SINGAPORE: The Workers’ Party (WP) has urged the government to implement a redundancy insurance scheme to provide greater assurance and protection for workers in its May Day 2023 message.
Asserting that workers need to be better protected, the political party cited a recent Monetary Authority of Singapore (MAS) report on the economy that indicates that Singapore’s gross domestic product (GDP) for 2023 is expected to grow at a slower rate than last year’s, between 0.5% and 2.5%, and that headline inflation for 2023 is expected to come in higher, between 5.5% and 6.5%.
The WP pointed out that this rise in the cost of living is already eroding the purchasing power of Singaporean wages, especially given the increasing price of transport, and property and the effect of the 1 per cent Goods and Services Tax (GST) hike.
The party also questioned whether enough is being done to position its workers to benefit from AI and similar innovations, expressing concern about the impact of generative artificial intelligence (AI) technologies like ChatGPT on workers.
While the party said that Singapore will not shy away from adopting AI innovations, it added, “The verdict is still out as to how worried knowledge workers should be about these developments and whether generative AI will create new jobs in place of what may be lost.”
Last month, PM-designate Lawrence Wong indicated in Parliament that the government may introduce “unemployment support” for workers forced to leave their jobs due to retrenchment but will link this support to training and job search “to preserve the work ethos of the workforce.”
Citing this announcement, the WP again called for a redundancy insurance scheme. It has proposed such a scheme for some time and recently brought the policy proposal up at the Budget 2023 debates.
The party said that such a redundancy insurance scheme would not only ease the immediate financial pressure that retrenched workers face but would also provide an automatic stabilizer to the economy, such as through sustained consumer spending and mortgage payments until workers find new employment.
The party added, “There is much more to do for Singapore to progress towards providing better job security and opportunities for workers. The Workers’ Party will continue to present responsible policy proposals in Parliament to move our society forward.”