Employment Relations in Singapore

Table of Contents 1. Introduction ………………………………………………………………………………….. 1 2. Employment Relations in Singapore ………………………………………………………… 1 3.1 Gender Wage Gap …………………………………………………………………… 1 3.2 Existence of Gender Wage Gap ……………………………………………………… 2 3.3.1 Compensation Differential …………………………………………..……… 2 3.3.2 Family Role Constraints ……………………………………………………. 2 3. Employment Relations Worldwide ………………………………………………………….. 3 4. Equity in Employment Relations ……………………………………………………………. 3 5.3 Economic Rationalism ………………………………………………………………. 3 5.4 Civil Libertarianism and Equal Employment Opportunity ………………………….. 4 5.5 Social Justice ………………………………………………………………………… 4 5. Conclusion …………………………………………………………………………………… 5 6. References …………………………………………………………………………………… 6

1.

1. Introduction
Equity is about ensuring that all people have the supports that they need to access, participate and achieve to the same level in the organization (Skills Tasmania 2003). This then raises the question “Is employment relations in Singapore equitable?” Is it merely about rewarding talents regardless of race, gender or abilities? Some might also consider large wage disparities, increasing poverty rates, high unemployment rates and large numbers of injuries and illness at work as inconsistent with fairness and equity (Petzall, Abbott & Timo 2007). Employment equity is adopted as an ongoing planning process in organizations today to identify and eliminate barriers in the organization’s employment procedures and policies, put into place policies and practices to ensure that the effects of systemic barriers are eliminated, and to ensure appropriate representation of all group members throughout their workforce (York University 2010).
This essay will look at employment relations in Singapore, and identify the different approaches taken towards equity.

2. Employment Relations in Singapore

3.1 Gender Wage Gap
Wage, income or earning refers to the repatriation given to individuals for the provision of their labour in a productive process within a formal economy (Jacob & Steinberg 1995). The gender wage gap is a phenomenon based in societies that formally employ and pay both male and female labour. Reactions of different extremes have been received; where the conservatives argue that the wage gap is a necessary feature of a functioning modern society, and the feminists who feel that the gender wage gap is detrimental to society and seek to eradicate such inequality.
It is undeniable that women are becoming better educated, hence making more headway in the labour market. From 1975 to 1998, female labour force participation has increased from 34.9% to 51.3%, whilst male participation has dropped from 79.3% to 77.5% (Mukhopadhaya 2001: 552). In a more recent Labour Force Survey conducted by Ministry of Manpower (MOM), it showed that by 2007, female participation rate in the labour force has gone up to 54.3% (Ministry of Manpower 2011). The gender wage gap has also been narrowing, from 0.735 in 1981 to 0.754 in 1998 and to 0.82 in 2007 (Mukhopadhaya 2001: 560). Referring to the statistics across age and occupation, it is apparent that women are dominating feminized work which tend to pay lesser than management or professional occupations which are strongly dominated by men in age groups of 20-29. Looking at the wages of managers, the mean gross wage is $7,272 for females as compared to $9,065 for males (Ministry of Manpower 2011). These data show that men are paid more for the same job despite laws that call for equality and anti-discrimination in the workplace (TAFEP 2009). 3.2 Existence of Gender Wage Gap
There has been extensive study to explain the existence of such a disparity in the incomes of men and women.
2.2.1 Compensation Differential
Compensation differential is a term often used by labour economists who try to claim that extra pay are being given as compensations for work which are considered to be of undesirable or unpleasant nature (Jacob and Steinberg 1995: 93). This follows the assumption that men are taking up jobs that women are unwilling and unable to take up, thus there is a need to pay men more, resulting in a gender wage gap (Hoffman & Averrett 2005).
As seen in the Labour Force Survey (Ministry of Manpower 2010), there is a significant difference in male participation over female participation in the Craftsmen & Related Trades, and Plant & Machine Operators & Assemblers industries, female participation in the cleaning industry still overpowers male participation. Some of the jobs taken on by women can be just as unpleasant, undesirable or physically-demanding as well; such as playing the role of a housewife. This shows the embodiment of women’s work that hinders their ability to obtain higher wages.
2.2.2 Family Role Constraints
The sexual division of labour is a reflection of gender roles whereby men are to take up the breadwinner role and women to take up child-care and domestic responsibilities (Tam, 1996). Some women into their pregnancy face discrimination, where they are stopped from entering senior management, or even getting dismissed of their services simply because they are assumed to be incapable to accomplish tasks. Hence, most of the bulk of income earning is left to the men.
However, there are increasing cases of women who have decided not to get married or start a family. This shows that the gender role actually becomes negotiable. Although family role constraints are a reality that hinder a woman’s opportunities at employment and getting higher wages
To address such an issue, the government has introduced maternity leave benefits to help employed mothers (Ministry of Manpower 2011). This provides the mothers with sufficient time for rest and recovery before and after giving birth, and it ensures that the employed mothers still get paid to prevent any loss of income during the maternity leave period. However, it still does not address the issue of a gender wage gap.

3. Employment Relations Worldwide
In the United States, a $100 million lawsuit was filed against the U.S. unit of the Japanese technology company, Toshiba. The lawsuit was the latest of many accusing companies of favouring men over women in the workplace. Toshiba America Inc was accused of paying women lower salaries and bonuses than men who perform similar work (Stempel 2011).
It was possible to file the lawsuit as in the U.S., an Equal Pay Act was passed in 1963 to address gender inequality in the workplace, and it guaranteed equal pay for equal work for both men and women (USLegal 2011). 4. Equity in Employment Relations

4. 5.3 Economic Rationalism
Economic rationalism is based on the premise that markets are generally more efficient than governments in organising society and providing for prosperity and freedom (Dryzek 2009). Economic rationalism emphasizes that compulsory welfare benefits enforced by the government in the Employment Act are seen as a privilege, hence are reluctantly dispensed. They must be earned, rather than granted as a right for those in need. Economic rationalists believed that to maximize profits and promote competition, they had to advocate the deregulation of the labour market and restructure the labour market in such a way that workers had a personal relationship with the employer (Petzall, Abbott & Timo 2007). Most economic rationalists see governments and trade unions as sources of power and threats to freedom, as the restraints imposed by them might affect profits and the efficiency of operations in business.
I am largely against economic rationalism as an approach to equity in the workplace. I believe that despite the profit-maximizing goals that the economic rationalist approach seeks to achieve, it poses to be of detrimental effect to the organisation as well. Much focus is dedicated to the economic growth of the company, which in turn might neglect the well-being of the employees. Without employment benefits, the employees might feel less motivated to work, which in turn might decrease work productivity, hence contradicting the goal that the economic rationalism approach has set out.
Addressing the issue of the gender wage gap, there is a possibility that the economic rationalist approach alone might be a cause of a disparity in income. This is so, as mentioned in earlier parts of the essay, some employers might feel that females are deemed unfit to take on particular roles in the workforce, due to assumptions of a female’s incapacity. A company with heavy economic rationalist approach would definitely want to hire the best employees to ensure that profits are maximized and operations are executed efficiently. What makes a ‘perfect’ employee in such a scenario is subjective; males are often assumed to be stronger, more intelligent and more capable at work (Tam 1996), despite recent changes in gender roles in today’s society. Hence, I feel that an economic rationalist approach would give advantage to the men where work opportunities are concerned. 5.4 Civil Libertarianism and Equal Employment Opportunity
Civil libertarianism involves the acknowledgement or allocation of ‘rights’ to individuals. The Equal Employment Opportunity (EEO) approach then came about; it aimed to minimize the impact of discriminatory social practices within a given social system, whilst remaining silent about the economic role of the government. It emphasized that power can be exercised in a number of different social contexts, and not simply by governments (Petzall, Abbott & Timo 2007).
I believe that civil libertarianism has its flaws where equity is concerned. Although civil libertarianism seeks to treat everyone in the same situation identically, it abandoned the assumption that equal opportunity meant treating individuals the same way regardless of gender, race, political beliefs etc. This could in time stir up gender and racial inequalities, as over time, certain opportunities could be closed off to those of a particular gender or race (Petzall, Abbott & Timo 2007).
Though there were no specific anti-gender discrimination laws, women’s rights were protected through the Employment Act. The limitations of civil libertarianism are clearly reflected, as the Employment Act only granted them the rights to particular issues, and not legal protection against discrimination and inequality. Hence, I question the lack of the government’s participation in the attempt to ensure equity in the work place. 5.5 Social Justice
The social justice ideology emphasizes that citizens should have equal opportunity in employment, and that the welfare should be the responsibility of the state. Social justice provides employees with more bargaining power in an organisation. Although it relies on concepts such as fairness, its approach to equity tends to focus on issues such as wage levels, work hours, looking after interests of minority groups, industrial injury, healthcare benefits and social hierarchy. These were often criticized as being merely concrete problems, and not how society should operate (Petzall, Abbott & Timo 2007).
In my opinion, social justice is most effective only when government intervention is present. Social justice aims to look after the interests of people belonging to the minority groups in an organisation. This would definitely motivate the employees of minority groups, which in turn increases work productivity, bringing about benefits to the company.

5. Conclusion
In 2007, Singapore was commended on her progress in handling issues pertaining to gender discrimination towards females by the members of the Committee on the Elimination of Discrimination against Women. Some improvements included the removal of quotas keeping down the number of female medical students, and civil service reforms that allowed women to claim medical benefits for their families (United Nations 2007).
This is evident that employment relations in Singapore are fairly equitable to a certain extent. Efforts have been made by the government to intervene and improve working conditions and reduce gender discrimination, in the form of the Tripartite Alliance for Fair Employment Practices (TAFEP), where it pursues the interest of employees and ensure that they are treated fairly in the organisation.
However, I feel that despite Singapore’s good progress in handling employment relations, there still is much room for improvement in terms of government intervention. Although rights are given to employees, there is no law that states that committing an act that goes against the principle of the rights is an offence that can be punishable by law. A good example would be adopting the Equal Pay Act introduced by the U.S. to protect employees. With sufficient government intervention in necessary areas concerned, equity can be achieved in Singapore’s employment industry.

6. References
Dryzek, J., Citizens’ Parliament, 2009. What Is Economic Rationalism?. Available from: <http://www.citizensparliament.org.au/index.php?option=com_content&view=article&id=96:what-is-economic-rationalism&catid=56:topic-sheets&Itemid=98>. [16 February 2011]
Hoffman, Sual D. and Averett, Susan L. 2005. Women and the Economy: Family Work and Pay. Boston : Pearson Addison Wesley.
Jacobs, Jerry A. and Steinberg, Ronnie J. 1995. "Further Evidence on Compensation Differentials and the Gender Gap in Wages" in Gender Inequality at Work edited by Jerry A. Jacobs. Thousand Oaks, California: Sage Publications.
Levin, Michael.2003 "The Earning Gap and Family Choices" in Women and the Economy: A Reader edited by Ellen Mutari and Deborah M. Figart. Armonk, N.Y. ;London : M.E. Sharpe
Ministry of Manpower, 2010. Report on Labour Force in Singapore. Available from: <http://www.mom.gov.sg/Documents/statistics-publications/manpower-supply/report-labour-2010/mrsd_2010LabourForce.pdf> [19 February 2011]
Ministry of Manpower, 2011. The Employment Act & Who It Covers. Available from: <http://www.mom.gov.sg/employment-practices/employment-rights-conditions/employment-act> [ 20 February 2011]
Mukhopadhaya, Pundarik. 2001. “Changing Labor-Force Gender Composition and Male-Female Income Diversity in Singapore” Journal of Asian Economics 12: pp. 547-568.
Petzall, S., Abott, K. & Timo, 2007. N. Australian industrial relations in an Asian context, p. 293-321. 3rd ed. Cowes, Vic.: Eruditions Pub.
Skills Tasmania, 2003. Department of Education Equity Standards Branch. Access and Equity Guide: Registered Training Organisations. Available from: http://www.skills.tas.gov.au/providers/rtos/status/the_access__and__equity_guide_for_rtos.pdf> [23 February 2011]
Stempel, J., 2011. Toshiba faces $100 million gender bias lawsuit. Reuters, [online] (Last updated 3:53PM ET 31 Jan 2011) Available at: < http://news.yahoo.com/s/nm/us_toshiba_bias_lawsuit> [Accessed on 20 February 2011].
Tam, Tony. 1996. "Reducing the Gender Gap in an Asian Economy: How Important is Women 's Increasing Work Experience?" World Development 24(5) pp. 831-844.
Tripartite Alliance for Fair Employment Practices, Tripartite Guidelines On Fair Employment Practices, 2009. Available from: <http://www.fairemployment.sg/assets/Files/documents/Resources%20-%20Tripartite%20Guidelines%20on%20FEP%20Booklet%20%28English%29.pdf> [ 26 February 2011]
USLegal Law Digest, 2011. United States Sexual Discrimination and Orientation. Available from: < http://lawdigest.uslegal.com/civil-rights/sexual-discrimination-and-orientation/7177/#GenderDiscrimination> [Accessed 25 February 2011].
York University,2010. Recruitment And Employment Equity. Available from: < http://www.yorku.ca/hr/services/applicants/employmentequity.html>. [18 February 2010].

References: Jacobs, Jerry A. and Steinberg, Ronnie J. 1995. "Further Evidence on Compensation Differentials and the Gender Gap in Wages" in Gender Inequality at Work edited by Jerry A. Jacobs. Thousand Oaks, California: Sage Publications. Levin, Michael.2003 "The Earning Gap and Family Choices" in Women and the Economy: A Reader edited by Ellen Mutari and Deborah M. Figart. Armonk, N.Y. ;London : M.E. Sharpe Ministry of Manpower, 2010 Ministry of Manpower, 2011. The Employment Act &amp; Who It Covers. Available from: &lt;http://www.mom.gov.sg/employment-practices/employment-rights-conditions/employment-act&gt; [ 20 February 2011] Mukhopadhaya, Pundarik Petzall, S., Abott, K. &amp; Timo, 2007. N. Australian industrial relations in an Asian context, p. 293-321. 3rd ed. Cowes, Vic.: Eruditions Pub. Tam, Tony. 1996. "Reducing the Gender Gap in an Asian Economy: How Important is Women 's Increasing Work Experience?" World Development 24(5) pp. 831-844.