Tripartism in wage setting and wage flexibility, a Singapore case study

Abstract

Since the country’s independence in 1965, Singapore has experienced remarkable economic growth driven by rapid industrialisation. Singapore has also managed to navigate several episodes of economic restructuring to improve its economic competitiveness. A key factor behind these accomplishments is the collaborative approach – "tripartism" – Singapore has adopted for interactions between the government, employees, and employers that builds consensus around the country’s developmental priorities and helps avoid disruptive labour confrontations. This approach has historically maintained high levels of employment for Singapore’s workforce while delivering a stable business environment in which businesses can invest in and grow. This case study will examine how social dialogue in Singapore’s tripartite approach facilitates collaborative, problem-solving interactions.

This case study is a collaboration between the Lee Kuan Yew School of Public Policy and Tripartite Collective, with contributions from the Ministry of Manpower, National Trades Union Congress, Singapore National Employers Federation, and National Wages Council.