The IR Act Amendment takes effect on 1 April 2015, following the passing of it on 19 January 2015 in Parliament. Here’s a recap on what the amendment means for PMEs in Singapore.
What are the recent amendments to the IR Act?
- The amendments now mean that PMEs can seek help in re-employment matters with regard to their limited representation on an individual basis. This protection component adds to the already available scopes of limited representation for PMEs like unfair dismissal, payment of retrenchment benefits, victimisation and breach of employment contract.
- Another amendment to the IR Act is collective bargaining for PMEs. This means that rank-and-file unions can collective represent PMEs like they do for rank-and-file workers in their collective agreements.
What is collective bargaining?
- To bargain collectively is an important function of a union. During the process of collective bargaining, union representatives will negotiate with the company’s management on matters such as workers’ salaries, working hours, working conditions and medical benefits.
- When an agreement is reached with the management, the conditions will be put to paper in a legal binding document known as a Collective Agreement.
NTUC Assistant Secretary-General and NTUC PME Unit Director Patrick Tay said at a media sharing session on 2 April 2014 that the amendment is “a milestone change” for the Labour Movement as it opens up opportunities to better protect PMEs.
He added: “Some employers have shared their concerns of the Labour Movement coming in. But I think we would have to see the needs of various PMEs, various sectors and companies.
“Some PMEs may have needs in the area of more Progression and moving up. Some may be concerned about their job security. As the Labour Movement and some of our unions interact with PMEs, we want to see the needs from various companies and sectors and see what’s best [for their needs] so that we cannot just better protect them, but also to better future-proof them in times of economic uncertainties.”
Employers’ Thoughts
“We welcome the move to include PMEs in the partnership. It allows them to know they are protected and have an avenue to turn to for work-related issues.
We feel this is implemented in a timely manner; it is important to recognise our colleagues whether bargainable or not for the collective LMR (Labour Management Relations) and employment terms.
Also, it is a way to let our colleagues know that we care about them and will not undermine their employment under any circumstances. We know that the changes will serve the long-term interests of our business.”
Michael Shin, Hotel Manager, Intercontinental Singapore
“Over the years, SingTel and UTES (Union of Telecoms Employees of Singapore) have fostered a strong proactive and collaborative partnership. Ahead of the legislative amendments coming into effect, both parties have started discussions and will jointly sign an MOU to extend the scope of union representation to include the company’s executive employees. This will potentially impact more than a thousand SingTel executive employees.”
Aileen Tan, Group Director, Human Resources, SingTel