7 March 2013
FOR IMMEDIATE RELEASE

SMRT-NTWU JOINT MEDIA RELEASE

SMRT ALIGNS STAFF INCENTIVES TO PRODUCTIVITY, SAFETY AND CUSTOMER SERVICE Company Inks revised Collective Agreement with NTWU for Progressive and Responsive Wage System

1. Public Transport Operator, SMRT, announced today its Wage Review for all Non-Executive staff. The company will begin the roll out of what it describes to be a progressive and responsive wage system that will benefit Non-Executive employees of its trains and bus operations as well as corporate office staff.
2. The new wage framework was developed following several months of industry review, a market benchmarking exercise, performance goals-setting, and an extensive consultation process with the
National Transport Workers'
Union (NTWU), an affiliated-union of the National Trades Union
Congress (NTUC). Both parties came to an agreement early this week and inked today a revised Collective Agreement to begin the implementation of SMRT Wage Revision 2013 and an enhanced career progression framework for all its Non-Executive employees. The signing ceremony was witnessed by NTUC Secretary-General Lim Swee Say.
3. The highlight of the new framework is the launch of a monthly Productivity and Performance
Incentive that directly links
to staff performance in improving operational
performance and
productivity, adhering to safety regulations and contributing to an overall
positive customer
experience. These are behaviours which have been identified as key to achieving the larger objectives of the company in providing a safe, reliable and comfortable public transportation system. These initiatives are aligned with the government's aim for businesses to upgrade, create better jobs and raise wages.
4. SMRT President and CEO, Desmond Kuek said: "We believe that this is an important milestone for SMRT. The Wage Review represents a significant step towards achieving one of the company's goals of developing a world-class workforce and promoting organisational health. A productive and well trained workforce will help us drive our commitment to provide excellent transportation service to all our commuters. This breakthrough wouldn't have been possible without the strong and mutually beneficial relationship we have with the Union, and I thank them for working with us towards these outcomes."
5. "NTWU has been in on-going talks with SMRT on the revision of wage system for the non-executive staff. It is a collective decision for both parties to work towards a progressive and responsive pay system for all the workers in SMRT. Thus, we are extremely pleased to conclude the agreement with SMRT, bringing better pay packages to the workers. This review also marks the beginning of a new chapter of good Labour Management Relations (LMR) between SMRT management and NTWU," commented Mohd Rasi Taib, President of the National Transport Workers' Union.
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SMRT Wage Revision 2013


SMRT-NTWU JOINT MEDIA RELEASE

6. The key objective of the SMRT Wage Revision 2013 is to build a productivity and performance based culture where individual work performance is directly aligned to remuneration and incentivisation. The SMRT Wage Revision 2013 also represents part of SMRT's on-going plans to enhance the career schemes and progression of SMRT employees, and is part of the company's systematic review of its
Human Resource policies to
ensure that the welfare and work-harmony arrangements of its
employees are well looked after.
7. Wage Revision 2013 features enhancements made to the remuneration packages of all SMRT's Non- Executive employees with effect from March 2013, excluding its Bus Captains1 who had received a salary enhancement package last year. These include an increase in basic salaries, the introduction
of a Monthly Performance and Productivity Incentive component, increase in
salary ranges of
existing employees, a one-off Market Adjustment Component, and an upward adjustment to the commencement salaries of new Non-Executive employees. For further details of SMRT Wage Revision 2013, please refer to Annex A.

Single Scheme for Bus Captains

8. For SMRT's Bus Captains who had received a salary enhancement package last year, part of the wage review includes a one-time emplacement exercise into a new scheme. From April 2013, all SMRT Bus Captains on permanent contracts, who currently belong to two distinct schemes2, will be emplaced into a single Bus Captain scheme. This will allow for all Bus Captains to be developed, assessed, incentivised and promoted based on a common set of performance indicators and
competency levels. All Bus
Captains will enjoy incentives that measure
their operational
performance and productivity, as well as adherence to schedule, service and safety standards. PRC Bus Captains who are under 2-year contracts will also receive the same performance incentives, an Annual Wage Supplement and a year-end variable bonus annually, in place of their current ex-gratia and sign-on bonus.

Enhanced Career Progression Framework for SMRT employees

9. The revised Collective Agreement also includes an Enhanced Career Progression Framework. This is a robust competency training support roadmap for individual staff that aims to enhance the career schemes and development of employees, retain and develop talent, allow steady career progression based on individual performance, and increase productivity to develop a performance-based workplace culture that is aligned to achieving Workforce Health - one of SMRT's Five Strategic Thrusts.
-END-

1 With effect from 1 April 2013, SMRT's Service Leaders will be renamed as Bus Captains

2 Currently, SMRT Bus Captains on permanent contracts belong to either the non-Job Recreation Scheme or the Job Recreation

Scheme

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SMRT-NTWU JOINT MEDIA RELEASE

Annex A

The SMRT Wage Revision 2013 features the following key enhancements made to the remuneration packages of all SMRT's Non-Executive employees, excluding its Bus Captains who had received a salary enhancement package last year, with effect from March 2013:
1. Base salary increment of $320. Effective: 1 March 2013.
This increment follows an industry benchmarking exercise that reviewed SMRT employees' salaries against the relevant external labour market and industries.
2. Productivity and Performance Incentive of up to $250 per month. Effective: 1 April 2013.
This comprises the introduction of a Monthly Performance Incentive Bonus (MPIB) component of up to
$250, achievable by meeting a set of operational performance targets.
The MPIB will be on top of the current Annual Variable Bonus and Merit Increments. Depending on respective job roles, this incentive could be individual or team based.
3. Market Adjustment Component of $1,000. Effective: March 2013 Payroll.
Employees will receive a one-off payment that will bring the annual basic salary to the current market benchmark. The lump sum payment also aims to act as an encouragement to employees in continuing to be engaged and inspired in giving their best.
4. Increase in salary ranges. Effective: March 2013
To provide a more sustainable career runway for SMRT employees, the starting salaries and salary ranges for each employee grade will be increased accordingly.
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SMRT-NTWU JOINT MEDIA RELEASE


SMRT President & CEO Desmond Kuek, NTWU Executive Secretary Ong Chin Ang, Secretary-General NTUC Lim Swee Say and SMRT management team at the revised Collective Agreement signing ceremony this morning.

SMRT President & CEO Desmond Kuek and NTWU Executive Secretary Ong Chin Ang at the revised

Collective Agreement signing ceremony this morning to launch the SMRT Wage Revision. The ceremony was witnessed by Secretary-General NTUC, Lim Swee Say.

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