Events

6. Industrial relations

31 Mar 2009

6.1 Legislation in brief
Industrial relations are highly peaceful in Singapore. The country has been virtually strike-free for decades. A key feature of Singapore industrial relations is the concept of ‘tripartism’, which refers to workers (through unions), employers (through employer organisations) and the government (through the MOM) working together for the common good.

Freedom of association and representation is guaranteed to all employees in the private sector by law. The main statutes are: the Trade Unions Act which provides, inter alia, the formalities for the establishment of a trade union, and the Industrial Relations Act, which sets out specific procedures for the negotiation of collective agreements and the conciliation and arbitration of trade disputes.

6.2 Role of trade unions
The major function of trade unions in Singapore is to carry out collective bargaining, negotiate terms for collective agreements and to represent members in resolving industrial disputes. Under the Trade Unions Act, trade unions must register with the Registrar of Trade Unions. Any person above the age of 16 may be a member of a registered trade union (with the exception of certain groups of government employees).

6.3 Collective agreements
Under the Industrial Relations Act, collective agreements have to be certified by the Industrial Arbitration Court (IAC).  In this case, they are binding on the employer (or its successor) and the relevant trade union and its members. The term of the collective agreement cannot be less than two years and not more than three years. If a collective agreement is unable to be concluded, the matter is referred to the IAC which makes a determination on the dispute.  Prior to referring to the IAC, parties may refer the matter for conciliation at MOM to explore possible mediated outcomes.

6.4 Industrial action and disputes
In general, industrial actions are lawful in Singapore; however, once a trade union dispute has been submitted to the IAC, any industrial action in connection with such a dispute becomes prohibited.

The Trade Unions Act allows any registered trade union to commence, promote, organise or finance industrial action (including strikes), provided that majority consent of its members is obtained through a secret ballot and the union rules are not contravened.

The IAC is empowered to resolve trade disputes through settlement and mediation proceedings. If the parties don’t reach an agreement, the IAC can issue orders (known as ‘awards’) which are final and binding and cannot be challenged or appealed against. The awards may cover many aspects of industrial relations, including such matters as wages, bonuses, medical benefits, retirement or retrenchment benefits, hours of work and overtime.


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