Aug 28, 2010

Views sought on white-collar dispute process

THE Manpower Ministry is asking for feedback on proposals for a less cumbersome way for white-collar executives to resolve pay and other disputes with their employers.

Designed for a growing pool of executives, the new dispute resolution process incorporates two changes:

 Raising of the salary cap from the current $2,500 to $4,500. 

 This means more executives can qualify for access to the Government’s dispute resolution mechanism, which includes mediation and a legal process called adjudication for salary claims.

 Setting up a new mediation panel. 

This means it will be mandatory for both parties in a dispute – employee and employer – to turn up for negotiations. But executives who wish to use this new mediation panel – made up of tripartite partners from the labour movement, employer groups and the Government – must be union members, even if they work in non-unionised companies.

 These refer to executives who are general branch members – which means there are no unions recognised by their companies – and are not eligible for the full range of benefits such as coverage under collective agreements negotiated by unions.

Workers in unionised companies, on the other hand, have their own internally negotiated form of dispute settlement.

The ministry has estimated that 500,000 professionals, managers and executives (PMEs) – half of the total number in the workforce – will potentially have access to the new mechanism.

 In addition, one other change has been proposed which was not in the Government’s original dispute resolution scheme that was unveiled in January.

 This is a $20,000 cap on the amount which the ministry’s Labour Court can order for successful salary claims.

 According to the ministry’s data, all claims lodged by PMEs so far fall under this cap. If the amount in dispute is more than $20,000, the employee in question should pursue the case in civil court.

 The consultation document summarising key features of the new process was put up yesterday on the Reach website (www.reach.gov.sg), the Government’s feedback portal. The consultation period will end on Sept 9.