- Xu Jinhuang
Definition of Industrial Relations
Industrial Relations focus on economic point of view, employees is a part of production and the legislation of employment term dominated by demand and supply economics. (Singh and Kumar, 2011). (Kelly) added that industrial relations is a process of creating rule and regulation to ensure the relationship in workplace and industry.
The Singapore Industrial Relations
During the 1950’s to early 1960’s Singapore face sky high unemployment rate and social unrest before gaining independence in 1965. Singapore has a well-established Industrial relation and stable labour management system it is well known that Singapore’s phenomenal economic growth after gaining independence was the result of the stable labour policy.
Contribution to Economy
In it economic development, Singapore government has pro-actively played a role in amending and regulating policy within the industrial. The Singapore Industrial relations act legislation started in 15th August 1968 (Eresources.nlb.gov.sg, 2015), to establish a clear guideline of employer’s management right and allow employees to reach their full potential while earning a better income and life.
After The Industrial Relations Act has being implemented, the Employment Act was pass on next to fully provide a legal platform for employees and employers to follow and boost the labour relations, this legal act also aims to provide a steady, low cost and flexible industrial relation system to attract foreign organizations to invest in Singapore. The Employment Act preserved in regulation that wage negotiations should be based on economic growth and efficiency, rather than on unrealistic philosophies of justice (Bercuson and Carling).
A tripartite industrial relations arrangement was also made with merge decision making base on entire phases of economic and social development which helped ensure in an environment of stability. (Singh and Kumar, 2011).
In 1979 the PAP has implemented legal restrictions on collective bargaining, which include trade unions into the NTUC (National Trades Union Congress) and lastly consist of employers with NTUC through NWC (Nation Wage Council) which was establish in 1972 to make sure orderly wage increases and institutionalization of a flexible wage system that started in 1985 which combine wage increases to profits and productivity (TAN and BALAKRISHNAN, 2005).
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The NWC also made it compulsory for employer to made contribution to employees Central Provident Fund (CPF) which can be used for healthcare, retirement and house loan another Skills Development Fund (SDF) is for employees to further upgrade their skill and knowledge thru attending courses. These enhance them to become productive and updated. These measures were authorized by government for businesses to give part of their revenues to employees. The resulted in the citizens increase in their standard of living, healthcare, learning and employment rate (Rowley and Benson).
(Bercuson and Carling) added that the NWC also recommended quantitative wage although it wasn’t bind in economy wide movements in typical earning is closely reflected.
During 1998, the government rename Ministry of Labour to Ministry of Manpower (MOM) the objective was to create a globally competitive workforce that can achieve sustainable economic growth for it citizens, this result in Singapore being well recognized as a global developed industrialise economies. The government also used the wage reform policy and facilitate flexible Human Resource Management (Leggett, 2005).
Conclusion
Singapore economy is consider successful this was depended on highly developed and capable government that consistently update and amend the system and set the objective based on social and economic. Under the dominant political ruling, PAP bring a strike free and harmony industrial relations condition.
Reference
Kelly, D.
Researching industrial relations
Bibliography: Kelly, Di. Researching Industrial Relations. Leichardt, NSW: Federation Press, 1999. Print.
ERESOURCES.NLB.GOV.SG
Industrial Relations (Amendment) Act is enacted – Singapore History
Bibliography:Eresources.nlb.gov.sg, (2015).Industrial Relations (Amendment) Act is enacted – Singapore History. [Online] Available at: http://eresources.nlb.gov.sg/history/events/d7778e3e-1d07-457d-8cb4-6b27c0b8eb6d [Accessed 19 Feb. 2015].
SINGH, P. N. AND KUMAR, N.
Employee relations management
Bibliography:Singh, P. and Kumar, N. (2011).Employee relations management. New Delhi: Pearson Education South Asia.
LEGGETT, C.
The fourth transformation of Singapore’s industrial relations
Bibliography:Leggett, C. (2005).The fourth transformation of Singapore’s industrial relations. Degree. University of South Australia.
Tan, E. S. AND BALAKRISHNAN, P.
Globalization and National Industrial Relations Systems: Theoretical Implications from the Singapore Case
Bibliography:TAN, E. and BALAKRISHNAN, P. (2005).Globalization and National Industrial Relations Systems: Theoretical Implications from the Singapore Case. National University of Singapore & Universiti Malaysia Sabah (UMS).
Bercuson, K. and Carling, R. G.
Singapore–a case study in rapid development
Bibliography: Bercuson, Kenneth, and Robert G Carling. Singapore–A Case Study in Rapid Development. Washington, DC: International Monetary Fund, 1995. Print.
Rowley, C. and Benson, J.
The management of human resources in the Asia Pacific region
Bibliography: Rowley, Chris, and John Benson. The Management of Human Resources in the Asia Pacific Region. London: F. Cass, 2004. Print.
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