bonuses.

NTUC's Deputy Secretary-General, Heng Chee How, said: "On the national level, the expected growth this year is less than last year and therefore, I do not expect the overall increase this year – in terms of the built-in part – to be higher than last year."

Nonetheless, the NTUC is confident that tripartite partners – government, employers and unions – will help workers and companies to tackle the challenges ahead.

NTUC said 458 out of the 1,000 unionised companies gave out variable payments based on performance last year.


- CNA/so