We would like to keep you informed of the progress in the CA negotiation between the union and the management.

In our last update in Oct 98, we mentioned that the management wanted to wait for the revised NWC guidelines to be announced in view of the worsening economic situation. The revised guidelines announced in Nov 98 called for wage restraint. To restore our economy's competitiveness, it further called for an overall cost cutting of 15%. The 10% point cut in CPF was one of the measures.

The civil service responded by announcing a cut in variable bonus for civil servants. We in the restructured hospitals/institutions, took similar cuts in our variable bonus, which was paid out in Dec 98.

Following the announcement of cut in variable bonus that we took in Dec 98, our Union pressed on for the settlement of the annual increment. It was only in Jan 99 that the management reverted and counter-proposed to the Union. Despite the cut in CPF and variable bonus that we had taken, the management counter-proposed a SI quantum that was much lower than our initial agreement of 3.5% +$10. In addition, they proposed to renew the CA with NO changes. The Union was not agreeable to their proposal, as it was unfair and inequitable.

We had made various attempts to resolve the differences with the management over the last few months, through many formal and informal sessions but to no avail.

We in the Union fully understand the sacrifices you have made as well as the anxiety in waiting for the CA to be concluded.

Therefore in an effort to expedite the settlement we have now referred the matter to Ministry of Manpower for conciliation.