Nearly 1,500 workers to get average wage increase of 5.2% on top of annual increments with NTUC grants

NEARLY 1,500 workers are set to receive an average wage increase of 5.2 per cent on top of their stipulated annual wage increments.

This is the average increase committed by 84 companies with approved National Trades Union Congress (NTUC) company training committees (CTC) grants, said NTUC secretary-general Ng Chee Meng in an update ahead of the NTUC National Delegates’ Conference 2023, held from Nov 22 to 23.

The increases will benefit a total of 1,494 workers across 84 companies.

Ng was speaking to the media during a visit to the headquarters of Dr Bags, a home-grown bag-cleaning and restoration company which received the grant in October. He was joined by NTUC’s deputy secretary-general Desmond Tan.

The S$70 million NTUC CTC Grant was launched in August 2022. It supports companies that have formed CTCs to implement transformation projects to raise productivity, redesign jobs and improve work prospects for workers.

The scheme, which was rolled out by NTUC in 2019, brings companies and unions together to help workers upskill in tandem with business and industry transformations.

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The government announced during Budget 2022 that S$100 million will be set aside to help NTUC scale up CTCs.

The grant will fund up to 70 per cent of the qualifying costs for each project. Besides embarking on enterprise transformation, applicants of the grant are required to commit to one of two worker outcomes: either providing staff with a wage increase, or implementing a career development plan for them.

Over 1,700 CTCs have been formed by NTUC and its affiliated unions as at Oct 31, said Ng.

He noted that the CTCs have brought about “win-win outcomes” for both employers and workers, and urged more firms to come on board the scheme. The labour movement aims to form 2,500 CTCs by 2025.

“Especially with the CTC grant, companies innovating can tap on NTUC’s resources not only to just do business remodelling, but (to) follow through with the full implementation,” said Ng. He added that employers have shared feedback that business has improved, while workers are also happier.

In the case of Dr Bags, the company has committed to providing a 5 per cent wage increase to almost half of its 40-strong workforce who have taken on new skills and redesigned jobs. It also used the CTC Grant to implement a customised enterprise resource planning system to improve productivity.

Earlier in February, the company formed a CTC with the Singapore Manual & Mercantile Workers’ Union (SMMWU). It then embarked on the Operation and Technology Roadmap facilitated by NTUC to leverage technology, redesign jobs and reskill its workforce to transform business operations.

For instance, it identified 10 employees to embark on a strategic brand and marketing training programme to expand their scope of work. It also sent other employees for upskilling at NTUC LearningHub.

In addition, Dr Bags has become a unionised company under SMMWU. It has fully subsidised the union membership for its whole workforce as part of the company’s enhanced employee benefits.

Lynn Kee, co-founder of Dr Bags, said: “These steps have turbocharged our ability to work smarter by integrating digital tools, boosting our productivity, streamlining processes and optimising our operational efficiency.”