NTUC and Singapore: 60 years of progress, partnership and purpose

For six decades, NTUC has grown alongside Singapore, adapting to the needs of each generation of workers and contributing to the country's economic and social development.

From turbulent beginnings to a globally respected model of labour harmony, NTUC’s journey is deeply woven into the nation’s success story.

Finance Minister Goh Keng Swee speaking at the Labour Movement’s Modernization Seminar in 1969.

1960s: Nationhood and a new kind of unionism

In 1961, NTUC was established following a split from the Singapore Trades Union Congress.

NTUC began with only 12 unions.

By 1965, it had 55 affiliated unions.

But by 1969, union membership dropped as many workers felt that trade unions were no longer relevant with the new labour legislations that limited unions' bargaining powers to attract investors.

The ‘Modernization of the Labour Movement’ seminar was a redefining moment. It marked the commitment to a new, constructive approach focused on collaboration with the Government and employers rather than confrontation.

This seminar laid the foundation for Singapore’s tripartite model.

NTUC Comfort, the second co-operative launched by NTUC in 1970.

1970s: Industrial peace, social enterprises and worker welfare

With tripartism gaining traction, the 1970s were a decade of rapid progress.

NTUC helped ensure industrial peace, which attracted investors and fuelled economic growth. But it also recognised that rising costs and inflation were affecting workers.

To address this, NTUC launched several co-operatives to provide affordable goods and services for workers.

NTUC Income to provide insurance for low-income workers; Comfort, a taxi co-operative to make it affordable for holders of taxi licences to rent and drive taxis; and NTUC Welcome to stabilise prices of essential household items, to name a few.

To this day, these enterprises remain amidst NTUC’s commitment to making life better for workers and their families.

Teaching the 3Rs to make half the workforce employable in the future.

1980s: NTUC-PAP symbiotic relationship and helping with change

In 1980, the NTUC-PAP symbiotic relationship was institutionalised when NTUC Secretary-General Lim Chee Onn was appointed Minister without Portfolio in the PAP Government.

The appointment was aimed at enabling workers and unions to voice their views and interests in Parliament.

Singapore’s shift towards higher-value industries also meant workers needed new skills.

In 1985, Singapore suffered its first recession since independence.

To keep wages low to keep business costs down, NTUC agreed to forgo wage adjustments recommended by the National Wages Council, and accepted a 15-percentage point reduction in employers’ contribution to the employees’ Central Provident Fund (CPF).

Beyond wage adjustments, NTUC was instrumental in driving retraining programmes. Funds were also made available for workers’ training through the NTUC’s Education and Training Fund.

NTUC Secretary-General Lim Boon Heng (middle) urges workers to go for training and upgrading amidst the Asian Financial Crisis.

1990s: Building confidence in hard choices

In 1997, amidst the Asian Financial Crisis, the Government launched sweeping cost-cutting measures.

NTUC stepped in to negotiate wage restructuring with employers, including temporary wage cuts and reductions in CPF contributions.

NTUC’s presence reassured workers that the decisions were neither arbitrary nor permanent.

Workforce Skills Qualifications programmes at e2i to train kitchen assistants, waitresses and master chefs.

2000s: Future-proofing the workforce

As work became more diverse, NTUC constantly worked towards ‘future-proofing’ the workforce through skills development and training programmes.

In 2008, NTUC established the e2i (Employment and Employability Institute), focused on raising the employability of workers.

NTUC also led the charge in promoting re-employment for older workers.

Various jobs that benefit from the Progressive Wage Model.

2010s: The Progressive Wage Model and being inclusive

The 2010s were marked by digital disruption and widening income inequality.

In 2012, NTUC responded by deepening support for lower-wage workers by introducing the Progressive Wage Model (PWM), which links pay increases to skills upgrading and productivity. It became a cornerstone of inclusive growth in Singapore.

Company Training Committees comprise unions and management who come together to identify disrupted jobs and new roles, as well as curate relevant training to help workers in the companies keep up with industry transformation.

2020s and beyond: Resilience in a new era

Even as the world faces uncertainty, NTUC’s role remains unchanged: to protect, represent and support workers through every stage of life and every economic cycle.

Through the Company Training Committees, NTUC is helping companies and workers prepare for evolving economic needs through training and transformation.

As Singapore turns 60, the Labour Movement stands proud of its shared legacy with the nation.