TRIPARTITE COMMITTEE ON · to suit Singapore. In the meantime, the tripartite partners will work with selected companies to promote and implement the re-employment of older workers

26 January 2006 Tripartite Committee on Employability of Older Workers

PRESS RELEASE TRIPARTITE COMMITTEE RECOMMENDS SUITE OF MEASURES TO HELP OLDER WORKERS STAY EMPLOYED LONGER AND RAISE THEIR EFFECTIVE RETIREMENT AGE

1. The Tripartite Committee on Employability of Older Workers has released its

interim report with a range of recommendations to enhance the employability of older

workers. Chaired by the Minister of State for Education and Manpower, Mr Gan Kim

Yong, and with representatives from employers, unions and the government, the

Committee seeks to enhance the employability of older workers and raise their

effective retirement age beyond 62.

Enhancing the Employability of Older Workers

2. The Committee’s recommendations are grouped into four key strategic

thrusts:

Expand Employment Opportunities for Older Workers;

Enhance their Cost Competitiveness;

Raise their Skills and Value; and

Shape Positive Perceptions towards Older Workers.

3. The key recommendations are to introduce the ADVANTAGE! Scheme,

consider legislation for the re-employment of workers beyond the statutory retirement

age of 62 and set up a Tripartite Alliance for Fair Employment Practices.

Incentives for Employers to Hire Older Workers – ADVANTAGE! Scheme

4. The Committee recommends a comprehensive package of incentives of up to

$300,000 per company to motivate and enable employers to recruit older workers

Report of the Tripartite Committee on Employability of Older Workers

and to re-employ them beyond age 62. ADVANTAGE! will emphasise the value of

older workers that employers can leverage on. It supports various initiatives, from

job redesign and automation, wage restructuring, training to the placement, re-

employment and retention of older workers. The $300,000 can be used for the

following:

a. Job Redesign, such as to defray the cost of equipment, machinery or

process review that raise productivity and help older workers. It can also

cover expenses incurred in improving human resource practices to hire or

retain more older workers, such as performance-based wage structure,

portable medical benefits, and non-discriminatory recruitment policy;

b. Training, such as to equip older workers with new skills, enhance their

existing skills, or to help them adjust to new work arrangements;

c. Retention Incentive, which can go up to $1,200 per newly hired mature

worker aged 40 and above with secondary school education and below over a

period of 12 months, or $1,800 over 18 months. This is administered by the

CDCs, to encourage the mature worker to stay on in his new job.

5. In addition, the WDA will assist the company with job placement services, to

help them source for suitable older workers to fill their vacancies.

6. The Committee recommends that the Government set aside $30 million for

two years to implement the ADVANTAGE! Scheme. MOM, WDA, SNEF/SBF and

NTUC will work together to promote the scheme and bring about tangible changes at

the workplace and improvements in human resource practices. We are already

working with some 25 companies to pilot the scheme. If we are successful, this will

lead to the hiring of 600 mature workers aged 40 and above, re-employment of 100

workers approaching 62, and job redesign projects that will improve the work of

4,000 mature workers.

Report of the Tripartite Committee on Employability of Older Workers ii

Consider Legislation for the Re-employment of Older Workers beyond the Age of 62

7. Raising the statutory retirement age remains the goal. However, the

Committee is cognizant of employers’ concerns on the cost arising from recruiting

and retaining older workers. It therefore recommends that as the next step, the

Government study Japan’s system of legislating the obligation for companies to re-

employ workers beyond the retirement age, and consider whether it can be adapted

to suit Singapore. In the meantime, the tripartite partners will work with selected

companies to promote and implement the re-employment of older workers by

leveraging on ADVANTAGE!.

Set up a Tripartite Alliance for Fair Employment Practices

8. The Committee strongly advocates fair and objective employment practices.

To encourage employers to adopt such employment practices, the Committee

recommends the setting up of a Tripartite Alliance for Fair Employment Practices

comprising key representatives from the NTUC, employers and the government.

The Alliance will promote fair employment practices and launch promotional

initiatives such as recognising employers who are exemplary in implementing fair

employment practices.

Other Recommendations (Details can be found in the report)

9. Other recommendations under the four thrusts include:

Thrust 1: Expand Employment Opportunities for Older Workers

10. To encourage recruitment of older workers, the Committee has recommended

to:

• Introduce the SME Manpower Scheme to encourage SMEs to hire

Professionals, Managers and Executives (PMEs).

Report of the Tripartite Committee on Employability of Older Workers iii

• Expand the Job Re-creation Programme to more sectors to create more

employment opportunities for older workers.

Thrust 2: Enhance Cost Competitiveness of Older Workers

11. To address employers’ concern that older workers may be more costly, the

Committee proposes to:

• Accelerate wage restructuring to help companies move away from

seniority-based wage systems towards a more job-worth/performance-

based wage system.

• Pilot the adaptation of the Japanese model of competency-based wage

system, as practised by leading Japanese companies.

• Explore ways to convert existing company medical benefits to a more

portable system to mitigate the higher medical costs that employers may

incur in employing older workers.

• Introduce a set of new Tripartite Guidelines to help companies re-employ

workers beyond the age of 62.

Thrust 3: Raise Skills and Value of Older Workers

12. To encourage older workers to upgrade and maintain relevant skills, the

Committee recommends that the Government:

• Accord higher assistance for the training of older workers.

• Help older workers upgrade through the expansion of the Singapore

Workforce Skills Qualifications (WSQ) System and the Employability Skills

System (ESS).

• Provide opportunities for older workers to train and take up new jobs

through the Place and Train Programme and the Strategic Manpower

Conversion Programme (SCMP).

Report of the Tripartite Committee on Employability of Older Workers iv

Thrust 4: Shape Positive Perceptions towards Older Workers

13. To address prejudices and negative stereotypes by some employers against

older workers, the Committee recommends to:

• Update the Code of Responsible Employment Practices to serve as a

guide for responsible practices towards hiring and managing older

workers, and publish a handbook to assist companies in implementing the

practices promulgated in the Code.

• Update and further refine the Tripartite Guidelines on Non-Discriminatory

Job Advertisements to ensure they continue to be relevant.

• Embark on a major outreach and promotional effort to employers,

employees and the customer public to promote age-friendly employment

practices, for older workers to make the necessary adjustments to

continue working longer, and to positively shape public perceptions about

older workers. This includes industry outreach, publication of an Age

Management Guide to help companies implement age-friendly HR

practices, providing tips to workers on enhancing their employability and

conducting a targeted awareness effort to shape positive perceptions

towards older workers.

Going Forward

14. The Committee proposes that the tripartite partners work with around 200

companies over the next 2 years to set the pace of changing employment practices

to hire and retain older workers, including those above the age of 62.

Report of the Tripartite Committee on Employability of Older Workers v

15. A direct measure of the employability of older workers is the employment

rate1. The Committee recommends that the tripartite partners work towards raising

the employment rates of older persons, to reach the following levels by 2011:

Employment Rate (%) 2004 (Actual) 2011 (Target) Age 55 – 59 55.6 61 Age 60-64 33.3 40

Implementing the Recommendations

16. The Committee is committed to taking its recommendations through to

implementation and to effect concrete changes. Its 8 sectoral working groups

comprising the manufacturing, transport & logistics, healthcare, hotel, food industry,

banking, insurance and public service sectors have made good progress since they

were set up in September 2005. The Committee will be holding a Tripartite Seminar

on 15 February 2006 to share with the stakeholders its findings and

recommendations, including those from the sectoral workgroups.

17. To sustain these initiatives, the Committee will set up a Tripartite Action

Group led by SNEF to proactively assist companies to operationalise the

Committee’s recommendations and help companies implement age friendly

workplace practices.

18. Many of the recommendations will take time to implement and show results.

As such, the Committee will continue its work for another year. The Committee will

review the progress of the implementation of its recommendations in a year’s time

and fine-tune them if necessary before submitting its final report.

1 Employment Rate (ER) refers to the proportion of the working-age population who are employed.

Report of the Tripartite Committee on Employability of Older Workers vi

Conclusion

19. The Committee has submitted its interim report to the Government and the

Government has supported the recommendations. The Committee also seeks the

support of all employers, older workers and the general public in this national effort

to enhance the employability of our older workers, and raise the effective retirement

age.

For media queries, please contact:

Ms Julia Ng Senior Assistant Director Corporate Communications Ministry of Manpower Tel: 6317 1952 Email: [email protected]

Ms Koh Li Peng Manager Corporate Communications Ministry of Manpower Tel: 6317 1958 Email: [email protected]

Report of the Tripartite Committee on Employability of Older Workers vii

mailto:[email protected]

mailto:[email protected]

TRIPARTITE COMMITTEE ON EMPLOYABILITY OF OLDER WORKERS - INTERIM REPORT CONTENTS EXECUTIVE SUMMARY .................................................................................... i SUMMARY OF KEY RECOMMENDATIONS ................................................... vi PART I THE AGEING WORKFORCE CHAPTER 1 Challenges of Employability of Older Workers ..............................1 CHAPTER 2 Efforts to Enhance the Employability of Older Workers.................7 PART II RECOMMENDATIONS CHAPTER 3 Conceptual Framework and Overview of Key Thrusts ................11 CHAPTER 4 Expanding Employment Opportunities for Older Workers...........15 CHAPTER 5 Enhancing the Cost Competitiveness of Older Workers .............23 CHAPTER 6 Raising Skills and Value of Older Workers..................................32 CHAPTER 7 Shaping Positive Perceptions Towards Older Workers...............35 PART III IMPLEMENTATION CHAPTER 8 Effecting Change At Sectoral Level.............................................42 CHAPTER 9 Implementation Strategies and Monitoring of Outcomes.............46 ANNEXES ANNEX A Past Efforts to Raise Employability of Older Workers..................50 ANNEX B Composition of Tripartite Committee and Terms of Reference....55

Report of the Tripartite Committee on Employability of Older Workers viii

EXECUTIVE SUMMARY Introduction 1. With falling birth rates and rising life expectancy, Singapore’s

population and workforce will grow older. The proportion of older workers aged 50 and above in our labour force will increase to 29% in 2015 compared to 22% in 2004. The increase in workers joining the local workforce will also slow down from about 44,000 today to 24,000 between 2010 and 2015.

2. As life expectancy increases, workers must also be prepared to work

longer and save more to ensure that they can continue to support themselves in their old age. In 2004, only about 40% of active CPF members met the minimum sum requirement on reaching the age of 55.

3. We therefore need older workers to stay in the labour force longer to

meet the demand for workers and to enhance their retirement adequacy. For older workers to remain employable, they must stay cost competitive and relevant to industry needs.

Key Recommendations 4. The Tripartite Committee on Employability of Older Workers was set up

in March 2005 to recommend measures to

• Enhance the employability of older workers and help them stay employed longer so as to raise the effective retirement age beyond 62 years; and

• Positively shape the perceptions and mindsets of employers,

employees and the customer public towards the employment of older workers.

5. The Committee recommends adopting four key thrusts, namely:

Thrust 1: Expand employment opportunities for older workers; Thrust 2: Enhance their cost competitiveness; Thrust 3: Raise their skills and value; and Thrust 4: Shape positive perceptions towards older workers.

Thrust 1: Expand employment opportunities for older workers 6. Older workers face challenges when looking for jobs. The

recommendations under this thrust expand employment opportunities

Report of the Tripartite Committee on Employability of Older Workers i

for older workers by encouraging and helping employers to give older workers more opportunities in their recruitment process. The Committee’s main recommendations are to:

• Introduce the ADVANTAGE! scheme. The scheme is a

comprehensive package of incentives of up to $300,000 per company to motivate and enable employers to hire older workers and to re-employ them beyond the age of 62 years. It comprises the job redesign grant, training grant, placement services and retention incentive.

• Consider legislation for the re-employment of older workers

beyond the age of 62 years. Raising the statutory retirement age remains the goal. However, there are concerns from employers about the impact on cost and productivity. The Government should study Japan’s system of legislating the obligation for companies to re-employ workers beyond the retirement age, and to consider whether it can be adapted to suit Singapore.

• Work with companies to promote and implement the re-

employment of older workers. The tripartite partners will work with selected companies to re-employ workers beyond the age of 62 years by assisting them through ADVANTAGE! and establishing tripartite guidelines for re-employment.

• Introduce the SME (Small and Medium Enterprises) Manpower

Scheme to encourage SMEs to hire experienced Professionals, Managers and Executives (PMEs).

• Expand the Job Re-Creation Programme (JRP) to more sectors

to create more opportunities for older workers. The expansion would build on the success of the existing JRP initiatives to increase job worth, enhance working conditions and prospects of existing jobs, so as to provide meaningful careers for older workers.

Thrust 2: Enhance the cost competitiveness of older workers 7. The cost of retaining older workers should not undermine business

competitiveness. To enhance the cost competitiveness of older workers, the Committee recommends the following:

• Accelerate wage restructuring to help companies move away

from seniority-based wage systems towards a more job-worth/performance-based wage system.

• Pilot the adaptation of the Japanese model of competency-

based wage system, as practised by leading Japanese companies. The tripartite partners could work with a few local companies on this.

Report of the Tripartite Committee on Employability of Older Workers ii

• Explore ways to convert existing company medical benefits to

a more portable system. This would mitigate the higher medical costs that employers may incur in employing older workers.

• Introduce a set of new Tripartite Guidelines to guide

companies in re-employing workers beyond the age of 62 years. The guidelines should cover restructuring and adjustments to wages, medical and other benefits, as well as employment arrangements, to facilitate the implementation of the re-employment scheme.

Thrust 3: Raise skills and value of older workers 8. Skills upgrading and re-training are key to enhancing the employability

of older workers. The Committee recommends that the Government:

• Provide higher level of assistance for the training of older workers to help them upgrade their skills.

• Help older workers upgrade through the expansion of the

Workforce Skills Qualifications (WSQ) system and the Employability Skills System (ESS).

• Provide more opportunities for older workers to be trained and

to take up new jobs through the Place and Train Programmes and the Strategic Manpower Conversion Programmes.

Thrust 4: Shape positive perceptions towards older workers 9. Anecdotal evidence suggests that prejudices and negative stereotypes

by some employers against older workers are obstacles that need to be addressed. The Committee recommends the following:

• Set up a Tripartite Alliance for Fair Employment Practices,

comprising representatives from NTUC, SNEF and MOM to promote mindset change among employers, employees and the general public to adopt positive approaches and practices that are fair and equitable to all workers. The Alliance could consider recognising employers who are exemplary in implementing fair employment practices.

• Update the Code of Responsible Employment Practices to

serve as a guide for responsible practices towards hiring and managing older workers, and publish a handbook to assist companies in implementing the practices promulgated in the Code.

Report of the Tripartite Committee on Employability of Older Workers iii

• Update and further refine the Tripartite Guidelines on Non-Discriminatory Job Advertisements, to ensure that they continue to be relevant.

• Embark on a major outreach and promotional effort to

employers, employees and the customer public to promote age-friendly employment practices, for older workers to make the necessary adjustments to continue working longer, and to positively shape public perceptions towards older workers. This includes industry outreach, publishing an Age Management Guide to help companies implement age-friendly HR practices, providing tips to workers on helping themselves to enhance employability and to work longer, and conducting a targeted awareness effort to positively shape perceptions about older workers.

From Recommendations to Implementation 10. Recognising the need to contextualise and promote the

implementation of its recommendations to effect change at the sectoral level, the Committee has set up eight workgroups for the following sectors: manufacturing, transport & logistics, healthcare, hotel, food industry, banking, insurance and public service. The sectoral workgroups have introduced a series of initiatives and pilot projects to promote the employment and retention of older workers.

11. To operationalise the Committee’s recommendations and sustain the

efforts, a Tripartite Action Group (TAG), spearheaded by SNEF and supported by NTUC and MOM, will be set up to assist companies in their initiatives to enhance the employability of older workers and promote age-friendly workplace practices. The proposed work of the TAG includes training HR personnel and line managers on responsible HR practices and facilitating industry projects to enhance older workers’ employability.

12. The tripartite partners plan to work with around 200 companies

over the next 2 years, to set the pace of changing employment practices to hire and retain more older workers, including those above the age of 62.

13. The Committee also recommends that the tripartite partners work

towards raising the employment rates (ER) of older workers to reach the following target levels in 5 years, i.e. by 2011:

Report of the Tripartite Committee on Employability of Older Workers iv

i. To increase resident ER for the 55-59 age group from 55.6%2 to 61%; and

ii. To increase resident ER for the 60-64 age group from 33.3%1

to 40%. 14. The Committee will continue its work for another year to monitor the

implementation of its recommendations and guide the TAG. It will review the progress and fine-tune its recommendations if necessary before submitting its final report.

Conclusion 15. The tripartite partners will put in concerted efforts to implement the

recommendations. The Committee seeks the support of employers, workers and the general public for this national effort to upgrade and uplift the older segment of our workforce.

*****

2 Source: Labour Force Survey 2004, MOM. 2005 figures were not available.

Report of the Tripartite Committee on Employability of Older Workers v

SUMMARY OF KEY RECOMMENDATIONS

No. Recommendation Lead and Partner Agencies

Thrust 1: Expand Employment Opportunities of Older Workers 1.

Introduce the ADVANTAGE!Scheme – a package of incentive schemes to motivate and enable employers to hire older workers and to re-employ them beyond the age of 62 years. The scheme comprises: i. Job Redesign Grant; ii. Training Grant; iii. Placement Services; and iv. Retention Incentive.

MOM WDA Employers

2. Consider legislation for the re-employment of older workers beyond the age of 62 years.

MOM

3. Work with companies to promote and implement the re-employment of older workers.

SNEF MOM WDA NTUC

4. Introduce the SME (Small and Medium Enterprises) Manpower Scheme to encourage SMEs to hire experienced Professionals, Managers and Executives (PMEs).

MOM WDA Employers

5. Expand the Job Re-creation Programme (JRP) to more sectors to create more employment opportunities for older workers. The expansion would build on the success of the existing JRP initiatives to increase the job worth, and enhance the working conditions and prospects of existing jobs, to provide meaningful careers for older workers.

NTUC WDA Employers

Thrust 2: Enhance Cost Competitiveness of Older Workers 6. Accelerate wage restructuring to help companies move

away from seniority-based wage systems towards a more job-worth/performance-based wage system.

MOM SNEF NTUC

7. Pilot the adaptation of the Japanese model of competency-based wage system, as practised by leading Japanese companies.

NTUC SNEF MOM

8. Explore ways to convert existing company medical benefits to a more portable system. This would mitigate the higher medical costs that employers may incur in employing older workers.

SNEF MOM NTUC

Report of the Tripartite Committee on Employability of Older Workers vi

No. Lead and

Recommendation Partner Agencies

9. Introduce a set of new Tripartite Guidelines to guide companies in re-employing workers beyond the age of 62 years. The guidelines should cover restructuring and adjustments to wages, medical and other benefits, as well as employment arrangements.

SNEF MOM NTUC

Thrust 3: Raise Skills and Value of Older Workers 10. Government to accord higher assistance for the training of

older workers to help them upgrade their skills.

WDA

11. Government to help older workers upgrade through the expansion of the Workforce Skills Qualifications (WSQ) System and the Employability Skills System (ESS).

WDA

12. Government to provide more opportunities for older workers to be trained and to take up new jobs through the Place and Train Programme and Strategic Manpower Conversion Programmes (SMCP).

WDA

Thrust 4: Shape Positive Perceptions Towards Older Workers 13. Set up a Tripartite Alliance for Fair Employment Practices,

comprising representatives from tripartite partners, to promote mindset change among employers, employees and the general public to adopt positive approaches and practices that are fair and equitable to all workers. The Alliance could consider recognising employers who are exemplary in implementing fair employment practices.

Tripartite Partners led by MOM

14. Update the Code of Responsible Employment Practices to serve as a guide for responsible practices towards hiring and managing older workers, and publish a handbook to assist companies in implementing the practices promulgated in the Code.

SNEF

15. Update and further refine the Tripartite Guidelines on Non-Discriminatory Job Advertisements to ensure that they continue to be relevant.

MOM SNEF NTUC

16. Embark on a major outreach and promotional effort to employers, employees and the customer public to promote age-friendly employment practices, for older workers to make the necessary adjustments to continue working longer, and to positively shape public perceptions towards older workers. This includes industry outreach, publishing an Age Management Guide to help companies

SNEF NTUC MOM WDA

Report of the Tripartite Committee on Employability of Older Workers vii

No. Lead and

Recommendation Partner Agencies

implement age-friendly HR practices, providing tips to workers on helping themselves to enhance employability and to work longer, and conducting a targeted awareness effort to positively shape perceptions about older workers.

Tripartite Effort to Effect Change 17. Contextualise and promote the implementation of the

Committee’s recommendations in 8 key industry sectors covering the manufacturing, transport & logistics, healthcare, hotel, food industry, banking, insurance and public service sectors. The sectoral workgroups including the public sector workgroup have introduced a series of initiatives and pilot projects to promote the employment and retention of older workers.

Sectoral Workgroup Partners

18. Set up a Tripartite Action Group (TAG) to promote and help companies implement the Committee’s recommendations and establish age-friendly workplace practices.

Tripartite Partners led by SNEF

19. The tripartite partners to target to work with around 200 companies over the next 2 years, to set the pace of changing employment practices to hire and retain more older workers, including those above the age of 62 years.

SNEF NTUC MOM WDA

20. The tripartite partners to work towards raising the employment rates of older workers to reach the target levels in 5 years, i.e. by 2011.

SNEF NTUC MOM WDA

Report of the Tripartite Committee on Employability of Older Workers viii

PART I THE AGEING WORKFORCE

CHAPTER 1

CHALLENGES OF EMPLOYABILITY OF OLDER WORKERS Driving Forces Ageing population, ageing workforce 1. With falling birth rates and rising life expectancy, Singapore’s

population and workforce will grow older. This will impact our labour market in two ways.

2. First, the proportion of older workers aged 50 and above in our labour

force will increase from 22% in 2004 to 29% in 2015. Secondly, the net increase of about 44,000 workers per year joining the local workforce from now till 2010 will slow down to 24,000 per year between 2010 and 2015.

3. To sustain our economic growth and to meet the consequential

demand for workers, our older workers will need to stay in the labour force longer. We will need to raise the effective retirement age.

Retirement adequacy 4. As life expectancy increases, workers must also be prepared to work

longer to ensure that they can continue to support themselves in their old age. To ensure that enough savings are put aside for their retirement to provide for longer life expectancy, the CPF Minimum Sum will be raised to $120,000 (in 2003 dollars) by 2013. However, only about 40% of active CPF members met the minimum sum requirement on reaching the age of 55 in 2004. Singaporeans will need to work longer and save more, to enhance their retirement adequacy.

Increasing global competition 5. The world economy is changing rapidly. As a result of globalisation,

jobs are increasingly outsourced to countries that can provide cheaper and more efficient labour. Rapid technological advancement is increasing the pace of workforce skills obsolescence. Our workers here have to remain competitive and relevant to industry needs. They will need to stay employable even as they age.

Report of the Tripartite Committee on Employability of Older Workers 1

Older Workers in the Labour Market Most older workers are less educated than their younger counterparts 6. Most of our older workers are generally less educated than their

younger counterparts which put them at a greater risk of being displaced by economic restructuring. More than 300,000 of workers aged 50 and above do not have post secondary qualifications. This figure will grow to 400,000 workers by 2015 (see Chart 1.1).

CHART 1.1: COMPARISON OF EDUCATION PROFILE

OF THOSE AGED 50 YEARS AND ABOVE IN 2004 AND 2015

0

100000

200000

300000

400000

500000

2004 2015YearN

umbe

r of P

erso

ns A

ged

50 a

nd

Abo

ve

Secondary &belowPostSecondary

Source: Ministry of Manpower (MOM)

Employment rate (ER) of workers falls sharply after age 55 7. We need to raise the employment rate (ER)1 of older workers.

Although the ER for male residents between the ages of 50 and 54 is 87%, it falls to 73% for those aged 55-59 and below 50% after the age of 60 years. The ER of older women is significantly lower than that of men, at 51% for those aged 50-54 and below 40% after the age of 55 years (see Chart 1.2).

1 Employment rate (ER) refers to the proportion of the working-age population who are employed.


CHART 1.2: AGE-SPECIFIC RESIDENT EMPLOYMENT RATES

BY GENDER, JUNE 2004

0.0

20.0

40.0

60.0

80.0

100.0

Age

Res

iden

t Em

ploy

men

t Rat

e (%

)

Total ER 10.7 59.8 82.2 82.4 78.2 76.2 74.6 68.7 55.6 33.3 10.0

Male ER 11.6 63.7 85.1 94.4 92.9 91.6 91.1 86.7 73.2 49.4 16.8

Female ER 9.7 55.7 79.4 71.6 64.8 61.1 58.4 50.5 38.6 18.3 4.9

15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65 & over

Source : Labour Force Survey, MOM

Older workers stay unemployed longer once they lose their jobs

8. While the unemployment rate of those below the age of 30 is higher than that of older workers, this is due to the greater propensity of the former to change jobs as they may have just started work. However, the unemployment rate of persons aged 50 and above has continued to rise, even though the overall unemployment rate among the resident population has fallen in recent years.

TABLE 1.3: RESIDENT UNEMPLOYMENT RATE BY AGE GROUP

(NON-SEASONALLY ADJUSTED) P: Preliminary Per

Cent

June 1993 June 1998 June 2003 June 2004 June 2005P

Overall 2.8 3.4 5.9 5.8 5.6 Below 30 4.9 5.9 8.2 8.7 7.4 30-39 2.0 2.5 5.4 4.4 4.5 40-49 1.6 2.7 5.4 5.4 5.1 50 & over 1.8 2.5 5.0 5.4 6.0

Source: Labour Force Survey (MOM), General Household Survey (DOS)


9. Older workers also tend to stay unemployed longer. In June 2004, the median duration of unemployment was 16 weeks for those aged 50 and above compared to the median of 12 weeks for all workers. The long-term unemployment rate (defined as the proportion of the labour force who have been unemployed for at least 25 weeks) of 2.1% for older workers was also above the national average of 1.7% (see Chart 1.4). Clearly, more needs to be done to help them find and keep their jobs.

CHART 1.4: RESIDENT LONG TERM UNEMPLOYMENT RATE IN 2001 AND 2004

0.7 0.6 0.5

0.9 0.8

1.7

1.4 1.3

1.92.1

0

0.5

1

1.5

2

2.5

Overall Below 30 30-39 40-49 50 & OverAgeR

esid

ent L

ong

Term

Une

mpl

oym

ent

Rat

e (%

) 20012004

Source: MOM

Re-employment rates for older workers are generally lower 10. The likelihood of re-employment declines with age. Workers aged

below 30 were the most re-employable with 74% being re-employed within 6 months of their retrenchment. This declined to 58% for those in their 40s and further to 45% for those aged 50 and above. Even mature tertiary educated workers aged 40 and above faced difficulties in finding work again once retrenched. Their re-employment rate lagged behind workers without secondary qualifications.


TABLE 1.5: AVERAGE RE-EMPLOYMENT RATE OF LOCAL RETRENCHED WORKERS WITHIN 6 MONTHS AFTER RETRENCHMENT, 2004

Per Cent

Total Below Sec Secondary Upper Sec Diploma Degree

Total 58.6 55.0 60.0 61.9 62.9 59.4

Below 30 73.8 73.3 72.7 69.1 75.9 78.3

30 – 39 64.7 60.6 65.9 69.5 64.7 63.6

40 – 49 57.8 60.1 59.0 62.7 50.1 52.0

50 & Over 44.8 46.2 50.8 38.8 43.6 36.8 Source: MOM

International Comparisons 11. The employment rate of older Singaporeans aged 55-64 lagged behind

Japan, South Korea, the OECD countries, United Kingdom and United States.

TABLE 1.6: EMPLOYMENT RATE OF POPULATION AGED 55 TO 64

FOR SELECTED COUNTRIES/ECONOMIES, 2004

46.6

6358.4 59.9

56.250.9

40.7 40.4

0

20

40

60

80

Singapore* Japan SouthKorea

US UK OECD Hong Kong Taiwan

Em

ploy

men

t Rat

e of

Pop

ulat

ion

Age

d 55

to 6

4 (%

)

* Resident Total Employment Rate

Sources: Compiled from various sources by MOM


Desired Outcomes 12. To tackle this national challenge, we need to develop a comprehensive

set of strategies to help our older workers stay employed longer. We should aim to raise employment rates, especially for older workers aged 62 and above, so that they can stay economically active beyond the statutory retirement age. Older workers must be motivated to upgrade their skills to stay employable. At the same time, employers must be encouraged to offer opportunities to hire and re-employ older workers.

*****


CHAPTER 2

EFFORTS TO ENHANCE THE EMPLOYABILITY OF OLDER WORKERS

Introduction 1. Over the years, much has been done to enhance the employability of older

workers. We should build on these efforts going forward. This chapter covers the prevailing regulatory environment, and existing measures to enhance the employability of older workers.

Changes to the Retirement Age Act 2. In 1988, recognising the impending slowdown in the growth of the local

labour force and the inadequacy of retirement savings, the Government encouraged employers and unions to voluntarily raise the retirement age from the norm of 55 years to 60 years. A survey conducted in early 1992 revealed that while 72% of unionised companies had raised the retirement age to 60 years and older, only 4.5% of non-unionised companies had done so. Overall, only 10% of all companies surveyed raised the retirement age voluntarily to 60 years.

3. The Government thus introduced the Retirement Age Act which took effect

on 1 July 1993 to provide for a statutory retirement age of 60 years. The Government also stated its long-term objective of raising the retirement age progressively to 67 years old. To help address employers’ concerns about additional costs as well as to enhance the job security of older workers, the employers’ CPF contribution rate for employees aged 55 to 59 was reduced from 12.5% to 7.5%.

4. The statutory retirement age was further raised from 60 to 62 years on 1

January 1999, together with other cost-cutting measures, such as a reduction in employers’ CPF contribution rate and allowing up to 10% reduction in wages for workers aged 60 and above, to help lower the cost of employing older workers. The statutory retirement age has remained at 62 years since then.

5. These measures have kept some older workers, who would otherwise

have retired earlier, in employment. The ER of older workers aged 55 and above has increased and shown an upward trend since the enactment of the Retirement Age Act in 1993.


CHART 2.1: RESIDENT EMPLOYMENT RATE OF OLDER PERSONS

20

25

30

35

40

45

50

55

60

Year

Em

ploy

men

t Rat

e (%

)

Age 55-59Age 60-64

Age 55-59 45.6 46.2 45.9 48.6 51.3 49.9 51.6 51.4 53.4 55.3 54.3 55.6

Age 60-64 29.3 30 29.8 29.9 30.4 31.6 30.2 33.1 34.5 33.7 32.9 33.3

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

n.a.n.a. n.a.

n.a.

Retirement Age set at age 60 in 1993

Retirement Age raised from 60 to 62 in 1999

Source: Labour Force Survey, MOM Note: Data for 1995 and 2000 are not available as the Labour Force Survey was not conducted in these years due to the conduct of the General Household Survey 1995 and the Census of Population 2000 by the Singapore Department of Statistics.

Other Measures to Support Increasing Retirement Age 6. Since 1993, several initiatives have also been implemented to address the

employability of older workers (see Annex A). Summaries of the key measures are as follows:

a. Wage Restructuring to replace the seniority-based wage structure

with a more flexible wage system that is performance-based. b. Alternative Medical Benefit Schemes to help contain rising

medical costs in the long-term and also to encourage employees to take individual responsibility for their own health. The Portable Medical Benefits Scheme (PMBS) was introduced in 2003 to enable employers to make additional contributions to their employees’ Medisave accounts in lieu of providing for in-patient medical benefits.

7. In addition, MOM/WDA and NTUC have put in place various skills training

programmes to help enhance the employability of mature workers, aged 40 and above. These include:

a. Skills Redevelopment Programme (SRP). The SRP, managed by

NTUC, aims to equip workers with certifiable skills. To encourage


employers to send their employees for certifiable training, incentives in the form of course fees, absentee payroll and wage support are provided. Workers aged 40 and above are eligible for higher funding rate for course fee and absentee payroll, compared to those below 40.

b. People for Jobs Traineeship Programme (PJTP). The PJTP

encouraged employers to make available suitable job opportunities for workers aged 40 and above who were making career transitions between industries or job functions. The programme offered employers a wage support incentive for putting in place traineeship/mentorship arrangements to help newly recruited mature workers fit into new jobs and work environment. The PJTP ended on 31 Dec 2004 following the introduction of the new Re-Employment Assistance Programme (REAP), comprising the Job Re-creation Programme (JRP) and the Re-Employment Support Scheme (RESS).

Approach of the Tripartite Committee on Employability of Older Workers 8. Extending the statutory retirement age further to 67 years, as provided for

under the Retirement Age Act, remains our goal. However, past experience has shown that the effective retirement age, i.e. the actual age when workers retire, cannot be raised by legislative means alone. Other fundamental issues need to be addressed, including changing the mindsets of both employers and older workers themselves, the availability of employment opportunities for older workers, as well as workplace and employment practices.

9. The Tripartite Committee on Employability of Older Workers, with

representatives from the employers, the unions and the Government, was set up in March 2005 to examine how the employability and cost competitiveness of our older workers could be enhanced. The Committee’s Terms of Reference are at Annex B.

10. To facilitate its work, the Committee set up two workgroups to study the

issues in greater detail:

a. The Workgroup on Employment Practices, Wage and Benefits Structures examined measures to enhance older workers’ cost competitiveness and make improvements to employment and workplace practices; and

b. The Workgroup on Employment Opportunities and

Employability addressed barriers to the re-employment and


retention of older workers, which included measures to positively shape perceptions and mindsets of both employers and employees towards older workers.

11. The Committee actively engaged the industry through eight sectoral

workgroups covering the public sector, banking, insurance, healthcare, hotels, transport & logistics, food and manufacturing. The workgroups were tasked to identify best employment practices and job opportunities for older workers within the sectors, as well as recommend and pilot sector-specific changes.

12. The Committee also conducted focus group discussions with employers,

workers and job seekers to gather feedback, ideas and views on the challenges as well as possible solutions.

13. The recommendations of the Committee are elaborated in the following

chapters of this Report.

*****


PART II RECOMMENDATIONS

CHAPTER 3

CONCEPTUAL FRAMEWORK AND OVERVIEW OF KEY THRUSTS

Introduction 1. Through consultation and feedback from job seekers, workers, unions and

employers, the Committee identified a number of concerns in enhancing the employment of older workers and raising the effective retirement age:

a. Need to encourage employers to recruit older workers. Our

older workers’ employment and re-employment rates are lower relative to national average and international comparisons.

b. Need to improve cost effectiveness of employing and retaining

older workers. Costs of employing older workers may be higher especially in occupations with seniority-based wage structures. Employers may incur higher medical costs for older workers.

c. Need to still provide opportunity for the young. Continued

employment of older workers beyond 62 in key positions may be perceived as hindering the progression of younger workers.

d. Lack of relevant skills and competencies. Older workers’ value

may diminish with age as their skills become less relevant, or physical constraints limit their ability to meet the physical demands of the job. Jobs available in certain sectors and occupations may thus be perceived to be unsuitable for older workers.

e. Need to remain competitive. Older workers face greater

competition both from foreign workers and younger local workers. With alternative low cost labour options, some employers may not be motivated to invest in technology and process enhancements to enable older workers to raise their productivity.

f. Age discrimination and misperceptions about older workers.

Some employers have general misperceptions about older workers. There is also a tendency for some employers to hire younger persons for front-line jobs due to a perception that the customer prefers to be served by younger workers.


Objectives of Tripartite Committee 2. The Committee’s key objectives were to:

a. Enhance the employability of older workers and help them stay employed longer, so as to raise the effective retirement age beyond 62 years; and

b. Positively shape the perceptions and mindsets of employers,

employees and the customer public towards the employment of older workers.

Targeted Groups Enhance employability of workers above 40 3. Older workers are generally defined as those above 50 years of age.

However, the Committee also decided to target some of its measures towards workers aged 40 years and above (generally referred to as mature workers). It is more effective to address the employability challenge early before workers reach their 50s.

Provide workers the chance to work beyond the age of 62 years 4. While the statutory retirement age is 62 years, those who are able and

willing, should be provided the opportunity to work beyond 62. Assist older low skilled workers 5. The bulk of older workers are currently less educated, and the numbers

will remain high in the next 10-15 years. This group will face the greatest employability challenge.

Assist older skilled workers - professionals, managers and executives (PMEs) 6. The Committee recognized that some skilled older workers – the

professionals, managers and executives (PMEs) – also face employability difficulties due to structural changes in the economy. In addition, while they may be skilled, their skills may not be as relevant in a different industry, hence making it difficult for them to switch industry sectors.


Overview of Key Thrusts 7. The Committee notes that the strategies to enhance the employability of

older workers must be sustainable and commercially sensible for companies. It recommends adopting four key thrusts:

CHART 3.1: OVERVIEW OF 4 KEY THRUSTS

Objective: Raise

employability and effective

retirement age

Thrust # 1 Expand Employment

Opportunities for Older Workers

Thrust # 2 Enhance Cost

Competitiveness of Older Workers

Thrust #3 Raise Skills and Value

of Older Workers

Thrust # 4 Shape Positive

Perceptions Towards Older Workers

Implementation Tripartite effort to effect concrete changes at the sectoral level

8. Thrust 1: Expand Employment Opportunities for Older Workers – to

encourage employers to recruit and retain workers beyond the age of 62 years by identifying new sectors and jobs suitable for older workers, or which could be redesigned to enable older workers to continue contributing value.

9. Thrust 2: Enhance Cost Competitiveness of Older Workers – to address

concerns regarding the cost of employing and retaining older workers. 10. Thrust 3: Raise Skills and Value of Older Workers – to address concerns

that older workers do not have the relevant skills or that some are less trainable or adaptable, and to encourage and help them to upgrade their skills.

11. Thrust 4: Shape Positive Perceptions Towards Older Workers – to

address practices of age discrimination and negative perceptions of older workers among employers, workers and the public, as well as reach out to older workers to encourage them to accept necessary adjustments to allow them to stay employable longer.


Effecting Concrete Changes at the Sectoral Level 12. The Committee set up eight industry sectoral workgroups to contextualise

and pioneer the implementation of its recommendations in these sectors. This will also allow sector-specific concerns to be addressed and enable concrete changes to be effected on the ground.

*****


CHAPTER 4

THRUST 1: EXPANDING EMPLOYMENT OPPORTUNITIES

FOR OLDER WORKERS Introduction 1. Older workers face several challenges when looking for jobs. Some of

them will need skills upgrading to remain relevant to the new jobs being created. Some existing jobs may need to be re-designed to suit older workers. It may also be necessary to improve the working environment to be more age-friendly.

2. More opportunities must be made available to older workers so that they

can stay employed, even beyond their statutory retirement age. Key Recommendations 3. The Committee recommends that the following measures be introduced to

encourage employers to hire mature and older workers:

a. Introduce the ADVANTAGE! scheme, a comprehensive package of incentives to motivate and enable employers to hire older workers and to re-employ them beyond the age of 62 years;

b. The Government to consider legislation for the re-employment of

older workers beyond the age of 62 years;

c. Work with companies to promote and implement the re-employment of older workers;

d. Introduce the SME Manpower Scheme, an incentive scheme to

encourage employers of small and medium-sized enterprises (SMEs) to hire experienced professionals, managers and executives (PMEs); and

e. Expand the Job Re-creation Programme (JRP) to more sectors to

create more employment opportunities for older workers.


The ADVANTAGE! Scheme 4. The Committee proposes that the Government introduce a package

of incentives to encourage employers to hire older workers and to re-employ them beyond the age of 62 years. The aim of the proposed scheme ADVANTAGE! is to achieve a critical mass of companies that are prepared to make conscious efforts to provide employment opportunities for older workers, and to catalyse the implementation of age-friendly practices.

5. The Committee proposes that the Government commit $30 million

over 2 years to implement this scheme. The Government could review the effectiveness of ADVANTAGE! at the end of 2 years to determine whether it should be refined or extended.

6. ADVANTAGE! could offer employers financial assistance of up to

$300,000 per company, subject to the companies committing to achieving specific targets such as number of mature workers they will hire, the workplace improvements they will undertake to benefit existing mature workers, or the number of workers above 62 that they will re-employ.

7. Leveraging on the scheme, the Committee aims to bring on board about

200 companies over the next 2 years to set the pace of changing employment practices to hire and retain more older workers. ADVANTAGE! will also work in conjunction with existing programmes such as NTUC’s Job Re-creation Programme (JRP).

8. ADVANTAGE! should be administered by WDA and provide four

components of assistance:

a. Job Redesign Grant; b. Training Grant; c. Placement Services; and d. Retention Incentive.

Job Redesign Grant 9. The productivity of older workers may increase if the work environment is

better adapted to meet their needs. We therefore need to pursue job redesign more aggressively to make jobs better suited for older workers so that employment opportunities will be made available to them too.

10. Currently, WDA and NTUC administer the Job Redesign Scheme to

encourage companies to improve the worth of their jobs and attract more Singaporeans to take up these jobs.


11. The Committee proposes that under ADVANTAGE!, the existing Job Redesign Scheme be enhanced to include companies that create employment opportunities for mature workers, improve productivity and job security for existing mature workers or extend the employment of local workers beyond 62 years old.

12. Job redesign initiatives for older workers could include:

a. Adjustment to Work Environment such as process redesign, use of equipment and machines, and workplace ergonomics to allow older workers to be able to do the job.

b. Leveraging on Strengths of Older Workers, such as creating new,

value added roles for them. Many companies have found that mature and older workers tend to be better in dealing with people. They are more patient and reliable. They could serve as mentors, coaches or they could serve the customers.

c. Part-Time and Contract Work, such as repackaging the job scope

and work arrangements to allow part-time work. Some older workers are prepared to continue employment but in a less intensive manner. Work from the home might also be a more convenient option for some older workers.

d. Redesign of Wage Structures, as well as human resource (HR) policies and practices to help extend the employment of workers beyond 62 years old, or to recruit such older workers into the company. We need to restructure the existing seniority-based wage system to a more flexible and performance-based system.

e. Performance Contracts, such as adopting a performance-based approach instead of stipulating headcount requirements in contracts with suppliers. This approach provides flexibility to the supplier to decide on the manning level based on the workload, and design the jobs to make them more attractive, including higher wages and more reasonable working hours. This approach was adopted in the conservancy cleaning sector. It can help attract more older workers to take on positions that they might otherwise not have considered.


Training Grant 13. Under ADVANTAGE! the Committee recommends that WDA support a

training grant of up to $5,000 for each mature worker. This grant could be used to subsidize up to 90% of the training cost of the mature worker (including both external and on-the-job training), and the salary cost while the mature worker undergoes training (as an absentee payroll).

Placement Services 14. WDA should leverage on its employment facilitation services to better

assist employers to source for mature and older workers for their vacancies. WDA can also provide customized recruitment for companies who intend to recruit a large number of mature and older workers.

Retention Incentive 15. The Committee proposes that a retention incentive be introduced to pay a

retention benefit of up to $1,200 per newly hired mature worker over a period of 12 months, or $1,800 over 18 months. This should be targeted at lower educated mature workers. It should be paid directly to the mature worker to encourage him to take up and stay in the new job.

Pilot Implementation of ADVANTAGE! 16. The Committee piloted ADVANTAGE! between October 2005 to January

2006 to assess its viability, through WDA and its eight sectoral workgroups, to promote the employment of older workers and retention of workers above 62. The results of the pilot have been encouraging. As of 15 January 2006, 25 companies have committed to implement the scheme, involving more than 600 new hires of mature workers, re-employment of 100 workers approaching or above 62 and job redesign projects that will improve the work of 4,000 mature workers.

ADVANTAGE Project: ORANGE VALLEY NURSING HOME Orange Valley Nursing Home tapped on ADVANTAGE! through its job redesign project to employ 50 mature part-time Care Assistants who will help the residents in their daily living activities like personal hygiene, oral feeding and making of beds. The Care Assistants will undergo a six-month in-house training programme to perform the job. The job redesign will provide for flexi-hours and make it less physically demanding for mature workers with the use of equipment such as hoists, shower commodes and shower trolleys. This project aims to attract and retain local mature workers to contribute in the healthcare industry.


ADVANTAGE Project: NIPPON PAINT SINGAPORE PTE LTD Nippon Paint Singapore Pte Ltd redesigned its selection and storage of paint products in its logistics department and implemented bar coding to overcome the problem of erroneous selection due to failing eyesight of their maturing workforce. This benefited 14 older workers and created jobs for 2 new mature workers in the department.

ADVANTAGE! PROJECT: CHEW’S AGRICULTURE PTE LTD Chew’s Agriculture Pte Ltd will redesign its egg farming processes and jobs through job enlargement, job rotation and flexible work arrangements. This will create 33 new jobs for mature workers over 3 years in the areas of cooked egg line, organic farming and improved land products. It will also result in the retention of 4 workers beyond the age of 62 years in these new job assignments.

ADVANTAGE! Project: SCA PACKAGING ASIA SCA Packaging Asia will redesign its paper product manufacturing processes and purchase equipments to automate the manual process of gluing paper products. This will enable 55 mature workers to perform the work productively and will create jobs for 22 new mature workers.

ADVANTAGE! Project: MILLENNIUM AND COPTHORNE INTERNATIONAL LIMITED The hotels under the Millennium and Copthorne International Limited (Copthorne King’s Hotel, Copthorne Orchid Hotel, Grand Copthorne Waterfront Hotel, M Hotel and Orchard Hotel) tapped on ADVANTAGE! to employ and train 45 mature workers in various occupations such as housekeeping, security and kitchen services. Two of the hotels in the Group are also piloting a redesign of the housekeeping trolleys by retrofitting it with motors for ease of use by mature housekeeping attendants, which will result in the hiring of another 13 mature workers and benefiting 67 existing mature housekeeping attendants.


Consider Legislation for the Re-Employment of Older Workers Beyond the Age of 62 Years 17. While the goal is to raise the statutory retirement age beyond 62 years,

the Committee recognises employers’ concerns over the impact on cost and productivity as a result of recruiting and retaining older workers.

18. Japan is facing similar challenges of an ageing workforce, as well as the

same need to help older workers work longer. It has taken the approach to legislate the obligation for companies to either (i) raise the mandatory retirement age from 60 to 65 years; (ii) offer re-employment to workers at the age of 60 years; or (iii) remove mandatory retirement altogether. The Committee finds that the Japanese approach, in particular the obligation for companies to offer re-employment to workers when they reach the mandatory retirement age, is flexible and may be workable in our context.

19. Drawing on the experience of Japanese companies, the Committee finds

that the re-employment approach offers the following advantages:

a. While the statutory retirement age remains unchanged, retiring workers are given an opportunity to work beyond the statutory retirement age. In the medium term, this approach could pave the way for an eventual increase in the statutory retirement age.

b. It gives companies the flexibility to selectively re-employ the better

performing retiring workers. Their re-employment offer could be based on certain standards or criteria negotiated with the unions/workers. Raising the retirement age, on the other hand, is less flexible as it would require companies to keep all their workers up to the new retirement age without regard to the workers’ performance and fitness to work,

c. Re-employment after the statutory retirement age would not be a

right of the worker, but contingent on him meeting certain re-employment criteria. This would give workers clear performance targets for re-employment.

d. Companies could re-contract and re-negotiate the wage and

benefits of re-employed workers to reflect their job worth. Workers could have a reduced role in the company, with wages commensurate with the job value and contribution of the re-employed worker. This will address companies’ concern about the high cost of retaining older workers due to their seniority-based wages.


20. The Committee recommends that the Government study Japan’s system of legislating the obligation for companies to re-employ workers beyond the retirement age, and consider whether it can be adapted to suit Singapore.

21. In the meantime, the Committee recommends that the tripartite

partners work with companies to promote and implement the re-employment of older workers. The tripartite partners will work with selected companies, assisting them through the ADVANTAGE! scheme and the new Tripartite Guidelines to facilitate the re-employment of workers beyond the age of 62 years. Chapter 5 provides more details on the Tripartite Guidelines.

Case Example: TOYOTA, JAPAN’S RE-EMPLOYMENT OF WORKERS AFTER AGE 60 Toyota, Japan has a re-employment system that provides various opportunities for employees who desire employment after the age of 60 years, Japan’s current mandatory retirement age. Workers can be re-employed up to the age of 65 years if they meet selection criteria annually, such as health, work attitude and competency.

Case Example: ISETAN, JAPAN’S ELDER EMPLOYMENT SYSTEM

Isetan, Japan, named its re-employment scheme, the ELDER scheme. It re-employs older employees aged 60 to 65 upon the employee’s request. There is matching of the company’s manpower needs and the employee’s ability to make positive use of the employee’s ability and knowledge.

SME Manpower Scheme 22. To expand employment opportunities for the PMEs, the Committee

recommends that WDA implement a SME Manpower Scheme. The scheme could assist SMEs to recruit unemployed PMEs, including those above 40 years old, who have experience working in big companies. These PMEs can help upgrade the SMEs’ capabilities and facilitate their growth. For them, SMEs could provide good employment opportunities. Some of these PMEs may be mature workers. The Committee proposes up to 90% funding by WDA, for pre-placement training of the PMEs before they join the SME.

Expand Job Re-creation Programme 23. The Job Re-creation Programme (JRP) has been successful in providing

more employment opportunities for local workers, by enhancing the working conditions and job prospects of existing jobs to provide more meaningful careers for workers. Led by the NTUC with the support of the


government, unions and employers, thirteen sectors have so far been identified under the programme. These sectors are Cleaning, Community/Social Services, Construction, Education, Garment & Textile, Healthcare, Hotels and Hospitality, Horticulture and Landscape, Marine, Precision Engineering, Retail, Security, and Transport & Logistics.

24. Many of the local workers who found new careers under the JRP are older

workers. As at 31 Dec 2005, of the 4,600 Singaporeans who have been placed in jobs under JRP, about 55% were mature workers, aged 40 and above. For example, mature workers were recruited as retail assistants in supermarkets, pharmacists and service assistants in retail outlets, security officers in security companies, landscape technicians in the landscaping industry, and healthcare assistants in the hospitals.

25. In view of the positive results achieved by JRP, the Committee strongly

recommends that the programme be expanded to more sectors, for example, the real estate management and maintenance industry, so as to expand job opportunities for older workers.

*****


CHAPTER 5

THRUST 2: ENHANCING THE COST COMPETITIVENESS

OF OLDER WORKERS Introduction 1. While we need to expand employment opportunities for older workers, we

also need to ensure that the cost of employing and retaining older workers does not affect the business competitiveness of employers, which would ultimately undermine the employability and job security of the older workers. Three areas of concern have been identified:

a. Seniority-based wages which may cause salaries to rise faster than

job-worth;

b. Potential decline in productivity as workers age; and

c. Older workers may have a higher risk of serious illnesses and may incur higher medical expenses.

2. Since 1998, much effort has been undertaken to increase the cost

competitiveness of older workers, by driving wage restructuring at the company level towards a flexible and performance-based wage system, introducing CPF cuts and wage reductions of up to 10% after the age of 60 years, as well as implementation of the Portable Medical Benefits Scheme and the Transferable Medical Insurance Scheme.

3. Nevertheless, cost competitiveness remains a key challenge today

especially with the intense global competition. The Committee sees the need to push ahead with further measures to enhance the cost competitiveness of our older workers to raise their employability.

Key Recommendations 4. To address these concerns, the Committee recommends that the tripartite

partners work together to:

a. Accelerate wage restructuring to move away from seniority-based wage systems towards a more job-worth/performance-based wage system in which a worker is paid based on the value of the job and his contribution;


b. Pilot the adaptation of the Japanese model of competency-based wage system, as practised by leading Japanese companies;

c. Explore ways to convert existing company medical benefits to a

more portable system. This would mitigate the higher medical costs that employers may incur in employing older workers; and

d. Introduce a set of new Tripartite Guidelines to guide companies in

re-employing workers beyond the age of 62 years.

Accelerate Wage Restructuring 5. At the national level, wage restructuring has made good progress. As at

30 June 2005, 90% of the workforce in large enterprises (employing at least 200 workers) and 73% in small and medium enterprises (employing 25 to 199 workers) were under some form of flexible wages, with at least one key wage recommendation1 incorporated into their wage structure. However, more needs to be done, especially in respect of narrowing the maximum-minimum ratio, which is a key factor in moderating high wages for older employees.

6. Moving forward, the Committee urges more companies to adopt wage

systems which are fundamentally job-based and performance-based, where increments in wages are given on the basis of increased productivity and higher performance rather than seniority. Wages would then reflect the value of the job and the contribution of the worker to the company throughout the worker’s tenure. In so doing, older workers will be less at risk of being retrenched on the basis of being uncompetitive in terms of wage cost.

7. Some leading companies in Japan (see case examples on Canon and

Toyota) have already moved into such wage systems. The Committee sees the need for companies in Singapore to likewise actively review their wage systems so that they remain competitive.

1 The 3 key wage recommendations were: (i) implement variable bonus linked to Key Performance Indicators (KPIs); (ii) introduce the Monthly Variable Component (MVC) in wage structure; (iii) narrow the maximum-minimum salary ratio for the majority of employees to an average of 1.5 or less.


Case Example: CANON, JAPAN The Japanese consumer electronics giant, famed for its cameras and printers, has adopted a wage structure progressively for its employees since 2001. The new system can be visualised as one with several ‘boxes’ depicting different level of jobs and required competencies. Jobs are ‘banded’ into groups according to job value, job responsibilities and output. Employees holding jobs from the same ‘box’ will follow the same salary range/ratio (currently with an average minimum-maximum salary ratio of 2). Employees who perform will move out to a higher ‘box’ with higher pay. On the other hand, employees who are not performing can also be moved to a job from a lower ‘box’, with lower pay.

Exam

Exam

Assessment

T G1 G2

G3G4

M1M2

M3M4

M5Job Grade

Management Mission Band

G : Grade T : Temporary / Training

New Wage Policy Based on Jobs, Responsibility & Output

Job Group Bands & Management Mission Bands

Sala

ry

Employees have to be assessed before they are allowed to move up to another “box” grade. For example, employees in Grade 1 (G1) who are short-listed for promotion to G2 have to sit for two rounds of exams. The first round assesses an individual’s job performance ability in essay and multi-choice formats, focusing on analytical and problem-solving skills. The second round involves an interview exam with senior management staff. Likewise, employees short-listed for promotion from Grades 2 to 4 have to undergo similar assessments. All companies under the Canon Group will be adopting the new wage structure that moves away from the seniority-based system to focus more on competencies. Canon has completed a job re-evaluation exercise that introduces a global standard on remuneration of its employees. Companies in each region are given a specific timeframe to implement the system, and for the case of Canon Singapore, it intends to put the new wage structure in place within the next two to three years. The implementation process requires a mindset change among workers, as well as cooperation and support from the union in order to succeed. The reason why the new structure works in Japan is because workers are willing to change their mindsets. Source: NTUC News


Case Example: TOYOTA, JAPAN Over the past two decades, Toyota Japan is moving away from the traditional seniority-based pay structure towards one that emphasizes competency and contribution. Since the late 1980s, the world’s second largest car marker had introduced competency evaluation systems to recognize and reward performing staff members. The company also started the separation of job classification from job grade, starting with the introduction of competency evaluation and salary system reviews with the managerial levels. By year 2000, with the support of the union, the competency wage structure was gradually introduced to the rank-and-file workers. Programmes are put in place to facilitate employees with potential to move up the corporate ladder to take on higher responsibilities with better compensation packages. As of today, the salary components of a typical blue-collar worker comprise: Job Based Wage Component - 30% Individual Competence - 30% Team Efficiency Component - 20% Experience Based Component - 20% Although the salary structure is not entirely competency-based as yet, much has been done over the years to move away from the traditional seniority-based wage system, with the support of the union. Source: NTUC News

8. To support a shift towards wage systems where remuneration better

reflects the job-rate, companies will need to build up the following HR capabilities: a. Job evaluation – Proper job evaluation will have to be done to

analyse the job demands and responsibilities and the competencies required to perform the job, in order to determine the value of the job.

b. Training and career management – Management and

unions/employees must understand the new wage system, before there can be widespread acceptance. Identifying the skill-sets required for jobs and having a proper training and career management framework will help instil confidence among employees in the new wage system.

c. Robust performance appraisal – The appraisal system needs to

provide robust assessment on the competency and performance of the employee, so that the compensation given to employees would be fair and equitable.


9. The Committee recommends that the tripartite partners involving SNEF, NTUC and MOM make greater efforts to accelerate the national wage restructuring initiative towards a job-worth/performance-based wage system. To help companies restructure wages, companies can tap on ADVANTAGE!.

10. The Committee also proposes that the tripartite partners work with

selected companies to pilot the adaptation of the competency and performance-based wage system practised by some leading Japanese companies.

Mitigating Medical Costs of Older Workers 11. Older workers generally incur higher medical costs than younger workers,

especially in-patient costs. This can translate to higher cost of employing older workers. In 2004, the average hospital bill of a Class C and Class B2 ward for a person in the 50-64 age group was respectively about 1.3 and 1.7 times that of the average hospital bill across all ages (see Chart 5.1).

CHART 5.1 AVERAGE HOSPITALISATION BILL

BY AGE GROUP AND CLASS OF WARD IN 2004

0200400600800

1000120014001600

Ave

. bill

($)

All ages 50-64 65 and above

Age

Average Hospitalisation Bill by Age Group (2004)

Class CClass B2

Note: The hospitalization bill is net of government subsidies. It is the amount to be borne by the patient, through cash, Medisave or insurance payouts Source: MOH 12. The Committee notes that it is common practice for employers to provide

medical benefits for their employees. The more comprehensive the medical benefits provided, the heavier the consideration for medical


expenditure in the hiring decision by companies in taking on older workers. One way to moderate this effect would be for companies to limit their medical cost exposure per worker. This is possible under a scheme such as the Portable Medical Benefits Scheme (PMBS)2, introduced in 2003. However, PMBS in its current form has its limitations, and has not achieved widespread acceptance.

13. The Committee recommends that the tripartite partners explore ways

to convert existing company medical benefits to a more portable system. This would mitigate the higher medical costs that employers may incur in employing older workers.

Tripartite Guidelines on the Employment of Older Workers Above 62 Years Old

14. In Chapter 4, the Committee recommended that the Government consider

the feasibility of legislation to require companies to re-employ workers beyond the age of 62 years. In the meantime, the Committee proposes to work with companies to promote and implement the re-employment of older workers.

15. From employers’ feedback, one reason for not retaining workers beyond

62 years old is that the cost of retaining them might not be commensurate with their contribution. The Committee recommends that a set of new Tripartite Guidelines be introduced to guide companies in re-employing workers beyond the age of 62 years. It has formulated a set of Tripartite Guidelines, covering restructuring of wage systems, employment arrangements and adjustments to wages, medical and other benefits to facilitate employment of workers beyond the statutory retirement age of 62 years. This would guide employers and workers in their re-negotiation of employment terms and conditions. The tripartite partners will promulgate these guidelines to employers and workers.

*****

2 Under the Portable Medical Benefits Scheme (PMBS), an employer pays an additional 1% of an employee’s salary into his Medisave account, in lieu of employer’s group medical insurance, for the employee to purchase his own personal Medisave-approved medical insurance products. As an incentive, the employer gets tax deduction for the additional Medisave contribution. PMBS can help to enhance the cost competitiveness of older workers as companies would be paying the same amount in medical benefits for workers earning the same wage, regardless of age. From the worker’s point of view, medical coverage is individualized and portable, i.e. the employee is insured even when he is unemployed.


Tripartite Guidelines on the Employment

of Older Workers Above 62 Years Old

Restructuring wage systems and medical benefits 1 The tripartite partners, SNEF, NTUC and the Government, emphasize the importance of companies moving away from seniority-based wage systems to job-based and performance-based wage systems. In so doing, wages would better reflect the value of the job and the contribution of an employee to his company throughout his tenure. Older employees would be less at risk of being retrenched or retired on the basis of being uncompetitive in terms of wage cost. Employers would also be more willing to extend the employment of their workers beyond the statutory retirement age. 2 To help companies mitigate the higher medical cost of an older workforce, the tripartite partners encourage companies to make appropriate changes to their existing medical benefits schemes. Employment arrangements beyond the age of 62 years 3 Employers should offer to retain workers with acceptable performance and who are physically fit, to work beyond the age of 62 years. The following arrangements can be adopted:

(a) Retaining workers in the same job, with appropriate adjustments in wages and benefits based on reasonable factors, where necessary;

(b) Retaining them with modifications to their existing jobs or re-

deploying them to mentorship positions or different jobs on re-negotiated terms; or

(c) Retaining them on flexible work arrangements, such as part-time,

job-sharing and other appropriate schemes. Where appropriate, employers can also consider engaging their workers above age 62 as independent contractors on project basis, as a mean of providing gainful employment for these workers (See next page)


Tripartite Guidelines on the Employment of Older Workers Above 62 Years Old (continued from previous page)

Wage adjustments

4 The following principles should be adopted, taking into consideration the extent of the seniority element in the wage structure:

(a) Where the employer’s offer is to retain the employee in the same job,

the wages could be adjusted down to the level of a younger employee with the requisite experience and competency for the job, with the mid-point of the salary range being a possible reference; and

.

(b) Where re-deployment in another job is offered, the new wage should

take into account the value of the job, the employee’s relevant experience and other attributes.

In either case, the new wage payable to the employee after the adjustment should not be lower than the level of a new hire for that job. Adjustment of benefits

5 Employers have indicated that the higher medical cost of older workers can be a significant burden. However, lowering medical costs to employers has to be balanced with ensuring that older workers would still have adequate coverage.

6 The following options to adjust medical benefits for employees above 62 years old can be considered:

(a) Older workers to co-pay for extension of medical benefits beyond the age of 62 years;

(b) Employers to impose caps on medical benefits claimable; or

(c) Employers to make additional Medisave contributions to employees above 62 years old, in lieu of providing for in-patient medical benefits. Employers to continue to co-pay employees’ outpatient expenses.

7 On the issue of retrenchment benefits, the present tripartite understanding and practice is that there will be a significant discount on the years of service in the computation of retrenchment benefits for workers retrenched above the age of 60years.

(see next page)


Tripartite Guidelines on the Employment of Older Workers Above 62 Years Old (continue)

8 Currently, when an employee retires at the age of 62 years, the issue of retrenchment benefits for workers retrenched above the age of 62 years does not arise. Stipulating that employers should pay retrenchment benefits to older workers employed beyond the age of 62 years and who are retrenched prior to completing their contracts, may discourage employers from retaining them. Hence, employers should not be required to pay retrenchment benefits for such employees.

9 For workers who wish to continue working and whom employers are not able to offer extension of employment beyond the age of 62 years or who are retrenched after the age of 62 years, the employers should offer them outplacement assistance. If necessary, employers can work with WDA and NTUC on the outplacement assistance.

10 Employers and employees above 62 years old should also work together to make adjustments to other benefits where necessary, such as annual leave and long service benefits, in conjunction with changes to job arrangements.

*****


CHAPTER 6

THRUST 3 RAISING SKILLS AND VALUE OF OLDER WORKERS

Introduction 1. Skills upgrading and re-training are key to enhancing the employability of

older workers. Investing in training older workers is in the interest of employers: a. It will likely be more cost effective for a company to upgrade an

older worker than to recruit and train a new worker; b. Many employers have found that older workers tend to be more

dedicated and loyal to the company; and

c. Older workers can themselves serve as effective coaches and trainers.

2. Age is no handicap to learning. But, older workers do learn differently

compared to their younger counterparts. Training for older workers should therefore take into account their learning styles and practical know-how.

Key Recommendations 3. The Government has already been investing substantial resources to

upgrade the skills of the workforce. The Committee recommends that the Government continues to:

a. Accord higher financial assistance to the training of older workers to

help them upgrade their skills;

b. Help older workers upgrade through the expansion of the Workforce Skills Qualifications (WSQ) System and the Employability Skills System (ESS); and

c. Provide opportunities for older workers to be trained and to take up

new jobs through the Place and Train Programme and Strategic Manpower Conversion Programme (SMCP).


Accord Higher Financial Assistance for Training of Older Workers 4. The Government has been providing higher financial assistance to

employers under WDA’s Skills Development Fund (SDF) and Lifelong Learning Endownment Fund (LLEF) for the training and skills upgrading of mature and older workers. For these workers, employers can obtain 90% course fees funding compared to 80% for the other age groups, and at a higher subsidy cap. For absentee payroll, employers are subsidised at up to $6.80 per trainee hour for mature workers compared to $6 per trainee hour for the other age groups.

5. The Committee recommends the continuation of higher financial

assistance to incentivise companies to train their older workers. NTUC will promote more actively the training of older workers. SNEF will also reach out to and encourage more employers to invest in the training of their older workers.

Expand Singapore Workforce Skills Qualifications (WSQ) System and Employability Skills System (ESS) 6. The Workforce Skills Qualifications (WSQ) system, introduced by WDA,

will make training more relevant and accessible to workers. This will be especially helpful to older workers who have left school for many years, and those who are less educated. The Committee notes that the Government is committing $100 million to establish the WSQ in various industry sectors and to establish key training institutions in these sectors.

7. The Committee also notes that the Government is considering committing

$30 million over the next three years under the Employability Skills System (ESS) to help workers upgrade in basic literacy, numeracy and other work skills. .

8. The Committee supports WDA’s efforts to set up the WSQ and ESS.

It recommends that WDA expand the two programmes so that more older workers can benefit from them. NTUC is committed to encourage older workers to go through the WSQ and ESS. SNEF will also urge employers to tap on WSQ & ESS to upgrade or re-skill their older workers.

Place and Train Programme and Strategic Manpower Conversion Programme (SMCP) 9. WDA has also been implementing many Place and Train programmes to

re-train older workers whose skills have or are becoming obsolete, and re-direct them to other growth areas where there are job opportunities. This


helps industries plug their manpower and skills gaps, and also builds up a pipeline of older workers, who can take up new jobs.

10. For the Professionals, Managers and Executives (PMEs), WDA has the

Strategic Manpower Conversion Programme (SMCP) to facilitate workers to make mid-career switches to emerging or growth sectors, such as healthcare. The Place and Train Programme and the SCMP provide funding for course fees and absentee payroll or training allowances for full time training.

11. The Committee supports WDA’s programmes in providing

opportunities for older workers to train and take up new jobs through the Place and Train Programme and SMCP. It recommends that WDA continue to develop more of such programmes in new industry sectors. The Committee urges employers to come forward and work with WDA on new Place and Train programmes and SMCP for mature and older workers, and tap on the incentives available through these programmes.

*****


CHAPTER 7

THRUST 4: SHAPING POSITIVE PERCEPTIONS

TOWARDS OLDER WORKERS Perceptions of Older Workers Strengths of older workers 1. In a 2003 MOM survey on employers’ perceptions and attitudes towards

employing older workers1, 80% of employers surveyed felt that a worker aged 40 and above would fit into their establishment, especially those in the services sector. Larger firms also tended to be more receptive towards taking on older workers.

2. The most common reason cited for older workers being able to fit into the

organisations was that they had the relevant skills and work experience. Employers also acknowledged that mature workers tended to be more reliable and less likely to job-hop. In addition, employers also recognised that older workers were valuable in imparting knowledge and mentoring younger staff.

Negative perceptions of older workers 3. In the same survey, employers also cited some challenges. In particular,

mature workers were viewed as being unable to meet the physical demands of the job, had high wage expectations, lacked certain skills and experience, and were less adaptable and trainable. Mature workers were also believed to pose higher medical costs as they were more susceptible to health problems. There were also concerns that their continued presence in an organisation might also stifle the progression of their younger co-workers.

1 The survey was conducted in mid 2003 on close to 8,000 private sector establishments each with at least 25 employees.


Addressing Negative Perceptions 4. While these challenges may be true for some mature workers, they should

not be generalised across all mature and older workers. The Committee recognises the need to address the negative perceptions about older workers:

Negative Perceptions Addressing the Perceptions

• Older workers are less adaptable

• Most older workers are willing to train and learn new skills.

• Older workers possess obsolete skills

• All workers need to undertake life-long learning to keep their skills relevant, not just older workers.

• Older workers tend to possess better soft and people skills, which do not become obsolete.

• Older workers are not be able to meet physical demands of the job

• Many jobs can be mechanised or automated for greater productivity. In so doing, they would also be suitable for older workers to perform.

• Older workers incur more for health care cost

• Healthcare costs can be mitigated should companies move towards portable medical benefits schemes.

• Older workers may have high wage expectations

• Survey findings indicate that older workers typically are willing to take a pay cut to start in a new job2.

• With increasing adoption of flexible wage structures, there is greater scope for employers to pay older workers based on performance rather than seniority.

• Retention of older workers limit the opportunity for career advancement for younger cohorts

• With proper career planning, the job scope of older workers can be adjusted to better leverage on their skills and experience whilst still allowing younger workers to progress.

2 The findings are from a survey conducted by the Ministry of Manpower in August 2003 of 2,451 locals, comprising 1,978 employed and 473 unemployed persons, to find out workers’ expectations. The survey data is supplemented by materials collected from focus group sessions and interviews with unemployed individuals.


Key Recommendations 5. To positively shape perceptions and address prejudices by some

employers against older workers, the Committee recommends that:

a. A Tripartite Alliance for Fair Employment Practices, comprising representatives from NTUC, SNEF and MOM, be set up to promote mindset change among employers, employees and the general public to adopt positive approaches and practices that are fair and equitable to all workers. The Alliance could launch promotional initiatives such as recognising employers who are exemplary in implementing fair employment practices;

b. SNEF update the Code of Responsible Employment Practices to

serve as a guide for responsible practices towards hiring and managing older workers, and to publish a Handbook to assist companies in implementing the practices promulgated in the Code;

c. The tripartite partners update and further refine the Tripartite

Guidelines on Non-Discriminatory Job Advertisements to ensure they continue to be relevant; and

d. The tripartite partners embark on a major outreach and promotional

effort to employers, employees and the customer public to promote age-friendly employment practices, for older workers to make the necessary adjustments to continue working longer, and to positively shape public perceptions towards older workers.

Setting Up of A Tripartite Alliance To Promote Fair Employment Practices 6. The Committee strongly advocates fair and objective employment

practices. Employers should hire workers based on merit, such as qualifications, skills, experience and other attributes relevant to the job. Given the concerns of older job-seekers that they are not given a fair opportunity to prove themselves when applying for jobs, the Committee is of the view that more should be done by the tripartite partners via promotional efforts to encourage employers to adopt fair and objective employment practices.

7. The Committee recommends that a Tripartite Alliance for Fair

Employment Practices be set up, comprising key representatives from the NTUC, employers and the Government. The tripartite body could promote mindset change among employers, employees and the general public to adopt positive approaches and practices that are fair and equitable to all workers. Its terms of reference could be to:


a. Formulate guidelines for fair employment practices towards workers

of all ages, genders, races and religion;

b. Initiate a fair employment movement through national and sectoral programmes to facilitate broad and effective adoption of fair employment practices;

c. Partner relevant agencies to develop industry capability and training

programmes for managers, supervisors and union leaders on fair employment practices;

d. Profile case studies and best practices to create greater awareness

and to facilitate sharing of experiences among employers, unions and the public; and

e. Give recognition to employers that are exemplary in implementing

fair employment practices. 8. Currently, there are several awards to recognise employers with good HR

practices but there is no specific award to recognise employers who are exemplary in implementing fair employment practices. The Committee therefore recommends that the proposed Tripartite Alliance consider recognising such exemplary employers.

Updating of the Code on Responsible Employment Practices 9. The Committee recommends that SNEF update the Code on

Responsible Employment Practices. This Code, issued earlier by SNEF/ Singapore Business Federation (SBF) and NTUC, provides advice to employers on what constitutes objective, fair and responsible employment practices, and encourages the adoption of such practices, including not discriminating against any employee on the basis of age.

10. While the Code remains relevant in today’s environment, it ought to be

updated to emphasise age-friendly employment practices, amongst others. SNEF could also produce a handbook to the Code to assist companies in implementing the practices promulgated in the Code, and the Tripartite Alliance could promote the Code and Handbook to employers.


Updating of the Tripartite Guidelines on Non-Discriminatory Job Advertisements 11. To advise employers not to hire on the basis of subjective or

discriminatory criteria, MOM, SNEF and NTUC had jointly formulated the Tripartite Guidelines on Non-Discriminatory Job Advertisements in 1999. The guidelines on job advertisements advise employers to select candidates based on merit such as qualifications, skills, experience and other attributes which are relevant to the requirements of the job.

12. Since the release of the Tripartite Guidelines, the incidence of

discriminatory job advertisements in the major newspapers has dropped sharply from 30% in 1999 to less than 1% today. The Committee recommends that MOM, SNEF and NTUC update and further refine the guidelines to ensure that they continue to be relevant. The Tripartite Alliance could promote the guidelines to employers.

Major Outreach Efforts To Positively Shape Perceptions About Older Workers 13. To change misperceptions about older workers, the Committee

recommends that the tripartite partners embark on a major outreach and promotional effort targeted at employers, workers and the general public. These efforts would support the other initiatives aimed at enhancing older workers’ employability.

14. Chart 7.1 illustrates the strategies that would be undertaken by the

relevant parties, SNEF, NTUC, MOM and WDA, to positively shape perceptions about older workers. Each partner could take on outreach and promotional activities where they are most effective. The tripartite partners could also collaborate and jointly reach out to the industry and workers for greater impact through a new tripartite unit, the Tripartite Action Group (TAG) (details in Chapter 9).

Outreach to employers 15. The Committee recommends that SNEF take the lead in the outreach

to employers. Through its industry groupings, SNEF could

• Address industry-specific issues related to the employment and re-employment of older workers;

• Provide consultancy services to employers and initiate project

collaborations with interested companies. These include the implementation of flexible work practices as well as appropriate


workplace design and health promotion that can enable older workers to stay employed longer;

• Emphasise to companies the importance of mitigating the costs of

employing older workers by moving from seniority–based wage structures to more flexible and performance-based wage structures and from fully paid medical benefits to the portable medical benefits scheme or other forms of co-payment schemes; and

• Identify and give recognition to exemplary companies that have put

in place age positive practices to help share and shape best practices.

CHART 7.1: OUTREACH BY TRIPARTITE PARTNERS

Target Audiences: Employers, Older Workers, All Workers, General PublicSNEF

Employers Outreach

Outcome Employers convinced of the value of older

workers and implement changes to hire and retain older workers

NTUC

Older Workers Outreach

Outcome Older workers undertake

skills upgrading, and receptive to changes in employment terms and

to working longer

MOM/WDA

Older Workers & Industry Outreach

Outcome

Employers open to hiring & retaining older

workers; older workers upgrade their skills &

work longer

Mature Workers - Singapore’s Valuable Resource

Mass Outreach Activities – under each TriCom Member and the Tripartite Action Group

• Handbook on Code of Good Employment Practices

• Training for HR staff • Awards & recognition • Updated guidelines on

Job Advertisements

• Awareness campaign • Age Management Guide • Updated guidelines on

Job Advertisements

• Publicity of good case studies through NTUC outreach channels

• Tips for workers • Updated guidelines on

Job Advertisements


16. The Committee also recommends that these efforts be complemented by the publication of an Age Management Guide on good HR and workplace practices that would facilitate employment of older workers. This Guide would help companies implement age-friendly HR practices such as re-designing jobs and changing employment arrangements and workplace practices to enable older workers to be more productive and to remain working longer.

Outreach to workers 17. The Committee recommends that NTUC take the lead in the outreach

to workers. They could leverage on their network of 63 unions, the NTUC News and other existing platforms. NTUC could provide tips to workers on what they can do to help enhance their own long term employability.

18. The key message to workers is that they can remain productive in the

workforce regardless of age. They should aim to remain in the workforce longer to help ensure a higher level of retirement adequacy for them while continuing their positive contribution to the workforce and society. However, adaptability is key. Certain adjustments might be necessary such as expectations over pay as they get older and being willing to undergo skills upgrading.

General outreach 19. For the general public, the Committee recommends that WDA

conduct a targeted awareness effort to positively shape perceptions of older workers. This initiative could be targeted at employers, older workers and the customer public. It could reinforce the following messages:

a. To employers: older workers have strengths, which employers can

benefit from. b. To older workers: working longer will help older workers enhance

their retirement security through their golden years. Workers also need to continually upgrade their skills to stay employable, and to adjust their expectations to be in line with the nature of jobs, work scope and salaries.

c. To the customer public: as our workforce ages, the customer public

should accept and appreciate the positive attributes of older workers, especially those in the service industry.

*****


PART III IMPLEMENTATION

CHAPTER 8

EFFECTING CHANGE AT SECTORAL LEVEL Introduction 1. The majority of older workers are employed in the services sector. The

incidence of employed older workers varied across industries. There are more older workers working in the Hotels & Restaurants and Transport, Storage & Communications industries than in Financial Services (see Table 8.1).

TABLE 8.1: EMPLOYED PERSONS AGED 50 & OVER

IN SELECTED INDUSTRIES, JUNE 2004

Industry Incidence (%) Hotels & Restaurants 34.0 Transport, Storage & Communications 28.5 Manufacturing 18.8 Personal, Health & Social Services 13.5 Public Administration & Education 13.0 Financial Services 10.7 Source: Labour Force Survey, MOM

Formation of Sectoral Workgroups 2. The Committee recognizes that different industry sectors have different

manpower requirements and employment practices. For measures to enhance the employability of older workers to be effective in any particular sector, they would have to address the specific needs and challenges at the sectoral level.

3. The Committee therefore formed 8 workgroups to examine at the sectoral

level the challenges that older workers face in remaining employable, as well as to contextualize and promote the implementation of the Committee’s recommendations in their respective sectors. These sectoral workgroups were:

a. Manufacturing; b. Transport & Logistics; c. Healthcare;


d. Hotel; e. Food Industry; f. Banking; g. Insurance; and h. Public Sector.

4. Their Terms of Reference were:

a. To identify the prevailing employment practices as well as training

and development opportunities for older workers within the sector; b. To showcase and publicise best employment practices and training

as well as development programmes for older workers within the sector;

c. To provide inputs to the Tripartite Committee on measures to

enhance the employability of older workers, as well as to identify jobs in the sector that are suitable, or which could be suitably re-designed for older workers;

d. To contextualise the Tripartite Committee’s recommendations for

the respective sectors; and e. To help promote the implementation of the Tripartite Committee’s

recommendations in the respective sectors, including introducing pilot schemes where feasible.

Sectoral Workgroup Findings and Recommendations 5. Surveys were conducted with companies within the workgroups and, in

some sectors, those outside of the workgroups. The aim was to gather information on prevailing employment practices and to identify training and employment opportunities for older workers in each sector.

6. The survey findings1 suggested that it is not uncommon for companies to

retain some of their workers beyond the present statutory mandatory retirement age of 62 years. This is especially so in the hotel sector, where 95% of employers surveyed indicated that they have done so. Factors considered by employers in retaining these workers include the workers’ performance, health, work attitude and skill-sets. These workers are

1As the number of companies surveyed is small in some sector surveys, the results would not be representative of the sectors. However, it provided some insights into the employment practices and opportunities available in the various sectors.


usually retained on fixed-term contracts, with re-negotiated employment terms based on the value of their jobs.

7. The findings revealed that the cost of providing medical benefits to

employers is generally higher for older workers, across all sectors. The surveys also identified employers’ perceptions of older workers, which are described in Chapter 7 of this report.

8. The workgroups recognized that adjustments have to be made in

employment practices and in some cases, work processes, to better meet the needs of an ageing workforce. The workgroups also recognized that older workers are valued employees with their experience and skills, and are an important part of the workforce.

9. The proposed ADVANTAGE! scheme was well received by employers in

the workgroups. Some workgroups, such as the Manufacturing Workgroup and the Transport & Logistics Workgroup have started to tap on the job re-design grant under the ADVANTAGE! scheme to undertake pilot projects to make jobs more suitable for older workers. The Hotel Workgroup would also be working with companies in their sector to promote the ADVANTAGE! scheme.

10. Most of the workgroups were also supportive of extending beyond the

retirement age, the employment of workers who want to continue working and who are medically fit and have acceptable performance. Older workers, however, should be prepared to work in different positions within their organisations and accept revised wage and benefits packages that are based on job worth and performance.

11. Some workgroups proposed that employers consider pre-age 62 planning

for older workers. This could include providing job-sharing and part-time work opportunities for older workers if they prefer to work shorter hours, re-deploying older workers from physically demanding work to lighter work, and introducing career counselling and performance management programmes.

12. All workgroups have identified many good age-friendly practices within

their respective sectors, as well as introduced a series of initiatives and pilot projects to promote the employment and retention of older workers.


Conclusions 13. The Committee has considered the findings and proposals from the

sectoral workgroups and incorporated them into this report where feasible. Details of the findings, recommendations, good company practices and pilot projects proposed by the sectoral workgroups can be found in Book 2 of the Committee’s Report.

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CHAPTER 9

IMPLEMENTATION STRATEGIES AND MONITORING OF OUTCOMES

Setting up of the Tripartite Action Group (TAG) 1. It is important that a concerted effort be made to help companies make

key changes to their workplace and employment practices to hire and re-employ older workers. This could begin with interested early movers and later, build up momentum involving more companies and organizations.

2. The Committee therefore proposes that a tripartite unit, the Tripartite

Action Group (TAG) be established to operationalise the Committee’s recommendations, in particular, to:

a. Promote and support companies in making workplace changes to

implement age-friendly employment practices; and

b. Help older workers improve their employability. 3. For age-friendly practices to be sustainable and practical, they need to

make business sense to companies. TAG would work closely with companies to promote and facilitate concrete changes in the workplace to employ and retain older workers. The Committee therefore proposes that SNEF take the lead in managing the work of TAG. Together with the support of the Government and the unions, TAG would play a key role in achieving the Committee’s desired outcomes.

4. The work of the TAG would complement that of the Tripartite Alliance for

Fair Employment Practices. The former would focus on the implementation of recommendations to help older workers and promotion of age-friendly practices, while the latter would focus on fair employment practices for the workforce in general.

Initiatives under the TAG 5. In addition to the outreach efforts outlined in Chapter 7, the Committee

proposes that TAG initiate the following key projects over the next two years:


a. Promote the age-related aspects of the Code of Responsible

Employment Practices b. Promote Responsible Job Advertisements

The TAG could champion age friendly and responsible job advertisements by inviting companies that are recruiting workers to advertise under the banner of “Responsible Job Advertisement”. SNEF’s website could be used as the initial launch pad for the campaign.

c. Train HR personnel and line managers

TAG could conduct training for companies on responsible and age-friendly HR practices. One module could be targeted at HR practitioners and cover issues on responsible and age-friendly employment practices. Another module could be targeted at managers and other management personnel, covering job evaluation, redesign of employee benefits, job appraisal and management of older workers.

d. Facilitate industry projects on enhancing the employability of older

workers

TAG could also facilitate industry projects that can enhance the employability of older workers. Some projects being considered include to:

i. Collaborate with Singapore Polytechnic to leverage on

mechanical and manufacturing engineering solutions to overcome common industry challenges in employment of older workers.

ii. Set up a contact point for older casual workers, to help match

them with employment opportunities.

iii. Assist companies to implement flexible work practices, appropriate workplace design and health promotion in order to help older workers to continue working.

iv. Provide consultancy services to companies to restructure their

wage and benefits structure. e. Organise regular forums/ discussion sessions and consultancy

services


TAG could leverage on regular forums and discussion sessions held by SNEF and NTUC to share best practices on age-friendly employment practices among companies. TAG would advise employers of the various avenues and schemes to assist them to introduce changes to enhance the employability of older workers.

f. Develop resource materials on age-friendly practices in Singapore

The proposed Age Management Guide on good HR and workplace practices will provide a good reference source for age-friendly practices. TAG could continue to actively source for companies that have put in place good practices to enhance the employability of older workers. The data could be collated and stored in SNEF’s website as a resource centre for companies.

Targets 6. As highlighted in Chapter 4, the Committee recommends that the

tripartite partners target to work with around 200 companies, over the next 2 years, to implement its recommendations. A measure of the success of enhanced employability of older workers would be an increase in the resident Employment Rate (ER) over time.

7. The Committee recommends that the tripartite partners target to

raise the resident ER of older workers aged 55 to 64. The ER is selected as it captures whether older workers are able to find employment1, which is the ultimate objective of the Committee’s recommendations. In setting its targets, the Committee considered our current ER levels and those of other countries/economies. It recommends setting total ER targets for the 55-59 and 60-64 age groups to reach 2004 levels of the OECD countries (see Table 9.1) in 5 years, i.e. by 2011: a. To increase resident ER for the 55-59 age group from 55.6%2 to

61%; and b. To increase resident ER for the 60-64 age group from 33.3%2 to

40%.

1 The Committee notes that ER does not capture variations in the size of the labour force when job seekers stop to look for work or leave the labour force either temporarily or permanently. This is better captured by LFPR. The Committee does not propose to set a target for LFPR but this indicator should be monitored. 2 Source: Labour Force Survey 2004, MOM. 2005 figures were not available.


8. These are challenging targets, but attainable if the full range of the

Committee’s recommendations are effectively implemented.

TABLE 9.1: EMPLOYMENT RATE OF POPULATION AGED 55-64 FOR SELECTED COUNTRIES, 2004

Singapore

2004 (Actual)

2011 (Target)

OECD UK US Japan Korea HK Taiwan

Age 55-59 55.6 61 61.2 67.7 68.4 73.5 63.4 49.9 47.2

Age 60-64 33.3 40 38.7 41.3 49.0 51.5 52.7 26.6 32.8

Source: Compiled from various sources by MOM Monitoring of Outcomes 9. As the raising of employability of older workers is a complex and multi-

faceted challenge, and many of the recommendations will take time to implement, the Committee recommends that it continues its work for another year. It would monitor the implementation of its recommendations as well as oversee the work of the TAG. It will review the progress at the end of one year and fine-tune its recommendations if necessary before submitting its final report.

Conclusion 10. The Committee’s recommendations are aimed at encouraging employers

to recruit older workers, helping older workers stay employed longer, actively shaping perceptions about older workers and encouraging fair employment practices. The Committee seeks the support of employers, older workers and the general public for this national effort to upgrade and uplift the older segment of our workforce.

11. To achieve these desired outcomes, a co-ordinated and sustained effort

by employers, workers and unions, and the Government is required. The Committee is confident that with the strong tripartite spirit and collaboration, its recommendations will enhance the employability of older workers and raise their effective retirement age.

*****


ANNEX A PAST EFFORTS TO RAISE EMPLOYABILITY OF OLDER WORKERS Tripartite Committee on the Extension of the Retirement Age 1. In November 1995, the Tripartite Committee on the Extension of the

Retirement Age was appointed to study how the statutory Retirement Age could be progressively raised to 67 years. The Committee was tasked to examine the cost implications of a higher retirement age to ensure that the cost of retaining older workers would not undermine Singapore’s long-term competitiveness. Specific issues studied included the seniority-based wage structure, medical benefits and retrenchment payments.

2. In formulating its recommendations, the Committee considered the need

to allow the workers to continue working beyond the age of 60 years and earn a regular income, increase their old age savings and lead a more meaningful and productive life. The Committee was also conscious that the need to enhance older workers’ cost competitiveness through cost-cutting measures should not discourage older Singaporeans from remaining in the workforce.

3. The recommendations of the Committee which were accepted by the

Government, and which have since been implemented, are summarised below:

a. To raise the statutory retirement age from 60 to 62 years with effect

from 1 January 1999; b. To allow up to 10% reduction in wage costs of employees above 60

years; c. To reduce employers’ CPF contribution from 7.5% to 4% for

employees aged above 60 to 65 years (currently 3.5%); d. To cap the service period for the computation of retrenchment

benefits at 25 years and limit the benefits for employees near or above the age of 60 years1;

1 The proposal to cap the retrenchment benefits has been integrated into the current Tripartite Guidelines.


e. To replace the seniority-based wage system with the base-up wage system2 and to reduce the maximum-minimum salary ratio to 1.5 or other appropriate ratio3;

f. To introduce an alternative medical benefit scheme to reduce

employers’ medical costs4; and g. To allow re-deployment and outplacement of older workers to

suitable jobs. Inter-Ministerial Committee on the Ageing Population 4. The Inter-Ministerial Committee on the Ageing Population (IMC) was set

up in October 1998 to build on the work done by earlier national committees5 to deal with the issues arising from an ageing population. The IMC was a multi-sectoral committee comprising representatives from the public, private and people sectors. In April 1999, the IMC formed six workgroups to review and make recommendations on specific areas, namely Social Integration of the Elderly, Health Care, Financial Security, Employment and Employability, Housing and Land Use Policies, and Cohesion and Conflict in an Ageing Society.

5. The recommendations made by the workgroup on Employment and

Employability were as follows6:

a. To develop “Golden Manpower Centres” to provide one-stop training, counselling and job placement;

b. To increase training opportunities for older workers by providing

training subsidies, reducing academic barriers, focusing training in the community and service sectors and encouraging older workers to take responsibility for lifelong learning; and

2 Now called the Flexible and Performance-Based Wage System. 3 Wage restructuring efforts are on-going and are jointly undertaken by tripartite partners. 4 This has been implemented in the form of the Portable Medical Benefits Scheme (PMBS). 5 Earlier committees includes the Committee on the Problems of the Aged (1982-1984), Advisory Council on the Aged (1988-1989), National Advisory Council on the Family and the Aged (1989-1998) and Inter-Ministerial Committee on Health Care for the Elderly (1997-1999). 6 These recommendations have since been implemented by WDA. WDA and its partners have set up Distributed CareerLink Centres around Singapore to provide services in employment and training assistance. To increase training and employment opportunities, WDA has put in place on-going initiatives such as the Employment Skills System, Job Re-Creation Programme and Re-employment Assistance Programme.


c. To increase employment opportunities for older workers by

recognising companies that emphasise skills upgrading and elder-friendly work arrangements, review guidelines for issuing business licenses to elderly entrepreneurs, review legislation and guidelines to promote flexi-time and part-time work and encourage portable medical insurance.

Economic Review Committee 6. The Economic Review Committee (ERC) was convened in December

2001 to review Singapore’s development strategy and formulate a blueprint to restructure the economy. The CPF working group and the wages working group were set up under the ERC’s Sub-Committee on Taxation, Wages, CPF and Land to review the systems on CPF contributions, wages and employment benefits. The working groups recommended changes to place these systems on a sound and rational basis and to better meet the needs of companies and employees in a rapidly changing business environment.

7. The recommendations pertinent to enhancing the employability of older

workers are as follows: a. To refine and promote the adoption of the Base-Up wage system

(renamed as the “Competitiveness Base Wage System”), and to work towards narrowing the maximum-minimum salary ratio to 1.5 within 2 collective agreements;

b. To restructure outpatient benefits to co-payment with annual

individual budget, direct co-payment with additional Medisave contribution as trade-off or direct co-payment with cash incentives as trade-off;

c. To restructure inpatient benefits to either the Portable Medical

Benefits Scheme (PMBS) or the Transferable Medical Insurance Scheme (TMIS);

d. To consider making adjustments to the existing tax structures on

medical benefits and providing one-off assistance to older workers and workers with pre-existing illness to encourage adoption of PMBS or TMIS;

e. To keep employer’s CPF contribution rate for employees in the 50-

55 age group at its prevailing rate of 16%; and


f. To lower the employee’s CPF contribution rate for workers in the 50-55 age group from 20% to 16%.

CPF Changes 8. CPF contribution rates have been progressively lowered over the years to

improve the wage competitiveness of our local workforce, with the consideration that workers’ retirement adequacy should not be adversely affected. For older workers aged above 50 to 55, the employers’ contribution rate was lowered in Jan 2005 from 13% to 11%, and from 11% to 9% in Jan 2006. See below for the chronological listing of the changes (note that some actual reductions were greater in magnitudes than recommended by the various Committees due to other measures undertaken as a result of the prevailing economic conditions):

Contribution Rate (%)

Date Employee Age By

EmployerBy Employee Total REMARKS

55 & below 20 20 40 55 – 60 7.5 12.5 20 60 – 65 7.5 7.5 15

From Jul 1994

Above 65 5 5 10

55 & below 10 20 30 55 – 60 4 12.5 16.5 60 – 65 2 7.5 9.5

Jan 1999

Above 65 2 5 7

Reduction in employers’ CPF as part of cost reduction package to lower business costs and preserve jobs.

55 & below 12 20 36 55 – 60 4.5 12.5 17 60 – 65 2.5 7.5 10

Apr 2000

Above 65 2.5 5 7.5

Partial restoration of CPF reductions due to conducive economic conditions.

55 & below 16 20 36 55 – 60 6 12.5 18.5 60 – 65 3.5 7.5 11

Jan 2001

Above 65 3.5 5 8.5

2nd partial restoration of CPF cut as economic conditions continued to improve.

55 & below 13 20 33 55 – 60 6 12.5 18.5 60 – 65 3.5 7.5 11 Oct

2003 Above 65 3.5 5 8.5

CPF retuning: Except for older workers above 55 years, contribution rates were lowered to improve the competitiveness of the local workforce.

50 & below 13 20 33 50 – 55 11 19 30 55 – 60 6 12.5 18.5 60 -- 65 3.5 7.5 11

Jan 2005

Above 65 3.5 5 8.5

Contribution rates for workers aged 50-55 were reduced to enhance the employability of older workers.


Contribution Rate (%) Employee Date REMARKS Age By By Total Employer Employee50 & below 13 20 33 50 – 55 9 18 27 55 – 60 6 12.5 18.5 60 -- 65 3.5 7.5 11

Jan 2006

Above 65 3.5 5 8.5

Further reduction of contribution rates for workers aged 50-55.


ANNEX B

COMPOSITION OF THE TRIPARTITE COMMITTEE ON EMPLOYABILITY OF OLDER WORKERS

Chairman Mr Gan Kim Yong

Minister of State for Education and Manpower

Employers’ Representatives Mr Stephen Lee Chairman, Singapore Business Federation &

President, Singapore National Employers Federation

Mr Alex Chan

Vice President, Singapore National Employers Federation & Executive Director, MMI Holdings Ltd

Mr Jimmy Quah

Managing Director, Delphi Automotive Systems (Singapore)

Mr William Da Silva Honorary Secretary, Association of Small & Medium Enterprises

Mr Kiyohiko Niwa

Deputy Managing Director, Sony Electronics (Singapore)

Mr Alexander Melchers President, German Business Association

Mr Koh Juan Kiat Executive Director, Singapore National Employers Federation/Singapore Business Federation

Union Representatives Mr John De Payva President, NTUC

Mr Nithiah Nandan Vice President, NTUC Central Committee

Mdm Halimah Yacob Assistant Secretary-General, NTUC

Ms Adeline Sum CEO, NTUC Choice Homes Co-operative Ltd

Mr Yeo Guat Kwang Director, Quality Worklife Department, NTUC

Ms Cham Hui Fong Director, Industrial Relations Department, NTUC


Government Representatives Mr Leo Yip Permanent Secretary, Ministry of Manpower

Ms Yong Ying-I

Permanent Secretary, Ministry of Manpower (up to 30 June 2005)

Mrs Ow Foong Pheng Deputy Secretary, Ministry of Manpower

Mdm Goh Soon Poh Deputy Secretary(Policy), Prime Minister’s Office (Public Service Division)

Mr Ong Ye Kung

Chief Executive, Singapore Workforce Development Agency

Mr Ong Yen Her Divisional Director, Labour Relations and Workplaces Division, Ministry of Manpower

Mr Jeffrey Wong Divisional Director, Manpower Planning and Policy Division, Ministry of Manpower

Ms Elizabeth Quah

Divisional Director, Manpower Planning and Policy Division, Ministry of Manpower (up to 31 Dec 2005)

Mdm Teoh Zsin Woon Director, Employment Facilitation Division Singapore Workforce Development Agency

Secretariat Ms Ng Hwei Min Deputy Director, Manpower Planning and Policy Division

Ministry of Manpower

Ms Cheryl Lee Assistant Director, Manpower Planning and Policy Division, Ministry of Manpower

Ms Jynn Goh Assistant Director, Manpower Planning and Policy Division, Ministry of Manpower

Mr Tay Choon Hong Assistant Director, Manpower Planning and Policy Division, Ministry of Manpower


MEMBERSHIP OF THE WORKGROUP ON EMPLOYMENT PRACTICE, WAGE AND BENEFITS STRUCTURE Chairpersons

Mr Leo Yip Permanent Secretary, Ministry of Manpower (MOM) Mdm Halimah Yacob Assistant Secretary-General, NTUC

Members

Mr Koh Juan Kiat Executive Director, Singapore National Employers Federation & Singapore Business Federation Mr Yeo Meng Hin Executive Vice President (Corporate Services), SMRT Corporation Ltd Mr Tommy Ng Executive Director, Raffles Knowledge Private Limited Mr Wee Leong How Executive Vice President (Human Resource), Singapore Press Holdings Ltd

Mr Yeo Guat Kwang Director, Quality Lifestyle Department, NTUC Ms Cham Hui Fong Director, Industrial Relations Department, NTUC Mr Max Lim General Secretary, Singapore Banks Employees’ Union Mr Ong Chin Ang Executive Secretary, Health Corporation and Singapore Port Workers’ Union

Ms Goh Soon Poh Deputy Secretary (Policy), Public Service Division Mr Ong Yen Her Director, Labour Relations and Workplaces Division, MOM

Ms Elizabeth Quah Director, Manpower Planning and Policy Division, MOM

Resource Person A/P Ooi Giok Ling Adjunct Senior Research Fellow, Institute of Policy Studies

Secretariat Mr Tai Wei Shyong Deputy Director, Quality Workplaces Department, MOM Mr Ng Poey Eng Policy Analyst, Quality Workplaces Department, MOM


MEMBERSHIP OF THE WORKGROUP ON EMPLOYMENT OPPORTUNITIES AND EMPLOYABILITY Chairpersons

Mr Ong Ye Kung Chief Executive, Singapore Workforce Development Agency (WDA) Mr Jimmy Quah Managing Director, Delphi Automotive Systems (Singapore)

Members

Mr Alson Teo Chief Executive Officer, Stamfles Food Management Ms Karen Koh Deputy Chief Executive Officer, SingHealth Group Ms Jenny Wong Senior Vice President Group Human Resources, United Overseas Bank Mr Yeoh Guan Huah Chairman, Singapore Professional Centre

Mr Nithiah Nandan Vice-President, NTUC Central Committee Ms Adeline Sum Principal Private Secretary to Secretary-General, NTUC Mr Lim Kuang Beng General Secretary, Singapore Industrial and Services Employees’ Union Mr Chan Tee Seng General Manager, NTUC Income Mr Zee Yoong Kang Director (Joblink), NTUC

Ms Teoh Zsin Woon Director (Policy and Employment Facilitation), WDA

Secretariat Ms Geraldine Lau Deputy Director (Employment Facilitation), WDA

Sectoral Workgroup Compositions are in Book 2 of the Committee’s Report.


TERMS OF REFERENCE

Tripartite Committee on Employability of Older Workers

The Tripartite Committee on Employability of Older Workers will forge a tripartite consensus on how the employability and competitiveness of our older workers could be enhanced. Specifically, it will:

a. Identify the challenges facing the employability of older workers; b. Recommend holistic measures to help older workers enhance their

employability and to remain gainfully employed, without undermining employers’ cost competitiveness. The Committee would consider measures such as job re-design, new employment arrangements, review of wage and benefits structures, and skill acquisition and upgrading for older workers; and

c. Formulate a broad strategy to change perceptions of both employers

and employees on the employability of older workers. Terms of Reference of the Workgroup on Employment Opportunities and Employability

a. To address the barriers to the re-employment and retention of older workers and recommend measures to enhance their employment opportunities and employability; and

b. To propose measures to positively shape the perceptions of both

employers and employees on the employment and employability of older workers.

Terms of Reference of the Workgroup on Employment Practice, Wage and Benefits Structure

a. To study the wage and benefits structures of older workers and recommend measures to enhance their cost competitiveness, in support of the raising of retirement age beyond 62; and

b. To recommend employment and workplace practices to enable

employers to attract and retain valued and experienced older workers and to motivate them to continue to make their contributions.


Documents

TRIPARTITE COMMITTEE ON · to suit Singapore. In the meantime, the tripartite partners will work with selected companies to promote and implement the re-employment of older workers