40,000 workers in 60 firms get inflation bonus

40,000 workers in 60 firms get inflation bonus 
They each receive an average of $400-$500 in one-off payment
By Sue-Ann Chia & Goh Chin Lian 
ELECTRICAL storekeeper Tan Cheng Yen is getting an extra $400 to take home next month - a one-off payment to help cushion the impact of higher food and oil prices.
‘I can spend it on groceries, like rice, as well as defray the cost of taking public transport to work,’ said the 63-year-old who earns $1,600 a month.

His employer, food manufacturer Prima Singapore Group, is among 60 unionised companies that are heeding the National Wages Council’s (NWC) call last month to help workers cope with the impact of inflation.

They agreed to do so after discussions with unions during the current ‘negotiation season’, when bosses and unionists meet to discuss wage and other adjustments in the wake of the NWC’s annual recommendations.

Some 40,000 workers in the 60 companies will receive one-off payments of $100 to - in one company’s case - $1,000. That firm declined to be identified.

The average payout, according to the National Trades Union Congress, is between $400 and $500.
While these companies represent just a part of the 1,000 unionised firms here, NTUC deputy secretary-general Heng Chee How is encouraged.

‘Three weeks ago, (after the NWC’s call) you had 20. Now it has tripled to 60. It’s a good momentum. Of course we expect it to build up and our unions will continue to discuss this with employers very actively,’ he said yesterday.

‘It’s the right thing to do, to extend assistance to your workers at this time. It will be appreciated by your workers and the labour movement.’

That was a reference to the fact that inflation, which hit a 26-year high of 7.5 per cent in April, has impacted on prices and eroded wage gains.

Real wages - pay minus the effect of inflation - fell in the first three months of the year, compared to the same period last year.

Hence inflation, which is forecast at 5 per cent to 6 per cent for the year, has weighed on the minds of union leaders during negotiations with bosses.

Said Chemical Industries Employees’ Union deputy executive secretary Frank Lok: ‘We do drill it into employers that the cost of living has risen. But we won’t push for unreasonable basic pay increases as it is not sustainable.’

While unionists hope workers will get bigger pay packets to compensate for inflation, they know that higher wages can cause inflation to worsen.

‘When you use wage increases to defray inflation, it’s just like a mad dog chasing its tail round and round. There is no end to it,’ said Food Drinks and Allied Workers’ Union general secretary Tan Hock Soon.

The best option, he said, was to follow the NWC recommendations and press companies which are doing well to provide a one-off payment.

For Prima, the one-off payment is a way to build good will with employees, said group human resource and administration manager Chua Chin Leong.

Mr Heng believes that most firms can afford to give the payment, given the economy’s steady progress this year. But unions also recognise that not all companies can afford it as some are not doing well.

Others are not offering the payment because of higher annual wage increments and bonuses already given to workers based on their companies’ good performance last year.

As for non-unionised companies, Singapore National Employers’ Federation executive director Koh Juan Kiat said that while most were ‘generally positive’ about the one-off payment, there was still ’some resistance’ from others.

 
Building good will and motivating staff
EMPLOYERS SAY
‘It builds good will and morale because we share their concern and as a socially responsible employer, we can play our part to help them cope with higher inflation.’

MR CHUA CHIN LEONG, group human resource and administration manager of food manufacturer Prima Singapore Group

‘The amount is really a token from the company. It’s something which we can afford and would like to give to our employees. The quantum will not significantly change their lives but it will be of some assistance.’

MS SHAROLYN CHOY, director of corporate communications at ST Engineering

UNION LEADERS SAY

‘Some companies are not willing to give this one-off payment. Their concern is, how about the middle-wage earners? If they give to low-wage workers, the workers who earn $2,500 to $3,500 will make noise and how will they then respond? The companies would rather give wage increases so everybody gets it.’

MR JOSEPH CHUA, assistant secretary-general of the Singapore Manual & Mercantile Workers’ Union

‘No one has said an outright ‘No’ to the one-off payment. There are companies doing well; some not doing that well. But on the whole, the majority will pay as they know it’s quite tough on the workers. They can’t afford at this point in time, with a tight labour situation, to demoralise their workforce because many others are giving the payment. I’m sure they know the risk of not giving.’

MR TAN HOCK SOON, general secretary of the Food, Drinks & Allied Workers’ Union

Source : Straits Times  - 21 Jun 2008

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Building good will and motivating staff

Building good will and motivating staff 

EMPLOYERS SAY

‘It builds good will and morale because we share their concern and as a socially responsible employer, we can play our part to help them cope with higher inflation.’

MR CHUA CHIN LEONG, group human resource and administration manager of food manufacturer Prima Singapore Group

‘The amount is really a token from the company. It’s something which we can afford and would like to give to our employees. The quantum will not significantly change their lives but it will be of some assistance.’

MS SHAROLYN CHOY, director of corporate communications at ST Engineering

UNION LEADERS SAY

‘Some companies are not willing to give this one-off payment. Their concern is, how about the middle-wage earners? If they give to low-wage workers, the workers who earn $2,500 to $3,500 will make noise and how will they then respond? The companies would rather give wage increases so everybody gets it.’

MR JOSEPH CHUA, assistant secretary-general of the Singapore Manual & Mercantile Workers’ Union

‘No one has said an outright ‘No’ to the one-off payment. There are companies doing well; some not doing that well. But on the whole, the majority will pay as they know it’s quite tough on the workers. They can’t afford at this point in time, with a tight labour situation, to demoralise their workforce because many others are giving the payment. I’m sure they know the risk of not giving.’

MR TAN HOCK SOON, general secretary of the Food, Drinks & Allied Workers’ Union

 
Source : Straits Times  - 21 Jun 2008

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Hospitality training for public at Ascott in Singapore

Hospitality training for public at Ascott in Singapore 

New centre to offer classes to its employees as well as others

By Tessa Wong 
 
For the first time, a great name in the hospitality industry opens the doors of its training centre to the public.
Ascott The new Centre of Excellence, which aims at mid-career workers, employees see the Ascott Group to study subjects as guest interaction and risk management and to pay members of the public when classes begin in October.

The centre market to its current small or mid-range hotels, which lack the resources to execute these programmes.

Indeed, general managers of hotels and shops that The Straits Times spoke to said that the center ’s set-up helps fill a gap in the industry because they lack the major departments of human resources or trainers devoted found in large hotels.

The tourism and hospitality training is among the most wanted in Singapore today, as the industry rides a boom fueled by record arrivals. The prospects are even brighter with upcoming events such as Formula One racing and the opening of stations integrated.

Already, courses on subjects such as hotel management in polytechnics are regularly oversubscribed.

The opening of the centre is linked to a push by the government to improve training opportunities for workers here.

In February, the Ministry of Manpower unveiled its continuing education and training master plan which aims to increase the number of training places to 80,000 in the next decade.

Speaking as the guest of honour at the centre ’s yesterday the launch of its new campus Anthony Road, Minister for Education Ng Eng Hen stressed the need for greater collaboration between public and private sectors to achieve that goal.

‘Business cycles are more volatile and shorter, with more potential to disrupt or careers that skills are obsolete … The government will do its part by providing funding and infrastructure development, private companies, but know that it is in their interest to develop their own employees. ‘

The new centre, an expanded version of the group ’s eight years, training institute in-house, is the only one that offers here manpower development agency ’s (WDA) full range of home and hosting service programmes.

Ascott Group ’s employees account for two-thirds of each contribution of about 1000 students. Members of the public can expect to pay fees from $ 3000, according to the guidelines WDA, although Singaporeans and permanent residents can apply for grants from the WDA.
Source : Straits Times  - 21 Jun 2008

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Asian ’super’ law firms - the time is not right - Singapore

Asian ’super’ law firms - the time is not right - Singapore

One big hurdle is that clients in Asia are less willing to pay by the hour
By CHEN HUIFEN

(SINGAPORE) The creation of ’super’ Asian law firms as huge as their counterparts in the US and Europe is a slim possibility at the moment, according to managing partners of six law firms with practices in the region.
Sharing their views at the Business Law Asia 2008 conference yesterday, they said that one of the key hurdles is the fact that Asian clients are not yet prepared to pay the same level of fees as those of international law firms. When that happens, it will help them compete on a more level playing field.

‘The reason why Asian firms have difficulty competing with these international law firms in the global marketplace is partly that Asian clients are different from US clients and European clients,’ said Mayer Brown JSM senior partner Elaine Lo.

‘Asian clients, dare I say, are less willing to pay lawyers by the hour. Asians have a different culture. When they come to a law firm, they expect you to quote a fee, sometimes a capped fee. Whereas US clients are willing pay their lawyers by the hour and more willing to recognise the value and the knowledge and experience of their lawyers.’

At the same time, Asian law firms have to compete with international law firms for qualified lawyers. And young lawyers looking for exposure to global legal work tend to head for international law firms, noted Alban Tay Mahtani & de Silva managing partner Alban Kang.

 
 
Tan Rajah & Cheah managing partner Chelva Rajah noted that law firms expand on the coat-tails of their clients. However, when Singapore companies expand overseas, which they are increasingly doing, the tendency is to seek out the services of international law firms rather than Singapore ones.

The trend was observed by Harry Elias Partnership managing partner Latiff Ibrahim as well. He is of the view that Singapore lawyers can be as good as any at international law firms in terms of capability and ability to deliver.

‘But in terms of the experience, in order to be fair, the international law firms practising in a larger economy, they’ve got more experience,’ he added. ‘But what’s benefiting Singapore is that as we develop this hub for commercial and financial transactions, Singapore law firms are getting to be engaged to advise on those transactions. We are building up the deal list.’

While acknowledging that the volume of cross- border deals is rising, driven by the growing economies in the region, domestic law firms such as those in China and India are not motivated to form ’super’ Asian law firms because of the huge work flow within their jurisdictions.

In addition, organic growth is expensive and difficult, while the merger and acquisition (M&A) route requires standardisation of practices, which could take up plenty of time. So most law firms form alliances and associations with firms in other jurisdictions to offer cross-border advisory services.

However, that is not to say that the chances of M&As among law firms are minute. The recent combination between Mayer Brown and Hong Kong’s JSM is often singled out as an example of a successful merger of resources and expertise.

The lawyers made these comments at the conference’s Managing Partners Forum and at a separate discussion with the media. Other participants included Fox Mandal Little managing partner Shuva Mandal and Mori Hamada & Matsumoto partner Toru Ishiguro.

Whatever the mode of expansion, Asian law firms need to decide for themselves what their objectives are, and whether they can deliver and clinch the work without a regional presence, said the panellists. While bigger may not necessarily be better, it certainly gives more credibility and a greater perception of seamless delivery than another firm that gets the work done through its network of alliances.

‘So sometimes, although big is not better, it is safer,’ said Mr Rajah.

 
Source : Business Times  - 21 Jun 2008

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Singapore IRAS targets firms to e-file staff income

Singapore IRAS targets firms to e-file staff income

By LYNN KAN
COME 2009, all employers with 100 or more employees must use the electronic Auto-Inclusion Scheme (AIS) to provide his employees with a statement of his salaries.
There are currently 1,100 such employers on the scheme but the Inland Revenue Authority of Singapore (IRAS) is pushing for 700 others to come onboard, bringing the total number of AIS taxpayers to 850,000.

These 700 employers will be notified by July 2008 to comply with IRAS’ new ruling during the year of assessment 2009. Employers may be fined up to $1,000 if they fail to comply and jailed if they default on payment, but the IRAS will be more lenient if employers cannot adopt the AIS right away.

Under the AIS, employers can submit employment income online instead of issuing the hard copy IR8A Form to employees to fill.

In turn, employees also face less hassle. They would merely need to log in to the IRAS’ myTax Portal to verify the accuracy of the tax information.

To help employers make the transition to AIS, IRAS has worked with 28 payroll software vendors to make their programme fields compatible with the AIS.

It will also be conducting seminars from July to September to educate employers about the scheme. A trial run will also be held to identify and address problems these employers may face.

 
 
IRAS is targeting employers with a larger employment pool since they would already have a computerised payroll system. The next step of submitting information to IRAS electronically would not be as difficult for this group compared to employers with fewer than 100 employees, who may be accustomed to hard copy submissions.

This ruling is the first phase of IRAS’ efforts to convert more taxpayers to the AIS by 2012. Currently, 52 per cent of salaried taxpayers are on the AIS but IRAS hopes to convert 80 per cent to the new system.

Source : Business Times  - 21 Jun 2008

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Campaign launched to promote entrepreneurship - Singapore

Campaign launched to promote entrepreneurship - Singapore
ABOUT 20 entrepreneurs and public sector representatives yesterday launched a campaign called ‘Why Not?’ at Dhoby Ghaut MRT Station to promote higher entrepreneurship in Singapore.
‘Why Not?’ is all about developing new ideas for local business - ideas that were not deemed viable a mere five years ago.

They include the Online Business Licensing Service (OBLS), to which businesses can apply, renew and terminate multiple business licences and permits with various government entities through one portal (www.business.gov.sg), and the F1 night race to be held here in September.

The campaign is part of the celebration of the fifth anniversary celebrations of the Action Community for Entrepreneurship (ACE).

Kim Faulkner, CEO, Activiste Pte Ltd and executive committee member of ACE, described optimistically how these developments can challenge contemporary established norms, stating how a simple idea and a group of people who ask ‘why not?’ can offer better alternative solutions to bring new ideas to fruition.

Minister of State for Trade and Industry and Minister-in-charge of Entrepreneurship, Lee Yi Shyan, was equally sanguine, saying that the young of today are turning innovative ideas into enterprising ventures. He observed a gradual mindset change in terms of entrepreneurial paradigms.

 
The top three ideas stand to win $1000, $500 and $300 respectively.

Besides, there are five $100 consolation prizes. The public can log on to www.ace.sg to submit their ideas till July 17.

Source : Business Times  - 21 Jun 2008

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Financial industry executives discuss talent shortage at conference - Singapore

Financial industry executives discuss talent shortage at conference - Singapore

By Ng Baoying,

SINGAPORE : The shortage of talent has become one of the leading concerns of employers globally.

And PricewaterhouseCoopers said this shortage will exacerbate over the next few years as the baby-boomer generation retires.

It notes that growing economies will demand more workers in more varied industries than before.

This issue was addressed at the Institute of Banking and Finance’s second Annual Conference on Friday.

PricewaterhouseCoopers thinks the financial industry may see a talent shortage of 10 to 15 per cent in the longer term.

Professor Ron Collard, Partner, PricewaterhouseCoopers, said, “If you look at demographic trends, ageing population in the west and so on, the gap is potentially 10 or 15 per cent, but it’s very difficult to say. In the short term, there might be job reductions in the West…If you take the long-term view, there will be shortages in talent around the world.”

China is seen as feeling the hardest pinch, as it shifts from being a country-based economy to one based on global organisation.

Professor Collard said, “Running a global organisation is completely different from running a countrywide organisation, even for a country as big as China. So the gap is a shortage of experience as they go global.”

Apart from demographics, another problem is the increasing number of industries gaining ground.

For example, software development and biotechnology are expected to compete for the same overall talent pool.

And attracting talent is not the only issue; retaining talent can be a problem too.

And part of the reason behind this increasingly slippery grip on talent is the changing characteristics of the younger generation. According to PricewaterhouseCoopers, these younger workers have got shorter attention spans, and require larger challenges. They added that this is something the older set is still getting used to.

While executives present at the conference did not claim to have a hold on things, they did share their strategies.

Richard Stanley, CEO, DBS, said, “You must have an environment where people want to work in (the) organisation and believe in your story. You must also give people diverse challenges. Stretch people. People do get bored. People who are happy being stagnant, you probably don’t want.” - CNA/ms
 
Source : Channel NewsAsia  - 21 Jun 2008

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Analysts expect no sale of Singapore hotel sites under Reserve List in Q3

Analysts expect no sale of Singapore hotel sites under Reserve List in Q3

By Timothy Ouyang,

SINGAPORE: Property watchers say they do not expect to see any sale of the hotel sites under the Reserve List during the coming quarter, because of the current cautious sentiment in the market.

Under the Government Land Sales programme for the second half of the year announced on Thursday, 10 hotel sites were up for sale but only one via the Confirmed List.

Hotel room rates have been rising as Singapore receives more and more visitors. But developers have not been jumping to lay claim to hotel sites put up for sale.

And the government is reacting to that. Under its Land Sales Programme for the second half, only one hotel site has been placed for sale via the Confirmed List, yielding some 700 rooms. That’s down from the two hotel sites in the first half and 1,670 rooms, also via the Confirmed List.

Nicholas Mak, director for consultancy & research at Knight Frank, said: “What the government is doing is that it is trying not to force feed the market, not to put out sites for sale when there may not be any genuine demand for such hotel sites.”

None of the sites earmarked for hotel development has been sold this year.

Property watchers say it is unlikely any hotel sites under the Reserve List will be triggered for sale in the coming quarter, given the current cautious sentiment in the property market.

Despite this, some 11,200 hotel rooms are expected to be completed between now and 2011, with some 1,800 expected to be ready by the end of this year.

Analysts say they are confident that there will be sufficient supply to meet demand when Singapore hosts the Youth Olympics in 2010, and when the integrated resorts open.

Mr Mak said: “On the whole, the total potential supply that is available from all the land (set aside) in the Government Land Sales programme for the next six months is about the same as what it was in the first half of 2008. So, they (the government) are not really reducing the potential supply but it is more of a case of shifting the potential supply to the more flexible system of the Reserve List.” - CNA/ir

Source : Channel NewsAsia  - 21 Jun 2008

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