EVERY month, Mr Mohmmed Ahmad spends about $150 on groceries, shopping at NTUC FairPrice supermarkets.

From next month, the 62-year-old will save at least $7.50 on his bill, by using discount vouchers the labour movement is giving to less well-off members.

The pest control worker, who is married with three young children and earns $1,100 a month, says every cent counts in these days of rising prices.

In all, about 80,000 lower-income union members can apply for these vouchers from NTUC, for use from May 1.

Each voucher gets them a 5 per cent discount for every $10 spent at six NTUC cooperatives, including its childcare centres and pharmacies.

Every eligible worker will get a booklet with $50 worth of discounts, meaning the 100 coupons can bring savings for expenses up to $1,000.

In announcing the new 'U Stretch' voucher, labour chief Lim Swee Say said: 'This 5 per cent discount is to restore the purchasing power which is being reduced due to high inflation.'

Inflation is likely to be between 5 per cent and 5.5 per cent this year.

The bill for the giveaway amounts to $4 million, which will be picked up by the Singapore Labour Foundation, the NTUC and cooperatives FairPrice, private home developer NTUC Choice Homes and insurer NTUC Income.

The voucher gift follows the Government's decision to set aside at least $1 million from the ComCare fund to help needy families cope with rising food prices.

Mr Lim said grassroots leaders can use the money from the million-dollar fund to buy the vouchers for their needy residents.

The labour chief's announcement of the $4 million gift came after he and 80 union leaders toured FairPrice's fresh food distribution centre in Upper Thomson Road.

They were told about the benefits of choosing frozen meat, which is 40 per cent cheaper than chilled meat.

They also tasted various grades of rice, said to be equally nutritious but priced differently.

Union leaders later told The Straits Times the vouchers were timely as many members were concerned about price increases.

Said Mr Ganesan Perumal, president of the Amalgamated Union of Public Daily Rated Workers: 'Most of our members are very worried. At least the NTUC is helping a little bit.'

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