Quantifying and analysing the non-collective bargaining benefits of NTUC

• Main Author: Neo, Aaron Chun Boon
• Other Authors: Chew Soon Beng
• Format: Final Year Project
• Language: English
• Published: 2012
• Subjects: DRNTU::Social sciences
• Online Access: http://hdl.handle.net/10356/50809
• Institution: Nanyang Technological University

The research is on one of the few; if not the only macro-focused labour union in the world on the non-collective bargaining benefits provided. National Trade Union Congress (NTUC) plays a vital role in maintaining Singapore’s comparative advantage with tripartism. If union benefits provided by NTUC, to its members (including the General Branch Members) are both timely and highly valued by them, it is similar to providing an additional wage differential to its members over non-members. This not only solves the free ridership problem of macro-focused unions, but it will also allow union members to receive a wage boost. To quantify the benefits, the research focus on a few key areas that we are looking into, namely, the amount of savings that members can reap, regularity of frequenting the merchant and lastly, the importance of the benefits that are provided. A survey has been conducted to investigate the importance of available discounts in determining the preference of a merchant. An index was developed and provided evidence for non-members potentially reaping more benefits (if they were to join as union members) than members mainly because the type of benefits offered by NTUC resonates better with non-members who place higher significance on these benefits. There is a strikingly mismatch of preference and benefits provided by the union. Food and non-alcoholic beverages, being top priority, only has one vendor providing discounts. Transport, which is 2nd priority, only has 2 vendors providing discounts. The divergence of benefits desired and provided will impede the macro-focused union efforts to correct the market failure and eventually hampering the union in its pursuit of macro-focused aims. The paper also made recommendations to NTUC on how informative advertising and regular review on the benefits in accordance to preference can to reduce asymmetric information and more importantly help the union to maintain a pink state of membership numbers