Reference no: EM133041858

NWC Issues Over The Years

(Extracted from "The Story of NWC: 40 years of Tripartite Commitment and Partnership". Partially assessed from www.mom.gov.sg) 

In 2010, when Singapore had fully rebounded from the 2009 recession with an exceptional 14.8 per cent economic growth, National Wages Council (NWC) made productivity its key theme when it issued its guidelines for 2011/2012...NWC Chairman Professor Lim Pin said, "One important aspect is to be able to link more clearly productivity gain and performance bonus. In this way, workers will really get a sense of ownership." 

NWC also encouraged companies to give out productivity incentives and bonuses as a way of including employees in their productivity gains-sharing while urging management to look at adopting practices promoting productivity so as to reduce the dependence on low-skilled workers. Productivity gains-sharing will give the low-wage workers in the company a proportionately higher built-in wage increase. By 2012, it was clear that specific guideline recommendation for the low wage workers must be included in the NWC Guideline recommendations. 

Milkovich et al explained that "...many unions believe that the crisis demands changing attitudes from both management and unions. Labour and management identify compensation packages that both parties can abide." (p.530) 

(a) Examine the impact of strategic choice for small-medium enterprises in managing their total reward design in the global city of Singapore. 

(b) Illustrate the compensation communication cycle and its usefulness to communicate pay information to employees. 

(c) Explain the three (3) gain-sharing schemes that are related to productivity gains-sharing. 

NOTE: Kindly do NOT provide answers in point forms

Cite any reference used for your answers

REFERENCE: Gerhart, B., & Newman, J. M. (2020). Compensation (13th ed.). McGraw-Hill.