“The codetermination between labour and management in policymaking is compulsory in large firms.” (Elizabeth Pond) However, this is not evident in Singapore companies. Stockholders of companies here have full power in electing members to the board of directors, whereas the companies’ own employees have no say or representation in the board. Employees are the direct operational personnel in the works of the company therefore they will be able to provide a different perspective reflective of the actual work conditions; so it would be valuable to have them represented in the board of directors.
The proposed system can be somewhat similar to the law passed in Germany called the Co-Determination Act, establishing supervisory boards, Aufsichtsrat, which provides for equal representation on the boards of directors. This means that the number of members elected to the board of directors by employees must be equal to the number elected by the stockholders of a company. However, instead of the chairman who is elected by the stockholders casting the deciding vote should a disagreement ensue, both groups of directors must agree on a neutral member, to make the system more just and worker-friendly.
Due to the current lack of representation of working class citizens in the board of directors, we propose that a more democratic board election system be introduced into companies in Singapore. Both employees and stockholders should be allowed to participate in the elections. Implementation of this improved system of board elections will provide for equal representation of workers and stockholders on the board of directors. This supports one of the principles of good governance - fair-mindedness. It is about the equal treatment of everyone in Singapore, bearing in mind that their interests are kept in balance and that no one is disadvantaged or more favoured. This is particularly important in the process of decision-making, so as to ensure peace and harmony; in fact this principle can also be applied in the management of a company. Hence, it encourages democracy, whereby everyone, including the employees, have a say in electing members to the board of directors.
Working class citizens have an undeniably important role to play when participating in board elections. They must be proactive when it comes to making informed decisions, as these decisions will have a major impact on the future of the company. They have to assume responsibility for their choices, not basing their choices solely on self-serving interests and personal gains, but instead for the advancement of the company. If and when this proposed system is implemented, the working class citizens should treasure this voting privilege and make full use of it to help better the company, as well as achieve representation in the board to voice their perspectives.
Based on our findings, we can deduce that although the Singapore government is practicing democracy, this is still lacking in business companies here, in the aspect of Workers’ Rights. Hence, we should initiate the start of democratization of the Singapore society by first changing the board election system of companies.
