{"id":3584,"date":"2023-12-05T02:13:07","date_gmt":"2023-12-05T02:13:07","guid":{"rendered":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/?page_id=3584"},"modified":"2024-10-15T08:25:45","modified_gmt":"2024-10-15T08:25:45","slug":"section-3","status":"publish","type":"page","link":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/section-3\/","title":{"rendered":"Section 3"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"3584\" class=\"elementor elementor-3584\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7300868 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7300868\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-e7946d3\" data-id=\"e7946d3\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b6f9b1a elementor-widget elementor-widget-heading\" data-id=\"b6f9b1a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">TRIPARTISM<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2569d72 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2569d72\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c27a4ce\" data-id=\"c27a4ce\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-47cd911 elementor-widget elementor-widget-heading\" data-id=\"47cd911\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Tripartism and Industrial Relations<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-458669c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"458669c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-903486d\" data-id=\"903486d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f0f92dc elementor-widget elementor-widget-text-editor\" data-id=\"f0f92dc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>scroll to explore<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1af797b elementor-widget elementor-widget-image\" data-id=\"1af797b\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2023\/02\/Group-50.svg\" class=\"attachment-large size-large wp-image-91\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2023\/02\/Group-50.svg 150w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2023\/02\/Group-50.svg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2023\/02\/Group-50.svg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2023\/02\/Group-50.svg 1536w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2023\/02\/Group-50.svg 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1083f2e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1083f2e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-75c2fb8\" data-id=\"75c2fb8\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-8fc63a5 elementor-widget elementor-widget-text-editor\" data-id=\"8fc63a5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Throughout the years, tripartism and the relationship between the tripartite partners have been tested through several economic crises and events. One example is how the NWC responded to the 1985 economic crisis.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-112a9ff elementor-section-full_width elementor-section-height-min-height elementor-section-stretched elementor-section-height-default elementor-section-items-middle\" data-id=\"112a9ff\" data-element_type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;,&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-08e2f58\" data-id=\"08e2f58\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dc01ffb elementor-widget elementor-widget-heading\" data-id=\"dc01ffb\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">High-Wage Policy and 1985 Economic Crisis<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-9fde178 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"9fde178\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a42a316\" data-id=\"a42a316\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-a1801ca elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a1801ca\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-360b162\" data-id=\"360b162\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a85f5b8 elementor-widget elementor-widget-text-editor\" data-id=\"a85f5b8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Singapore is known for its open and dynamic economy. The country\u2019s economic success has been driven by a state-centric approach to governance that emphasises regulatory transparency, effective and timely policy interventions and a robust economic infrastructure.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-55af3fc\" data-id=\"55af3fc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5a1c502 elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"5a1c502\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.nas.gov.sg\/archivesonline\/photographs\/record-details\/db99417d-1161-11e3-83d5-0050568939ad\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1920\" height=\"1298\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/stock_exchange_img.jpg\" class=\"attachment-full size-full wp-image-6213\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/stock_exchange_img.jpg 1920w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/stock_exchange_img-300x203.jpg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/stock_exchange_img-1024x692.jpg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/stock_exchange_img-768x519.jpg 768w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/stock_exchange_img-1536x1038.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cf375d8 elementor-widget elementor-widget-text-editor\" data-id=\"cf375d8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h5 style=\"font-size: 13px;\">Minister for Finance Hon Sui Sen officiates at the opening of the Stock Exchange of Singapore at Clifford Centre, Raffles Place, 1973.<\/h5>\n<h6 style=\"font-size: 11px; margin-top: -5px;\">Credit: Ministry of Information and the Arts Collection, courtesy of National Archives of Singapore<\/h6>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-c36808b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c36808b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-94e37c4\" data-id=\"94e37c4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ef1473c elementor-widget elementor-widget-text-editor\" data-id=\"ef1473c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In the formative years of the National Wages Council (NWC) from 1972 to 1978, wage increases of 6% to 9% were recommended each year, except in 1974 when the NWC recommended a $40 + 6% general net wage increase, <span style=\"font-weight: 400;\">to help workers earning lower wages cope with high global fuel and food price inflation<\/span>.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e664471 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e664471\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0a513e2\" data-id=\"0a513e2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6f87499 elementor-widget elementor-widget-html\" data-id=\"6f87499\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<html>\n    \n<table class=\"tab1\">\n<thead>\n<tr>\n<th><b>Year<\/b><\/th>\n<th><b>Recommended wage adjustment<\/b><\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">1972<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1973<\/span><\/td>\n<td><span style=\"font-weight: 400;\">9% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1974<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$40 + 6% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1975<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1976<\/span><\/td>\n<td><span style=\"font-weight: 400;\">7% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1977<\/span><\/td>\n<td><span style=\"font-weight: 400;\">6% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1978<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$12 + 6% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1979<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$32 + 5% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1980<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$32 + 7.5% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1981<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$32 + 6 to 10% increase (with an additional 3% for \u2018above average performers\u2019)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1982<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Productivity-based adjustment according to 3-year restructuring wage policy<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1983<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$10 + 2 to 6%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1984<\/span><\/td>\n<td><span style=\"font-weight: 400;\">$27 + 4 to 8%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1985<\/span><\/td>\n<td><span style=\"font-weight: 400;\">3 to 7% increase<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1986 (Apr)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Wage standstill<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1986 (Dec)<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Severe wage restraint<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">1987<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Severe wage restraint<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n<\/html>\n\n<style>\n    .tab1{\n        color:#782F40;\n        text-align: center;\n    }\n    .tab1 tbody tr:nth-child(odd) {\n        background-color: #f5f5f5;\n    }    \n    .tab1 tbody tr:nth-child(even) {\n        background-color: #e5e5e5;\n    \n        \n    }\n    .tab1 td, .tab1 th {\n        padding: 20px;\n    }\n<\/style>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1094a6b elementor-widget elementor-widget-text-editor\" data-id=\"1094a6b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The NWC was able to recommend substantial wage increases from 1979 to 1982. This was commonly referred to as Singapore\u2019s \u2018high-wage policy\u2019.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-2dd5ff9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2dd5ff9\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-969791d\" data-id=\"969791d\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-63f6fec elementor-widget elementor-widget-image\" data-id=\"63f6fec\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1920\" height=\"1280\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/parliament_bukit_merah_img.jpg\" class=\"attachment-full size-full wp-image-6214\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/parliament_bukit_merah_img.jpg 1920w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/parliament_bukit_merah_img-300x200.jpg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/parliament_bukit_merah_img-1024x683.jpg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/parliament_bukit_merah_img-768x512.jpg 768w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/parliament_bukit_merah_img-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4356976 elementor-widget elementor-widget-text-editor\" data-id=\"4356976\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h5 style=\"font-size: 13px;\">Member of Parliament for Bukit Merah Lim Chee Onn (right) and Chairman of National Wages Council (NWC) Professor Lim Chong Yah (left) at dinner for delegates of the Second Asian Labour Summit hosted by Minister for Labour Ong Pang Boon at Istana, 1979.<\/h5>\n<h6 style=\"font-size: 11px; margin-top: -5px;\">Credit: Ministry of Information and the Arts Collection, courtesy of National Archives of Singapore<\/h6>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-6ef05f1 elementor-widget elementor-widget-text-editor\" data-id=\"6ef05f1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In a jointly signed letter to Prime Minister Lee Kuan Yew in June 1979, NWC Chairman Professor Lim Chong Yah, alongside Stephen Lee (President of the National Employers\u2019 Council) and Devan Nair (President of National Trades Union Congress), highlighted the urgent need to restructure the economy by allowing wages to rise. The tripartite partners also emphasised the need for workers from low-wage and labour-intensive areas of employment to be trained for more productive and high-wage employment in other areas.<\/p><p>The tripartite partners pointed out in their joint letter:<br \/>\u201cUnless this is done, we will be caught in the trap of low wage increases to support labour-intensive, low-skill industries and services. Low wage increases will enable such industries to expand further and use even more labour unproductively. Moreover, new and better industries will be hampered by labour shortages. Productivity will suffer and consequently our growth in per capita income will be less than our potential.&#8221;<\/p><p>The overall result was a 20% wage increase per year for three years from 1979 to 1981, with wage costs rising twice as fast as productivity.<\/p><p>Accompanying this new wage increase was an increase in the Central Provident Fund (CPF) contribution rates for both employers and employees to 25%. This meant that the take-home wages of workers were reduced despite their gross remunerations rising. A Skills Development Fund (SDF) was also introduced, which required employers to pay a compulsory levy of 4% of the 20% wage increase per year for their workers earning less than $750 a month. The SFD aimed to help low-wage workers to move into more capital-intensive industries for high-wage employment.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-a1b516d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"a1b516d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-c9f10c2\" data-id=\"c9f10c2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0a8822c elementor-widget elementor-widget-text-editor\" data-id=\"0a8822c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>By 1985, however, Singapore had slid into a recession. A rapid decline in global demand, particularly in the United States, posed threats to a trade-dependent Singapore. Singapore was caught unaware by the 1985 crisis. The country\u2019s Gross Domestic Product (GDP) was initially projected to grow by 5%, but instead shrank by 1.5% when the crisis struck.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-f6b7de6\" data-id=\"f6b7de6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5f30474 elementor-widget elementor-widget-image\" data-id=\"5f30474\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1280\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/textile_manufacturing_img.jpg\" class=\"attachment-full size-full wp-image-6215\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/textile_manufacturing_img.jpg 1920w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/textile_manufacturing_img-300x200.jpg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/textile_manufacturing_img-1024x683.jpg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/textile_manufacturing_img-768x512.jpg 768w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/textile_manufacturing_img-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6c5def8 elementor-widget elementor-widget-text-editor\" data-id=\"6c5def8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h5 style=\"font-size: 13px;\">Second Deputy Prime Minister and National Trades Union Congress Secretary-General Ong Teng Cheong visiting Great Malaysia Textile Manufacturing Factory in Tanglin Halt Road, 1987.<\/h5>\n<h6 style=\"font-size: 11px; margin-top: -5px;\">Credit: Ministry of Information and the Arts Collection, courtesy of National Archives of Singapore<\/h6>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-41467b5 elementor-widget elementor-widget-text-editor\" data-id=\"41467b5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The reductions in CPF contribution rates as well as wage freezes were a form of implicit subsidy to firms\u2019 wage costs, to encourage them to maintain their headcounts and business operations.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-51118eb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"51118eb\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-custom\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-029db7b\" data-id=\"029db7b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-376b76f elementor-widget elementor-widget-image\" data-id=\"376b76f\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1280\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conference_hall_img.jpg\" class=\"attachment-full size-full wp-image-6216\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conference_hall_img.jpg 1920w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conference_hall_img-300x200.jpg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conference_hall_img-1024x683.jpg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conference_hall_img-768x512.jpg 768w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conference_hall_img-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-015e1c6 elementor-widget elementor-widget-text-editor\" data-id=\"015e1c6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h5 style=\"font-size: 13px;\">Second Deputy Prime Minister Ong Teng Cheong chairing a discussion with 200 union leaders on recent proposals to overcome the recession at the Singapore Conference Hall, 1986.<\/h5>\n<h6 style=\"font-size: 11px; margin-top: -5px;\">Credit: Ministry of Information and the Arts Collection, courtesy of National Archives of Singapore<\/h6>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-d7f4271\" data-id=\"d7f4271\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2f392d4 elementor-widget elementor-widget-image\" data-id=\"2f392d4\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1280\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conferene_hall_img2.jpg\" class=\"attachment-full size-full wp-image-6217\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conferene_hall_img2.jpg 1920w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conferene_hall_img2-300x200.jpg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conferene_hall_img2-1024x683.jpg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conferene_hall_img2-768x512.jpg 768w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/singapore_conferene_hall_img2-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-29b805a elementor-widget elementor-widget-text-editor\" data-id=\"29b805a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h5 style=\"font-size: 13px;\">200 union leaders attending a discussion by Second Deputy Prime Minister Ong Teng Cheong on recent proposals to overcome the recession at the Singapore Conference Hall, 1986.<\/h5>\n<h6 style=\"font-size: 11px; margin-top: -5px;\">Credit: Ministry of Information and the Arts Collection, courtesy of National Archives of Singapore<\/h6>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-8e92209 elementor-widget elementor-widget-text-editor\" data-id=\"8e92209\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<b>Ong Yen Her, Divisional Director for Labour Relations and Workplaces, MOM (1985 to 2012), saw the 1985 economic crisis as a test of trust level between the tripartite partners:<\/b>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-517f0b6 elementor-widget elementor-widget-video\" data-id=\"517f0b6\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/ZUaKi2WoOXA?si=2wVzSOHYr2fBTv3X&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.23.0 - 15-07-2024 *\/\n.elementor-widget-video .elementor-widget-container{overflow:hidden;transform:translateZ(0)}.elementor-widget-video .elementor-wrapper{aspect-ratio:var(--video-aspect-ratio)}.elementor-widget-video .elementor-wrapper iframe,.elementor-widget-video .elementor-wrapper video{height:100%;width:100%;display:flex;border:none;background-color:#000}@supports not (aspect-ratio:1\/1){.elementor-widget-video .elementor-wrapper{position:relative;overflow:hidden;height:0;padding-bottom:calc(100% \/ var(--video-aspect-ratio))}.elementor-widget-video .elementor-wrapper iframe,.elementor-widget-video .elementor-wrapper video{position:absolute;top:0;right:0;bottom:0;left:0}}.elementor-widget-video .elementor-open-inline .elementor-custom-embed-image-overlay{position:absolute;top:0;right:0;bottom:0;left:0;background-size:cover;background-position:50%}.elementor-widget-video .elementor-custom-embed-image-overlay{cursor:pointer;text-align:center}.elementor-widget-video .elementor-custom-embed-image-overlay:hover .elementor-custom-embed-play i{opacity:1}.elementor-widget-video .elementor-custom-embed-image-overlay img{display:block;width:100%;aspect-ratio:var(--video-aspect-ratio);-o-object-fit:cover;object-fit:cover;-o-object-position:center center;object-position:center center}@supports not (aspect-ratio:1\/1){.elementor-widget-video .elementor-custom-embed-image-overlay{position:relative;overflow:hidden;height:0;padding-bottom:calc(100% \/ var(--video-aspect-ratio))}.elementor-widget-video .elementor-custom-embed-image-overlay img{position:absolute;top:0;right:0;bottom:0;left:0}}.elementor-widget-video .e-hosted-video .elementor-video{-o-object-fit:cover;object-fit:cover}.e-con-inner>.elementor-widget-video,.e-con>.elementor-widget-video{width:var(--container-widget-width);--flex-grow:var(--container-widget-flex-grow)}<\/style>\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3358f1f elementor-widget elementor-widget-heading\" data-id=\"3358f1f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Flexible Wage System (FWS)<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-0b68998 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"0b68998\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-40c9436\" data-id=\"40c9436\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3fa9e92 elementor-widget elementor-widget-image\" data-id=\"3fa9e92\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/eresources.nlb.gov.sg\/newspapers\/digitised\/article\/straitstimes19861123-1.2.25.5\" target=\"_blank\">\n\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"374\" height=\"244\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/02\/unnamed.png\" class=\"attachment-full size-full wp-image-6109\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/02\/unnamed.png 374w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/02\/unnamed-300x196.png 300w\" sizes=\"(max-width: 374px) 100vw, 374px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-84913e2 elementor-widget elementor-widget-text-editor\" data-id=\"84913e2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h6 style=\"font-size: 11px;\">Credit: &#8220;<a href=\"https:\/\/eresources.nlb.gov.sg\/newspapers\/digitised\/article\/straitstimes19861123-1.2.25.5\" target=\"_blank\" rel=\"noopener\">Flexible wages \u2018will save jobs\u2019\u201d, The Straits Times, November 23, 1986 via NewspaperSG, National Library Board<\/a><\/h6>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-9c2babb elementor-widget elementor-widget-text-editor\" data-id=\"9c2babb\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Following the 1985 recession, reducing wage rigidity in Singapore became a priority for the NWC. The NWC recommended a \u201cwage standstill\u201d in April 1986 and later revised its guidelines to recommend \u201csevere wage restraint\u201d in December. The 1987 guidelines later repeated the call for severe wage restraint.<\/span><\/p><p><span style=\"font-weight: 400;\">In addition to these short-term responses, policymakers realised the need to introduce greater flexibility in Singapore\u2019s wage structure. A more flexible wage structure was envisaged to allow businesses to adjust their wage bills according to business conditions. The NWC began encouraging wage reform in favour of flexible wages, and shifted fully to qualitative wage recommendations, starting with its 1988 wage guidelines. Following the 1986 report of the Economic Committee, the government introduced the Flexible Wage System (FWS). Fixed components in the FWS would provide employees with stability, while variable components would allow\u00a0employers to respond promptly to changes in the economy.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-58f053a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"58f053a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-2511867\" data-id=\"2511867\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b01fc19 elementor-widget elementor-widget-text-editor\" data-id=\"b01fc19\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Ong Yen Her, Divisional Director for Labour Relations and Workplaces, MOM (1985 to 2012), recalls there was a push for more wage flexibility after the 1985 recession. There was a sense that the NWC\u2019s quantitative wage guidelines were too blunt to be applied nationally across all companies. Eventually, it was decided that the NWC would continue to issue annual wage guidelines but would shift to qualitative ones instead.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-bb01e37 elementor-hidden-desktop elementor-hidden-tablet elementor-hidden-mobile elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bb01e37\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-1973e58\" data-id=\"1973e58\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e33eba8 elementor-widget elementor-widget-text-editor\" data-id=\"e33eba8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Ong Yen Her, Divisional Director for Labour Relations and Workplaces, MOM (1985 to 2012), recalls there was a push for more wage flexibility after the 1985 recession. There was a sense that the NWC\u2019s quantitative wage guidelines were too blunt to be applied nationally across all companies. Eventually, it was decided that the NWC would continue to issue annual wage guidelines but would shift to qualitative ones instead.<\/b><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-e28d823\" data-id=\"e28d823\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fd7d51f elementor-widget elementor-widget-video\" data-id=\"fd7d51f\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/GKW78GAAUQk?si=5cqzOdrR-R8B4B2q&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-89361e7 elementor-widget elementor-widget-text-editor\" data-id=\"89361e7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b style=\"font-size: inherit;\">Lim Boon Heng, Secretary-General of the NTUC (1993 to 2006) and Minister in the Prime Minister&#8217;s Office (2001 to 2011), explains that qualitative wage guidelines are used to establish a common understanding among tripartite partners of Singapore\u2019s economic situation while giving them significant latitude in wage negotiations and wage setting:<\/b><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-c0c94b7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c0c94b7\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-d9ebfbc\" data-id=\"d9ebfbc\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-95860af elementor-widget__width-initial elementor-widget elementor-widget-video\" data-id=\"95860af\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/jqWFGmMPU-0?si=K-ExlQfjUIkTBBmO&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-d152f40 elementor-widget elementor-widget-text-editor\" data-id=\"d152f40\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>\u00a0<\/p><p>When employers are able to reduce their wage bills in challenging economic conditions by adjusting the variable wage components, they are less likely to resort to retrenchments to maintain business competitiveness. In the absence of automatic economic stabilisers like unemployment benefits, large job losses in the middle of an economic crisis can lead to a slump in aggregate demand that exacerbates the downturn. Businesses that can retain their experienced employees in a downturn would also be able to respond faster to the eventual recovery.<\/p><p>Introducing flexibility into the wage system was important because the Singapore government had become increasingly reluctant to use the adjustment of CPF contribution rates as a policy tool for crisis response. Reducing CPF contribution rates affects all waged employees regardless of employment situation. The negative effects are felt both in the short term (e.g. reducing the ability of households to cover their mortgage payments with their CPF funds) and in the long term (e.g. the diminution of future retirement payments as a result of smaller present contributions). In fact, the NTUC itself warned employers in 1991 that they needed to implement flexible wages because the unions would no longer support such cuts to CPF contributions as cost reduction measures.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3d303c6 elementor-widget elementor-widget-text-editor\" data-id=\"3d303c6\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><b>Robert Yap, President of SNEF (2014 to 2024), explains that the FWS can in fact offer better wage stability for employees, especially during times of economic downturn when employers can trim wage costs by adjusting the \u201cshock absorber\u201d of the FWS:<\/b><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5460513 elementor-widget elementor-widget-video\" data-id=\"5460513\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/znUTLgF1ktg&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-5e1ee34 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5e1ee34\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-cda0087\" data-id=\"cda0087\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-525b9bc elementor-widget elementor-widget-text-editor\" data-id=\"525b9bc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Besides improving the ability of businesses to respond to crises, policymakers believed that variable wages tied to business performance could incentivise employees to improve their productivity. Since 1988, both the NWC and the government have been regularly encouraging employers to adopt the FWS by increasing the variable components of their employees\u2019 wages.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e3e5ce3 elementor-section-full_width elementor-section-height-min-height elementor-section-stretched elementor-section-height-default elementor-section-items-middle\" data-id=\"e3e5ce3\" data-element_type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;,&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b628835\" data-id=\"b628835\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f8db1d5 elementor-widget elementor-widget-heading\" data-id=\"f8db1d5\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">1997 Asian Financial Crisis<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-53796ea elementor-section-full_width elementor-section-stretched elementor-section-height-default elementor-section-height-default\" data-id=\"53796ea\" data-element_type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1af0ef1\" data-id=\"1af0ef1\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f27059d elementor-widget elementor-widget-text-editor\" data-id=\"f27059d\" data-element_type=\"widget\" id=\"sec3nwc\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The NWC wage guidelines also enabled Singapore to navigate future economic crises with rapid wage adjustments, as was the case in the 1997 Asian financial crisis.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-51b466d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"51b466d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-35f612a\" data-id=\"35f612a\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-d98946f elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d98946f\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-5658e89\" data-id=\"5658e89\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-ddbe66a elementor-widget elementor-widget-text-editor\" data-id=\"ddbe66a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The 1997-1998 Asian financial crisis originated in Thailand in mid-1997 and quickly spread to other economies in the region. Regional currencies fell precipitously against the US Dollar (with most depreciating between 30% to 80%) and stock markets slumped as foreign lenders and investors panicked. Singapore\u00a0dipped into recession in 1998.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-b155067\" data-id=\"b155067\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1ae216e elementor-widget elementor-widget-text-editor\" data-id=\"1ae216e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Since the Singapore Dollar depreciated less against the US Dollar (by less than 20%) compared to other regional currencies, our exports became less price competitive. Disinclined to intervene in the foreign exchange market to further depreciate the Singapore Dollar as the crisis became protracted, the government opted instead for cost-cutting measures to restore competitiveness.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-9ab0066 elementor-widget elementor-widget-text-editor\" data-id=\"9ab0066\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">Annual GDP per capita growth of select Asian countries (%), <\/span><br \/><span style=\"font-weight: 400;\">\u00a01995-2000<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ac45602 elementor-widget elementor-widget-image\" data-id=\"ac45602\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"557\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/02\/section3_chart.png\" class=\"attachment-large size-large wp-image-5943\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/02\/section3_chart.png 1025w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/02\/section3_chart-300x163.png 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/02\/section3_chart-768x418.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3f49528 elementor-widget elementor-widget-text-editor\" data-id=\"3f49528\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h6 style=\"font-size: 11px; margin-top: -20px;\">Source: Roser, Max, Pablo Arriagada, Joe Hasell, Hannah Ritchie,\u00a0<br \/>and Esteban Ortiz-Ospina. 2023. Economic Growth. Our World in Data.<br \/><!--EndFragment --><\/h6>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5b7c079 elementor-section-full_width elementor-section-stretched elementor-section-height-default elementor-section-height-default\" data-id=\"5b7c079\" data-element_type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-431524b\" data-id=\"431524b\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-a5945d7 elementor-widget elementor-widget-text-editor\" data-id=\"a5945d7\" data-element_type=\"widget\" id=\"sec3nwc2\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>As part of the cost reduction package that included wide ranging cuts to government fees and charges, the employer\u2019s contribution to CPF was reduced from 20% to 10%. This was similar to the government\u2019s response to the 1985 recession, when the employer\u2019s contribution rate was cut from 25% to 10% (subsequently partially restored to 20%). In its revised wage guidelines issued after the economic situation deteriorated, the NWC recommended wage reductions of between 5% to 8%. These guidelines went further than those issued in the aftermath of the 1985 recession, which only urged \u201cwage\u00a0restraint.\u201d<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-80c8477 elementor-section-full_width elementor-section-stretched elementor-section-height-default elementor-section-height-default\" data-id=\"80c8477\" data-element_type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-fda063c\" data-id=\"fda063c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3024349 elementor-widget elementor-widget-text-editor\" data-id=\"3024349\" data-element_type=\"widget\" id=\"sec3nwc3\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The Singapore government set an example by slashing civil service salaries by up to 5% and freezing the salaries of ministers and senior civil servants. The combined effect of this cost reduction package was to \u201cplunge\u201d Singapore\u2019s unit labour costs back to 1992\/1993 levels.<\/p><p style=\"text-align: left;\">The NWC\u2019s wage guidelines helped Singapore recover strongly from its second recession by quickly restoring export cost competitiveness. The country\u2019s economy subsequently grew by 9% in 2000.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-01d52aa elementor-section-full_width elementor-section-height-min-height elementor-section-stretched elementor-section-height-default elementor-section-items-middle\" data-id=\"01d52aa\" data-element_type=\"section\" data-settings=\"{&quot;stretch_section&quot;:&quot;section-stretched&quot;,&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5035dfa\" data-id=\"5035dfa\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-fdc4455 elementor-widget elementor-widget-heading\" data-id=\"fdc4455\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">COVID-19 Pandemic<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e8f0bf3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e8f0bf3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-no\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-f9d57b0\" data-id=\"f9d57b0\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-c99558d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c99558d\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-a81402f\" data-id=\"a81402f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f80a9d9 elementor-widget elementor-widget-image\" data-id=\"f80a9d9\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1281\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/covid_img.jpg\" class=\"attachment-full size-full wp-image-6221\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/covid_img.jpg 1920w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/covid_img-300x200.jpg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/covid_img-1024x683.jpg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/covid_img-768x512.jpg 768w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/covid_img-1536x1025.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6126029 elementor-widget elementor-widget-text-editor\" data-id=\"6126029\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h5 style=\"font-size: 13px;\">A COVID-19 nasal rapid self-test kit indicating a positive result<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-16569d5 elementor-widget elementor-widget-text-editor\" data-id=\"16569d5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In more recent times, the NWC also played an instrumental role in dealing with the economic downturn caused by the COVID 19 pandemic. As retrenchments and unemployment in Singapore surged in the first half of 2020, the NWC urged employers to cut non-wage costs, adhere to the guidelines set forth by the Tripartite Advisory on Managing Excess Manpower, and tap on the government\u2019s wage offset schemes, such as the Jobs Support Scheme.<\/p><p>It recognised that struggling employers could cut wages with management leading by example, but shielded low-wage employees by recommending a wage freeze or even a built-in increase of up to $50.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-ffe68d3 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ffe68d3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-e1d510c\" data-id=\"e1d510c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e9d6837 elementor-widget elementor-widget-image\" data-id=\"e9d6837\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1280\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/changi_airport_img.jpg\" class=\"attachment-full size-full wp-image-6222\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/changi_airport_img.jpg 1920w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/changi_airport_img-300x200.jpg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/changi_airport_img-1024x683.jpg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/changi_airport_img-768x512.jpg 768w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/changi_airport_img-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bb709bc elementor-widget elementor-widget-text-editor\" data-id=\"bb709bc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h5 style=\"font-size: 13px;\">Changi Airport at the height of COVID-19 pandemic, 2020.<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-4245c8a elementor-widget elementor-widget-text-editor\" data-id=\"4245c8a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In a rare move reflecting the severity of the crisis, the council issued supplementary guidelines in October 2020, urging employers to minimise retrenchments by imposing wage cuts if necessary, within the framework of the FWS. For low-wage employees, the NWC recommended a wage freeze and cautioned against cutting basic monthly wages to below $1,400.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-be854fd elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"be854fd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-706e3cf\" data-id=\"706e3cf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b36c98a elementor-widget elementor-widget-image\" data-id=\"b36c98a\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1280\" src=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/no_dining_sign_img.jpg\" class=\"attachment-full size-full wp-image-6223\" alt=\"\" srcset=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/no_dining_sign_img.jpg 1920w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/no_dining_sign_img-300x200.jpg 300w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/no_dining_sign_img-1024x683.jpg 1024w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/no_dining_sign_img-768x512.jpg 768w, https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-content\/uploads\/2024\/03\/no_dining_sign_img-1536x1024.jpg 1536w\" sizes=\"(max-width: 1920px) 100vw, 1920px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-673dede elementor-widget elementor-widget-text-editor\" data-id=\"673dede\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<h5 style=\"font-size: 13px;\">A no-dining sign at a hawker centre<\/h5>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<div class=\"elementor-element elementor-element-98b7439 elementor-widget elementor-widget-text-editor\" data-id=\"98b7439\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Singapore saw its sharpest fall in total employment in the first half of 2020. By the second half of the year, the labour market picked up, and unemployment and retrenchments eased. By October 2021, the NWC was calling on recovering businesses to restore or increase wages. The NWC also called for a wage increase of 4.5% to 7.5% of gross wages, or $70 to $90, whichever was higher, to enable the wages of low-wage employees to grow faster than the median wage.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e419282 elementor-widget elementor-widget-text-editor\" data-id=\"e419282\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<b>Ms Cham Hui Fong, NTUC Deputy Secretary-General, provides context to these moves as follows:<\/b>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d4fe63c elementor-widget elementor-widget-video\" data-id=\"d4fe63c\" data-element_type=\"widget\" data-settings=\"{&quot;youtube_url&quot;:&quot;https:\\\/\\\/youtu.be\\\/YGiLwvJrU_M&quot;,&quot;video_type&quot;:&quot;youtube&quot;,&quot;controls&quot;:&quot;yes&quot;}\" data-widget_type=\"video.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-wrapper elementor-open-inline\">\n\t\t\t<div class=\"elementor-video\"><\/div>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-82d6785 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"82d6785\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-190b989\" data-id=\"190b989\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-f9c3d3c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f9c3d3c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-e2c929c\" data-id=\"e2c929c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e924ff4 elementor-widget elementor-widget-text-editor\" data-id=\"e924ff4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #782540;\"><a style=\"color: #782540;\" href=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/section-2\/\">PREVIOUS SECTION: TRIPARTISM IN WAGE NEGOTIATION<\/a><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-1525f54\" data-id=\"1525f54\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dc67c28 elementor-widget elementor-widget-text-editor\" data-id=\"dc67c28\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><span style=\"color: #782540;\"><a style=\"color: #782540;\" href=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/section-4\/\">NEXT SECTION: TRIPARTISM IN A COMPLEX WORLD<\/a><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-d1d1219 elementor-hidden-desktop elementor-hidden-tablet elementor-hidden-mobile elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"d1d1219\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-86266ca\" data-id=\"86266ca\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1d1e62c elementor-widget elementor-widget-html\" data-id=\"1d1e62c\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<!--<div id=\"loading\" class=\"loadContainer\">-->\n<!--<div class=\"loader\"><\/div>-->\n<!--<\/div>-->\n<!--<style>-->\n\n<!--.loadContainer{-->\n<!--\tjustify-content: center;-->\n\n<!--\talign-items: center;-->\n<!--\tdisplay: none;-->\n\t\/*position: fixed;*\/\n\t\/*width:100%;*\/\n\t\/*height: 100%;*\/\n\t\/*top:0;*\/\n\t\/*left:0;*\/\n\t\/*background-color: black;*\/\n\t\/*opacity: 80%;*\/\n<!--}-->\n\n<!--.loader {-->\n\t\n<!--\t border-top: 6px solid #ecdecf;-->\n<!--        border-right: 6px solid #434f84;-->\n<!--        border-bottom: 6px solid #c59a6f;-->\n<!--        border-left: 6px solid #782f40;-->\n<!--        border-radius: 50%;-->\n<!--      width: 30px;-->\n<!--      height: 30px;-->\n<!--      animation: spin 2s linear infinite;-->\n<!--  }-->\n\n<!--  @keyframes spin {-->\n<!--  0% { transform: rotate(0deg); }-->\n<!--  100% { transform: 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{-->\r\n<!--        console.error(\"An error occurred:\", error);-->\r\n<!--    }-->\r\n<!--};-->\r\n<!--<\/script>-->\r\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-5e0d815 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"5e0d815\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3d4f9f4\" data-id=\"3d4f9f4\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-421401e elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"421401e\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6172238\" data-id=\"6172238\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>TRIPARTISM Tripartism and Industrial Relations scroll to explore Throughout the years, tripartism and the relationship between the tripartite partners have been tested through several economic crises and events. One example is how the NWC responded to the 1985 economic crisis. High-Wage Policy and 1985 Economic Crisis Singapore is known for its open and dynamic economy. &#8230; <a title=\"Section 3\" class=\"read-more\" href=\"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/section-3\/\" aria-label=\"Read more about Section 3\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-3584","page","type-page","status-publish"],"_links":{"self":[{"href":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-json\/wp\/v2\/pages\/3584","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-json\/wp\/v2\/comments?post=3584"}],"version-history":[{"count":3,"href":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-json\/wp\/v2\/pages\/3584\/revisions"}],"predecessor-version":[{"id":7029,"href":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-json\/wp\/v2\/pages\/3584\/revisions\/7029"}],"wp:attachment":[{"href":"https:\/\/lkyspp.nus.edu.sg\/research\/case-insights-unit\/tripartism\/wp-json\/wp\/v2\/media?parent=3584"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}