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National Wages Council (Importance (To improve employment outcomes for…
National Wages Council
Definition
The National Wages Council (NWC) was established in 1972, when Singapore was undergoing rapid industralisation that resulted in rising wage expectations.
There were worries that the high wage expectation would result in serious industrial disputes, which could dampen the industrial environment and negatively affect Singapore’s progress.
Hence, the NWC was formed to formulate wage guidelines to be aligned with long-term economic growth, such that Singapore’s economic and social development would not be impaired.
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Composition
The Council meets every year to deliberate and forge national consensus on wage and wage-related matters.
It issues guidelines on these matters every year based on the tripartite consensus reached during the deliberations.
The NWC is a tripartite body comprising representatives from the three social partners – the Employers, the Trade Unions and the Government.
Benefits
Company
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Small and medium-sized enterprises who are suffering cash-flow issues from falling orders, and productivity issues will be able to solve their issues
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Employee
Help workers’ progress, moving to higher job grades
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Roles
- Acts as a market stabilising force
- Help to decrease time consuming union negotiations
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