Singapore revs up funding for unionised firms with training committees

Firms can get 10% of funding support from the Labour Movement as an incentive.

Starting 1 April 2020, unionised companies and partners of the Employment and Employability Institute (e21) will be able to receive 10% of funding support from the Labour Movement under the Enterprise Development Grant (EDG), deputy prime minister and finance minister Heng Swee Keat announced on his Labour Day speech.

To be eligible, companies will have to set up Company Training Committees (CTCs), and commit themselves to other positive worker outcomes such as “raising salaries of low-wage workers, or reskilling.” NTUC will set up 1,000 CTCs over the next three years, to benefit around 330,000 workers.

“All too often, workers and companies might not be clear about their skills training needs. Unions can apply their deep knowledge of the workplace and factory floor to identify the right courses, customise training, and help workers develop relevant skills for particular jobs,” Heng said.

The three-year extension of the EDG was initially announced in the 2019 Budget as a way to help firms cope with changes to be brought about by the reduction in the Dependency Ratio Ceiling (DRC) and S-Pass quota for the services sector over the next two years.

The support level for SMEs covers up to 70% for all other qualified costs, whilst for non-SMEs, it can reach up to 50% for all other qualified costs.