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FairPrice Group Implements Progressive Wage Model Across Entire Business Network – Covering Retail, Food Services and Supply Chain Businesses

Published on
28 August 2022

FairPrice Group Implements Progressive Wage Model Across Entire Business Network – Covering Retail, Food Services and Supply Chain Businesses

  • The Progressive Wage Model (PWM) will be implemented for over 10,000 non-executive staff beyond its Retail Business as of 1 September
  • Projected to cost S$90 million over a three year period before subsidies, FairPrice Group seeks to take the lead to set industry standards and improve the lives of workers

SINGAPORE, 28 August 2022 – FairPrice Group (FPG) today announces that they are taking the lead to set the industry standard and improve the lives of workers by implementing the Progressive Wage Model (PWM) initiative, not only in the retail sector, but also powering ahead by extending the initiative across its entire group of businesses.

The implementation to its food services and supply chain business precedes the PWM’s requirement for both of these industries.

Mr Vipul Chawla, Group CEO, FairPrice Group said, “Our staff are our most important asset and we value their dedication and service. As a provider of everything food, we want to move forward as one team and are therefore going the extra mile and extending the initiative beyond our retail business to include employees across all our various businesses in FPG.”

“While companies have six months to work on the implementation of PWM, we expedited and implemented it right from the get-go despite rising cost pressures and inflation as we believe that a motivated and empowered workforce will deliver the best care for our customers,” Mr Vipul added.

FPG’s implementation of the PWM commences on 1 September 2022 and will benefit over 10,000 non-executive staff including full-timers and part-timers regardless of nationality across FPG’s businesses and corporate functions.

The objective for the initiative is to take greater care of staff and to leave no one behind, regardless of their background or the business they work in. Just as staff goes the extra mile to serve customers – FPG also embraces the same philosophy of going the extra mile to take care of its employees.

By investing in its people and providing opportunities for everyone, this initiative further complements the holistic approach FPG has adopted in developing its workforce – that is, through encouraging lifelong learning to strengthen skillsets, improving productivity and fostering a fulfilling career for staff.

With the PWM framework, staff will have a clearer career pathway to take ownership and upskill and reskill themselves to achieve higher productivity, leading to potentially higher wages. The initiative is projected to cost FPG approximately S$70 million over a span of three years, taking into consideration government subsidies.

Non-executive staff make up 75 percent of FPG’s total workforce and this will raise the wages of non-executive staff to a level that is in line with their roles for their respective industries.

The PWM provides a structured framework for workers to upskill with various training requirements and enhances workers’ competencies, which helps to increase business productivity.

FairPrice Group’s move looks to complement the government’s transformation map in developing a future-ready retail sector that can adapt to shifting trends, advancements in technology and ever-changing consumer needs.

As a responsible employer with a workforce of over 13,000 staff, FPG ensures that staff welfare and benefits are competitive and in tandem with economic and market conditions. The increase in wages through PWM will also assist staff to better manage the rising costs of living.

Details of the initiative will be shared at its staff townhall and non-executive staff will be receiving further communications progressively in the coming weeks.

The roll-out was done in close consultation with the Food, Drinks and Allied Workers’ Union (FDAWU). 

“It was indeed a pleasure working with FPG to roll out the PWM for the benefit of employees in FPG’s retail, food services and supply chain operations. We look forward to our continued partnership to do well, do good and do together for our workers,” said Mr Tan Hock Soon, General Secretary, FDAWU.

As part of the labour movement, FPG seeks to champion the interests of workers and lead the way in uplifting their lives by helping them build a fulfilling career.

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