Wage Boost and Career Development Efforts to Benefit Workers Across 84 Companies
In a significant move to enhance workers’ wages and career opportunities, nearly 1,500 workers across 84 companies are set to receive an average wage increase of 5.2% on top of their usual annual increments. This wage boost comes as part of the National Trades Union Congress (NTUC)’s Company Training Committees (CTC) grants, a key initiative designed to support companies in upskilling their workforce and improving business operations through transformation projects.
The S$70 million CTC Grant, which was launched in August 2022, aims to provide financial support to businesses that form CTCs to implement measures focused on improving productivity, redesigning jobs, and facilitating career development for workers. These measures are part of a broader effort to ensure that businesses are adapting to industry changes while creating more sustainable and rewarding roles for employees. The CTC scheme was first introduced by NTUC in 2019, with the goal of fostering collaboration between companies and unions to ensure that workers are upskilled in line with these business and industry transformations. By the end of October 2023, a total of 1,700 CTCs had been established across various sectors.
As part of the 2022 Budget, the Singapore government committed an additional S$100 million to expand the reach of the CTC program, allowing more businesses to access the resources and support needed to train and develop their workers. The grants typically cover up to 70% of the costs associated with transformation projects, which may include job redesigns, the introduction of new technologies, or investments in worker training. This initiative not only benefits workers by providing better career opportunities and wage increases, but also helps companies improve their overall performance and remain competitive in the marketplace.
One noteworthy example of the success of the CTC initiative is Dr Bags, a local bag-cleaning and restoration company. In October 2023, Dr Bags received a CTC grant, which it used to implement a range of new business transformation projects. These included introducing a customized enterprise resource planning system to enhance productivity and providing a 5% wage increase to employees who had acquired new skills and taken on redesigned roles. The company also invested in strategic brand and marketing training programs for several employees, enabling them to broaden their scope of work.
In addition to these benefits, Dr Bags, which is now a unionized company under the Singapore Manual & Mercantile Workers’ Union (SMMWU), fully subsidized union membership for all its employees. This move is part of the company’s broader efforts to enhance employee benefits and foster a positive work environment. By integrating digital tools, optimizing operational efficiency, and streamlining processes, Dr Bags has seen a significant improvement in its business performance, demonstrating the effectiveness of the CTC program.
NTUC secretary-general Ng Chee Meng emphasized the importance of CTCs in helping businesses innovate and transform, while also improving the welfare of workers. He encouraged more companies to join the initiative, highlighting that the CTC grants have brought about a win-win outcome for both employers and employees. Employers have reported improvements in business performance, while workers are benefiting from better wages, career development opportunities, and job security.
Looking ahead, NTUC plans to increase the number of CTCs to 2,500 by 2025, as part of its broader goal to foster a more resilient and adaptable workforce. This initiative is expected to play a key role in supporting Singapore’s transition into a “super-aged” society, where the demand for upskilling and career development will only continue to grow. As industries evolve and the workforce ages, the need for continuous learning and career progression will become even more critical, and the CTC grants will be a vital tool in ensuring that workers are well-equipped to meet these challenges.
In summary, the NTUC Company Training Committees grants represent a forward-thinking approach to workforce development that not only supports companies in their transformation efforts but also ensures that workers are provided with the tools and opportunities they need to thrive in an ever-changing job market. With continued support and investment from both the government and businesses, the scheme promises to deliver long-term benefits for both employers and workers, helping to build a stronger, more sustainable economy for Singapore.
