Susan de Silva
Head of International HR
Services Asia Pacific
Partner, ATMD Bird & Bird LLP

Bird & Bird
A: Asia: Beijing, Hong Kong,
S hanghai, Singapore &
S ydney
W: twobirds.com

WHAT’S NEW?

With effect from 1 April 2015, Singapore’s Industrial Relations Act will allow a rank & file union which has been recognised by a company to represent the company’s professionals, managers and executives (“Executives”) collectively as a class; and individually on re-employment matters and other limited issues.

Additionally, Tripartite Guidelines issued in November 2014 expand existing guidelines on eligibility criteria for collective representation, types of representation for Executives other than collective agreements, and individual representation by rank & file unions for Executives’ re-employment disputes.

POLICY BEHIND IRA AMENDMENTS

Allowing rank & file unions to collectively represent Executives limits companies’ dealings to one union and allows unions to stay relevant in a workforce in which Executives comprise about one-third of all workers.

WHAT THE NEW RULES PROVIDE

Excluded Classes of Executives

Companies can object to certain Executives being represented, such as senior Executives who have significant decision-making power, can access confidential information, exercise considerable autonomy or independent judgment, or whose work strategically impacts the organisation.

Salary levels and an organisation’s proportion of Executives may help determine eligibility. Disputes regarding Executives’ eligibility may be referred to the Ministry of Manpower for conciliation, before determination by the Industrial Arbitration Court.

Union recognition

A union which has been recognised to represent a company’s rank & file employees may continue to individually represent Executives, but must obtain recognition anew to collectively represent the company’s Executives.

An unrecognised union may seek recognition to first represent rank & file employees, before seeking to represent Executives.

Types of union representation of Executives

Other than a collective agreement, parties may agree on other arrangements, such as maintaining the status quo on existing agreements regarding Executives’ individual representation, agree to a new arrangement or enter a memorandum of understanding to agree on eligible classes of Executives.

WHAT COMPANIES SHOULD DO

Companies should anticipate unions seeking to represent their employees including their Executives, consider their response should they be approached, and assess which categories of Executives should or should not be represented by a union.