Labour Management Relationship in Singapore

Question: Discuss about theLabour Management Relationship in Singapore. Answer: Introduction of LMR Labour Management Relations (LMR) is the most complicated set of relations that has to be dealt with a human resource manager. The study of labour management relations refer to the policies and rules that are established and implemented to develop a harmonious environment in the organization. The increasing competitiveness in the business environment mounts pressure on the businesses to accomplish strategic goals (Croucher Wood, 2015). The aim of this report is to assess the labour management relations in Singapore. The labour management relations are a dynamic and developing concept as the structure and environment of industries in Singapore changes. The main purpose of labour management relations is to maintain a healthy and harmonious relationship between labour and management. The emphasis of such relation is to enhance cooperation and resolve problems (Seow, 2016). The term industrial relations explain the relationship between management and employees that stems from union-management relationship. Healthy industrial relations lead to uninterrupted production as the resources are fully utilized. Good industrial relations lead to reduction in conflicts and disputes. There is reduced wastage and increase in recognition with maximum protection of national interest (Sheldon, Gan, Morgan, 2015). A few problems that are common in the organization are workers participation in the management, collective bargaining, grievances and its redress, ethical code and discipline and standing orders (Croucher Wood, 2015). The report determines the role played by the four players- government, unions, management and employees. Further, an analysis of the players and the manner in which Singapore experiences competitive advantage through LMR is conducted. Role of Four Players To maintain effective labour management relations in the Singapore industries, the four players- government, unions, management and employees play a significant role. The role of each player is studied in detail below- Government The Ministry of Manpower (MOM) mission is to develop a competitive workforce in the global environment while performing regulatory and promotional roles. They makes the laws and regulations such as establishing the working hours, labour protection, determining the working conditions, social insurance, minimum wage standard and welfare system (Prosser Perin, 2015). The government also engages to promote employment to the ones who are unemployed. The government abolishes the outdated policies and updates with new policies for mutual benefit. Also, the state plays the role where it protects labour rights. They take the responsibility to settle relations based on labour rights and human rights. They establish the Employment Act where the employers and employees can understand their rights (Sheldon, Gan, Morgan, 2015). Further, the government plays the role of a balance maker where it settles conflicts arising between employers and employees. When there are differences between employers and employees, there could be social instability and negative impact on economic development. Therefore, the government adopts a measure that can balance power between both the sides. Usually, the pressure is made on the union side as they are significantly powerful. In this manner, the government plays a role in protecting the interests of both the employers and employees (Croucher Wood, 2015). Union The trade union in Singapore has The National Trades Union Congress (NTUC) as their national confederation. The main objective of the NTUC helps Singapore in staying competitive and enhances the social status of the employees. The trade union is also responsible for the workers to remain employed for life. The trade unions grant employees with collective bargaining empowering with a greater voice. The union also successfully fights for better working conditions and terms for the employees. The unions represent employees interests by securing higher wages and balanced life (Prosser Perin, 2015). The unions give workers dignity at the workplace. Also, they facilitate welfare and healthy standard of living for the Singapore workers. The labour unions also keep a check on the unfair labour practices of employers. Under the Part III of the Criminal Law Act, there are temporary provisions for preventing lock-outs (Chong et al., 2012). The trade union also work to enhance the productivity of employers, employees and overall Singapore economy. If the employer conducts any of the prohibited acts as specified in the legislations, the union plays a role of representing with the board on behalf of the employees (Croucher Wood, 2015). They can also lodge appeals in the court if the management does not respect board decisions. The unions monitor if the laws and regulations are well implemented and followed by the management (Chew, 2014). Management A healthy industrial relation can be established by the management as they consider avoiding conflict. The Singapore National Employers Federation (SNEF) is a trade union that helps employers achieves excellence. The management must understand the interests and expectation of the employees. The management plays a significant role of motivating the employees to accept the challenge. The employees must strive for better output without engaging in conflicts. The management role is to avoid discrimination at work and treat every individual as one (Platt et al., 2016). As the management have the right to hire and fire workers, they control the economic destiny of the employees. The management plays a role in affecting interests by exercising their right to close, relocate or merge a factory and integrate technological changes (Chong et al., 2012). The employers negotiate individually and through their associations for settling the terms and conditions of employment. The management plays a role of being available and accessible to the employees so that the employees can walk up to the management in times of need. The hierarchy must not be complex to create confusion and dispute among employees (Owusu-Kodua, 2014). The higher level of management communicates with employee organizations while relying on human resources. The lower level of management communicates with employees on an individual basis. The management gets involved with employees to develop policies and compensation packages (Mitlacher et al., 2014). Employees The employees have certain obligations and rights towards the organization in maintaining industrial relations. The employees are expected to act ethically and responsibly. The employees must be punctual as it is difficult for the management to deal with unpunctual and unpredictable attendance as the burden falls on the other employees. Further, the employees are expected to conduct ethical behaviour while dealing with customers and suppliers (Leong, 2015). The employees must not cause conflict of interest or fraudulent activities. Further, the employees must be obedient and carry the work assigned to them that does not go against the law. The employees play the role of acting responsible and following legal safety regulations (Owusu-Kodua, 2014). Analysis of Competitive Advantage to Singapore through LMR Singapore has an edge over other competitive countries through its labour management relations. They are superior in certain aspects that help them achieve a favourable position in the global world. The ranking of Singapore international competitive index is 5.72 where it stays 2nd for sixth year (Brinded, 2016). The stock of foreign direct investment (FDI) in Singapore amounted to $1,255.5 billion as at end of 2015 (Singstat.gov.sg, 2017). However, the productivity growth in Singapore is termed sluggish. Nomura attributed the drop in productivity to a higher employment share of lower-productivity sectors, as well as increased hiring of part-time and older workers, who tend to be lower-skilled (Leong, 2015). Tripartism in Singapore Tripartism refers to the collaboration of three players- unions, the Government and the employers in Singapore. The strong tripartite relationship between the MOM, SNEF and NTUC has been a key of competitive advantage in Singapore (Mom.gov.sg, 2017). There are harmonious labour-management relations as the economic competitiveness is underpinned. The tripartite partners have implemented fair and progressive employment practices. They have increased the effective retirement age for the workers. There is scope for job re-creation along with implementing flexible wage system (Mom.gov.sg, 2017). The tripartism model in Singapore adds to competitive advantage. This can be justified as the nation has seen only two major strikes in the recent decades. In 1986, the shipyard workers went for a strike which as sanctioned by Ong Teng Cheong, NTUC secretary general (Chuan, 2014). Another strike was made by 150 Chinese national bus drivers in 2012 by Singapore Mass Rapid Transit (SMRT) (Siddique, 2012). National Wage Council (NWC) The NWC was established in 1972 to formulate wage guidelines for ensuring long-term social and economic development (Tripartism.sg, 2017). Singapore workers are not subject to a minimum wage. The wage depends on the negotiation between employer and individual or employer and trade union (Mom.gov.sg, 2017). The NWC focuses on workers with low wages who earn up to $1,100 monthly (Ho, 2016). The NWC recommended a hike of $50-$65 despite tough economic conditions (Ho, 2016). The increment leads to growth in Singapore economy. This wage hike leads to increase in growth and skill development of workers. According to a survey, the Singaporean workers are paid less than the workers in London and New York. However, the Singaporean workers are paid more for similar jobs than workers in Jakarta, Hong Kong and Shanghai. The rising wages has not dented the competitiveness of the nation yet (Seow, 2016). Flexible Wage System The flexible wage system grew in popularity in 2015 as 90% of the workers were in favour of it (Economist.com, 2015). The flexible wage system is one in which there is a variable component allowing the companies to adjust wage costs rapidly in situations of critical business downturns. The companies can reward the employees with high bonuses when the company experiences good times. Further, the wage system also helps adjust and manages wage cost in cases of business downturns. The flexible wage system adds to competitive advantage as the employees gain reassurance about the being able to retain jobs even in times of economic uncertainty. With the implementation of flexible wage system, the companies are able to attract and retain talent (Mom.gov.sg, 2017). As stated earlier, the unemployment level of Singapore is low as they enjoy a resident employment rate of 72.3% (Chan, 2014). However, the nation faces challenges as the income inequality is rising. The median wages are not performing very well. The wealth gap in Singapore is rising and has the widest gap of 0.478 among developed nations (Chan, 2014). The egalitarians are under trouble as there are thousands of low-paid foreigners. The Government is taking measures to improve the lives of Singaporean workers. The plans are outlined for improvement and taking the country forward with better jobs and lives. Singapore can maintain its position in the relentless competition only if they continuously upgrade their plans and policies. Singapore workforce remains ahead of others as the management provides with adequate training unlike the case of Port workers in Hong Kong who pay for their own training. The Singapore Government invests heavily in education that helps in growing economy, expanding exports and drawing foreign investments (Mfa.gov.sg, 2017). Conclusion Conclusively, Singapore has an edge over other competitive countries through its labour management relations. The increasing competitiveness in the business environment mounts pressure on the businesses to accomplish strategic goals. The government abolishes the outdated policies and updates with new policies for mutual benefit. When there are differences between employers and employees, there could be social instability and negative impact on economic development. The trade unions grant employees with collective bargaining empowering with a greater voice. If the employer conducts any of the prohibited acts as specified in the legislations, the union plays a role of representing with the board on behalf of the employees. The management plays a significant role of motivating the employees to accept the challenge. Further, the employees are expected to conduct ethical behaviour while dealing with customers and suppliers. The strong tripartite relationship between the MOM, SNEF and NTUC has been a key of competitive advantage in Singapore. The nation has seen only two major strikes in the recent decades. The wage depends on the negotiation between employer and individual or employer and trade union. The unemployment level of Singapore is low. 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