9 February 2010

Media Release

1. Mapping out Singapore’s economic blueprint for the next ten years, the Economic Strategies Committee (ESC) has called for broad-based, sustainable and inclusive growth driven by skills, innovation and productivity.

2. The Labour Movement fully supports the ESC recommendation. Indeed, the Labour Movement’s call for a cheaper (more productive), better (more capable) and faster (more flexible) economy powered by an all inclusive workforce is aligned to the strategic direction set by the ESC.

Groundwork Set for Productivity

3. The emphasis on productivity has underscored several of the Labour Movement’s signature programmes and initiatives to date. This is because the Labour Movement strongly believes that productivity is vital to better skills, better jobs and better pay for workers.

4. Back in 2005, the Labour Movement began setting the groundwork for productivity improvements by championing the Job Re-creation Programme (JRP) to re-design low-paying jobs so that low-wage workers can achieve a leap in productivity and wages. Under the JRP, several industries such as security, landscaping and conservancy cleaning have received a make-over that has resulted in better skills and better pay. Likewise in 2005, the Labour Movement rolled out the Customer Centric Initiative (CCI) to upgrade the service sector, and in 2009, the Best Sourcing Initiative (BSI) Early Adopters Scheme to benefit contract and casual workers.

Productivity and Inclusiveness Can Co-exist

5. At the same time, the Labour Movement strongly believes that productivity and inclusiveness are not mutually exclusive. The two can and must co-exist if broad-based, sustainable growth is to be achieved. Hence, since the inception of its LM 2011 Vision in 2006, the Labour Movement has been aggressively pursuing the re-employment of older workers, the return of women back to the workforce, and the upgrading of skills, jobs and wages for contract and casual workers.

6. Notwithstanding these early successes, through which it has reached out to a total of 270,000 workers, the Labour Movement is mindful that there is scope for a lot more to be done. Hence the ESC call for productivity-driven, inclusive growth is cause for cheer as all workers across the entire economic spectrum stand to benefit from better skills and better wages. Against this backdrop of a concerted, national focus, the Labour Movement is poised to go on the offensive with a ‘Triple A’, ‘Inverted T’ strategy which will drive its action plans for 2010.

Triple ‘A’ – 3% Productivity Improvement in 100% - Total Productivity

7. Taking the cue from the ESC, the Labour Movement is determined that the push for productivity this time around must be broad-based and inclusive. It has thus come up with a ‘Triple A’ strategy where the productivity drive must embrace All Sectors, All Enterprises and All Workers.

8. Unlike the case in previous decades, the push for productivity can no longer rest on a select few industries, companies or employees. This time around, there is no room for free-riders. Whether manufacturing or services, export-oriented or domestic, MNC or SME, rank-and-file or PMET, man or woman, young or old, permanent or contract staff, all sectors, all companies and all employees must be part of the strive towards improved productivity. It is this emphasis on inclusiveness that is the hallmark of the current productivity drive.

9. The ESC has set a 2% to 3% productivity growth target for the next ten years. The Labour Movement’s ‘Triple A’ strategy calls for 3% productivity improvement in 100% of sectors, enterprises and workers. This refers to total factor productivity, which goes beyond labour productivity to include more efficient deployment of machinery, land, physical space, raw materials, energy and so on. By focusing on total factor productivity, the Labour Movement aims to ignite a ‘Productivity Everywhere’ mindset.

10. Over time, the ‘Triple A’ strategy will foster a productivity eco-system where productivity improvements in one sector or company reinforce those in another, thus bringing about a virtuous cycle of productivity gains across the total value chain.

‘Inverted T’ – 100% Productivity Breakthrough in 3% - Pervasive Breakthroughs

11. But even as it pushes for an all-embracing, base-line productivity improvement, the Labour Movement is at the same time calling for a quantum leap in productivity in selected companies across all sectors. This is the Labour Movement’s ‘Inverted T’ strategy which targets 100% productivity breakthroughs in 3% of companies spread across all sectors. This will result in productivity breakthroughs that pervade all frontiers of the economy.

12. Productivity breakthroughs are necessary because competition is moving fast, technology is moving fast and consumer preferences are moving fast. No sector and no company can afford to sit on the laurels of past successes. The ‘Inverted T’ strategy is therefore aimed at engendering market leaders with the vision and imagination to bring about transformative change.

‘Triple A’, ‘Inverted T’ to Fuel Macro Targets

13. Pulling out from the global recession, Singapore’s GDP growth for 2010 is projected at 3% to 5%. The unemployment rate stands at 2.1%. The Labour Movement’s macro targets for 2010 are to contribute towards sustaining full employment, increasing the employment rate, and minimising underemployment. The twin strategies of ‘Triple A’ and ‘Inverted’ T will be the engines that will power its push towards these macro targets.

14. The Labour Movement looks to the Government to unveil bold measures in its Budget Statement, the policy and funding support, that will provide it with the weapons to go on the offensive. At the same time, it looks to employers to take the lead in driving the national productivity charge. The Labour Movement is confident that with the backing of the tripartite partners, it will be well-positioned to strive towards ‘3% productivity improvement in 100%’ and ‘100% productivity breakthroughs in 3%’.