Unions push for AI safeguards, cost relief in Budget 2026 priorities

Union leaders from various sectors came together on 27 November 2025 for an open, wide-ranging discussion as part of NTUC's Pre-Budget 2026 engagement.

The discussion covered workers’ concerns across all life stages, from fresh graduates entering the workforce to seniors nearing retirement, including PMEs, freelancers, and platform workers.

NTUC President K Thanaletchimi reflected on the significance of the session: “I was mesmerised by the amount of feedback, concerns and anxieties that our union leaders brought to the table. And very essentially, these are the day-in and day-out troubles that our workers face.”

Cost of living pressures

The rising cost of living remained the most prominent issue discussed.

Workers continue to feel that daily essentials, healthcare and transport costs have risen faster than wages.

Leaders also pointed out that awareness and adoption of the National Wages Council (NWC) guidelines differ widely across sectors, which affects wage progression for many workers, particularly those in the broad middle-income group.

Ms Thanaletchimi reinforced the importance of strengthening NWC adoption: “The NWC adoption… it can be better, and it has to represent the broad-based middle-income workers.”

Job security, retrenchment support and disruption across sectors

Job security has become a growing concern, with union leaders reporting more workers seeking reassurance on contract renewals, restructuring and redeployment.

The increased use of fixed-term contracts, especially among mature workers, has added to the uncertainty felt on the ground.

Leaders discussed the need for proactive retrenchment notifications, clearer communication of support schemes, enhanced redeployment pathways and more targeted training interventions before workers lose their jobs.

NTUC Central Committee Member Larry Gwee highlighted the scale of change workers are experiencing.

He said: “I think the keyword today is disruption is going to affect everyone, your PMEs, your operational and your gig workers alike. The workers on the ground have been telling us that they are now not only looking for support to stay employed but also opportunities to grow into better jobs.”

AI, technological change and the need for targeted upskilling

The discussion on AI drew some of the strongest reactions.

Leaders observed that workers are increasingly unsure about the impact of AI, digitalisation and autonomous vehicles (AVs) on their roles.

Participants also highlighted the rise of agentic AI, which replaces human decision-making and operational tasks, potentially affecting a broader range of jobs.

Concerns included fairness in AI-driven hiring, declines in entry-level roles, older workers’ ability to retrain and the need for sector-specific transition plans.

Ms Thanaletchimi called for urgent action and said: “AI is troubling every one of us. Even union leaders are troubled.

“Will AI displace jobs or replace humans? We need to deep dive into all these problems that our workers face.”

There are especially mounting concerns from the creative industry.

Visual, Audio, Creative Content Professionals Association (VICPA) Assistant General Treasurer Eujin Goh shared sector-specific challenges.

He said: “AI is going to lead to massive job losses, or how it's going to affect the industry… we're all talking about generative AI now, but the true AI that will help is actually agentic AI.”

He added: “Because you’re generating content at the expense of the creatives, you're basically telling the machine to take our job.”

Autonomous vehicles and the future of platform work

Platform workers have raised strong calls for clearer timelines and transition pathways as autonomous vehicle (AV) deployment progresses.

Leaders also said that as many platform workers are progressing into their 50s, there are concerns about how their livelihoods may be affected when AVs become widespread.

National Taxi Association (NTA) General Secretary Ban Kum Cheong highlighted the ground concerns.

He said: “Drivers actually face difficulty with AVs… once they’re in, a lot of drivers’ jobs will be wiped out. Most of the drivers are 50, 60, or 70 years old… It's quite challenging [to retrain them].”

Young workers, experience gaps and career pathways

Youth employability remains a strong priority amongst union leaders.

They noted that many young graduates feel uncertain about their skills, workplace expectations and industry pathways.

Short internships, a mismatch between university learning and employer requirements, and unclear salary benchmarks were common themes.

Ms Thanaletchimi emphasised the importance of supporting the next generation: “I think everyone agrees that we need to guide the youth… how do we guide, what is the support given, and how do we broaden, you know, and deepen the internship model?”

Mid-career workers, balancing work, family and care responsibilities

Work-life balance and caregiving were also discussed during the engagement.

For many workers aged 35 to 54, caregiving responsibilities — whether for young children or elderly parents — shape their employment decisions.

Leaders shared feedback that mid-career workers want more workplace flexibility, better support during caregiving exits and clearer pathways back to work after temporary breaks.

Ms Thanaletchimi reflected this sentiment: “Better protection and, importantly, good benefits for the caregivers and how to balance work and family responsibilities… all these actually emerge. And I think many of them strongly felt that there must be more flexibility.”

Senior workers and opportunities to contribute

Senior workers want to keep working, leaders said, but they need fair re-employment terms, stable contracts, and access to training that keeps them employable.

They also raised concerns about short re-employment contracts, rising healthcare insurance premiums and outdated assumptions about older workers’ capabilities.

NTUC Central Committee Member Tan Richard shared insights from conversations with older workers.

He said: “Their concern is that they want to work, they want to stay relevant to the industry, and they are not afraid of taking up the training to be more relevant to what they are doing today.”

Moving forward to amplify workers’ voices

The engagement is one of many that will be conducted with workers and unions leading up to Budget 2026.

The Ministry of Finance, on 2 December 2025, has released an invitation for Singaporeans to share their views on Budget 2026.

Individuals, organisations, and businesses can share their views until 12 January 2026.

Ms Thanaletchimi said these engagements are important as the Labour Movement puts forth proposals to the Government.

“We want to make sure that the voices of the workers are heard… we need to ensure that they are embracing the new knowledge, new jobs and new job roles.”