Singapore Government Press Release

Media Division, Ministry of Information & The Arts, #36-00, PSA Building, 460 Alexandra Road, Singapore 119963, Tel: 3757794/5

SPEECH BY MR MAH BOW TAN, MINISTER FOR COMMUNICATIONS AT THE SILS 5TH GRADUATION CEREMONY-CUM-APPRECIATION LUNCH, THE GRAND BALLROOM, ORCHID COUNTRY CLUB ON SATURDAY, 16 NOVEMBER 1996 AT 10.30 AM

It is with great pleasure that I address this year's graduates of the Certificate and Diploma in Industrial Relations Programmes of the Singapore Institute of Labour Studies.

This is our 5th graduation exercise since the Institute was set up in 1990. There are now almost 400 CIR and DIR graduates who are working in over 100 companies ranging across the full spectrum of industries and services in Singapore. All of them have spent considerable time, effort and money to complete the SILS programmes. They represent the sustained commitment of the labour movement and the men and women serving in our trade unions to upgrade themselves through ongoing training and continuing education.

SILS graduates have gained in terms of personal enrichment and a sense of achievement. But, more importantly, they have contributed to the practice of good industrial relations and the strengthening of the labour movement in Singapore.

TRADE UNIONS A MAJOR FORCE

The labour movement has played a pivotal role in the social, political and economic development of Singapore, from self-government in 1959, to independence in 1965 and now, in present day Singapore. In every step of the way, organised labour has allowed our workers to participate in the decision-making process and activities that determine our destiny.

SILS has been working on an Oral History project to document the contributions of the labour movement to the development of modern Singapore. The purpose is to enable younger union leaders to be aware of the history of the labour movement, to learn the lessons of history and to become even better leaders to contribute to the unions and Singapore's success. I would like to highlight the watershed years in our development which every trade union leaders, and indeed, every Singaporean should be aware of.

1946 The first trade union registered under the 1940 Trade Union Ordinance was the Singapore Harbour Board Staff Association, known today as the Singapore Portworkers' Union (SPWU). The SPWU celebrated its 50th anniversary this year, and can proudly claim that they contributed significantly to our port's success today.

1954 When the People's Action Party was formed in 1954, more than half the founding members were trade unionists. From political activism, unions emerged as a national movement to gain independence from the British.

1959 Singapore gained self-government, with the PAP forming the first government .

1961 Left leaning political and trade union leaders broke away from the PAP to form an alternative political party and trade union federation. The PAP maintained its mandate in the general elections, and in each general election since. The NTUC established itself as the only national federation of unions whose affiliates share with the PAP the same philosophy and vision for a better life for all Singaporeans.

1965 Singapore became an independent nation state after separation from Malaysia.

1968 Announcement of the British withdrawal of military bases from Singapore which would take away jobs and weaken an already fragile economy. Need to unite forces became all the more critical.

1969 NTUC seminar titled "Modernisation of the Labour Movement". Delegates redefined the role of trade unions from traditional confrontation to cooperation in the workplace and a broader socio-economic role in society.

1971 The first co-operatives set up by the labour movement were NTUC Income and NTUC Comfort. NTUC also established the Consumers Association of Singapore to promote consumer welfare.

1982 The NTUC launched the Basic Education and Skills Training (BEST) programme to upgrade the skills of our workers who missed out on their Pr 6 education, to help them keep pace with Singapore's strategy to shift toward higher skilled higher value added jobs.

1985/86 NTUC and our trade unions gained workers' support for wage restraint to overcome economic recession, and then worked together with government and employers to introduce a more flexible wage system to replace our traditional seniority-based system.

1990 The NTUC set up the SILS to strengthen leadership and advance the practice of good industrial relations in Singapore.

Today, international organisations like the United Nations and the World Economic Forum have ranked Singapore among the top countries in the world in terms of its economic competitiveness, its social stability and harmony and its quality of life. One of the fundamental factors contributing to this achievement is the constructive role of our trade unions and the tripartite system of industrial relations which balance the interest of employers and employees in the work place.

We cannot take our good industrial relations for granted. We have only to read of the tensions and turmoils arising from labour unrest and unresolved disputes in both developed and developing countries to appreciate our stable industrial climate.

CHALLENGES IN THE NEXT CENTURY: FOCUS ON LEADERSHIP

As we approach the 21st century, the challenge for the labour movement will be to help workers remain employable and enjoy the fruits of their labour.

The latest third quarter economic performance report is a sobre indication of the challenges we are facing. In every sector of our economy, whether it is manufacturing, communications and transportation, or financial and business services, external factors are impacting on our performance. Our ability to survive and sustain development in the long-term will be determined by our internal strengths - our national leadership, our collective will to overcome the odds and our ability to work together as a team.

I have worked with union leaders in our transportation and telecommunications industries, as well as in many other sectors. I have come to admire and appreciate their sincerity and commitment. They have a difficult job. They have to strive for a win-win situation with employers as well as workers. They must work with employers to help their companies earn reasonable returns on their investments, and at the same time ensure the protection and promotion of workers' needs and interest.

Many of these leaders have been working for the past 20 to 30 years and more. They have personally experienced many hardships and overcome many obstacles and know what it takes to achieve and sustain the modern Singapore we are enjoying today. They must now help to attract and groom equally committed leaders from the new generation of Singaporeans who are entering the workforce. These are the knowledge workers of a new and more affluent information age where personal aspirations may overshadow the calling to serve as union and community leaders.

The Government and NTUC will continue to strongly support the participation of union leaders in the formulation and implementation of policies and practices that affect workers and their families at both the national and company level.

SILS ENDOWMENT FUND: STRENGTHENING LEADERSHIP FOR THE FUTURE

The NTUC and Government is strongly committed to strengthening leadership for the future. The setting up of the SILS is a tangible demonstration of this commitment. The presence of NTUC and Government representatives on the Institute's Board of Governors, as well as the financial support that has been provided are other indications.

I am pleased to report to you that the progress of the Institute has been steady. As a non-profit institution, with grants from the SDF, NTUC, SLF, and Government and only nominal charges for its courses, SILS has been able to cover its operating costs without drawing on its reserves.

The Institute has recently transferred its reserves to set up an SILS Endowment Fund. With a donation to the Institute of over $212,000 from the Singapore Mercantile Cooperative Thrift and Loan Society (SMCTLS) through the Singapore Labour Foundation, the SILS Endowment Fund was set up with an initial sum of $2 million.

I am pleased to inform you that the Government has provided a matching grant of $2 million to be put into the SILS Endowment Fund. We hope to build on this fund of $4 million to ensure the long-term financial viability of the Institute. At the same time, the Institute has consolidated its programmes to offer more systematic leadership training and development. This will help strengthen the labour movement and our tripartite system of industrial relations.

I would like to conclude by extending hearty congratulations, on behalf of the SILS Board of Governors, to the graduates of the 5th SILS Graduation, as well as to their families, unions and employers.