Income-Allianz saga: Union leaders concerned about impact on NTUC’s standing, ties with government

SINGAPORE: The Income-Allianz saga has raised concerns among union leaders about the negative public sentiment towards the National Trades Union Congress (NTUC) and the impact on its relationship with the government.

An estimated 300 unionists met with Cabinet ministers and senior NTUC leaders behind closed doors on Wednesday (Oct 16) evening, an attendee told CNA. 

Deputy Prime Minister Gan Kim Yong, Minister for Culture, Community and Youth Edwin Tong, Second Minister for Finance Chee Hong Tat, NTUC secretary-general Ng Chee Meng and NTUC president K Thanaletchimi were present.

Attendees told CNA that the meeting at the NTUC Centre in Marina Boulevard had been called immediately after the government announced on Monday that it was blocking the deal.

Ms Thanaletchimi told CNA after the meeting that it was “a very frank discussion”, which lasted about two hours and ended at around 10pm.

“Everyone was very spirited. But everyone understood the government’s position, and we agreed to move forward together,” she said.

One union leader of more than 10 years said the ministers in attendance were focused on strengthening the “symbiotic relationship” between the government and the NTUC.

There was also a desire not to let this “one-off” incident affect the relationship that had been built between the NTUC, the government and the public over the years, he said.

During the session, unionists also raised concerns over the negative impact on the public standing of NTUC and Mr Ng amid the fallout. Mr Ng and Ms Thanaletchimi issued a joint statement on Aug 5, giving a public assurance that after the deal, NTUC will ensure that Income upholds its commitment to keep premiums affordable for two of its low-cost insurance schemes.

They were also concerned because this saga came shortly after the relationship between the NTUC and the People's Action Party (PAP) was thrust into the spotlight last month.

During September’s parliament sitting, opposition lawmakers clashed with the PAP over the independence and effectiveness of the NTUC given its “symbiotic relationship” with the ruling party.

NTUC deputy secretaries-general Heng Chee How and Desmond Tan, who are among the labour MPs, defended the congress’ independence during that exchange.

“The union leaders agreed that this situation (halting the Aliianz deal) does not look good for NTUC, and it seems like NTUC didn’t act in the public interest,” said one attendee of Wednesday’s meeting who chose to remain anonymous.

The conclusion was that the NTUC will have to work on strengthening and sharpening its public messaging, and also improve its communication, the person said.

NTUC secretary-general Mr Ng said on Facebook after the meeting that it was a "productive" discussion for unionists to clarify the issues. 

The ministers also emphasised that NTUC and the PAP government will continue to strengthen their symbiotic relationship, he said.

On Thursday, he told CNA that there was "no doubt" that the NTUC-PAP relationship remains strong.

“Obviously, there was new information that MCCY (Ministry of Culture, Community and Youth) brought up, and there's a difference in view as expressed,” he said.

However, NTUC accepts the government’s viewpoint and will study the implications carefully and how to proceed, he added.

DEAL BLOCKED

On Monday, the Singapore government said it was blocking the deal between Income Insurance and German insurer Allianz, with minister Edwin Tong saying in parliament that it was deemed to be not in the public interest.

This was followed by NTUC deputy secretary-general Desmond Tan’s revelation on Wednesday, that the NTUC central committee had no knowledge of a S$2 billion capital extraction plan under the proposed deal, due to commercial sensitivities.

NTUC had initially backed the proposed deal, with Mr Ng and Ms Thanaletchimi reiterating in an Aug 5 statement the body’s social mission, and reassuring everyone that NTUC Enterprise will continue to retain “a substantial stake” in Income.

They said they understood the concerns shared by many about the proposed deal, but said that NTUC Enterprise cannot financially support Income on its own.

"In this fiercely competitive environment, it became plain that Income can only continue to fulfil its social mission if it has access to additional resources and the ability to scale,” said the two leaders.

They noted that “Allianz’s credentials proved to be strongest, with the interests on both sides aligned".

“That is why, after full and serious consideration, the NTUC central committee decided to support NTUC Enterprise’s consideration of the offer from Allianz,” they said.

At the parliament sitting on Aug 6 when the topic was brought to the fore, no labour MPs filed any questions or spoke during the debate.