Singapore has recently passed amendments to the Industrial
Relations Act, which broaden the options available for
representation of executives in the workplace to allow for
representation by "rank-and-file" trade unions. The
Industrial Relations (Amendment) Act 2015 (the "Amendment
Act") came into force on April 1, 2015. It amends the
Industrial Relations Act in two main ways.
First, the amendments allow trade unions that predominately
represent non-executive employees (commonly known as
"rank-and-file" trade unions) to represent executive
employees on a collective basis. This excludes executive employees
with specific responsibilities where conflicts of interest may
arise, such as executives with substantial responsibilities for
hiring and firing. Previously, executives could not be collectively
represented by "rank-and-file" unions.
Second, the amendments extend the scope of the areas in which such
"rank-and-file" trade unions can represent executive
employees on an individual basis to include matters concerning
re-employment. Previously, "rank-and-file" unions could
represent executives only on an individual basis in certain limited
areas. The expansion implemented by the Amendment Act provides
executives with an additional and less costly alternative for
resolving re-employment matters, by settling re-employment disputes
through union and management negotiations.
According to the Second Reading Speech, the amendments were
intended to better meet the needs of professionals, managers, and
executives, which now form more than 30 percent of the Singaporean
workforce. The amendments were also directed toward helping
"employers and unions to work together to more effectively
engage this growing group of employees" and facilitate
"harmonious labor-management relations."
Based on the amendments, it is likely that trade unions will seek
recognition in relation to executive employees, particularly where
such employees constitute a significant proportion of the
workforce. However, the collective agreements governing
"rank-and-file" employees typically include provisions
that may not necessarily be entirely applicable or appropriate in
relation to executive employees. These provisions often govern
overtime hours, minimum salaries, and the negotiation of increments
and annual wage supplements. As such, employers that are engaging
with unions that are also representing executives on a collective
basis need to carefully consider the interests and concerns of such
executive employees.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.