The Decision Making Process
The NWC operates on two principles, both proposed by its founding Chairman Professor Lim Chong Yah at the inaugural NWC meeting in 1972.
Unanimity Principle
- The principle of unanimity means that all NWC members must agree on the NWC’s guidelines and recommendations.
- The application of unanimity means that no two tripartite parties in the NWC can coerce the third party to act against its core interests through majority voting. For example, the trade unions and employers cannot work together to demand something from the Government. This allows the Government to preserve its responsibility of looking after the welfare of the country, not just in the short run but also in the long run. Similarly, the Government and trade unions cannot force employers to act against their core interests, and the Government and employers cannot force workers to act against their core interests.
- Through the principle of unanimity, the annual NWC guidelines can be implemented by employers and workers without the need to question whether specific recommendations were supported or not supported by the various tripartite partners.
Chatham House Principle
- Chatham House, also known as the Royal Institute of International Affairs, is an independent policy institute headquartered in London, and is the originator of the Chatham House principle. Under this principle, participants in meetings are free to use the information received, but neither the identity nor the affiliation of the speaker(s), nor that of any other participant, may be revealed.
- The Chatham House principle allows free discussion and free exchange of views. As such, NWC members have the flexibility to change their minds, and their initial positions to arrive at win-win solutions. The final agreement is what matters.