The Employment Act was a game changer in the 1960s, in standardising a set of minimum requirements which helped to put labour relations on an even keel. It continues to be the main employment law here, balancing basic protection for workers with scope for employers to run a tight ship. Back then, blue-collar employees, who were large in number, were quaintly termed "workmen" while others who sported white collars in offices were referred to as "non-workmen".
That distinction and wage levels mattered as the Act offered more protection to those on lower rungs. For example, public holiday and sick leave provisions applied to all except managers and executives getting a certain higher level of pay. And overtime pay and annual leave entitlement referred to only workmen (earning up to a specified amount) and lower-level non-workmen.
One would be right to wonder if these categories of the past still hold relevance when professionals, managers, executives and technicians (PMETs) are dominant in the workforce - forming 56 per cent of employed residents in 2017. Correspondingly, the number of blue-collar workers shrank - the share of production employees, transport operators, cleaners and labourers dropped to 21 per cent. Is there a need, as NTUC assistant secretary-general Patrick Tay asked, to still have "this PME versus Rank and File dichotomy"? At the very least, wage ceilings linked to basic protection ought to be reviewed as the median gross monthly income (including employer's Central Provident Fund contribution) has risen from $2,543 in 2007 to $4,232 a decade later.
Recognising this, the Manpower Ministry is seeking feedback on whether core provisions of the Act should be made universal - in other words, extended to all employees. Additionally, views are invited on the possible adjustment of wage limits related to provisions about annual leave, hours of work, overtime pay and rest day. The streamlining of dispute resolution services is another aspect of the latest review of the Act.
Balancing the interests of both labour and management remains relevant today as in the past. When out of kilter, it can be tough to rein in overreaching labour laws, as seen in Europe. French President Emmanuel Macron had to contend with strong union resistance and street demonstrations last year when he sought to overhaul rules to give "badly needed flexibility to France's labour market", as the Financial Times noted. At the other end of the spectrum, workers might have to settle for the short end of the stick in a gig economy if certain basic rights are not spelt out.
The present review of the Act aims to sync wage thresholds with market realities. Should the future usher in greater changes to jobs, the challenge will be to modernise laws to both maintain the social compact and retain economic verve.
