Justice For Workers, Singapore

Singapore unemployment rate falls to 14-year low

2012-03-16T09:58:00.001+08:00

by Esther Ng
TODAY, Mar 16, 2012

SINGAPORE - The unemployment rate last year dropped to 2 per cent for the first time in 14 years, but labour productivity growth, after rising sharply to 11 per cent in 2010, slid to 1 per cent.

The moderation was due to slower gross domestic product growth amid strong job creation, the Ministry of Manpower said yesterday in its labour market report.

Productivity has been of great concern to the Government, which outlined several enhancements to schemes that support productivity improvement in the Budget this year.

Economists Today spoke to were not perturbed by the slide, as the drop in productivity corresponds to a drop in real output growth - the economy grew 14.7 per cent in 2010 but 4.9 per cent last year.

Moreover, labour is only one factor of productivity and labour productivity figures fluctuate a lot because Singapore's growth is driven by manpower growth, SIM University School of Business Associate Professor Randolph Tan pointed out.

What was interesting, he said, was that Singapore's relative unit labour cost (RULC) for manufacturing - a measure of its competitiveness against 16 economies such as Hong Kong and Taiwan - has been "trending downwards", suggesting the manufacturing sector is "regaining its competitiveness".

"Unit per labour cost comprises wage changes and productivity improvement. This suggests that productivity (in manufacturing) has been strong enough to offset increase in wages," said Assoc Prof Tan.

However, Citigroup economist Kit Wei Zheng disagreed that productivity improvements had made the Singapore manufacturing sector competitive and put it down to "an expansion" in the biomedical sector in the third to fourth quarter.

Meanwhile, hiring sentiment was looking up, with 37,600 jobs added in the last quarter, 5,700 more than in the previous quarter. For the whole year, total employment increased by 122,600 (3.9 per cent), slightly higher than the gain of 115,900 (3.9 per cent) in 2010.

The large majority of employment gains came from services (96,100) last year, though this was lower than in 2010 (112,600). Boosted by public projects, construction jobs rose by 22,000 compared to 3,400 in 2010. Manufacturing jobs, however, grew by only 3,400.

Said Adecco South East Asia's regional director, Ms Lynne Ng: "We have seen a slight increase in demand from our clients in the construction and manufacturing sectors that is being driven, in part, by the increasing number of organisations that are building new manufacturing and construction facilities."

As for redundancies, close to six in 10 (57 per cent) residents who were made redundant were previously holding professional, managerial, executive and technician (PMET) jobs.

Production and related workers were more vulnerable to redundancy, forming 29 per cent of the residents laid off while they accounted for 21 per cent of the workforce.

Nearly two in three workers made redundant last year were mature residents aged 40 and over, higher than their 54-per-cent representation in the workforce.

Wages up 6% last year: MOM report

2012-03-16T09:57:00.001+08:00

But inflation ate into income, and workers' productivity hardly rose
Straits Times, Published on Mar 16, 2012
By Rachel Chang

WAGES grew by 6 per cent last year, but struggled to keep pace with inflation.

After accounting for higher prices, real wages crept up by 0.7 per cent, less than the 2.7 per cent rise in 2010, said the Ministry of Manpower's (MOM) latest labour market report, released yesterday.

Economists interviewed yesterday said a boost in productivity is the only way for real wages to rise meaningfully.

But the MOM report shows productivity of the local workforce hardly grew last year.

It means companies are still relying on hiring more workers to meet demand, rather than boosting the productivity of their existing staff, the economists said.

While they expect productivity to improve as the Government tightens the inflow of foreigners, they do not see the same outcome for real income.

Inflation will continue to erode wages this year as the Consumer Price Index is likely to continue its upward tick, they said.

In fact, they noted that inflation may even outpace earnings if the slowing economy causes wage growth to dip below the expected price increase of 3 per cent to 4 per cent.

'We may then be facing a zero real wage growth situation,' said DBS economist Irvin Seah.

The Monetary Authority of Singapore expects headline inflation to come in at between 2.5 per cent and 3.5 per cent this year. Some private-sector economists predict it will be closer to 4 per cent.

But while the wage growth last year was tepid, the picture is more optimistic when a five-year snapshot is taken.

From 2006 to last year, Singaporean workers' real median incomes rose by 13 per cent, or 2.5 per cent every year, said the report. For those in the bottom 20 per cent, real median incomes rose by 11 per cent, or 2.2 per cent every year.

In 2010, Finance Minister Tharman Shanmugaratnam, who is now also Deputy Prime Minister, pledged to raise real median incomes by a third in a decade. This would mean real wage growth of 2.7 per cent every year.

The question is whether this can be achieved, with productivity gains.

Productivity of the local workforce grew by 1 per cent last year, according to the MOM report.

This is a sharp fall from the 11 per cent achieved in 2010, and below the Government's target of 2 per cent to 3 per cent annually.

The drop was due to continued job creation despite slower economic growth, said the report.

More jobs were created in the last quarter of last year than in the same period in 2010, boosted by hiring for the festive season.

But this contributed to declining productivity in the last quarter. It fell by 0.4 per cent, after rising by 2 per cent in the previous three months.

But economists like Nanyang Technological University labour economist Chew Soon Beng are not overly concerned.

Dr Chew said last year's figures may not give the full picture, as these are derived in comparison with the labour market's performance in 2010 - an outlying year which saw the economy rebound sharply from recession.

'2010 was not a steady state, so there shouldn't be too much concern yet,' he said. 'Hopefully, the Budget will force productivity growth in 2012.'

He was referring especially to the latest round of measures to tighten the growth of the foreign worker population.

These will curb the number of foreign workers that companies can hire for every local employee.

Lee Kuan Yew School of Public Policy economist Hui Weng Tat concurred that the move to curb foreigners was the 'right policy response', as higher foreign worker levies have hardly stayed the hand of bosses when it comes to hiring foreigners.

This is reflected in the strong job creation in the last quarter of last year and the year overall, the bulk of which was filled by foreigners, he noted.

Last year, 122,600 jobs were created in total, about 70 per cent of which went to foreigners. This was because most locals were already employed, said the report, as the unemployment rate hit a 14-year low.

The curbs on foreign workers will be a major factor for the high inflation expected this year, said Mr Seah, because companies will raise their prices in reaction to, or pre-emption of, higher wage costs.

SME bosses cannot have it both ways

2012-03-09T20:48:00.001+08:00

Letter from Gilbert Goh
TODAY, Voices, Mar 09, 2012

THE report "Foreign labour cuts: Too deep?" (Feb 29) showed how supportive Members of Parliament were of our many small and medium enterprises on this issue.

But while our SMEs are started mostly by local entrepreneurs, it would be pointless if they are allowed to hire more foreign workers solely to make profits, without really benefitting local workers in the process.

Our service and manufacturing SMEs have cried out that local workers have shunned these industries. But did SMEs try their best to attract workers by providing competitive salary packages before requesting for more foreign workers?

SMEs should not expect Singaporeans to work in exploitative conditions as foreign workers do in clocking 12 to 14 hours daily. They should have decent work hours for local workers.

As Singapore is a small country, we cannot afford to keep bringing in more foreign workers. Perhaps, SME bosses who drive big cars and live in condominiums have not experienced the peak-hour squeeze that many Singaporeans have in their daily commute. Our infrastructure is being stretched to the limit.

The Government has been pro-business all along, enriching many SMEs, but if bringing in more semi-skilled foreign workers would adversely impact Singapore's social dynamics, it should be commended for slowly cutting off the supply tap, so that SMEs would either improve productivity or hire locals. There is now no better choice.

After liberalising maid rules, legislate flexi-work

2012-03-09T20:40:00.002+08:00

Straits Times, Forum letter, Published on Mar 9, 2012

I CONGRATULATE the Government for making it mandatory for maids to have a weekly day off ('Weekly day off for maids a must from next year'; Tuesday).

The Government should now tackle the other elephant in the room: Giving employees a statutory right to ask for flexible work arrangements.

In First World countries Australia, New Zealand and Britain, the right to seek such work arrangements is legislated.

Employees with caring responsibilities have the statutory right to ask for flexible work. Generally, the legislation does not specify gender, which is a plus point as raising children and care-giving are not confined to women.

In Britain, the legislation is couched in a way that does not necessarily compromise businesses. The statutory right applies to the ability to request but not to receive. If there are legitimate business reasons, employers can refuse to grant an employee's request.

The Singapore Government has started to change the mindset about maids. Now, it must tackle flexi-work arrangements which is equally urgent in the face of statistics that tell us that the Manpower Ministry received 110 pregnancy and maternity-related complaints last year, up from 84 in 2010 ('Rise in number of complaints by pregnant workers'; Feb 29). Flexi-work will benefit pregnant women radically.

Lorraine Boon (Ms)

80 per cent of Malaysian firms 'at risk of folding' with minimum wage

2012-03-07T12:01:00.001+08:00

TODAY, Mar 07, 2012

PETALING JAYA - Up to 80 per cent of operating companies in Malaysia may fold if a blanket minimum wage is introduced, owners of small and medium enterprises warned yesterday, in reaction to the government's plan to introduce a minimum wage of between RM800 (S$334) to RM1,000 at the end of the month.

The Small-Medium Industry Association of Malaysia (SMIAM) told a news conference that 99.2 per cent of active businesses in the country are SMIs, which employ 59 per cent of the labour market, or seven million workers.

"About 80 per cent are micro-SMIs, which are labour-intensive and employ the majority of these workers, a total of about four million. Their profit margins are only between 3 and 5 per cent. Basic wage not including incentives is about RM650 now but if it is increased to RM800, they will be totally killed," vice-president Michael Kang said.

Sixteen different industry associations held a news conference yesterday urging the government against a "sudden and substantial increase" in floor wages, The Malaysian Insider reported.

Malaysian Plastics Manufacturers Association president Lim Kok Boon said that an increase in base wages from RM650 to RM900 would increase average wage bills from 15 to 19.6 per cent of manufacturing cost.

"With an average profit margin of about 5 per cent, we will be just above water. Increase it to RM1,000 and it's goodbye," he said.

Mr Lim, whose association represents over 1,500 companies, said many plastics manufacturers were already operating at a loss.

The Malaysian Employers' Federation said on Monday that 200,000 companies would be hard-pressed to continue operations if a blanket minimum wage was implemented, putting four million jobs at risk.

But Human Resources Minister S Subramaniam assured the business community that implementing a minimum wage policy will not cause the economy to collapse, reported The Star newspaper.

He said more than 80 countries in the world have introduced a minimum wage, and some like Britain and the United States have had the policy for a long time. "To say that our economy will collapse is not founded on correct premise," he said on Monday.

"Our wages are much lower than the countries that we should compete with, such as Singapore, Taiwan, Japan and South Korea. We are similar in terms of development but our wages are much lower, which means we still have the capacity to increase our wages and at the same time maintain our economy," he added.

He said the ministry was waiting for the Prime Minister's approval before making the announcement on minimum wage. Agencies

Increasing capacity, salaries to keep healthcare system in shape

2012-03-07T11:59:00.000+08:00

by Tan Weizhen
TODAY, Mar 07, 2012

SINGAPORE - While Health Minister Gan Kim Yong yesterday addressed the challenges facing Singapore's healthcare system, he also stressed the importance of recognising and rewarding medical workers.

To that end, he unveiled higher salaries for doctors, nurses, dentists, pharmacists and allied health workers in a new pay framework which he said is aligned with "our public healthcare ethos and values". The salary increases will cost the Government S$200 million for the 2012 financial year.

Speaking at the Ministry of Health Committee of Supply debate yesterday, Mr Gan said that, over the past year, doctors have provided feedback that they wanted a pay system that rewarded doctors for looking after all patients, whether subsidised or full-paying.

"While pay is not everything, it is an important factor to retain and attract high-calibre individuals to pursue careers in the public healthcare sector," said Mr Gan. "The framework will better recognise public sector doctors for the complexity of their clinical work, quality outcomes and workload regardless of patient class."

The new pay framework will be rolled out in phases over the next two years. On average, doctors will see an increase in total compensation of about 20 per cent by 2014. Nurses, pharmacists and allied health professionals will see one-time base pay increases of between 4 per cent and 17 per cent from next month. The ministry will also enhance work-life harmony of staff via part-time work arrangements, five-day work weeks and family care leave.

The pay review is part of the Healthcare 2020 Masterplan that Mr Gan laid out, which comprises three key areas - expanding capacity in the healthcare system, raising quality of patient care and improving healthcare financing. "This means that Singaporeans will receive healthcare when we need it; our healthcare services will be of good quality and effective, and Singaporeans will be able to afford such services," he added.

Speaking on the first area yesterday, Mr Gan said that capacity, such as increasing beds, intakes in medical schools and working with public hospitals, will increase accessibility to medical services for the public - noting the impact of Singapore's growing ageing population on demand for healthcare.

Sharing the details of the increase in the number of beds in acute and community hospitals, he said that the new hospitals, Ng Teng Fong General Hospital and Jurong Community Hospital, will add more than 1,000 beds in the west.

The new Sengkang General Hospital and its sister community hospital will add 1,400 beds, while Yishun Community Hospital and a new community hospital in Outram will lead to another 800 community beds. He said that, if necessary, work will begin on a new acute hospital before 2020.

This infrastructural expansion will require about 50 per cent or about 20,000 more healthcare professionals by 2020. Thus, annual school intakes for nurses will be increased from 1,700 to 2,700, while that of pharmacists will be raised from 160 to 240.

Another key strategy to increase capacity would be to tap on the private sector and to involve voluntary welfare organisations, said Mr Gan.

The ministry will be inking a Memorandum of Understanding with Raffles Hospital, so it may ease the load of subsidised patients, he said.

Mr Gan said that the other two parts of the masterplan - improving quality of care and healthcare financing - will be addressed today.

Public workers in health care to get pay rise

2012-03-07T11:52:00.000+08:00

Doctors' salaries up by 20%; nurses and other staff get up to 17% more
Straits Times, Published on Mar 7, 2012
By Poon Chian Hui

PUBLIC-SECTOR doctors will get an average pay rise of about 20 per cent, under a new pay framework that will better capture the ethos of working in public health care.

Nurses and other public health-care staff, too, will get a pay hike of up to 17 per cent, starting next month.

The increases will not be passed on to patients, as the Government will foot the bill, which comes up to $200 million this year.

Announcing the pay hikes in Parliament during his ministry's Budget debate, Health Minister Gan Kim Yong said that they were made after a year of gathering feedback from doctors.

Doctors wanted a pay system that reinforced a greater sense of public-sector ethos and values, he told the House.

They also wanted greater clarity around their diverse roles of clinical work, education, research and leadership, and hence the new pay formula, he added.

'The framework will better recognise public-sector doctors for the complexity of their clinical work, quality outcomes and workload, regardless of patient class.

'It will also strengthen the recognition for doctors who play crucial roles in education, administration, leadership and research,' he said.

And with two more public hospitals coming up in the next six years, as well as more community hospitals and nursing homes, the public sector will be growing its workforce by 50 per cent - or about 20,000 - by 2020.

The pool will be expanded by first growing the intake at local schools. For example, the Lee Kong Chian School of Medicine at Nanyang Technological University will open next year with an initial batch of 50 students, which will be raised eventually to 150. Together with the other two medical schools, Singapore will train about 500 new doctors every year.

Yearly intakes of dental students will also go up from 48 to 80. Annual intakes of nurses will be ramped up from 1,700 to 2,700, and pharmacists, from 160 to 240.

The ministry will also extend the pre-employment grant for medical students to dentistry students overseas, in a bid to attract them to return here to work when they graduate.

In recent years, more doctors have quit the public sector. In the first half of last year, 150 doctors left public hospitals and polyclinics.

The chairman of the Government Parliamentary Committee for Health, Dr Lam Pin Min, said local talents are being lured by better salaries and prospects overseas, not just by private-sector opportunities at home.

The pay rise aims to stem the exodus.

From April, doctors will receive more pay based on their job level. For example, most associate consultants at a public hospital will get an increase equivalent to 20 per cent of their base salary, while consultant family physicians at polyclinics will get 10 per cent.

Junior-level doctors, such as house officers and medical officers, will similarly get 20 per cent more.

When the new pay framework is fully implemented by 2014, doctors will receive further increases. Dentists' pay will be similarly adjusted.

Trainee doctors can get paid around $3,000 a month, while consultant doctors can get $10,000 and upwards.

Mr Gan said that the ministry will also look into ensuring better work-life balance, including a five-day work week.

The Singapore Medical Association, which represents doctors in Singapore, said it is happy with the changes, with its president Chong Yeh Woei saying the pay rise is in line with the group's expectations.

'We are also encouraged that the pay framework will be revamped to reward doctors for looking after all kinds of patients, regardless of whether they are subsidised or full-paying,' he said. 'The next steps would be to look at factors other than salary that have an impact on the retention of doctors in the public sector.'

These would include the rising administrative and patient workload, as well as medico-legal risks, he added.

Meanwhile, nurses, pharmacists and allied health workers will also get a one-time pay hike ranging from 4 per cent to 17 per cent starting next month.

Senior staff, especially, will be recognised for their roles in leadership and training the younger generation. For example, a nurse manager can expect 8 per cent to 13 per cent more base pay.

The starting pay for nurses ranges from about $1,200 to $2,500, depending on the strength of their qualifications. Allied health workers earn between $1,500 and $2,800.

Nurse Tan Siok Bee, 48, who has been working at the Singapore General Hospital for more than 20 years, said the pay revision will help workers feel more valued.

But ensuring job satisfaction remains the key to retaining staff, said the assistant director of nursing.

She added: 'The important thing is that you are being appreciated for your efforts.'

MINISTRY OF ENVIRONMENT AND WATER RESOURCES - NEA to take over public cleaning job

2012-03-07T11:38:00.002+08:00

Its new department will assume other agencies' functions starting April 1
Straits Times, Published on Mar 7, 2012
By Grace Chua & Teo Wan Gek

THE job of cleaning public areas is currently split among different agencies: one takes care of footpaths, another vacant land, and yet another, drains.

But that means some areas fall through the cracks.

The National Environment Agency (NEA) intends to take charge of cleaning all public areas, except public housing estates which remain under town councils.

Senior Minister of State (Environment and Water Resources) Grace Fu announced the setting up of a new Department of Public Cleanliness (DPC) within NEA 'to better manage cleaning contracts, improve service standards and to improve our responsiveness to public feedback'.

She was responding to Associate Professor Muhammad Faishal Ibrahim (Nee Soon GRC), who highlighted the need to streamline and integrate cleaning functions.

NEA now oversees the cleaning of public areas such as roads. Water agency PUB cleans drains, the National Parks Board keeps parks clean and the Land Transport Authority sweeps footpaths.

The new department will begin to take over other agencies' cleaning functions from April 1, and by the end of 2016, it will look after all public cleaning work.

A call centre for public feedback will also be set up within the DPC. From April 1, the public can call 1800-600-3333 or e-mail cleanliness@nea.gov.sg

'Among other things, the DPC will improve on the supervision of cleaning contractors' performance by using Web- based remote camera systems to monitor litter-prone places,' Ms Fu said.

It will also cut the number of public cleaning contracts, now at 29.

Purechem Veolia Environmental Services, which has a mid-sized cleaning arm, welcomes the change. Its Singapore country manager Jerome Baco said: 'It will allow the private sector to mitigate rising costs through economies of scale.'

But a smaller counterpart, CPK Contractor, could face increased competition, said Mr Johnny Chai, the firm's owner.

Graduate student Ibrahim Iqbal, 27, said that while the move might make cleaning more efficient, it does not tackle 'the source of the problem' - the reason why people choose to litter.

Ms Fu added that her ministry is also considering a Bill to license cleaning firms in the next two years, which would set minimum standards that companies must meet before they can operate. This would complement NEA's voluntary accreditation scheme. The Government has said it will take the lead in giving cleaning jobs to accredited companies to improve cleaners' pay and working conditions.

Penguin Cleaning Solutions managing director Choo Meng Lien said he will not accredit his company. His 30 workers clean the offices of commercial firms, which use the lowest-priced services.

Evergreen Refuse Disposal and Cleaning Services managing director Ng Gek Kow has more than a hundred workers. About 80 per cent of them have gone for training to improve their productivity.

Each worker's wage has risen by $200, he said. 'The profits are definitely lower now, but we can still manage. Now, we provide better service than before.'

Govt updates scheme for low-wage workers

2012-03-06T15:25:00.001+08:00

by Esther Ng
TODAY, Mar 06, 2012

SINGAPORE - Low-wage workers on the Workfare Income Supplement (WIS) scheme will receive quarterly instead of bi-annual payments. They will receive the first quarterly payment for work done in the first quarter of this year by June 1.

The WIS will be paid to employees who have an average income of not more than S$1,700 in the quarter and have been employed for at least two months during the quarter.

About 440,000 older low-wage Singaporeans will receive the WIS this year, a 10-per-cent increase from 400,000 last year, said Senior Parliamentary Secretary for Manpower Hawazi Daipi during the ministry's Committee of Supply debate yesterday.

The Government will also step up the compliance of the Central Provident Fund (CPF) Act and the Employment Act through educating employers and employees of their rights and obligations.

Mr Hawazi noted that some workers prefer that their employer does not contribute CPF, so that they can have a higher take-home pay and avoid contributing employee CPF. As a result, some of these workers fall outside the CPF system, which is used to administer the WIS, he said.

In the area of best-sourcing, the Government will also introduce a requirement that cleaners employed in accredited companies receive "appropriate wages, commensurate with the higher training, standards and productivity required of accredited companies" under the National Environment Agency's voluntary Clean Mark accreditation scheme.

The Manpower and Home Affairs ministries will also study how to reduce the amount of overtime for security guards who work more than 12-hour shifts. Esther Ng

Work-life balance suffers due to technology: Survey

2012-03-06T15:19:00.002+08:00

TODAY, Mar 06, 2012

SINGAPORE - The majority of employees in Singapore struggle to achieve work-life balance, due to the widespread use of technology.

According to a study by global recruitment & HR services provider, Randstad, more workers feel obliged to answer emails and calls outside of work hours, as they are connected through smartphones and the Internet.

The Randstad Workmonitor Report for Q1 2012, released today, polled 405 employees in Singapore.

It found that seven in 10, or 71 per cent, receive calls or emails outside regular office hours.

Sixty-seven per cent receive work-related calls or emails when they are on annual leave.

Nearly half, or 45 per cent, said their employers expect them to be available at all times, or '24/7'.

The number is higher for those who are between 45 and 54 years old and for those aged 25 to 34 years.

Sixty per cent of workers feel they fall short of their own expectation if they do not respond to an email or phone call immediately.

Randstad regional director, Singapore & Malaysia, Ms Karin Clarke, said companies and staff need to be mindful of the knock-on effect from technology.

"Business leaders should be clear in their expectations for how 'switched on' they expect their staff to be.

"For example, for people in a client-facing role, there may be a need to respond instantly around the clock but for others, replying on Monday morning is soon enough.

"At the same time, employees should set their own boundaries and ensure they spend uninterrupted time with friends and family and allow themselves the chance to relax." CHANNEL NEWSASIA

Technology helps fish firm reel in costs

2012-03-06T14:55:00.001+08:00

Straits Times, Published on Mar 2, 2012

Photo caption: Apollo Aquarium worker Ataur Rahman, 26, using the new electronic tagging system that enables the company to improve its fish tank management - resulting in up to $100,000 of savings a year. -- ST PHOTO: LAU FOOK KONG

AS A young man in his 20s, Mr Eric Ng used to dread having to rise at 5am to help his father with chores at the latter's ornamental fish export business.

The young man worked alongside other workers to scoop out of numerous tanks, leftover fish food, faeces and dead fish.

'I saw the hardship. It was very labour-intensive,' says Mr Ng, now 39 and the chief operating officer of Apollo Aquarium.

With the help of technology, he has transformed the process and things are going swimmingly, thanks to a centralised filtration system he put in place in 2010, and an electronic tagging system that was introduced last year.

Both have helped Apollo cut costs by hundreds of thousands of dollars a year, and enabled it to redeploy workers.

The centralised filtration system cleans the water in the fish tanks more efficiently, allowing many more fish to be packed into each tank. That cuts water costs by $120,000 a year.

The electronic tagging system has improved fish tank management. Staff use a hand-held devise to scan barcodes on each tank, for information on the number and species of fish in that tank. That reduces errors when fish are scooped out.

Staff can also track which suppliers are responsible for unhealthy fish, helping to bring down the mortality rate of fish for export.

In total, the tagging system has reaped savings of between $70,000 and $100,000 a year.

The new system also means new staff can be trained more easily. As a result, Apollo is looking to hire five older Singaporeans to work part-time.

The improvements have also helped it seize new business opportunities by selling to fish farms in Vietnam and Taiwan.

With the numbers of workers needed for managing fish cut from 13 to two, Mr Ng has re-deployed staff to a new business area - breeding fish for food.

Apollo's revenue was $5 million last year, but could well hit three to five times that sum this year.

Mr Ng says Apollo used to be a traditional SME dependent on veteran staff with specialised knowledge. 'But we had to change our mindset and use technology to overcome our reliance on experienced labour.'

MORE WORK, NOT MORE PAY

2012-03-06T14:47:00.002+08:00

MORE WORK, NOT MORE PAY

'It appears that training is benefiting companies and making workers work harder more than it is uplifting wages.'

Ms Sylvia Lim (Aljunied GRC), quoting a survey showing firms reporting productivity improvements but fewer trainees getting higher pay

Straits Times, 6 March 2012

MISGUIDED BELIEF (low-wage workers)

2012-03-06T14:47:00.000+08:00

MISGUIDED BELIEF

'It is easy to think that some workers are stuck in low-paying jobs because they are not productive... These are convenient but ultimately dishonest stereotypes that I disagree with.'

Mr Zainudin Nordin (Bishan-Toa Payoh GRC)

Straits Times, Published on Mar 6, 2012

More help for PMEs to find jobs

2012-03-06T14:44:00.000+08:00

Straits Times, Published on Mar 6, 2012
By AARON LOW

THE Government will beef up its job matching programmes to ensure educated Singaporeans continue to get access to the best jobs in the market.

Minister of State for Manpower Tan Chuan-Jin yesterday announced several new programmes and changes to several existing schemes to ensure that even if the professionals and managers are hit by economic restructuring, they will not stay unemployed for long.

While the Budget has paid much attention to low-income earners, MPs yesterday highlighted the woes of those in the higher strata of the job market, a group commonly referred to as PMEs - professionals, managers and executives.

THE Government will beef up its job matching programmes to ensure educated Singaporeans continue to get access to the best jobs in the market.

Minister of State for Manpower Tan Chuan-Jin yesterday announced several new programmes and changes to several existing schemes to ensure that even if the professionals and managers are hit by economic restructuring, they will not stay unemployed for long.

While the Budget has paid much attention to low-income earners, MPs yesterday highlighted the woes of those in the higher strata of the job market, a group commonly referred to as PMEs - professionals, managers and executives.

Several MPs, including Mr Patrick Tay (Nee Soon GRC) and Ms Jessica Tan (East Coast GRC), said PMEs, who form about a third of the local workforce, face increasing competition from foreign skilled workers from both developing and advanced economies.

Older PMEs are also finding it harder to re-enter the workforce once they are retrenched, noted Mr Tay.

Mr Tan, in addressing these concerns during the debate on his ministry's budget, said the Government is aware of the situation and will aid PMEs through job matching and skills training.

The Government will set up a new one-stop centre called CaliberLink to help PMEs brush up on skills to land jobs, give advice on training options and match them with employers.

At the same time, Mr Tan said the Government will partner the Association of Small and Medium Enterprises to start a new programme that matches small and medium-sized enterprises (SMEs) with PMEs.

It will also tap on private sector employment agencies for input on how to improve their job chances.

Beyond jobs for the PMEs, 'the unemployed, vulnerable or needy job seekers often have needs that go beyond just assistance', said Mr Tan.

The Government will work with grassroots agencies and community groups to boost opportunities for these groups.

Apart from the higher training subsidies for SMEs announced in the Budget statement, Mr Tan said the Government will also expand the Place and Train Programme, which helps workers who want to make a career switch to new and growing sectors, such as aviation and biomedical sciences.

But amid the moves to help PMEs, Mr Tan cautioned against shutting the doors on skilled foreign workers.

MPs such as Madam Foo Mee Har (West Coast GRC) and Mr Heng Chee How (Whampoa SMC) were concerned about the rapid rise in the number of Employment Pass (EP) holders in recent years, and asked whether the Government would be doing anything to stem the flow.

Replying, Mr Tan said the Government had raised both education and starting salary requirements for EP holders last year.

He added: 'I should remind Members that we have to be judicious in our policies on skilled foreign manpower.

'They bring expertise, knowledge and networks that our economy needs to grow and create better jobs for both our PME and rank-and-file Singaporeans.'

****

Background story

Hired - after refreshing job-search skills

After sending out more than 50 job applications over six months, Mr Tan Wei Thong threw up his hands in despair.

No one wanted to hire the 42-year-old, who had come home from Shanghai, where he ran a unit of a contract manufacturer.

He e-mailed Minister of State for Manpower Tan Chuan-Jin, was referred to CaliberLink, and is today the director of global account management with Armstrong Industrial, a maker of foam and rubber components. His plight. mentioned by Mr Tan in the House, is not uncommon among older white-collar workers. It prompted the Workforce Development Agency to form CaliberLink, which will be officially launched later this month.

The one-stop centre is for professionals, managers and executives to polish up their job-hunting skills and update them on the hiring market.

Take the resume, said Mr Tan Wei Thong, 'you thought it was a simple thing, but it has been many years - the workshop gave tips on how it should be done'.

There were also 'softer skills', such as an image consultant's tips on how to dress and present oneself.

For Mr Tan, the courses refreshed not just his skills, but also his wardrobe.

Recalling shopping for new work outfits with his wife, he said with a laugh: 'As we shopped, I kept telling her, 'This is what the image consultant said!''

TEXT: JANICE HENG

Workfare Income Supplement now paid every quarter

2012-03-06T14:39:00.000+08:00

Straits Times, Published on Mar 6, 2012
By Janice Heng

THE Workfare Income Supplement (WIS) will be paid more often from this year, to benefit more older low-income workers.

Payouts will be made four times instead of twice a year, with the amount adjusted accordingly.

This means workers aged 35 and older will qualify for the scheme when they have worked two months in a three-month period and earn an average monthly income of no more than $1,700. Previously, they had to work at least three months out of any six-month period.

The new move will benefit about 10 per cent more workers, bringing the total number of recipients to 440,000, said Senior Parliamentary Secretary for Manpower Hawazi Daipi yesterday when he announced the change.

WIS was introduced in 2007 to supplement the incomes and Central Provident Fund (CPF) savings of older low-wage workers.

They get part of it in cash and the rest in their CPF accounts. The self-employed receive it entirely in their Medisave.

The change came into effect in January, with the first payment - for work done in the first quarter of this year - to be received by June 1.

Mr Hawazi stressed that the frequency will not be increased further as WIS aims to encourage regular and sustained work.

He said the change was suggested by many MPs who argued that it would help low-income workers with their daily expenses.

Another measure to help low-wage workers is tighter enforcement of employment laws by the Manpower Ministry and the CPF Board. Inspections will be intensified over the next five years, said Mr Hawazi, with the focus on sectors where non-compliance with the CPF Act or Employment Act is higher.

These include food and beverage, retail, cleaning and security.

One way employers try to reduce the amount of CPF payable is by falsely claiming that certain payments to workers are reimbursements, said Mr Hawazi. Valid reimbursements do not attract CPF.

In a recent case, a security guard received a laundry reimbursement that was almost a quarter of his basic pay - and thus did not receive CPF on it.

But security officers typically wash their uniforms at home, noted Mr Hawazi.

He encouraged workers to help enforcement efforts by blowing the whistle on employers who fail to pay what is due.

The Government will also step up its education of employers and employees on their obligations and rights, he added.

One area is on the benefits of receiving CPF. Mr Hawazi noted that some workers prefer to stay out of the CPF system and have a higher take-home pay.

But as the Government channels much of its aid via CPF, workers who do not receive it 'lose out', he said.

He cited a 55-year-old who earns $1,000 a month but gets no CPF. In the past five years, he would have missed out on more than $9,000 in cash and CPF contributions from the Government, as well as $11,000 in employer CPF.

This adds up to more than $20,000 - one-third of his overall pay, said Mr Hawazi.

****

Frequent payouts are welcome relief

Mr Loh Sheok Lim, 63, lost his job as an office cleaner late last month but, thanks to the more frequent Workfare Income Supplement (WIS) payouts, he will get some relief in June instead of September.

'It will be a great help to us low-income workers. If we lose our job, it can help with our expenses,' he said of the revised scheme, in Mandarin.

He has held jobs ranging from welder to kitchen assistant, but said that keeping them has been hard due to his age.

However, even those without a steady income can receive the WIS, as long as they have worked for two months in a three-month period.

As Mr Loh worked in January and February, he will get the first WIS payout in June. He used to receive payouts twice a year, after working for at least three months in a six-month period.

TEXT: JANICE HENG

MINISTRY OF MANPOWER - Steps to raise pay of guards and cleaners

2012-03-06T14:36:00.000+08:00

Working conditions will also improve, but public must accept higher costs
Straits Times, Published on Mar 6, 2012
By Toh Yong Chuan

THE Government will roll out more measures to boost the pay and working conditions of cleaners and security guards from this year, a move that will result in their services costing more.

'We don't believe the present level of wages are acceptable,' Minister of State for Manpower Tan Chuan-Jin said yesterday.

The ministry's Senior Parliamentary Secretary, Mr Hawazi Daipi, added: 'We must be prepared to take some cost increase in our stride if we want to help our low-wage workers earn more.'

The two sectors employ about 90,000 people altogether, including foreigners, and the Government has made it a priority to lift the wages of Singaporeans in these sectors.

Mr Hawazi spelt out how it will be done during the debate on his ministry's budget.

'Appropriate wages' for cleaners

Accredited cleaning companies will be required to pay 'appropriate wages' to their workers when there are productivity gains.

The new condition will be part of the National Environment Agency's (NEA) accreditation scheme for cleaning companies.

Mr Hawazi did not say what salaries would be deemed appropriate, but that the Government is discussing it with the cleaning companies and unions.

Details of the wage guidelines will be out later this year.

His comments follow a government pledge last week that it will take the lead in giving cleaning jobs to accredited companies.

The existing accreditation scheme, which is voluntary, requires companies to meet such standards as sending workers for training and equipping them with the right tools.

Only 60 out of more than 900 companies have been accredited and they hire 25,000 of the 69,000 cleaners here.

Shorter shifts for security guards

For security guards, the priority is to shorten their working hours, said Mr Hawazi, an outcome that he expects would take a few years to achieve.

These workers tend to work 12-hour shifts each day, six days a week. In all, they work 72 hours each week.

The long hours tire out the guards, making them less vigilant. It also puts off Singaporeans, who shun such work, noted Mr Hawazi.

He believes older workers and women can be drawn to work as guards if hours were shorter.

The Ministry of Manpower (MOM) is working with the Home Affairs Ministry to introduce technology that will cut down the hours and raise productivity.

Their basic wages can then move up, he said, without the guards suffering a pay cut with reduced overtime.

As with the cleaners, the measures will raise costs.

But the increases will be 'just a fraction of the cleaning and security costs', which, Mr Hawazi added, are typically small compared to overall operating costs.

The two costs make up 6 per cent to 7 per cent of the cost of running offices and shopping malls, and 2 per cent for a large supermarket chain, he said without naming any companies.

Meanwhile, MOM will lead by example. Said Mr Tan: 'For the cleaners working in MOM, as wages increase, the ministry will pick up the tab, and we will be very happy to do so, both for our cleaners and our security guards.'

KL plans to set minimum wage

2012-03-06T14:20:00.002+08:00

Move comes ahead of widely expected polls
Straits Times, Published on Mar 6, 2012
By Carolyn Hong, Malaysia Bureau Chief

KUALA LUMPUR: Malaysia looks set to introduce a minimum wage of between RM800 (S$332) and RM1,000 a month, as pressure mounts on the government to ensure that private-sector workers earn salaries above the poverty level.

Deputy Prime Minister Muhyiddin Yassin announced on Sunday that Prime Minister Najib Razak will make an announcement soon, after an agreement was reached with employers' associations and labour unions.

'We have reached an agreement with many of the parties involved like employers, workers' unions, and even the human resources minister has made proposals,' he said. 'We believe there is basis for this (minimum wage) but we don't want to make a rash decision.'

While the minimum wage has yet to be set, the Malaysian Trades Union Congress, an umbrella body of unions with 800,000 members, has asked for at least RM900 per month, not including allowances, and a review every two years.

The move to have a minimum wage could help the government politically at a time when elections are imminent, but could spell disaster for small businesses which use cheap labour.

Malaysia has been considering a minimum wage since Mr Najib unveiled plans in 2009 to restructure the economy away from a low-cost model. Among its neighbours, Singapore does not set a minimum wage. Indonesia does, but it varies significantly by district. In Vietnam, the minimum wage is two million dong (S$120) a month in Hanoi and Ho Chi Minh City.

The Malaysian government said a minimum wage policy would benefit about 3.2 million workers, or a quarter of the country's workforce, who earn less than the poverty level of RM700 a month.

Setting a minimum wage could help cut migrant labour by boosting wages to a level where the jobs are more attractive to Malaysians, said Dr Yeah Kim Leng, chief economist of Malaysian rating company RAM Holdings.

The inflationary impact is unlikely to be significant since it will affect only the very lowly paid, he said. The political impact, however, could be far greater, especially coming at a time when a general election is widely expected. Dr Yeah said creating a base wage for the poorest in society would be a hugely popular move.

Employers, however, say a minimum wage would bankrupt small firms which rely on cheap labour. Malaysian employers have long hired low-wage workers from Indonesia, Myanmar and Bangladesh. The Malaysian Federation of Employers, whose members collectively hire two million workers, said it wants an exemption for the smallest employers, and for the policy to be implemented over several years.

'Based on the spirit of compromise, we have accepted minimum wage but we still hope that some leeway can be given,' said the federation's executive director Shamsuddin Bardan.

He said it would be especially hard for micro-enterprises, which employ 3.5 million to four million workers, to absorb a cost increase of up to 40 per cent. These are manufacturing firms that employ fewer than 10 workers, and non-manufacturing firms with fewer than five workers. They include estate smallholdings and market and hawker stalls.

Dr Yeah however said it is unlikely that many businesses will close because the gap between current wages and the minimum wage is relatively small.

Former premier Mahathir Mohamad, who remains a potent force in politics, has weighed in, saying a minimum wage could hurt competitiveness. 'This is what happens when wages and compensation for work are not accompanied by increases in productivity. I fear Malaysia may be heading this way if we pay more for less work, as we are doing now,' he wrote in his popular blog, chedet.

Human Resources Minister S. Subramaniam, however, said the increase in operational costs would be minimal if the minimum wage was kept at between RM800 and RM1,000.

The minimum wage is among the government's raft of labour reforms intended to jump-start the economy and double incomes in 10 years. The plan is to boost the wages and skills of Malaysians and reduce the use of migrant workers as Malaysia seeks to differentiate itself from lower-cost neighbours like Indonesia and Vietnam.

Currently, a quarter of the country's workforce of 12 million are migrants, who work in low-wage positions, keeping wages down.

According to a World Bank report, Malaysia's wages have risen by only 2.6 per cent a year in the past 10 years, while average inflation has jumped by between 3 and 3.5 per cent.

Authorities will conduct more checks on employers

2012-03-05T21:34:00.002+08:00

Straits Times, Published on Mar 5, 2012
By Tessa Wong

Authorities will conduct more checks on companies to ensure they pay their workers' Central Provident Fund (CPF) contributions and comply with the Employment Act.

In particular, they will focus on the food and beverage, retail, cleaning and security sectors, where more companies have tried to cheat workers by marking payments as reimbursements - on which they do not need to make CPF employer contributions - even though these may form a large portion of their employees' take-home pay.

Senior Parliamentary Secretary for Manpower Hawazi Daipi said that his ministry and the CPF Board have ramped up inspections since the start of 2012, and will step them up sharply over the next five years.

He also announced that the Government will start paying out the Workfare Income Supplement four times a year instead of twice, to help low-income workers meet their daily expenses better. An employee who works for at least two months in each quarter and has an average income in the quarter of not more than $1,700 will be eligible.

The first quarterly payment will be given out by June 1.

COS 2012 Debates: MOM – Training and Low wage workers

2012-03-05T21:33:00.000+08:00

From the Workers' Party's webpage: http://wp.sg/2012/03/cos-2012-debates-mom-training-and-low-wage-workers/
by MP for Aljunied GRC, Sylvia Lim
Posted on Monday, March 5, 2012 at 5:38 pm

Low wage workers do not earn enough to meet Singapore’s cost of living. The government recognizes this by introducing the Workfare Income Supplement and encouraging re-training through schemes like Workfare Training Support. I too am a strong believer in training, but for low wage workers, the outcome they seek is better employment conditions or prospects. I recognize that this is a challenging deliverable.

The Workforce Development Agency has disbursed close to $1.02 billion in grants from 2007 to 2010. To what extent has the money poured into training produced the desired results of uplifting low wages?

WDA currently carries out an annual survey on the effectiveness of its Workforce Skills Qualifications training. The survey provides a rough snapshot of the return on investment in training. According to the 2010 survey, 65% of companies reported positive outcomes in productivity after training, but only 25% of trainees experienced pay increments after training, while 44% experienced an expanded or new job scope. It appears that training is benefiting companies and making workers work harder more than it is uplifting wages.

At the Budget or National Day Rally speeches, it seems customary to highlight success stories of how some individuals have moved into higher value work after training. Are they the norm, or are they, in fact, exceptions? What proportion of low wage workers went for training but saw no improvement in their wages? What sort of tracking or return-on-investment analysis is being done?

Ex-Air India staff win compensation

2012-03-05T13:12:00.000+08:00

Court tells airline to pay retrenched staff full rate for unused leave, not half rate
Straits Times, Published on Mar 3, 2012

Photo caption: Air India country manager Madhulika Babal (left) was unhappy with the outcome but said she respected the court's decision. -- ST PHOTO: LIM WUI LIANG

By Toh Yong Chuan

TWO years ago, nine staff members of Air India's Singapore office were retrenched when it outsourced their jobs. But they never got the full compensation they thought they were entitled to.

Yesterday, they finally wrested from their former employer the shortfall of $25,667.

The Industrial Arbitration Court (IAC) ruled in the workers' favour after a day of drama that included the surprise summoning of a last-minute witness and the scrambling for enough calculators to compute the payout sum.

The dispute started in June 2010 when the airline laid off the nine - along with eight others - and agreed to pay them cash for their unused annual leave.

The decision was made in writing with the Singapore Manual and Mercantile Workers' Union, which represented them.

In this retrenchment agreement, the airline estimated that the 17 workers, who can claim for up to 60 days of leave each, would get $110,000. The actual sum would depend on how much leave the individual has left.

The union accepted this.

But when the workers collected their retrenchment cheques, they found the amount for their unused leave half of what they had thought they would get.

The airline then pointed to a clause in its 2007 collective agreement with the union. It lists the terms for unionised workers, including this: that when they convert their leave into cash, it is at 50 per cent of their pay.

Of the 17 workers, eight accepted the lower payment. But nine sought help from the union.

Rounds of mediation, including intervention by the Manpower Ministry, failed.

The dispute was then brought to the IAC and both parties presented their arguments before Justice Chan Seng Onn yesterday.

At the hearing, National Trades Union Congress's director of legal services Patrick Tay argued that the 50 per cent cut was a unilateral decision by the airline and not what was agreed on.

He presented calculations showing that the $110,000 figure the company had presented was based on the workers' full pay.

The airline's Singapore country manager Madhulika Babal disagreed, saying it was based on half pay. She added that this was agreed on by former NTUC president John De Payva in a meeting.

The unionists then hastened to summon Mr De Payva, who was not scheduled to attend the hearing, to court.

Mr De Payva arrived within 30 minutes. He testified that there was no agreement to convert the workers' leave at half-pay.

During the day-long hearing, Justice Chan repeatedly took out his calculator to do his own computations, even offering the airline team its use when he observed that it did not have one.

Explaining his judgment, he said the tribunal accepted Mr De Payva's testimony that there was no agreement to convert the leave at half-pay. Had the airline meant to, it would have indicated $55,000, not $110,000, in the retrenchment agreement, he noted.

He ruled that the half-pay clause in the collective agreement applies to those who are working, not those laid off. He then ordered the airline to pay the shortfall of $25,667 to the nine.

The decision was greeted with wide smiles and thumbs-up by the unionists in the gallery. Former Air India employee Najeeba Beeva, now a bank officer, said that it was 'a big relief'. 'The trust in the union paid off,' she said in delight.

In contrast, a visibly disappointed Ms Babal said: 'We're not happy with the whole thing, but we respect the decision'.

Focus on bus drivers' welfare

2012-03-04T13:01:00.000+08:00

Straits Times, YOUR LETTERS
Published on Mar 4, 2012

SBS Transit and SMRT must know that it will become harder to recruit bus drivers when the workforce has and continues to become more highly educated ('Long hours, pay issues lead to high turnover'; last Sunday).

So rather than focus on the superficial aspects of improving bus drivers' image, the operators should instead focus on the bus drivers' lot.

Changing their titles to 'bus captains' will not change people's perception of the job. The operators should pay more attention to the drivers' complaints of shift work and long hours.

Perhaps the companies should consider reducing the long working hours, at least for drivers doing the early morning or late night shifts.

Or how about giving the drivers three or four days of rest for every six days they work?

A pay increase may not always be the solution to high staff turnover, especially if the increment is not drastic.

At the end of the day, we all want to be able to spend time with our families, watch our children grow up or simply have more time for ourselves.

A happy driver is good for the bus company as that will translate into a reduction in resignations and unnecessary time and costs spent on hiring and retraining.

Now's the time for the bus companies to seriously look into, and take steps to improve, the bus drivers' welfare.

Grace Chua (Madam)

Insurer launches plans for low-income

2012-03-03T13:25:00.000+08:00

Medical, term cover at highly discounted rates will also be open to PRs, foreigners
Straits Times, Published on Mar 3, 2012

By Magdalen Ng

INSURER NTUC Income has launched new medical and term insurance plans at highly discounted rates aimed at lower-income earners.

The plans will be offered to those living in three-room Housing Board flats or smaller, residing in households with a monthly income of less than $3,500 and people who do not have an existing life insurance policy.

Permanent residents and foreigners who meet the criteria will also be eligible.
Background story

S'POREANS UNDERINSURED

'Singaporeans are generally underinsured due to their lack of awareness, complacency or according to other commitments higher priority. The unveiling of this product is again strong proof of NTUC Income's commitment to its social purpose to provide affordable basic insurance for lower-income groups.'

NTUC Income chief executive Tan Suee Chieh said yesterday: 'If we want to be a truly inclusive and strong community, we must not forget those who are at risk of being left behind while the rest of society progresses.

'No family should be devastated by the high costs of health care or the financial burden that comes after losing a breadwinner, especially when such a situation can be prevented.'

The NTUC Income Value Pack was launched last night at the Sands Expo and Convention Centre.

It provides as-charged coverage against hospitalisation and surgery costs in a Singapore restructured hospital for B2 and C class wards. Existing medical conditions will not be covered. A 35-year-old male non-smoker, for example, will have to pay $7.50 a month for the IncomeShield plan.

Term insurance plans for this target group of lower-income households are priced at 30 per cent to 40 per cent below NTUC Income's usual term insurance. The sum assured ranges from $10,000 to $50,000.

For example, a 35-year-old male non-smoker will pay a monthly premium of $6.90 instead of $9.40 for a 20-year term insurance that will offer a payout of $50,000 in the event of death or total and permanent disability.

The application process will also be simplified, so applicants need only complete a short questionnaire.

Mr Lim Boon Heng, NTUC Social Enterprise Development Council executive chairman, said at the launch: 'Singaporeans are generally underinsured due to their lack of awareness, complacency or according to other commitments higher priority.

'The unveiling of this product is again strong proof of NTUC Income's commitment to its social purpose to provide affordable basic insurance for lower-income groups.'

About 30 per cent of Singaporeans do not have insurance coverage, and Mr Tan believes that they mainly belong to the income bracket that he is targeting.

However, he also understands that there will be a need for outreach programmes to create awareness. Mr Tan hopes to reach 1,000 to 2,000 families in the next six months.

The company has created the Orange Heart award, a recognition programme, to encourage its agents to sell these new policies, which will not earn them much commission.

Mr Amzah Mohamad Osman, 36, welcomed the new initiative, but was still unsure if he would be able to afford life insurance plans for himself, his wife and two-year-old son.

The facility officer earns a monthly income of $1,100 to $1,500 depending on the number of days he works. He lives in a two-room flat in Serangoon and has to give some money to his elderly mother.

Both Mr Amzah and his son have some medical insurance coverage, but do not have any life insurance policies.

'Any (life) insurance will be useful for us. This scheme may be cheaper, but I will have to see if I can afford it,' he said.

However, he was glad to note that the subsidised schemes will be available for his wife, who is Indonesian and here on a long-term visa.

'I'm definitely getting health insurance for her,' he added.

budget debate - Only accredited cleaning firms for all govt agencies

2012-03-03T13:20:00.000+08:00

Straits Times, Published on Mar 3, 2012
By Rachel Chang

Photo caption: Accredited cleaning agency LS2 Services' general manager Dennis Tan (second from right) with director Roger Tan (right) and some of the company's cleaners. -- ST PHOTO: AZIZ HUSSIN

ALL government agencies must soon hire only accredited cleaning companies, as the public sector takes the lead in improving the lot of low-wage workers.

Currently, only 27 public agencies do, a minority.

The criteria for cleaning firms to be accredited will also be tightened. Industry players expect the new criteria to include some form of wage requirement for cleaners, who are among Singapore's most poorly paid.

Minister of State (Finance, Transport) Josephine Teo announced the changes in Parliament yesterday. She said the Finance Ministry 'will make it mandatory for all government agencies' to award cleaning contracts only to accredited firms.

For security contracts, the agencies will have to award them only to top-graded firms where most guards are properly trained.

The change will affect 14 ministries, 65 statutory boards and nine organs of state.

The Government is working with unions and industry players to finalise the new, enhanced criteria. Contractors will be given time to meet them, Mrs Teo said.

The Government will also consult the industry on setting a date from which only accredited firms can bid for government contracts. She expects that within two years of this date, 'the vast majority' of government cleaning and security contracts will be serviced by accredited firms.

There are over 900 cleaning agencies in Singapore but only 60 are accredited - mostly big ones. These have met standards on sending workers for training and equipping them with the right tools. They hire 25,000 of the 70,000 cleaners here.

The move comes after many urged the Government to take the lead in 'best-sourcing' - that is, to consider factors other than cost in awarding contracts, including workers' welfare.

In the last week alone during the Budget debate in Parliament, six MPs urged the Government to take this step.

Yesterday, Mrs Teo acknowledged that the Government has an 'important role to play in providing momentum'. But she also said that the Government, whose contracts affect only 10 per cent of the cleaning workforce, cannot transform low-end sectors alone. She urged private sector companies to follow its lead.

Mr Zainal Sapari (Pasir Ris-Punggol GRC) agreed with the need for 'aggressive measures in the short term' to raise wages at the bottom.

Mr Zainal, who also heads NTUC's unit for contract and low-wage workers, said the longer-term strategy is to boost wages through productivity.

Cleaning agency bosses were mixed in their reactions. Some worried that they would lose out if tougher standards are not applied across the board.

'This is a good thing because I will have fewer competitors,' said Mr Dennis Tan, the general manager of LS2 Services, which is accredited. It hires about 600 cleaners.

'We want to pay our cleaners well,' he said. 'But it all boils down to whether the service buyers are willing to pay more on the contracts.'

According to Ban Chuan Trading and Engineering director Johnny Lim, some unaccredited cleaning agencies can still get their foot in the door by acting as sub-contractors to the accredited firms which bid officially for contracts.

These 'partnerships' allow bids to remain low, putting pressure on other accredited cleaning agencies, he said. Ban Chuan, which has a cleaning staff of 500, is accredited.

It is the fear of being undercut by competitors that causes agencies like GreenGarden Cleaning to remain unaccredited.

Said director Abedah Abdul Masir of her staff of about 60: 'Of course we want to pay our workers more and send them for training. But it's very competitive out there. The only way for us to remain in the business is to keep the price low.'

Firms get help with restructuring costs

2012-03-03T13:13:00.000+08:00

budget debate: MINISTRY OF TRADE AND INDUSTRY
Plans include $200m to help SMEs in four areas, says minister
Straits Times, Published on Mar 3, 2012
By Cai Haoxiang

THE Government is serious about helping companies to restructure for the future and cope with costs.

And it is putting serious money into this effort, said Minister for Trade and Industry Lim Hng Kiang yesterday as he laid out new sources of help for companies large and small.

They include $200 million to expand funding for small and medium-sized enterprises (SMEs) in four areas: intellectual property, branding, design, and mergers and acquisitions.
Related Links
Trade and industry

SMEs pursuing these activities under the capability development schemes of Spring Singapore and International Enterprise Singapore can receive up to 70 per cent in subsidy for specified costs, a rise from 50 per cent.

There will also be $42 million to drive productivity improvements in the logistics sector, a backbone of business that accounts for 8 per cent of the economy and 6 per cent of the workforce.

Mr Lim outlined the schemes when replying to MPs such as Mr Inderjit Singh (Ang Mo Kio GRC), who lamented that small companies 'cannot make progress overnight' even as the Government pushes them to upgrade.

Mr Lim said the Government is not expecting 'instant results' from firms but is 'serious about helping our companies to cope with rising business costs and to restructure for growth'.

Restructuring is urgently needed because Singapore is facing intense competition from not just traditional places like Hong Kong and Tokyo but also countries like China and India and their cities. China's capital, Beijing, for example, has a larger gross domestic product than Singapore and also hosts the research centres of top multinational companies like Microsoft and Intel.

Mr Lim mapped out the Government's economic growth strategy in the face of tougher global competition and local constraints.

Restructuring will be done at four levels, he said. At the broadest level, Singapore will expand promising clusters of the economy and grow new ones, and it already has a 'good pipeline of investments', he added.

There were 'record investment commitments' of $13.7 billion last year, and Mr Lim expects a similarly strong level of investment this year.

At the sectoral level, Singapore will continue to pursue higher value-added activities. For instance, the Government is committing $150 million to help the offshore and marine sector develop research and development capabilities in deep-water offshore engineering, he said.

Even sectors like logistics, retail and food services, which are not globally competitive and tough to upgrade, will be lent a hand by the Government.

They are among 16 priority sectors, and plans for most of them were rolled out in the last two years.

This year, it is the logistics sector's turn. It will get $42 million to learn global best practices in supply chain management and generate 'positive spillovers' for other sectors, Mr Lim said.

At the company level, a scheme has been expanded to help firms innovate and improve their work processes.

The Innovation and Capability Voucher scheme will give SMEs a cash grant of up to $5,000 for productivity, human resource development and financial management, on top of existing technology-related activities.

A government-funded non-profit company, IP Intermediary Singapore, was set up last April to help firms look for intellectual property to meet their technology and business needs.

At the individual level, Mr Lim said workers need to upgrade and retrain themselves to perform in higher-value and, in turn, higher-paying jobs arising from restructuring.

He is confident that a more competitive economy will emerge in the long term from these efforts: 'We have done it before, and we can do it again.'

Firm feeds tech boost tip to neighbour

2012-03-02T14:58:00.000+08:00

Straits Times, Published on Mar 2, 2012

Photo caption: A Kwong Woh Hing worker operating its new machine, which can produce 400 bottles of soya sauce an hour, up from 100 bottles an hour when the process was done by hand. -- PHOTO: COURTESY OF KWONG WOH HING

THE steady hum of machines at rice vermicelli manufacturer People Bee Hoon is a far cry from the peaceful yard of neighbouring Kwong Woh Hing, where urns of soya sauce sit fermenting for months. But both traditional businesses in Defu Lane share one thing in common, other than being founded in 1943.

In the past year, they have made simple improvements to their machinery and work processes and boosted productivity by two to five times. That has enabled them to pay their workers more and position themselves to meet new, overseas demand.

Kwong Woh Hing had been hit by a shortage of local workers and rising raw material and transport costs. It prompted business owner Simon Woo, 47, to invest $170,000 in three more soya bean cookers, 16 fermentation containers, and a machine that fills, caps and labels sauce containers. He made the investments after learning about NTUC's Inclusive Growth Programme (IGP) from staff at the e2i skills training institute last June.

The IGP provided funds for about a third of his new equipment costs. The new filling, capping and labelling machine can produce 400 bottles an hour, up from 100 bottles an hour when the process was done by hand. With the productivity boost, staff wages rose from $800 a month last year to $1,000 this year.

The newfound capacity enables the firm to expand its business abroad, says Mr Woo. Its 2011 sales revenue was $1.5 million, with business coming entirely from Singapore.

'In the past, we didn't dare to go to trade fairs as we weren't able to meet potential orders. Now capacity isn't a problem,' he says.

Mr Woo told People Bee Hoon about the IGP. Last September, the factory tapped the scheme when investing $80,000 in machines to pack its flagship Chilli Brand bee hoon. The machinery improvements have doubled the number of 3kg packs produced a day, while the number of 300g lots packed a minute has risen from three to 16.

Company director Desmond Goh, 27, says the next step is to develop its overseas markets, which accounted for just 5 per cent of its $3.5 million sales revenue last year. 'In February, I sent... 1,000 300g packets to Australia. In the past, we might have had to turn away these sales as we could not meet the orders fast enough. This time, we met the order in just one day.'

New protocol to improve service, salary review for public officers

2012-03-02T10:09:00.001+08:00

by Imelda Saad Aziz
TODAY, Mar 02, 2012

SINGAPORE - To improve on the service delivery of government agencies, the Government is piloting a new protocol where the first agency that receives the feedback must diagnose the problem if it has some expertise in the area.

Deputy Prime Minister Teo Chee Hean, who is also Minister-in-Charge of the Civil Service, announced this yesterday during the Committee of Supply Debate for the Prime Minister's Office.

He also announced a salary review for Administrative Service officers, the Judiciary and Statutory Appointment Holders, which had been hinted at earlier.

Explaining the protocol, Mr Teo said it will require the agency to gather the required expertise across agencies to coordinate an effective response. The pilot will be carried out by the Agri-Food and Veterinary Authority.

Meanwhile, the salary review for public officers - which comes on the heels of the pay review for political office-holders - is expected to be completed and ready for implementation in six to nine months.

At the same time, work is underway to raise the salaries of low-income employees within the Public Service - some 2,300 Division 4 officers saw a pay rise of about 5 per cent last month.

Mr Teo also gave an update on the re-employment of older workers within the Public Service: 74 per cent or 385 of those who retired were re-employed in the first half of last year. This jumped to 81 per cent in the second half of the year.

From April, the Public Service will also re-employ all eligible Division 4 officers at retirement age at their last drawn salaries.

Bitter aftertaste of being a pregnant employee

2012-03-02T10:05:00.001+08:00

Letter from Rebecca Wang Jiew Kim
TODAY, PM Mar 01, 2012

Reading the report "When having a baby changes your life ..." (Feb 28), I cannot help but share a similar experience of being disadvantaged at work as an expecting mother.

In 2004, working in a local bank, I was asked to resign or face the sack over a mistake in interest rate calculation. Before that, my superiors were harping on my frequent toilet visits and slightly lower sales.

Throughout my pregnancy, I never took a day of medical leave, even when I was nauseous. My once-a-fortnight day off was utilised for prenatal check-ups. I stood for long hours during road shows to push products.

Once, I suffered stomach cramps, cold sweats and even bled. My gynaecologist then advised more rest, since he believed I was overworked. "Your work or your baby, which is more important?" he asked.

Subsequently, I yielded to the pressure and stress and resigned, since being terminated in the financial services sector would make job applications more challenging. I was two weeks short of the then 6.5-months rule to qualify for paid maternity leave.

I contacted the Association of Women for Action and Research and the Ministry of Community Development, Youth and Sports, but what could be done? I had left on my own accord.

One official remarked that I should have waited for the sack and then lodge a complaint. I twice emailed my Member of Parliament (who has since left the public sector), with no reply.

The loss of income and maternity benefits, coupled with my mother's diagnosis of terminal colon cancer, plunged us into dire straits. It was not long after I gave birth that we had to sell and rent back our matrimonial home. We are still renting.

With escalating rents and inflation, it is difficult to save. And we do not qualify for utilities rebates or any other help.

The above experience has left a bitter aftertaste of being a pregnant employee. I choose instead to be a full-time mother and be content home-schooling my child.

budget debate - Growing income gap an urgent concern

2012-03-01T16:21:00.000+08:00

Straits Times, Published on Mar 1, 2012

AN INCOME gap that shows no sign of narrowing - and is instead widening - was an urgent source of concern for Ms Irene Ng (Tampines GRC) and Dr Amy Khor (Hong Kah North) yesterday in Parliament.

Both pointed to the fact that Singapore's Gini coefficient, a measure of income inequality, is one of the highest in the world. Last year, it stood at 0.473 - up slightly from 0.472 the previous year, though it declines to 0.45 after accounting for transfers and taxes.

The country's overall wealth - and its many millionaires - is a far cry from what those at the bottom face in their struggle to make ends meet, they said.

'If we continue in this trajectory, we will be an increasingly rich and unequal society with an upper class of the super-rich, and an underclass,' said Ms Ng. 'An underclass of Singaporeans stuck in low-paying jobs can only lead to more social tensions.'

Dr Khor noted that the rise in social spending from $13 billion in 2006 to $21.5 billion last year has had little effect on the income gap, nor succeeded in reversing its upward trajectory.

Ms Ng noted that Luxembourg, the European country that is the second- richest in the world, has a similarly high Gini coefficient.

But after redistribution efforts, it falls to 0.26. That is, government transfers and taxes reduce it by 0.19 points; in Singapore, the reduction is 0.02.

She noted that Luxembourg is a more 'self-reliant' society, where quality plumbers, builders and service staff are respected and highly paid.

There is a need for consensus among all Singaporeans regarding how much inequality they will stand, and what inclusiveness really means. But this has not been reached, she said.

The angry reaction of some to housing the lower-income earners in rental blocks in their estates, or locating an eldercare centre at their void decks, sends the message that 'the poor and the elderly are a blight on the landscape'.

'We need to create a social ethos where we behave as citizens committed to building a society we can be proud of, and less as consumers out to squeeze the most out of every deal for oneself,' urged Ms Ng.

The income gap problem cannot be solved by the Government alone, concurred Dr Khor.

'While it has done more, and will continue to do so in the years ahead, the problems have to be collectively owned and comprehensively tackled,' she said. 'They will require a total response from everyone.'

She added: '(Members of) the community must look out for one another, and the able must stoop to help the less able.'

RACHEL CHANG

Non-working mothers 'valuable resource'

2012-03-01T16:18:00.000+08:00

Straits Times, Published on Mar 1, 2012

A SINGLE mother, who has to stay in to take care of her child and frail parents, runs a catering business from home to support the family.

When the authorities catch wind of her activities - illegal because a licence is required, her sole source of income is lost.

At the Budget debate yesterday, Madam Halimah Yacob (Jurong GRC) called for a relaxing of the rules, describing non-working mothers as a 'valuable resource'.

Madam Halimah said she had encountered such cases recently, while attending a dialogue attended by more than 300 women.

Many of these women were from low-income families, and had set up home-based catering services as they could not afford the time away from home, nor the cost of running commercial cooking facilities. They had recently received warning letters.

Under the law, no one is allowed to sell food to the public without a licence, and those who apply need to keep to stringent requirements such as having a minimum kitchen size and a good ventilation system.

Madam Halimah said many of the women understood this, and were willing to take measures to absorb grease and cooking fumes within their homes.'The spirit of this Budget is to build an inclusive society and a stronger Singapore. It is in this context that we should view the appeal from our needy women to allow them to operate home-based kitchens.'

More options for women to work from home, as well as better flexibility in work hours, were also key points made by Dr Fatimah Lateef (Marine Parade GRC).

Women hold only 8 per cent of all the boardroom positions in listed companies here, she said. This was because women are typically the ones making career adjustments when family responsibilities like taking care of children and parents present themselves.

She urged the Government to think of more ways of attracting them back into the workforce, saying: 'They can be the answer to our challenge.'

DARYL CHIN

Budget debate - Do more to allow elderly to work and age in place

2012-03-01T16:17:00.000+08:00

Straits Times, Published on Mar 1, 2012

AS SINGAPORE'S elderly population increases, doing away with the retirement age has found a champion in Mr David Ong (Jurong GRC).

This would allow employees to work beyond the current retirement age of 65 'without prejudice or employer discrimination' - except in jobs that demand exacting labour or involve public safety.

He said that interactions with residents have shown 'rising levels of concern about the ability to cope in retirement'.

He added that many expressed disappointment at having to either retire, or be re-employed at a lower level, take a pay cut, and suffer reductions in CPF employer contributions when they hit 65.

'If older workers are giving the employer the same effort, time, talent and value as any of the younger staff, why should they be paid any less?' said Mr Ong.

'Our seniors should age with dignity, especially in employment,' added the MP, who went on to address how the elderly should be cared for.

While applauding government measures to facilitate more home-based care, like the $120 monthly grant for families with seniors who are infirm to hire a maid, he asked for more to be done. He suggested a pool of trained and certified domestic caregivers for the sick or disabled elderly be built up, and that the Government consider fully subsidising the maid levy of $170.

Also touching on the theme of ageing in place, Mr Christopher de Souza (Holland-Bukit Timah GRC) said the importance of building more day-care centres 'cannot be underscored enough'.

He lauded the Government's 'calibrated, qualitative approach' that recognises that the needs of seniors cannot be solved just by improving physical infrastructure or institutionalised measures. Their social and emotional needs also have to be met.

This means helping the elderly to age in place by building facilities such as day-care centres. Besides being prime platforms for them to socialise, they also allow the beneficiaries to continue living with their families.

MELISSA PANG

With a family and a job, life's good

2012-03-01T16:16:00.002+08:00

Straits Times, Published on Mar 1, 2012

For more than 30 years, Mr Tony Ng Tong Chin, a polio victim, worked as a goldsmith. But he was retrenched five years ago.

The 60-year-old went for many job interviews and waited by the phone for good news. It never came.

However, his search ended last year when he was hired to prepare dessert at a social enterprise called Dignity Kitchen. His salary: $1,000 a month.

Mr Ng's struggle was described yesterday by Minister of State Halimah Yacob, who said he had benefited from a socially responsible employer who hires the disabled and disadvantaged.

Mr Ng is happy now. 'I can be self-sufficient.

I've picked up new skills here,' he told The Straits Times.

Married with three children, he and his wife live in a flat in Yishun with their youngest child, a 30-year-old son. His two daughters are married.

'I've got a family and a job. Life is good,' he said.

TEXT: TEO WAN GEK

Bolder steps needed to boost low-wage workers' pay

2012-03-01T16:15:00.000+08:00

Award contracts based on good practices, not lowest prices, say MPs
Straits Times, Published on Mar 1, 2012
By Leonard Lim

THE Government should take bolder steps in boosting the pay of low-wage workers - by leading by example, said MPs yesterday.

Three MPs urged the Government to lead the charge in best sourcing - awarding contracts to firms with good employment practices rather than the lowest prices - and thus ensure cleaners, security guards and other low-wage workers are paid fairly.

'Bolder' steps rather than the moral suasion and social transfers of the past were required, said Mr Zainal Sapari (Pasir Ris-Punggol GRC).

Take for instance the salaries of school cleaners - which have stagnated at $700 for many years, said labour MP Yeo Guat Kwang.

'This is not fair to the workers. Public agencies should walk the talk and take the lead,' said Mr Yeo (Ang Mo Kio GRC).

The point was also taken up by Mr Ang Wei Neng (Jurong GRC), when he spoke about doing more to coax Singaporeans to take up low-paying service jobs previously filled by foreigners.

'The government agencies, as the largest consumer of services, could take the lead to pay the increased costs for outsourced services such as cleaning, security and construction, provided that the increases are due to the higher cost of paying Singaporean workers,' he said.

Mr Zainal noted that the Government has pledged to take the lead in practising best sourcing in the civil service, but he added: 'I would like to call for the Government to do more to ensure best sourcing will gain traction in the private sector as well.'

The practice of cheap sourcing encourages service providers to push down their prices so that they can put up low bids that will win the tender, he said.

This keeps workers' wages low, he added, calling it a 'gross injustice' and 'slavery of the poor' that must stop.

'Without many of us realising it, we are underpaying for the cost of many essential services such as cleaning, security and transport, and have caused the salaries earned by these workers to remain low,' he said.

He cited the example of a typical local town council cleaner, who earns $1,000 monthly for working eight hours daily. He must usually clean one HDB block in two hours, which translates to about $10 to clean a block in two hours.

When Mr Zainal asked his residents how much they expected to be paid for such work, they quoted him rates of between $50 and $300.

'I am not calling for them to be paid this amount, but let us pay them according to the job worth which has been partly depressed by the cheaper foreign labour,' he said, peppering his speech with sayings by Confucius and Mahatma Gandhi on poverty.

Labour chief and Minister in the Prime Minister's Office Lim Swee Say weighed in on the debate as well, but pointed out that it is not just the Government who can help the low-income group.

He said: 'Talk is not good enough; we need action. And action doesn't have to come from the minister, the ministry, the MP and so on.

'I believe that everyone of us in our daily life, if we pay enough attention to them, I think every one of us can do our part to help them.'

What happens to low-income Singaporean workers?

2012-03-01T16:14:00.000+08:00

Straits Times, Published on Mar 1, 2012

'WP suggested having different industry clusters for dependency ratio ceilings. I noted with some interest that they suggested one cluster should perhaps be finance, aerospace, biomedical and professional services - which I would loosely term as the high-end services - and for those you can cut back on the number of foreign workers.

Then they suggested another cluster, social services, public health care and construction for public infrastructure - which I would classify as sort of middle to low end - and for those we may need less stringent foreign manpower policies to keep the costs low.

In other words, for the lower end, have more foreign labour. But that runs contrary to the call at the general election from the WP, among other opposition parties, that we must have fewer foreigners here.

It also runs counter to what we are trying to achieve for low-income workers in Singapore. We want them to be fully employed, we want them to have more jobs. If you relaxed the requirements and you have less stringent manpower policies for those sectors, then what happens to Singaporeans in those sectors?

Restructuring painful but critical, says Swee Say

2012-03-01T16:05:00.002+08:00

Putting off change will lead to job losses, lower wages
Straits Times, Published on Mar 1, 2012
By Aaron Low

THERE is no avoiding the pain of economic change, and trying to put it off would lead to bigger problems down the road for companies and workers, said labour chief Lim Swee Say yesterday.

If Singapore did not push ahead with efforts to raise productivity, the country would lose its competitiveness, leading to lower wages and a loss of jobs.

'In this world, if we don't change, we will die,' said Mr Lim in an unscheduled speech on Day 2 of the Budget debate.

'If we don't have the means to transform the economy and lose our competitiveness, then we cannot keep our current investments.

'At the same time, we cannot attract more and better investment projects. Then, Singapore's economy will go into a downturn.'

Mr Lim, who is also a Cabinet minister, accepted that low-wage workers need the most help with the transition.

But he dismissed suggestions that the Government and unions had not done enough for them, reeling off a slew of programmes from special housing grants to the financial aid scheme ComCare.

'In 2010, we introduced the Inclusive Growth Programme,' he added. 'Today, more than 20,000 to 30,000 low-wage workers are under this programme, where they are going through job redesign and skills redevelopment.'

He also singled out small and medium-sized enterprises as needing special attention during the difficult transition. 'I think it's important for the tripartite partners to assure them that we will not neglect them,' he said.

'Their interest is also the interest of the labour movement, because they're the largest employers in Singapore as a group.'

But he also pointed out that as the economy's strength did not lie in one area or type of firm, the push for productivity must be for all sectors and firms of all sizes.

He also rebutted suggestions by some MPs that the Government has drastically tightened the flow of foreign workers, noting it is merely managing it to cap the flow at a third of the workforce.

'For the labour movement, 'Singaporeans first' does not equal 'Singaporeans only'.'

But with less manpower to go around, he urged bosses to train all workers - whether local or foreign - to make best use of them.

Said Mr Lim: 'For the foreign workers, please don't use them just because they're cheap, use them for their strengths.'

He called on firms and workers to bear with the inevitable discomfort of restructuring. 'As we go through this process, let us not try to hope for a painless process. It won't happen.'

Other MPs, such as Mr Patrick Tay (Nee Soon GRC), also urged the Government to keep at capping the flow of foreign workers, as it will make firms fitter and stronger in the long run.

Ms Indranee Rajah (Tanjong Pagar GRC) said she found it odd that people were now calling for an easing of the restrictions on foreign workers after complaining about them just last year.

She noted that the Workers' Party, which had made the inflow of foreigners an election issue, now seemed to be suggesting that curbs could be eased.

'Has anybody recalled the cry at the last general election where people said we have too many foreigners in Singapore, that our transport system and hawker centres are overcrowded?' she said.

The Government, she said, had heard the people, and responded.

Rise in number of complaints by pregnant workers

2012-02-29T20:51:00.000+08:00

MOM saw 110 cases last year; call to extend six-month protection for expectant mothers
Straits Times, Published on Feb 29, 2012
By Toh Yong Chuan

WHEN a sales manager got pregnant with her second child last May, she told her boss about it immediately.

'It was the logical thing to do, but it turned out to be a bad decision,' said Mrs Yu, 30, who did not want her full name revealed.

A month later, the company, which provides translation services, told her to go and paid her one month's salary in lieu of notice.

'No reason was given and I was not a poor performer. I brought in $250,000 worth of sales in the preceding four months,' she said.

Her experience is not unique.

Last year, the Manpower Ministry received 110 pregnancy and maternity-related complaints, up from 84 in 2010.

But it is lower than the record 147 complaints in 2009 - a steep rise from 95 in 2008 and 71 in 2007.

The complaints were mostly about being told to go during pregnancy - the reason given in nine out of 10 cases last year, a ministry spokesman told The Straits Times.

The rest were about being given no or fewer maternity benefits.

The Employment Act protects an expectant mother for the six months up to her due date. If she is dismissed without sufficient cause during this period, her employer must pay her maternity benefits.

The ministry said a 'large majority' of last year's cases were amicably resolved or the employee decided to drop her complaint after due consideration.

It did not say whether the cases resolved were in favour of the employee or the employers.

Most complaints involved small and medium-sized enterprises (SMEs) which often cited manpower constraints as a reason.

Elaborating on the reason, Mr Chan Chong Beng, president of the Association of Small and Medium Enterprises, said: 'Most SMEs are short of manpower and the employees perform multiple tasks. It can be a big disruption if a staff member goes away for a few months.'

Still, he frowns on the discriminatory act and offers this advice: 'Make arrangements early to cover her duties and give maternity benefits. Don't break the law.'

He also hopes the Government could do more to educate SMEs not to run afoul of the law.

Ms Corinna Lim, executive director of the Association of Women for Action and Research (Aware), is calling for a review of the six-month protection period for pregnant women.

'The protection can start when a woman is certified pregnant by doctors,' she said.

Aware handles a handful of cases each year and they are referred to the ministry for mediation.

Mrs Yu said her company told her to go a few days before the six-month protection period.

She sought Aware's help, and its officials walked her through the channels of redress and gave her advice when the ministry stepped in.

After three months of mediation by the ministry, she accepted the company's offer of an amount equivalent to 16 weeks of paid maternity leave.

With a two-month-old daughter now, she plans to go job hunting in a few months' time.

Echoing Aware's call, she wants the law changed to protect pregnant women earlier.

'Morning sickness for them is worst in the first three months, so they may take more medical leave.

'The law should protect them against unfair dismissal,' she said.

budget debate - Public bus operators 'should plough back savings'

2012-02-29T20:49:00.000+08:00

$1.1 billion fund can go to improving salary and work conditions
Straits Times, Published on Feb 29, 2012
By Goh Chin Lian

Photo caption: Of these four bus drivers, (from left) Mr Cheah Chee Hoong, Mr Wong Tiam Sern and Madam Vivian Lim are Malaysian. Only Madam Emily Lim is a Singaporean. MPs expressed concern yesterday that it is increasingly difficult to find Singaporeans willing to become bus drivers because of uncompetitive wages, long working hours, short breaks and the need to deal with traffic and passengers. -- ST PHOTO: ALPHONSUS CHERN

PART of a government grant to help public transport operators (PTOs) raise bus capacity should go to higher wages for bus drivers, three MPs said yesterday.

The Government announced in this year's Budget a $1.1 billion fund for the purchase of 550 buses and running costs for 10 years.

The aim is to ease crowding in public transport while the rail network is being built up.
Background story

WORTH THE $1B

'If $1 billion brings a better bus service to commuters, better pay for workers to join the industry, it is money properly spent.'

Nominated MP Mary Liew

The two operators will buy another 250 buses.

The decision has proven controversial, with many members of the public asking why taxpayers' money is being channelled to two profitable private companies.

That point of view was echoed by Non-Constituency MP Lina Chiam yesterday. She asked why the two PTOs could not buy the buses themselves.

She cited SMRT's revenue of $969.7 million for the last financial year, and SBS Transit's revenue of $751.1 million.

She suggested introducing competition by letting other bus companies or even a Government-run company run public bus services too.

Nominated MP Teo Siong Seng said that the two PTOs have already raised bus fares eight times from July 2002 to October last year, and revenues have increased annually.

But Nominated MP and unionist Mary Liew disagreed with both Mrs Chiam and Mr Teo.

She said that what mattered was how the $1.1 billion package was spent. She noted that grants, tax credits and incentives are given to companies all the time.

'If $1 billion brings a better bus service to commuters, better pay for workers to join the industry, it is money properly spent,' she said.

Both Mr Seng Han Thong (Ang Mo Kio GRC) and Mr Zaqy Mohamad (Chua Chu Kang GRC) also want the PTOs to plough back extra funds to ensure better wages and conditions for bus drivers.

Otherwise, they said, it will be even harder to find Singaporeans to fill the 1,000-plus new vacancies for drivers when 800 new buses go on the road in the next five years.

Mr Seng said in Mandarin: 'While we need foreign drivers to supplement our workforce, we must also ensure better benefits for Singaporean drivers.'

Bus drivers earn a basic monthly salary of $1,200 at SMRT and $1,375 at SBS Transit, which is considered uncompetitive.

Both PTOs have problems recruiting Singaporeans for the job also because of the long working hours, short breaks, and the need to deal with traffic and passengers.

The shortage of bus drivers will be aggravated when more buses are added, unless something is done to expand the pool of people willing to take up the job, warned Ms Liew.

Mr Teo said private and school bus operators have a more immediate worry: they will lose their drivers to the public transport operators when more buses are added.

budget debate - Cleaners get their day in the House

2012-02-29T20:37:00.002+08:00

Straits Times, Published on Feb 29, 2012

For three years, 61-year-old cleaner Chu Gi Ti swotted over English language evening classes and earned certificates required by his firm. But his pay remained unchanged, and he still makes $700 a month, working at a secondary school eight hours a day. He gets another $50 a month for moving chairs and tables during examinations and events. After paying for expenses and his Central Provident Fund savings, this father of two grown-up children, has little to spare. This is why he wants to keep working into his 70s, to ensure a steady income and a bigger CPF account for retirement. He is also looking forward to the higher CPF contributions from his employer for the next four years, one of the new Budget measures. Yesterday, MPs voiced the concerns of low-wage workers like him in Parliament.

TEO WAN GEK

budget debate: THE LOW INCOME

2012-02-29T20:36:00.002+08:00

'Growing pay gap could give rise to two S'pores'
Straits Times, Published on Feb 29, 2012

By Leonard Lim & Teo Wan Gek

LOW-INCOME workers made an appearance in Parliament yesterday, from cleaners to security guards and bus drivers.

Several MPs raised concerns about the plight of some of these workers who earn as little as $600 a month.

They warned of a permanent underclass, with the country split into 'two Singapores'.

Mr Zaqy Mohamad (Chua Chu Kang GRC) said such a development could deepen divisiveness.

'If the (low-income) group do not see any social mobility in their livelihoods, they will lose confidence in their future as they sense no economic security for them in Singapore,' he said.

Citing figures, he told the House that Singapore boasts the world's highest proportion of millionaires, but the wages of the lowest 10 per cent on the income scale had been stagnant for the past decade.

He was among the last of the 25 MPs, Non-Constituency MPs and Nominated MPs to speak in Parliament yesterday, but the widening income gap, and its related problems, was a topic covered by nearly all of them.

Ms Sylvia Lim (Aljunied GRC) of the Workers' Party, calling for 'compassionate growth', said: 'Let us all agree to never allow the formation of a permanent underclass.

'Compassionate growth means we have to bite the bullet to improve productivity, by being wise about the number of foreign workers invited into Singapore.'

Hiring low-cost foreigners helps businesses lower costs, but this has also led to complaints by Singaporeans in recent years that they are being crowded out in the job market.

Nominated MP Eugene Tan said the growing income gap raises the 'real concern' of the development of two Singapores. He also drew attention to the segment of citizens who find the country's economic transformation and restructuring disconcerting, as they have been unable to take advantage of it.

Nominated MP Mary Liew, a trade unionist, painted a picture of the long days that bus drivers put in, starting at 4am. After checking their bus, they hit the roads at 5.30am, driving all day till 3pm, or later if they put in some overtime to boost their monthly basic pay, ranging from $1,375 to $1,700.

They have hardly any breaks in between, and have to contend with difficult commuters as well.

'A slip of the tongue, momentary loss of cool means getting a complaint letter, and at the end of the day, their bonus or increment can get cut,' Ms Liew said.

Mr Gan Thiam Poh (Pasir Ris-Punggol GRC) focused on the cleaning industry. He was appalled to learn that only 27 public sector agencies make accreditation, which ensures fair work conditions, a criterion when they select cleaning companies. He urged the Government to use only cleaning firms that have been accredited.

budget debate - Let me carry goods, not babies

2012-02-29T20:35:00.002+08:00

Straits Times, Published on Feb 29, 2012

Mr Teo Back Chai carries babies these days instead of heavy cargo goods. The 60-year-old babysits the children for friends after he quit his job as a deliveryman last November.

He said he was given a workload meant for two workers and struggled to carry the heavy goods on his own. But given a chance, he would trade the babies for boxes any day. 'I want to keep working. At least I will have a steady income stream. Hopefully, the Budget will encourage companies to hire more older workers like me,' he said in Mandarin.

Mr Teo was referring to the Special Employment Credit scheme in the new Budget, aimed at defraying the cost of the higher contributions employers will soon have to pay into the Central Provident Fund accounts of older workers.

Currently, he makes a few hundred dollars a month as a babysitter. His wife makes $5 an hour as a school canteen stall assistant, earning about $400 a month. But Mr Teo is keen to re-enter the workforce: 'I want a fixed income every month and I can still work.'

TEO WAN GEK

Raise pay of low-wage workers through best-sourcing

2012-02-29T20:33:00.000+08:00

Straits Times, Published on Feb 29, 2012

By Tessa Wong

How much would you pay a cleaner to clean the Housing Board corridor outside your flat for two hours?

That was the question that labour MP Zainal Sapari (Pasir Ris-Punggol GRC) posed to residents recently to find out what people thought would be a fair wage for cleaners.

Their response of $50 to $300, which Mr Zainal noted, is 'far from what the cleaners are actually paid'.

Speaking in Parliament on Wednesday, he noted that a typical local Town Council cleaner has to work for eight hours a day to clean four Housing Board blocks, and earns only $1,000 a month. If the cleaner has not received government skills training, he would receive an even lower amount.

And as more than 65 per cent of local cleaners are aged 50 years and above, many would find it difficult to clean the required number of blocks within their shift, and hence, end up earning less than $1,000 a month.

Mr Zainal urged the Government to do more to raise the wages of low-income earners such as cleaners, by encouraging companies to do best-sourcing, which looks at whether the bidder is offering fair wages and employment terms to its workers, rather than cheap-sourcing and relying on foreign labour.

This approach, said Mr Zainal, would involve going beyond 'moral suasion, advisories and guidelines'.

Instead, the Government should make best-sourcing the market norm by making it compulsory for companies which need services to buy from accredited service providers in industries dominated by low-wage workers, such as cleaning.

In this way, the Government can then influence the wages through the accreditation framework, said Mr Zainal.

Separately, he also welcomed the tightening of the inflow of foreign workers and the Government's efforts to help businesses boost productivity.

He noted that small and medium enterprises will be affected by such changes, and will probably make strong calls this year to the Government to review its policies.

'I would like to call for the Government to resist such calls and to 'bite' the bullet in recalibrating the fabric of our workforce,' said Mr Zainal.

No change without pain: Labour chief Lim Swee Say

2012-02-29T20:32:00.001+08:00

Straits Times, Published on Feb 29, 2012
By Tessa Wong

Labour chief Lim Swee Say said that Singapore has to push on with economic restructuring, even as he acknowledged that it would be a painful process.

Speaking in Parliament on Wednesday, he referred to the Government's drive to increase productivity, upgrade the skills of local workers, and encourage companies to rely less on cheap foreign labour.

During this period, said Mr Lim, some workers will have to undergo retraining, while small and medium enterprises (SMEs) will have to reposition their businesses.

'So certainly there will be pain with change. But there will be bigger and longer pain without change. So let us not try to hope for a painless process. It won't happen,' he said, adding that he hopes Singaporeans will 'stay united' during this process.

Mr Lim outlined the outcomes that he hoped would be achieved in this restructuring.

One, that it includes enterprises of all sizes, from small and medium to large, and that it also encompasses all industry clusters. He said SMEs will need special attention because they are the largest employers, and noted that there are already several schemes extended to this group of businesses such as training grants.

Two, that workers of all ages and all skill levels are involved. Mr Lim said that low-income and low-skilled workers are concerned that they will be left out in this particular restructuring exercise.

The Government is already helping them with schemes like the Workfare Income Supplement, as well as housing and Comcare grants, he said.

But he urged all Singaporeans, and not just the Government, to play a part in looking out for this group of workers. He gave the example of how building owners can provide parking lots for dispatch riders so that they will not incur fines for parking illegally.

Half of employers in Singapore intend to up salaries by 3%-6%: survey

2012-02-29T14:59:00.002+08:00

CNA, Posted: 29 February 2012 1331 hrs

SINGAPORE: Almost one quarter of Singapore's workforce can expect a salary increase above six per cent this year.

The 2012 Hays Salary Guide also found that 50 per cent of employers in Singapore intend to increase salaries between three and six per cent when they next review.

A further 23 per cent will increase above six per cent.

But 22 per cent of employers intend to increase salaries less than three per cent and five per cent intend to offer no increases when they next review.

Regional Director of Hays in South East Asia, Chris Mead said Asia remains a bright spot in the global economy but that doesn't mean salary increases will be automatic.

The guide reveals salary and recruiting trends for 1,000 roles across Singapore, China, Hong Kong and Japan.

- CNA/ck

URL: http://www.channelnewsasia.com/stories/singaporelocalnews/view/1185996/1/.html

Largest union in building sector wooing cleaners

2012-02-29T11:36:00.000+08:00

It aims to recruit 3,000 a year in order to protect them from exploitation
Straits Times, Published on Feb 28, 2012

By Toh Yong Chuan

The largest union in the building sector is on a drive to unionise more cleaners.

Its move is to afford more protection to these low-wage workers against employers who exploit them by, say, failing to contribute to their Central Provident Fund (CPF) savings.

The Building Construction and Timber Industries Employees' Union (Batu) aims to recruit about 3,000 cleaners annually as union members, starting this year.

In five years, it aims to represent around one-third of the 50,000 Singaporeans in the cleaning workforce, which totals about 69,000.

Foreigners make up the rest.

Batu executive secretary Zainal Sapari told The Straits Times it wants to stop two practices: defaulting on CPF payments and not giving cleaners paid annual leave or other benefits spelt out in the Employment Act.

'We feel a strong moral responsibility to do more to protect them,' said the labour MP, who is also director of the National Trades Union Congress (NTUC) department that oversees contract and low-wage workers.

Batu has 30,000 members, with 9,000 from the facilities management and cleaning industry. The number of cleaners is 'low', it said, declining to elaborate.

An NTUC-commissioned survey of 400 cleaners last year found 30 per cent of employers failed to pay CPF to their cleaners.

The union also found anecdotal evidence of some cleaning companies keeping basic wages low in order to pay less for overtime work or CPF.

'We can take up these cases for the cleaners who are union members,' Mr Zainal said.

The survey also found: only 7 per cent of cleaners are unionised; seven in 10 cleaners are older than 50; most have either primary education or none; and nine in 10 earn less than $1,000 each month.

One typical cleaner is Mr Chu G.T., 61, who scrubs and washes at a school eight hours a day, 5 1/2 days a week.

He is unmarried and did not finish primary school. He needs the job to put food on the table and a roof over his head.

He wishes his monthly pay was more than the $700 he receives, but is thankful his employer gives him CPF and seven days of paid leave each year, and pays his medical bills at the polyclinic.

'I know some employers treat workers badly, just because we are old and less-educated,' he said in Mandarin.

When asked if cleaners would flock to be union members, Mr Zainal conceded it would not be easy to achieve the target.

Unlike in the case of most other unionised workers, Batu is unable to collectively negotiate higher pay for cleaners, who are hired individually on contract after the company secures a cleaning job.

Union dues can be a deterrent too.

He said: 'Their pay is already low; how to get them to pay $9 each month in union fees?' Also, not all the 900 cleaning companies may welcome the union. So far, only 25 out of 60 cleaning companies accredited by the National Environment Agency have recognised Batu's right to organise and represent their workers.

The rest are 'still in negotiation', said Mr Zainal.

One company that supports Batu's move is ISS Facility Services, with 6,000 cleaners on its payroll.

It has one concern, however.

'Eventually, Batu has to cover the whole cleaning sector. Otherwise, those who support it will be undercut by non-unionised companies when bidding for cleaning contracts,' said its managing director Woon Chiap Chan.

'There has to be a level playing field.'

MOH reviewing pay of health-care staff

2012-02-27T22:53:00.002+08:00

Salary, career pathways being looked into in bid to attract staff
Straits Times, Published on Feb 27, 2012
By Royston Sim

DOCTORS, nurses and allied health professionals working in the public sector could be looking at a pay rise soon.

The Health Ministry is reviewing the salary structure of health professionals to attract more people to join the industry, said Minister of State for Health Amy Khor yesterday. She added that the ministry will touch on salary reviews during the upcoming Committee of Supply debates in Parliament.

This came after Deputy Prime Minister Tharman Shanmugaratnam said in his Budget speech earlier this month that the Government would engage 'many more health-care professionals' and pay them 'more competitively'.

He added that 1,900 public general hospital beds and 1,800 community hospital beds would be added by 2020.

Dr Khor, speaking on the sidelines of a health-care career fair at *Scape yesterday, said about 6,400 nurses and 1,800 allied health professionals and support staff would be needed for those facilities.

Although pay is a key factor in attracting new staff, other things matter as well, she noted. 'We have to pay a reasonable salary to attract people, but I think we have to look at the whole environment as well as career pathways and career enhancement opportunities.'

One key group that the health industry hopes to attract to join the nursing or allied health professions: young people aged 16 to 20 who are leaving school.

To that end, the National Healthcare Group (NHG) brought in about 50 nurses and allied health professionals to the fair to raise awareness of what they do.

NHG said that, aside from nurses, the sector is facing a shortage in eight allied health professions: medical social workers, dietitians, diagnostic radiographers, physiotherapists, podiatrists, respiratory therapists, occupational therapists and speech therapists.

NHG chief human resource officer Olivia Tay said it is seeking 1,100 allied health professionals this year.

For instance, the Institute of Mental Health (IMH), under the NHG cluster, is looking to hire 10 medical social workers this year. It has 50 such staff now.

The IMH wants more staff like medical social worker Kang Xinyi, 24, who joined it right after graduating from the National University of Singapore last year. She entered the profession as she had friends with self-harming tendencies and family issues during her teenage years but was unable to help them.

Dunman High student Seah Yi Yun, 18, was among the more than 1,100 people who attended the career fair yesterday.

Her interest in pursuing a career as a physiotherapist or occupational therapist was spurred by career days and work experience programmes held at her school.

She said: 'I came to get to know more about the jobs. Over here, you can talk to them and know exactly what they do.'

When having a baby changes your life ...

2012-02-27T13:34:00.000+08:00

Wrongful dismissal complaints filed by pregnant women up 33%
by Teo Xuanwei
TODAY, Feb 27, 2012

SINGAPORE - After only four months in her new job as a client relationship manager at a global firm, Esther (not her real name) was doing well, pulling in S$250,000 in sales.

So when the 30-year-old found out that she was one-month pregnant with her second child, she was not worried - rather, she felt that it was "only right" to inform her company so that it could plan ahead.

But the company dropped a bombshell: "I was on leave, on a short vacation overseas, when the company wrote to me to say I had been terminated. No reason given, nothing," said Esther.

When she returned to work and pursued the matter, she was told by her human resource department that it was a "management decision" and she would be compensated one month's salary.

"My life changed because of that," she told Today. "I was actually earning more than my husband, we were living quite a comfortable life, we had just bought a new house, a new baby was on the way, and then everything just ... it was not easy."

The workplace appears to remain a stubborn obstacle in the Government's bid to pull up birth rates: Despite new laws to better protect pregnant employees and schemes to encourage better work-life balance, the number of pregnancy and maternity-related complaints have not dwindled.

Between 2006 and last year, the Ministry of Manpower (MOM) received an average of about 100 such complaints each year.

Between 2009 and 2010, the number of complaints fell sharply from 147 to 84 - a drop which was earlier attributed by MOM to the economic pick-up and better awareness all-round. And it turned out to be just a blip.

Last year, the number of complaints shot up by 33 per cent to 112. More than nine in 10 of the women who filed the complaints last year were sacked during pregnancy, an MOM spokesperson said.

The Employment Act prohibits unfair dismissals in general. It specifically bars bosses from sacking pregnant staff only when they are in their second trimester onwards.

Reiterating that the MOM does not condone discriminatory practices by irresponsible employers against pregnant employees, the MOM spokesperson noted that the "large majority" of cases over the years were mediated and amicably resolved.

In one of the cases, Constance (not her real name) was on maternity leave when her employer handed out pay increments to every staff, except her. The reason: She was placed on "inactive" status while on maternity leave. It was only after the Tripartite Alliance for Fair Employment Practices (TAFEP) helped her that Constance subsequently got her raise.

Still, there is a fear among women of losing their job when they have children. "It's near impossible to provide the best for your children on one parent's income", as one working mother put it.

In 1980, 27 per cent of all married couples here were both working. By 2005, this proportion increased to 44 per cent. Couples who both work also have fewer children than those who have only one breadwinner.

Following her dismissal, Esther eventually received four months' salary as compensation, after the Association of Women for Action and Research (AWARE) stepped in to help her mediate with her company.

Said Esther: "To be honest, I miss work, but I can't go back because my children are still so young (she has a 18-month-old son and a two-month-old daughter). And if I go back to work, I can't just do any job, some are just not suitable. It also depends on how supportive the management in your company is, whether they let you take urgent leave when your children fall ill, and so on."

The Government has often called on employers to do their part. Most recently, Minister of State (Community Development, Youth and Sports) Halimah Yacob said earlier this month that there is "a lot more" that employers can do, to make the workplace family-friendly.

AWARE executive director Corinna Lim suggested that the Government could make sure that the vendors it engages have fair employment practices. She also proposed some incentives for companies to hire back-to-work women, similar to the Special Employment Credit announced in this year's Budget for the hiring of older workers. More parental leave days should also be made mandatory, beyond the three days recommended by the Government, Ms Lim said.

But some mothers told Today that, even with understanding employers, the work culture here is an issue.

Credit risk manager Mdm Ng, who has a 10-year-old son, said her bosses allow her to take urgent leave for her child but "I still feel bad if I have to take leave".

Mrs Joraine Hoo, a 30-year-old sales executive who gave birth to her first child over three months ago, returned to work after just 12 weeks of maternity leave. She said: "In a way, I felt pressured to come back to work early, even though my company allows me to take the full 16 weeks, because my boss was covering my work."

In such instances, AWARE's Ms Lim said, employers have to do more to convince their pregnant employees. "If an employee feels that she will get 'marked' because she has to take time off to care for her children or she is pregnant, it may mean that the employers are still not that supportive," she said.

Pay review for healthcare practitioners: Details next month

2012-02-27T13:31:00.003+08:00

by Tan Weizhen
TODAY, Feb 27, 2012

SINGAPORE - Details of a pay review for healthcare practitioners - doctors, nurses and allied health professionals - will be revealed in the coming weeks by the Ministry of Health (MOH), as Singapore looks into expanding the pool to meet the growing demand for medical services.

The review was announced in July last year. Minister of State (Health) Amy Khor said yesterday that the details will be announced at the MOH's Committee of Supply debate next month.

The Government had previously announced the addition of 1,900 acute beds and 1,800 community hospital beds by 2020. Correspondingly, 6,400 more nurses and 1,800 more allied health staff and support staff will be needed, said Dr Khor, who also announced that MOH Holdings - the holding company of Singapore's public healthcare assets - and the National Healthcare Group and SingHealth will work together to offer scholarships and sponsorships.

Speaking at a fair to promote careers in nursing and allied health, Dr Khor assured that medical manpower will be beefed up amid concerns that there will not be enough to staff the growing healthcare infrastructure.

Dr Khor noted that increasing the salaries is not the only way to attract more medical professionals.

Said Dr Khor: "We have to pay a reasonable salary in order to attract people but … we have to look in terms of the work environment, work scope, work processes and career pathways."

The prospects for career advancement are "very important" for these professionals, Dr Khor added. For example, "if you start as a staff nurse, you can actually progress, including taking on a management position, or professorship".

Dr Khor said the Government is also looking into establishing new educational institutions and programmes for healthcare related fields. Currently, there are no degree programmes here for half of the eight fields in greatest demand - dietitiary, podiatry, respiratory therapy and speech therapy.

On Saturday, MOH said it will increase the yearly intake of nursing students at tertiary institutions from the current 1,700 to 2,000 by 2015. For allied health courses, it will raise the intake from 270 to 290 by 2014.

Medical workers and students at the career fair yesterday said factors which could put people off from healthcare professions include perceptions of low pay and for nursing in particular, the "dirty" hands-on work.

Ms Kang Xin Yi, 24, a medical social worker with the Institute of Mental Health, said: "People have the misconception that we are not paid well, but in fact we can be paid equally well as (those in) other professions. There are also good training and opportunities in this field."

Polytechnic student Gracia Ho, 19, said that pay is not the most important factor for her. "I'm reluctant to go for nursing because they say the job is all about wiping bottoms. I'll be more interested in exploring other types of healthcare like allied health," she said.

'Bosses still biased against older workers'

2012-02-25T23:04:00.000+08:00

Straits Times, Published on Feb 25, 2012
By Rachel Chang

SINGAPORE has some way to go before it is a place where older workers are valued, said Deputy Prime Minister Tharman Shanmugaratnam yesterday.

'Frankly, our employers are still a little biased against older Singaporeans,' he said. 'It's partly because they're just used to the fact that they've had lots of young people entering the workforce and that there's foreign labour.'

In a video interview with Singapore Press Holdings' Chinese-language portal omy.sg, he said that the need to get employers to 'look very hard' at how they can make the best of older employees was one reason for a number of major Budget initiatives. These include the Special Employment Credit, a wage subsidy to those who hire workers above age 50, and further tightening on foreign workers.

But attitudes also need to change, he emphasised, adding that employers would be surprised by how productive older workers can be. He cited countries like Germany where older workers do not work strenuous hours but work in a way that shows their experience and quality.

He urged employers here to give older workers 'good jobs, rewarding jobs' and a part in the organisation.

Adaptation of workforce practices to accommodate older workers and other untapped groups will grow in urgency. More flexible work hours will help congestion on the roads and attract some, like housewives, back to work, he added.

There is scope to get more out of the Singapore workforce without growing it rapidly. In other countries, for example, part-time employees can be as valuable as full-timers. But they must be treated as a permanent part of the organisation, with Central Provident Fund (CPF) contributions, training benefits and the chance to rise in seniority.

In his first public comments since the Budget last Friday, Mr Tharman also addressed the curbs on the hiring of foreign workers. The foreign worker dependency ratio - the number of foreigners a company can hire for every Singaporean it employs - was lowered in the manufacturing and services industries.

It was the latest in a series of steps over the last two years to moderate the increase in foreign worker numbers. These included higher levies and stricter criteria for work passes.

That this process has been ongoing since 2010 showed that it was not 'a response to the elections', Mr Tharman pointed out in an aside.

They have evoked significant outcry from businesses, who say that they are being strangled by the restrictions at a time when the global economic outlook is uncertain.

Mr Tharman acknowledged that the move is a bitter pill for many small and medium-sized enterprises (SME) to swallow. 'Not every business will survive and that's the tough part of it,' he said. 'But I think a fair number of our SMEs will make it.'

'I think they understand the new reality of a tight labour market and the fact that it's not going to change,' he said, reiterating that this is not a 'temporary situation, it's a permanent situation'.

'I don't think we're going to see an absolute reduction in the number of foreign workers but we've got to slow the rate of increase because we're reaching our limits as a society,' he added.

He expressed optimism that SMEs do want to make the leap into a more productive, less labour-reliant future. This, he envisioned, is one where workers multi-task more, think creatively on the job, and have a say in how things are done.

'That's what a developed society workplace will have to be: short of labour but (with) high-quality labour. You get high productivity and high wages as a result.'

Separately, he also dismissed talk that Budget 2012 featured less in handouts because this year is not an election year.

It is unwise to spend too much too early in a term of government, he said, because saving for the event of an economic crisis, for example, is important.

'If you try and spend as much as you can in one year, or try to be as popular as you can, you run out of money very quickly and the game is over.'

The Government has always given out more to the people at the end of a term if it has a strong surplus, he said.

'The reason why we have gotten so far in Singapore is that we have never spent beyond what we can afford, and that's our basic principle.'

***
BACKGROUND STORY: HOW THARMAN RELAXES

'I enjoy being with my family, just chatting with my kids, usually about sport or music, listening to music together, sometimes just watching sport on TV.

'I enjoy walking around my constituency, especially at the hawker centre, having lunch, chatting with people, simple pleasures, nothing too fancy.

'I've got a collection of paintings done by inmates. I know some of them very well. Often these are Singaporeans who made a small mistake when they were young, when they're 14 or 15, (and) start experimenting with things, and one wrong thing leads to another. But they're actually very innocent, very good-hearted people and their lives end up on the wrong path and some of them spend many years in prison.

'So I have in my constituency, a group of people who are all ex-inmates doing wonderful work for others. In fact they are very active volunteers. Every day I'm on the e-mail with them, helping residents in need, also trying to see who is in danger of running into problems in the community.

'So they are worth helping and they in turn are able to help others.'

Batam workers lock S'porean manager in

2012-02-25T23:02:00.000+08:00

Protesters vow to hold management staff till pay demand is met
Straits Times, Published on Feb 25, 2012
By Wahyudi Soeriaatmadja, Indonesia Correspondent

Photo caption: Singaporean plant manager H.C. Lim (in white shirt) standing behind a gate yesterday. He had been prevented from leaving the Batam plant compound yesterday by workers on strike who were demanding pay rises and housing allowances. -- PHOTO: THE JAKARTA POST/ASIA NEWS NETWORK

JAKARTA: Hundreds of workers at a US-based electronics maker's Batam plant went on strike for the third day in a row yesterday, demanding pay rises and housing allowances.

Rallying at the Sanmina-SCI plant's only main gate, they set up a blockade to stop management staff from leaving the compound, including a Singaporean plant manager and an Indonesian human resources manager.

There are 15 Singaporean and Malaysian expatriates working at the plant, which is located in Batamindo Industrial Park in Sei Beduk. It produces printed circuit boards and other electronic products used in medical devices and automated teller machines.

The workers said they would make sure none of the management staff could leave the compound until their demands for a monthly pay increase of 222,000 rupiah (S$30) and housing allowance of 300,000 rupiah to 700,000 rupiah were met.

Negotiations between workers and the management stalled on Thursday.

Singaporean plant manager H.C. Lim and four of his staff had attempted to leave the compound yesterday morning from the plant's rear gate, but were stopped by dozens of workers, who outnumbered police officers sent to the scene.

One of the workers, Mr Dony Sudirman, told reporters that Mr Lim had told them he needed to go to a local manpower agency's office to discuss the workers' demand, and said: 'We didn't let him go.'

Local police chief Karyoto told reporters that there was no hostage situation.

According to a report by state news agency Antara, some of the workers who had surrounded Sanmina's plant had armed themselves with wooden sticks.

'We will have to 'arrest' our HR manager if she attempts to leave the compound,' a worker was described as shouting.

When The Straits Times called the human resources manager Esty Yustiningtyias on her mobile phone, she said she did not have time to talk, and hung up.

Sei Beduk police chief Firdaus, who was at the scene, could not disclose the names of the management staff trapped inside the plant.

Batam, in the Riau Islands, is one of Indonesia's main destinations for foreign investment.

It is home to 26 industrial estates and more than 4,000 companies employing almost 300,000 workers. Many of the companies are based in Singapore, just a 45-minute ferry ride away.

The city has seen a growing number of violent labour strikes in recent years. Last November, angry workers demanding higher minimum wages took to the streets, vandalising buildings and police posts. It came just after workers rioted at a shipyard last September.

In April 2010, workers at another shipyard clashed with security personnel after expatriate supervisors allegedly made racist remarks.

***
BACKGROUND STORY: Singaporean plant manager H.C. Lim and four of his staff had attempted to leave the compound yesterday morning from the plant's rear gate, but were stopped by dozens of workers, who outnumbered police officers sent to the scene.

commentary - Clean up the cleaning sector

2012-02-25T23:01:00.000+08:00

Mandatory accreditation can help lift wages of its mostly local workforce
Straits Times, Published on Feb 25, 2012

By Toh Yong Chuan, Senior Correspondent

DEPUTY Prime Minister and Finance Minister Tharman Shanmugaratnam said on Budget Day that some Singaporeans at the bottom of the income ladder have not seen a lift in their incomes in the past five years.

He singled out cleaners as a group.

Latest figures from the National Environment Agency (NEA) show that there are 925 cleaning companies hiring 69,000 workers. About three in four are locals, so that makes the Singaporean cleaning brigade some 50,000 strong.

It is a sizeable group of Singaporeans who have seen their wages stagnate.

What went wrong?

An informal check with players in the cleaning industry uncovered anecdotal reasons why wages are depressed.

An oft-cited reason is foreign workers who are willing to do more work for less pay. But they are the minority in the industry and their numbers are capped by government quota, so there is no reason for them to set wages.

Market forces play a part too. When a cleaning job is awarded to the lowest bidder, the cleaning company's ability to pay its workers is constrained by its margins. Excessive competition can lead to dubious behaviour by employers.

Some cleaning companies keep basic wages low and bump up total pay through an assortment of allowances for meals and uniform. A cleaning supervisor's contract specified $600 in monthly basic pay and $400 in 'job allowance'.

Isn't job allowance the same as pay?

Unionists say that companies keep basic wages low to pay less in Central Provident Fund (CPF) contributions and overtime pay, since these are computed from basic wages and exclude allowances. While not unlawful, this is unfair to the worker.

It is about time we cleaned up the cleaning industry. We can start in three areas.

First, shake up the industry through compulsory accreditation.

The cleaning industry is fragmented and unregulated.

In July 2010, the NEA launched a voluntary accreditation scheme to encourage cleaning companies to stand out from their competitors. Accredited companies must, among other things, have proper human resource practices that include sending workers for training and giving them the right equipment to do their work well.

In less than two years, the number of accredited companies doubled from 29 to 60 today. They are mostly the big players hiring over 24,500 workers. An NEA survey showed that eight in 10 accredited companies found accreditation useful in getting more business.

NEA should go one step further to make accreditation compulsory. This would compel, not merely encourage, companies to treat their workers fairly. It sends a clear signal to cleaning companies that they either shape up, or ship out.

The approach is not without precedent. In 2006, the Singapore Police Force introduced a voluntary grading scheme for security agencies. Three years later in 2009, the grading scheme was made mandatory. Agencies publicise their grades (A, B, C or D) attained on their websites. As a result, the security guards today are better trained and, more importantly, fairly paid.

The second area for improvement is to change the attitude of customers who buy cleaning services. And it can start with the Government.

The voluntary accreditation scheme was meant to encourage customers to hire accredited cleaning companies. Yet only 27 public sector agencies make accreditation a criterion when they select cleaning companies. There are 14 ministries, 65 statutory boards and nine organs of state in total, so it is clear that government agencies are not fully on board.

As a customer, the Government can also take the lead through 'best sourcing'. This is where it awards cleaning contracts to bidders that offer fair wages and employment terms to their workers, instead of solely looking to the lowest-price bid or 'cheap sourcing'.

Minister of State for Finance Josephine Teo said in Parliament last month that the Government will look into how its procurement practices can further support measures that boost workers' low wages.

But it does not have to stop at the Government. Big companies including multinational companies can also come onboard to adopt best-sourcing practices.

The third way to improve cleaners' lot is for unions to step up to better protect their work interests. The Building Construction and Timber Industries Employees' Union, which is affiliated to the National Trades Union Congress, represents workers in the facilities management and cleaning services sector.

Executive secretary Zainal Sapari, a People's Action Party MP, said that the unionisation rate of cleaners is 'low', but the union is determined to ramp it up.

A peculiar problem it faces is how cleaners are hired. Cleaners are generally hired after the company wins a bid, so their wages are already capped by what the customer pays the cleaning company. So there is no room to negotiate wages through collective negotiation, as other unions do.

Still, the union can help members who are cleaners know their rights and seek redress for those who are treated unfairly.

It can also set up a hotline for cleaners and the public to blow the whistle when mistreatment is suspected. The complaints can be investigated by the Manpower Ministry.

The cleaning job attracts the older and less-educated workers who are more vulnerable. The Government, union and public can join hands to watch out for them.

Rather than adopt a minimum wage law, Singapore has chosen to focus on raising skills and productivity to help low-wage workers. It also has income supplements, and gives back cash and rebates to offset spending on the goods and services tax.

These measures can be well-complemented by concrete steps to shake up sectors that employ large numbers of low-wage workers.

Since 2006, the Government has significantly improved the productivity, image and wages of security guards.

It's time to clean up the cleaning industry.

Cleaners’ pay up $250 to $1,000: Congratulations?

2012-02-25T10:59:00.004+08:00

Posted by theonlinecitizen on February 25, 2012
~by: Leong Sze Hian~

I refer to the article “Town council cleaners get more pay now” (Straits Times, Feb 21).

It states that ”North West District Mayor Teo Ho Pin, who spearheaded and coordinated the initiative, said on Monday that full-time cleaners now earn about $1,000 a month on average, compared to about $750 before the scheme was launched in 2008”.

Wages fell from $1,277 to $750?

According to the article “Mindset change needed to help low-wage workers” (Straits Times, Feb 7), in 2000, the median gross wage for cleaners and labourers was $1,277. By 2010, it fell to $960. For cleaners of industrial buildings, the median gross wage is even lower, at around $600 in 2010.

Real wage fell 38% in 10 years?

After accounting for inflation for the last decade or so, I estimate that in year 2000 dollars, the average $1,000 pay of town council cleaners is equivalent to only about $787 in 2000 dollars. So, what this may mean is that the real pay of cleaners has declined by about 38 per cent in the last 10 years or so.

Well done – town councils?

Hence, instead of giving ourselves a pat on the back that we managed to increase the average pay of cleaners from $750 three years ago to $1,000 now, we should be taking urgent action to address the problem of declining wages for lower-income workers in Singapore.

Actually, I think the statistics given by the town councils may not be the whole story.

What is the proportion of town council cleaners that are Singaporeans, permanent residents (PRs) and foreigners?

What is the proportion of part-time cleaners that are Singaporeans, permanent residents (PRs) and foreigners?

What is the monthly pay of a part-time cleaner?

1 cleaner’s plight

In this connection, I spoke to a cleaner whom I know, who was retrenched by a coffee shop where she had worked for many years.

She is 60-plus years old and now works 15 hours a day, with only one day off every two weeks, in a hawker centre, for a pay of $1,100+. She gets no annual bonus, medical benefits, etc.

Calculated at an hourly basis, she is getting less than $4 per hour.

How many Singaporeans are there who work for such miserly wages like her?

Well, according to the Straits Times article cited above, “Government figures released last week show that there were 236,300 Singaporeans and residents who earned a gross income of less than $1,000 per month as of June last year, up from 218,700 a decade earlier. The figure excludes incomes of full-time national servicemen.

If you take household, not personal income figures, the picture does not get rosier. In 2010, there were more than 100,000 households with an average monthly income from work of $1,400.

The latest available expenditure figures, covering 2007/2008, show that Singaporean households in the bottom fifth of the income scale needed around $1,700 a month to cover basic costs of living like food and utilities. But they earned an average of only $1,274 per month at that time.

URL: http://leongszehian.com/?p=1489

Sizing up the Budget pie

2012-02-24T09:44:00.004+08:00

Ahead of next week's Budget debate, MPs give their take on this year's social Budget that has some businesses feeling left out.
Straits Times, Published on Feb 24, 2012
By Rachel Chang

AS MEMBERS of Parliament listened to Finance Minister Tharman Shanmugaratnam deliver his Budget statement last Friday, it seemed to some he was granting their wishes one by one.

More for older workers? Check: $470 million a year for the next five years to employers who hire those above 50 years old.

More to defray rising health-care costs? Check: health-care spending will double to $8 billion over the next five years.

More for low-income Singaporeans struggling to afford essentials? Check: a permanent goods and services tax (GST) voucher from a $6.8 billion fund.

'It was a responsive Budget,' summed up Holland-Bukit Timah GRC MP Liang Eng Hwa. Pasir Ris-Punggol GRC MP Janil Puthucheary concurred: 'There were so many of the things MPs have been asking for, it was pleasant surprise.'

Wish fulfilment aside, the 2012 Budget statement also gave MPs pause with what it signalled about the governing philosophy on social spending.

'The Government's principle has always been for people to be self-reliant as far as possible,' said Sembawang GRC MP Vikram Nair. 'This Budget recognises that sometimes it's not possible.'

'It has crossed a psychological chasm,' said Moulmein-Kallang GRC MP Denise Phua, referring to the Government's aversion to entrenched payouts, for fear that they create a culture of entitlement.

But the largesse was funded by cutting some features of Budgets past, like tax cuts for businesses and handouts for the vast swathe of middle-income families.

Budget 2012 was also less kind to employers, lamented some MPs. The rise in CPF contribution rates for employees aged above 50, and a further turn of the screw on the influx of foreign workers will alarm many small and medium-sized enterprises (SMEs), they said.

And even as they welcomed the 'social Budget', some MPs have begun to fret that 2012 may mark the country's first step down a slippery slope to welfarism.

For nine days starting next Tuesday, these and other issues will get a full airing as MPs hunker down for the annual Budget debate. In interviews with 19 MPs and Nominated MPs, Insight got a glimpse of the parliamentary exchanges to come.

Post-election Budgets past and present

BUDGET 2012 marked a departure from the previous two post-General Election Budgets in 2002 and 2007.

Both featured cuts in tax rates for corporations and top income earners. In 2002, corporate tax rates were slashed by 4 percentage points to 22 per cent. In 2007, they were cut to 18 per cent.

There were other goodies aplenty for businesses in the form of tax concessions and grants.

Both post-GE budgets also raised the GST - from 3 per cent to 5 per cent in 2002, and from 5 per cent to 7 per cent in 2007.

To offset the impact of the GST hikes, the Government put together billion-dollar packages in cash handouts and rebates for Singaporeans across the board, to help them cope.

Budget 2007 also entrenched the Workfare Income Supplement scheme, a payout to low-income workers to encourage them to stay employed, at a cost of $400 million a year to the Government.

But it was a minnow compared to the whale of initiatives which came the way of disadvantaged groups in this year's Budget.

Budget 2012 also focused its firepower on vulnerable groups such as the elderly, the low-income and the disabled - giving a lot to a few, rather than a little to everyone.

The 'Special Employment Credit' alone, which will subsidise employers who hire workers above 50 years old, will cost $470 million a year.

Then there are the Silver Housing Bonus for retirees who downgrade to a smaller flat, a rise in the CPF contribution rates of workers above 50, and a doubling of the earned income tax relief for working seniors.

'In terms of urgent issues facing the elderly, this Budget has addressed them,' said Marine Parade GRC MP Tin Pei Ling.

But with a rapidly ageing population, some MPs will argue next week that even more must be done for the country to get ahead of the silver curve.

Some MPs, like Ms Phua, will call for the Special Employment Credit - now in place for five years - to be made a permanent feature for elderly and disabled workers. 'This would reflect the value society still places on these vulnerable members of society (and) encourage them to work where they can instead of collecting welfare,' she said.

It would also help develop an alternative to the foreign workforce, she added.

Jurong GRC MP David Ong will advocate for the principles behind the pro-elderly measures to be taken to their natural conclusion: the removal of the retirement age and the full restoration of CPF rates for older workers.

The retirement age is now 62 but employers are required by law to re-employ workers until age 65.

Mr Ong said: 'Older workers need to know that they are not being discriminated against just because of age.'

He added: 'It's not a good feeling for them to have an 'expiration date'. With elderly people fitter and living longer, 65 is not that old.'

In fact, since MediShield was extended in this Budget to cover those up to the age of 90, he will ask why it cannot be extended until the end of life: 'Those older than 90 would definitely need help with medical costs.'

Mr Ang Wei Neng, also from Jurong GRC, will champion the plight of disabled workers.

As announced in Budget 2012, employers will be given wage subsidies of 16 per cent for every disabled worker they hire. All workers who graduate from special education schools will also be allowed to go on the Workfare Income Supplement scheme, even if they are below the age of 35. This is a payout to encourage them to keep working.

'This was very good news,' said Mr Ang. 'But more can be done. I would like to see the domestic worker grant for families with elderly extended to those with disabled children too.'

While MPs cheered the permanent voucher which guarantees help for low-income families to offset higher costs due to the GST, some will express concern about the scheme next week.

Ang Mo Kio GRC MP Inderjit Singh said that the voucher - which will come in cash payments, utility rebates and Medisave top-ups - may be more administratively complicated than eliminating GST on essential goods altogether, a move he has proposed since 2007.

Ms Phua said entrenching the voucher is a 'sobering' signal from the Government that it does not believe that the income gap can be bridged - hence the need to rely on social transfers.

'Am I in favour of making this a permanent feature? Yes, because it is indeed true that the widening income gap does not look like it will close,' she said. 'However, there is a risk that the voucher gets taken for granted and may give rise to a potentially larger appetite for even more permanent features - which ultimately have to be funded through higher GST or other means.'

In fact, the thin divide between a 'social Budget' and a 'welfarist Budget' will be probed by several MPs during the debate.

'It's very hard for any Government today to retract any benefits once they have been distributed,' noted Chua Chu Kang GRC MP Zaqy Mohamad. 'That's what Europe is facing right now. Singapore must be more cautious.'

'The demographics are working against us,' said Mr Liang. 'Over time, as the group of elderly grows, the health- care needs will increase and the expenditure needed will keep rising. We must be careful to spend within our means.'

Many of the initiatives the Government has now introduced, even if ostensibly on a one-year or five-year basis, will be hard to 'take back', he added.

'The only way to afford this is to keep growing the economy.'

What of the economy?

A KEY criticism which several MPs plan to make of Budget 2012 is precisely that it may stifle economic growth.

For the second year running, Mr Tharman announced new regulations on the hiring of foreign workers in the Budget.

This year, the dependency ratio - the number of Singaporeans that companies must hire before they can hire foreigners - was lowered in the manufacturing and services industries.

It was the latest in a series of steps over the last two years to clamp down on companies' dependence on foreign manpower, through higher levies and stricter criteria for work passes.

The announcement was accompanied by millions to help SMEs boost their productivity and raise their capabilities. Companies which invest in productivity measures will now get double the cash payout under a beefed-up Productivity and Innovation Credit. The cap on Absentee Payroll - which helps companies defray manpower costs when they send employees for training during work hours - was also raised from $4.50 an hour to $7.50.

Still, some MPs will tell the House that the new rules may strangle businesses already struggling to cope with previous rounds of tightening.

Levy increases began in 2010. By the time all the changes have been implemented in July 2013, companies will pay between $250 and $750 in levies depending on the sector and how reliant they are on foreigners.

Ultimately, employers could pay as much as six times more in levies than before the changes.

Nominated MP Teo Siong Seng, who is also president of the Singapore Chinese Chamber of Commerce and Industry, said: 'Some companies are already thinking of relocating because they already cannot find the workers to fulfil their orders.'

He added: 'We know that there will be no U-turn on the tightening on foreign workers, but we hope that the Government can be flexible if the economy goes bad.'

In the event that the economic crisis in Europe, for example, escalates, he will urge the Government to delay the implementation of the latest rules, he said.

Pasir Ris-Punggol GRC MP Gan Thiam Poh, among others, will express concern over the higher prices consumers will likely face as labour costs rise for businesses.

'In certain industries, such as tourism, that may be alright as it is tourists who pay more,' he said. 'But rising prices will mostly put stress on Singaporeans.'

The bluntness of the Government's productivity push may also conflict with its desire to help the low-income, noted Mr Zaqy.

As some less productive companies struggle and ultimately close down in this brave new world, low-skilled jobs may disappear.

'What I am concerned about is how there will be a lack of alternatives for such workers in a 'one-speed', highly productive economy,' he said. 'They will become completely reliant on welfare handouts.'

Certain environments like hawker centres or shops in Housing Board (HDB) estates can be made 'pockets of space' where older and lower-skilled workers can take refuge, he said. National regulations meant to compel productivity improvements should then be relaxed for such exceptions.

A statement of values

THE Budget statement has always been a centrepiece of the political year. 2012 may well be the year it becomes, after an intense General Election, a statement of national values for a maturing country, said several MPs.

'The Budget is a powerful tool that can mould social attitudes and mindsets and influence socio-economic behaviour,' said Nominated MP Eugene Tan.

In recent years, it has become too much about the 'goodies' that Singaporeans may get, and less about long-term social investments, he contended.

In fact, several MPs laud the 2012 Budget for putting at front and centre the values that all Singaporeans should share.

With the unprecedented support for the elderly, it sent the message that those who have contributed to society will be taken care of in their twilight years.

And in its emphasis on helping vulnerable groups rather than businesses, it represented an evolution of national goals away from pure economic growth, to social cohesion and resilience.

Whatever else MPs will say when they step up to the rostrum next week, they will largely welcome these lines in the sand that Budget 2012 has drawn.

'This Budget has reflected a shift from being about businesses and the economy to about investing in the social side of things,' said Ms Tin. 'It's something that we'll all applaud.'

'The Budget measures are a recognition of the trends which are going to hit Singapore even as we figure out new policies to address them,' said Marine Parade GRC MP Seah Kian Peng.

'You cannot solve everything in one Budget but this is one major shift, and a big step forward.'

*****

Some reactions and questions
Published on Feb 24, 2012

QUESTION OF EXECUTION

'I was happy to hear that they want to build up the social services sector, but I want to know how this will be done. A whole-of-Government approach must be taken. For example, our tertiary institutions and university pathways should be evolved to channel and train people in this direction.'

Chua Chu Kang GRC MP Low Yen Ling

**

HAPPY PROBLEM

'Businesses should look at the positive side of the new regulations on foreign workers. They are complaining that they cannot fulfil orders because they don't have enough workers. This is a happy problem. Which would you prefer - too many orders, or no orders at all?'

Pasir Ris-Punggol GRC MP Gan Thiam Poh

**

Published on Feb 24, 2012

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Chua Chu Kang GRC MP Low Yen Ling

QUESTION OF EXECUTION

'I was happy to hear that they want to build up the social services sector, but I want to know how this will be done. A whole-of-Government approach must be taken. For example, our tertiary institutions and university pathways should be evolved to channel and train people in this direction.'

Chua Chu Kang GRC MP Low Yen Ling

HAPPY PROBLEM

'Businesses should look at the positive side of the new regulations on foreign workers. They are complaining that they cannot fulfil orders because they don't have enough workers. This is a happy problem. Which would you prefer - too many orders, or no orders at all?'

Pasir Ris-Punggol GRC MP Gan Thiam Poh

PAINFUL PROCESS

'We are not sure how the tightening on foreign workers will pan out for businesses, so we have to be cautious. Right now, companies feel that it's too fast. But it's a tough situation for the Finance Minister, because we are in an over-leveraged situation when it comes to labour. For many years we were able to enjoy fast growth by borrowing labour from elsewhere, not depending on our own resources. It will be a painful process to de-leverage, but we have no choice but to reduce our dependence.'

Holland-Bukit Timah GRC MP Liang Eng Hwa

**

QUESTION OF SUSTAINABILITY

'The difficulty is in how to sustain these new social initiatives in the long term. We will need new revenue sources. I've noticed that some of the schemes cover up to those making $3,000 or $4,000 a month, which is bordering on the middle class. But right now our tax revenues come from corporations and high-income individuals. This balance may become more difficult to sustain in the long term.'

Chua Chu Kang GRC MP Zaqy Mohamad

**

MORE HELP

'While I agree we should not adopt the Western style welfare systems, the Government could have done more to help Singaporeans bear the burden of greater spending, as many of these basic needs have become more expensive. Singapore has developed very fast and costs have risen rapidly while wages have not risen as much.'

Ang Mo Kio GRC MP Inderjit Singh

**

NO TURNING BACK

'For me, the social focus of Budget 2012 suggests that the re-calibration of our social compact is well in progress. I would be very disappointed if it wasn't. My sense is that the die has been cast; there's no turning back.'

Nominated MP Eugene Tan

**
If the opposition were in charge...
Published on Feb 24, 2012

IF THE Singapore Democratic Party (SDP) formed the Government, defence spending would be slashed while the ministries of education, health, and trade and industry would get billion-dollar injections.

It would also execute an ambitious plan to re-energise the small and medium-sized enterprise (SMEs) sector - in order to reduce the economy's reliance on multinational corporations.

SMEs will be the 'engine of growth' in the coming period, the SDP said in its Shadow Budget released on Wednesday. This is because neighbouring countries are beginning to match what Singapore has traditionally offered foreign investors and companies.

Resources should thus be poured into the domestic business sector, especially to grow research and development.

A 'troika' of agencies - Spring Singapore, the Economic Development Board and a new body known as the Singapore Enterprise Agency - will steer the restructured economy.

Two funds will be set up: an 'Invention and Youth Enterprise' fund to assist young innovators to develop and commercialise their ideas, and a 'Development and Exploration' fund to help SMEs make productivity and technological improvements.

In addition, $1.8 billion more will go towards arts and community spending to nurture creativity among Singaporeans.

The increased expenditure will be funded through cuts in the defence budget, the budget for the Prime Minister's Office as well as a drawdown of about $2.7 billion from the national reserves.

The SDP said this was a minute fraction of the reserves' total size. 'Inordinately high national savings can result in diminishing returns,' it added. 'State reserves should not only be viewed as a hedge against future challenges but as a resource base from which to grow the conditions that would mitigate those challenges.'

Separately, the National Solidarity Party (NSP) proposed having an annual population growth target of 50,000 a year in its response to the Government's Budget.

Over the last 10 years, the population has grown by about 100,000 a year, it said. Without an annual target, however, the NSP said it is difficult to 'assess the adequacy of the proposed expansion in capacity for buses and hospitals, and in fact, many of the Government's plans'.

Its suggested target of 50,000 a year is double the 23,000 'shortfall of babies' the citizen core faces, it said, as the total fertility rate is now 1.23 - far below the replacement rate of 2.1.

The NSP added that Hong Kong, which has 50 per cent more land space than Singapore, has a population growth target of 35,000 a year.

It also advocated greater competition among bus service operators, as allowing more entrants into the market will bring 'more capital and capacity'.

This would avoid the need for taxpayers to foot a $1.1 billion bill to increase the bus capacity of private operators, it said. This refers to the Government's plan to co-fund an extra 800 public buses over the next five years to meet commuter demand until new train networks are ready.

RACHEL CHANG

MNC takes over aircraft cleaning firm

2012-02-23T21:38:00.002+08:00

UK-based group plans to hire 1,000 more staff, mostly S'poreans
Straits Times, Published on Feb 23, 2012
By Lim Yan Liang

A SINGAPORE firm specialising in aircraft cleaning has been bought by a global facilities management company, which wants to add 1,000 more staff to its ranks.

The UK-based OCS Group announced yesterday afternoon that it had acquired the Don Thaker Group (DTG), which now has nearly 1,000 employees and cleans 60 per cent of all planes that land at Changi Airport every day.

The two companies signed a non-disclosure agreement, so the cost of the takeover is not known.

A large portion of the new jobs will be cleaning-related, and at least 80 per cent of the positions will be filled by Singaporeans, DTG managing director Sabir H. Thaker said at the Pan Pacific Hotel, where the announcement was made.

The acquisition gives OCS a foothold in Singapore, and will provide it with access to many other multinationals headquartered here, said OCS Group chief executive Chris Cracknell.

'This is a personal milestone, from my perspective, for the group, as Singapore will act as the financial hub for our investments into India over the next 18 months,' he said.

'We have put aside substantial sums over the next two to three years to invest in this region alone, and this will be the hub of OCS into the future.'

He was referring to a £40 billion (S$80 billion) war chest the OCS Group intends to use for further mergers and acquisitions in Asia.

It hopes to expand into new markets such as Indonesia, Myanmar and the Philippines, and also grow its current 27,000-strong operations in countries that include Thailand, Malaysia, Vietnam and Cambodia.

'Within three years, we intend to more than double our business and our workforce in this region,' Mr Cracknell said. 'By 2015, the Asian business will account for over half our global revenue.'

South-east Asia now accounts for less than 14 per cent of the group's total revenue.

As to why Singapore, and why now, Mr Cracknell said its sound infrastructure and reputation as a business and aviation hub were the key attractions.

'Singapore, for many multinationals, is the core hub and... it has maintained its position as one of the leading airports in the world for many years,' he said. 'In terms of the business community, it is a vibrant hub for the Asian region in general.'

British Deputy High Commissioner to Singapore Judith Slater, who was at the announcement, agreed. 'We are really delighted that they are planning to grow their business from Singapore, particularly in the aviation sector, as that is one of the Singaporean strengths we recognise,' she said.

Asked how it intends to attract Singaporeans to a sector often viewed as low-paying and unglamorous, Mr Cracknell said the group is in talks with organisations such as the Employment and Employability Institute to tap into a pool of Singaporeans who are unemployed and unable to find gainful employment.

As the company provides catering, security and support services, besides cleaning jobs, there will be opportunities to try different things and further their careers, he said.

With a larger worker pool and range of duties available, it will be easier to deploy elderly workers in less physically demanding jobs, said regional managing director Heather Suksem.

'Most of 800 new buses to roll out in 2 to 3 years'

2012-02-22T09:39:00.002+08:00

Straits Times, Published on Feb 22, 2012

THE majority of the 800 additional buses which the Government will co-fund to expand capacity will likely be rolled out in the next two to three years.

Sources close to the discussions between the authorities and public transport operators told The Straits Times yesterday that the remainder will arrive within the announced five-year time frame.

Of the 800 buses, 550 will be paid for by the Government, and the rest by operators SBS Transit and SMRT Corp.

The additional buses, equivalent to 20 years' worth of fleet growth, will bump up the public bus fleet by 20 per cent. Their arrival depends on how quickly bus manufacturers can supply the fleet, and - more crucially - how quickly drivers can be hired.

All in, the Government is handing out a $1.1 billion aid package meant to cover the operating costs of the vehicles over 10 years. It is understood to include salaries for drivers.

Finance Minister and Deputy Prime Minister Tharman Shanmugaratnam had announced the measure in his Budget speech last Friday, and had said the $1.1billion was a 'one-off' measure.

For the bus operators, it will not be a case of generating additional revenue out of capital assets they will have obtained for free. Sources reckon the operators will be 'persuaded' to increase service frequency and raise drivers' salaries, so the net effect may well be revenue-neutral to the operators.

Raising drivers' salaries will be key to filling the 1,300 to 1,500 jobs created by the fleet expansion. Unattractive pay has long been recognised as the chief reason bus operators fail to hire and retain drivers. About 1,000 drivers quit every year.

CHRISTOPHER TAN

budget 2012 - Subsidy won't ease labour crunch: Bosses

2012-02-22T09:38:00.000+08:00

They point to shortage of older workers with the necessary job skills
Straits Times, Published on Feb 22, 2012

By Cai Haoxiang & Teo Wan Gek

EMPLOYERS welcome the new government scheme that subsidises the hiring of older workers, saying it will help ease rising business costs.

But the wage subsidy does not ameliorate the larger problem, which is the scarcity of older workers with the relevant skills in the current tight labour market.

The shortage is especially acute in such labour-intensive sectors as manufacturing and retail where workers are expected to be physically fit or agile, said 10 employers interviewed yesterday about the upcoming Special Employment Credit (SEC) scheme.

PestBusters, for instance, tried hiring about five seniors in the last three years, but they 'came in for two training sessions and gave up', said its chief executive Thomas Fernandez.

Automation is out of the question as 'no robot will come and catch cockroaches for you'.

'We have to rely on human beings and they got to be agile and strong, to climb up attics to look for termites, or to lift heavy manhole covers,' he added.

Business federations also do not see the SEC as the immediate answer to the labour crunch confronting companies as bosses look at competence, skills and adaptability when hiring older workers.

The SEC was announced in the new Budget to defray the cost of the higher contributions that employers will soon have to pay into the Central Provident Fund (CPF) accounts of older workers.

The SEC will pay bosses up to 8 per cent of the wage bill of older workers earning up to $4,000 a month, and employers will pay these workers up to 2 percentage points more for their CPF.

The full two-point increase will be for workers between the ages of 50 and 55, raising their employer's contribution rate to 14 per cent.

Workers aged 60 to 65, however, will get 0.5 point more, lifting their employer rate to 7 per cent. Both measures take effect in September.

The Singapore National Employers Federation said the SEC will 'more than cover' the cost of the CPF hikes for the first five years.

But it noted that the key obstacles older job-seekers face are 'skills, relevant experience and adaptability'.

Likewise, the Singapore Business Federation's chief operating officer Victor Tay said the main issue in hiring older workers is 'job fit and competence, not incentives or the CPF hike'.

Also, he is worried about the 'unintentional maximum wage' imposed on the older workforce, because the SEC subsidy is lower as wages rise above $3,000 a month. It drops to zero when the salary exceeds $4,000.

Mr Tay disclosed that on Monday, 130 representatives from trade associations and business chambers were briefed on the Budget changes.

'Most said the SEC will give immediate relief to rising wage costs for hiring older workers, but they doubt it will lower their overall manpower cost that includes foreign worker levies, or alleviate the manpower crunch,' he said.

Unemployment in Singapore is at a 14-year low of 2 per cent.

Ms Lynn Tan, managing director of hair care products distributor Fusion Cosmetics, said it is tough to get staff of every level, 'be it a warehouse assistant, retail assistant, or production manager'.

'There is no ageism here. It is just that no one turns up for interviews and no one works for long,' she said.

But some employers hope the higher CPF rates will coax older workers to return to work, said Association of Small and Medium Enterprises president Chan Chong Beng.

This would improve an employer's foreign worker dependency ratio - a policy which requires companies to hire a specific number of Singaporeans before they can take on foreigners.

But calculations by economics professor Chia Ngee Choon show it will be $40 cheaper to hire a Singaporean older worker than an S Pass holder at the same salary of $2,000 a month - after taking into account a $160 S Pass levy.

But Ms Faith Wong of ISS Facility Services said in the cleaning sector, older workers are always in big demand.

ISS has 4,000 cleaners. Half are Singaporeans and most of them are 50 and older. They are paid $1,000 to $1,200 a month against $700 to $800 a year ago.

Still, there are not enough locals. She said: 'At this point, we are afraid to bid for new contracts, as we are not confident of finding the workers we need.'

Manpower shortage dogs aviation sector

2012-02-21T23:10:00.000+08:00

Growth may be curbed as only 2 in 3 new jobs are being filled
Straits Times, Published on Feb 18, 2012
By Royston Sim

THOUSANDS of jobs will be created in the next few years as Singapore's aviation industry continues to grow in tandem with the rest of the Asia-Pacific.

The worry is how to find people to fill these jobs.

An industry manpower study commissioned by the Association of Aerospace Industries Singapore (AAIS) in 2010 found that the local sector will need about 1,000 new staff each year until 2015.

However, only 60 to 70 per cent of these positions are being filled each year, said AAIS chief executive Aloysius Tay. To compensate for the shortfall, firms have to either hire foreign staff or raise the productivity of their existing workforce.

Mr Daniel Ng, the aviation industry division head for the Civil Aviation Authority of Singapore (CAAS), said there are manpower needs to fill across the board, particularly for those in operational roles such as technicians and aircraft engineers.

Industry watchers say the main challenge is attracting new blood.

Mr Tay said an ample number of people enrol in aviation-related courses here: Each year, there are about 1,400 to 1,500 new students studying such courses in universities, polytechnics and institutes of technical education (ITEs).

The problem is, many of them do not stay on to work in the aerospace industry.

Only half of such polytechnic graduates take up aviation-related jobs, according to the AAIS study. ITE students showed a far higher retention rate.

Mr Tay said one factor that turns people away from the industry is the long training period - about two years on average. In addition, during this period, aerospace engineers starting out are paid less than their peers in other disciplines.

However, he noted that the aerospace sector is among the highest-paying. The study found that it ranked among the top five industries in 2009 in terms of gross salary.

At CAAS, Mr Ng said: 'The challenge is that Singaporeans have more choices these days, so we need to think of how to ensure that the aviation sector gets its fair share of talent.'

In a bid to attract more people to the industry, CAAS has embarked on a strong push to reach out to the young. It conducts aviation learning journeys, organising open houses and tours of companies for students to give them a better sense of what the sector does.

In addition, it offers part-time scholarships to encourage students to enter the industry first, after graduating from polytechnics or ITEs, before they further their studies.

Apart from attracting youth to the industry, there is a need to train aviation leaders and professionals to ensure sustainable growth for the industry, said CAAS director-general Yap Ong Heng.

To that end, CAAS signed collaborative agreements with three universities yesterday to develop specialised, aviation-focused programmes that cover areas such as air transport management and aviation leadership.

The three schools are Cranfield University, Embry-Riddle Aeronautical University and the Lee Kuan Yew School of Public Policy. The agreements were among several signed during the Singapore Airshow this year, and will help in developing a skilled workforce for the industry.

Singapore Polytechnic student Emmanuel Tang could be one beneficiary of these arrangements. The 19-year-old is studying aeronautical engineering and hopes to work as an aircraft engineer. However, he has had second thoughts before about working in the industry.

He said: 'It's tough. You have to study and know quite a bit of things, and you can't bluff your way out. Many people quit after experiencing the course because it's difficult.'

This type of sentiment is precisely what Mr Tay and other industry bodies such as CAAS hope to change.

Mr Tay urged Singaporeans to think long-term and consider the industry's benefits.

He said: 'We have more than enough space and opportunities available, and the industry provides stability, solid progression and extremely good opportunities.'

WHAT THE EXPERTS SAY - Good for older workers, the poor, less so for businesses

2012-02-21T22:37:00.002+08:00

Straits Times, Published on Feb 21, 2012
By Melissa Tan and Magdalen Ng

THE Budget was a step in the right direction but could have done more to address challenges in areas including Singapore's productivity drive, experts said in panel discussions yesterday.

They also expressed concerns that the latest Budget, released last Friday, offered little to business at a time of global economic uncertainty.

At one session held by the Economic Society of Singapore (ESS), speakers noted that the Budget would help groups such as older Singaporean workers and the poor. It would also, in the long run, hopefully wean Singapore off its dependence on foreign labour.

At another, organised by the Singapore Centre for Applied and Policy Economics (Scape), speakers agreed that Budget 2012 demonstrated the Government's determination to ramp up productivity.

In opening remarks at the ESS panel, Nanyang Technological University (NTU) economics professor Lim Chong Yah said the Budget set out in great detail measures to overcome difficulties such as the 'increasing overdependence on foreign workers' here.

NTU economics professor Chew Soon Beng also noted the social policy aspects: 'This is a very friendly Budget for older workers and the poor.

'But there is no free lunch - it is a very difficult Budget for businesses'.

ESS vice-president Manu Bhaskaran added that in terms of improving social safety nets 'there's been a lot of progress, in particular in health-care spending... (which) addresses a particularly painful problem for Singaporeans'.

But he echoed Professor Chew, suggesting that the tightening of the foreign worker restrictions could provide more difficulties for business at a time of global economic uncertainty.

'That will reduce its resilience in facing the exogenous shocks... The Budget is actually more contractionary in its fiscal stance than it was last year... (it) doesn't seem to help very much'.

Mr Bhaskaran added that 'the drive to increase productivity clearly is not gaining traction and there is a need for review and rethinking of the fundamental approach'.

He noted that the current approach to improving productivity was 'basically continuing the strategy we were employing in the past, which is trying to use a price and quantity measure to jack up the cost of foreign workers... and schemes like the PIC.'

The PIC - Productivity and Innovation Credit scheme - is aimed at encouraging firms to become more productive. It allows deductions of 400 per cent on up to $400,000 of a firm's annual expenditure on each of six qualifying activities.

But Mr Bhaskaran said he was 'not sure whether these are really working. Clearly businesses will respond to price signals but it will take some time'.

He noted that in other countries such as Germany, small companies - which account for the bulk of employment - are linked by networks to large companies.

That means that 'when big companies move up the value chain, small companies naturally follow along'.

'But the difference for Singapore is that we are so dominated by multinational companies that they have their own supply chains, and that means we have not built the kind of networks that link small companies to big companies'.

This was one reason why 'in the last 15 years we've found it difficult to push up productivity'.

At the Scape discussion, associate economics professor Chia Ngee Choon argued there may be a drawback with the 'Silver Housing' policy.

Under the policy, a Silver Housing Bonus of $20,000 will be given to older Singaporeans wishing to sell their existing flats and buy three-room or smaller HDB flats.

She said that the policy may not benefit the very groups it should help - the elderly who live in rental flats, or in one- to two-room flats.

This is because some are unable to downgrade further, and others may have to use the sale proceeds to top up the minimum sum in their CPF accounts.

'The scheme may not help people at the lower rungs, and a more in-depth study will have to be done on how much money is actually unlocked for the elderly.'

Town council cleaners get more pay now

2012-02-21T22:33:00.000+08:00

Cleaning companies are nudged to train workers and treat them fairly
Straits Times, Published on Feb 21, 2012
By Ng Kai Ling

Photo caption: Among the HDB cleaners who have gained from the initiative are Mr Asmadi Ahmad (left) and Mr Tan Chew Koi. In 2008, 14 PAP town councils adopted the system of awarding cleaning contracts with a focus on helping workers upgrade their skills. -- ST PHOTO: LIM WUI LIANG

WHEN Mr Tan Chew Koi first started sweeping Housing Board blocks about six years ago, he earned $600 a month.

But since going for skills upgrading, the 58-year-old's duties now include washing the blocks, and his pay has more than doubled to $1,450.

More than three years after the 14 People's Action Party town councils banded together to set up a new system of awarding cleaning contracts, with a focus on helping workers upgrade their skills and productivity, results are finally showing.

North West District Mayor Teo Ho Pin, who spearheaded and coordinated the initiative, said yesterday that full- time cleaners now earn about $1,000 a month on average, compared to about $750 before the scheme was launched in 2008.

The two opposition-controlled town councils at the time - Hougang and Potong Pasir - did not take part in the initiative.

More than 2,200 Singaporean workers, or about 70 per cent of those employed to clean HDB estates, have now gone for training.

In April 2008, the town councils adopted a system of awarding contracts based on performance, instead of just giving work to the company charging least.

This meant that cleaning companies could no longer rely on low-skilled and poorly paid workers to win the contracts.

Under the new system, the town councils - working with other stakeholders like the National Trades Union Congress and the Workforce Development Agency - set out new guidelines and cleanliness standards for the HDB estates.

To ensure that workers meet the basic standards, companies are required to send all employees cleaning HDB estates for the National Skills Recognition System's Clean Residential Estates course.

The course gives tips such as what cleaning solution to use for specific areas, and how to operate cleaning machines such as the high-pressure jet spray.

The town councils also pushed the cleaning companies to sign contracts with their workers and ensure that they are paid a 'fair and reasonable' starting salary of $1,000 for full-time staff. Companies also have to provide staff entitlements such as leave and overtime pay.

'Based on our inspections, we can see that workers are more dedicated and more motivated because they get proper training, there is a proper work system and proper remuneration,' said Dr Teo, the chairman of Holland-Bukit Panjang Town Council.

In the past, said Dr Teo, companies tended to rely on foreign workers to do the job. Now, he said, foreign workers make up about 30 per cent of the industry and they are usually tasked with more taxing work such as refuse collection and the removal of bulky items. He added that because of this push for higher skills and pay for Singaporean workers, the cleaning bill for the town councils had gone up by about 15 per cent.

Mr Vincent Teo, operations manager of cleaning company LS 2 Services, said costs had gone up because of the new requirements, so it was only fair that town councils were not just looking at their bottom lines.

'It used to be that the lowest bidder would have the highest chance to win the tender,' said Mr Teo. 'But now, we have to show that we can do the job well too, so we send workers for training.'

Cleaner Mr Tan said he learned how to use the high-pressure spray, so he can earn more.

'In the morning, I do sweeping and in the afternoon, I wash the block. If not, how would I earn $1,450?' he said in Mandarin.

Mr Asmadi Ahmad is another worker who benefited from the new initiative after switching cleaning companies.

At his previous company, he spent nine years working as a cleaning supervisor in a school but earned just $880 a month.

'Last time, the company was not organised. Now we go for training and we get proper equipment,' said the 56-year- old, who earns $1,100 monthly.

How 14 town councils helped cleaners earn more

2012-02-21T22:31:00.002+08:00

Straits Times, Published on Feb 21, 2012
By Ng Kai Ling

WORKERS who clean Housing Board blocks are now earning about $250 more each month, and are doing their jobs more efficiently.

This is the result of a move by the 14 People's Action Party town councils to change the way they award cleaning contracts.

As part of the Town Council Job Re-creation Programme, started three years ago, the councils place equal emphasis on a cleaning company's track record and bid. Contracts are not always awarded to the lowest bidder.

Companies have to sign employment contracts with their workers and send them for a nationally-recognised training programme. Seven out of every 10 workers must also be Singaporean.

Now, full-time HDB estate cleaners earn about $1,000 a month working an eight-hour day, up from $750 a month previously.

Dr Teo Ho Pin, coordinating chairman for the 14 town councils, said yesterday cleaning costs have gone up by about 15per cent.

'We look at it from the overall perspective,' he said. 'This is good for the cleaning industry and cleaners get better skills and pay. They have become more employable.'

Cleaners at PAP town councils paid more: PAP town council

2012-02-20T22:30:00.000+08:00

TODAY, Feb 20, 2012

SINGAPORE - Cleaners working for town councils run by the People's Action Party (PAP) have seen a 30 per cent pay rise from 2008.

The Town Councils said the wage increase is due to skills upgrading, and an overhaul of the tender system.

This was disclosed by the co-ordinating chairman for the 14 PAP town councils, Dr Teo Ho Pin, at a briefing today.

One of the cleaners is 53-year-old Abdul Manoff.

The father of two used to earn S$800, working as a cleaner in a condominium.

Since he switched to cleaning public housing estates three years ago, his pay has gone up.

"I join town council, my basic pay was S$900. After my supervisor Mr Raj send me for course, everything I do, now my pay is $1,200," he said.

There are currently some 2,000 Singaporeans working as cleaners across the 14 PAP-run town councils.

All of them have undergone some form of training, enabling them to take on more tasks.

On average, a cleaner's pay has gone up some S$250 from 2008, to S$1,000 dollars today.

The town councils adopted the Job Re-creation Programme (JRP) in 2008, which aims to improve the productivity and pay of cleaners.

This meant moving away from awarding tenders based on lowest price.

Dr Teo said: "Because we don't base on price alone, we base on best sourcing initiative. So we give 50 per cent to performance. So they will know that performance matters, as far as awarding of contracts is concerned.

"So the contractors will pay more attention to daily performance."

The town councils also make it mandatory that contractors only hire trained workers with a recommended average wage of S$1,000 a month.

Dr Teo said the town councils are paying 15 per cent more for cleaning services compared to before, but the tradeoffs - more motivated and skilled workers - make it worthwhile. CHANNEL NEWSASIA

Parliament - MOM keeping watch on layoffs

2012-02-18T23:08:00.002+08:00

Govt will help with measures to avoid job losses
Straits Times, Published on Feb 18, 2012
By Cai Haoxiang

THE number of layoffs has not soared but the Ministry of Manpower (MOM) is keeping a close eye on the situation, said Minister of State for Manpower Tan Chuan-Jin yesterday.

Last month, 22 employers informed MOM that they planned to retrench about 230 workers.

Two-thirds are in services and one-third in manufacturing. And about 140 are Singaporeans or permanent residents.

But the figures could be higher as it is not compulsory for an employer to inform MOM, Mr Tan said in his reply to Ms Ellen Lee (Sembawang GRC).

However, he added: 'There is no indication yet that the number of workers facing retrenchment has gone up sharply.'

In the last three months of 2011, the number of workers retrenched rose to 3,100, from 1,410 in the previous quarter, according to preliminary MOM figures released last month.

But economists had said the number is within expectations, and pointed to the tight labour market with unemployment at a 14-year low of 2 per cent.

Still, MOM will not let its guard down, said Mr Tan as he assured the House that the Government will be prepared to come to the aid of companies and workers, with measures to avoid the loss of jobs.

These include helping companies 'manage their workforce flexibly instead of resorting to retrenchment'.

In the last 2008-2009 recession, help measures introduced by the Government included the Jobs Credit wage subsidy scheme and the Special Risk-Sharing Initiative for bank loans to small and medium-sized enterprises.

But should retrenchment be inevitable, he urged companies to act responsibly, including giving layoff benefits to the affected workers.

He also urged companies to inform MOM early of their retrenchment plans so that the ministry can work with government agencies such as the Workforce Development Agency and the Employment and Employability Institute, to help those who have lost their jobs.

Parliament - Bus operators rehiring retirement-age drivers

2012-02-18T23:07:00.000+08:00

Straits Times, Published on Feb 18, 2012

THE two public bus operators have been rehiring drivers who reach retirement age, in a bid to stem the falling number of Singaporean drivers.

Two out of five retiring drivers from SBS Transit accepted re-employment offers last year, while two out of three did so at SMRT in 2009 and 2010. The retirement age is 65 at SBS, and 62 at SMRT.

The initiative is among the ongoing measures that the two public transport operators have taken to maintain a 'Singaporean core' of drivers.

Minister of State for Transport Josephine Teo revealed the figures in response to questions in Parliament yesterday. MPs for Nee Soon GRC Lim Wee Kiak and Muhammad Faishal Ibrahim had asked her about the recruitment of drivers by public transport operators.

There are currently around 7,200 bus drivers working for the two companies. Mrs Teo said that between them, they recruit an average of 280 Singaporean and 800 foreign drivers each year.

She said they have found it increasingly difficult to recruit Singaporeans, especially young people, because higher educational attainment has driven up career aspirations.

The number of public bus drivers who are Singaporeans and permanent residents has fallen from around 4,890 - or 65.8 per cent of the driver pool - at the end of 2009 to 4,405 - or 60.5 per cent of the pool - at the end of last year.

About 1,000 drivers, including Singaporeans and foreigners, leave the driver pool each year. That works out to about 14 per cent of the total number of drivers.

Mrs Teo said the number of drivers leaving every year has been driven by better remuneration and work conditions, including shorter working hours, in the logistics and construction sectors.

Having to deal with customer service tasks is another reason why some drivers leave the sector, added Mrs Teo.

Despite the challenges, she said the public transport operators have been making extensive efforts to reach out to Singaporeans.

This includes taking part in job fairs organised by the Community Development Councils and self-help groups, and conducting walk-in interviews at bus interchanges.

Mrs Teo commended the rehiring of drivers who reach retirement age by the two operators, as it allows them to keep these experienced drivers.

Earlier this month, the Public Transport Council highlighted the shortage of bus drivers here, which has led to SBS Transit and SMRT plugging the gap by hiring from overseas - mainly from Malaysia and China.

The crunch comes at a time when both companies are expanding their fleets and bus ridership is rising.

budget 2012 - CPF to be raised for older workers

2012-02-18T23:04:00.000+08:00

Straits Times, Published on Feb 18, 2012

By Rachel Chang

A SWEEPING slew of measures to make older workers more employable and lure more of them back to the workforce dominated the Budget statement.

In the next five years, the Government will spend $470 million a year on subsidising the wage bill of employers, in a move to encourage them to hire older workers.

At the same time, it will raise the Central Provident Fund (CPF) contribution rate of workers 50 years and older. By fulfilling this longstanding wish, the Government hopes to entice seniors to return to work and work longer.

The two-pronged approach to cope with an ageing workforce and reduce the dependence on foreign workers was presented in Parliament yesterday by Deputy Prime Minister Tharman Shanmugaratnam in his Budget speech.

'People are healthier and living longer,' he said, sketching out the challenges facing Singapore's older workers. 'But unfortunately, working careers have not lengthened to the same extent.'

The current generation of older Singaporeans, in particular, has to cope with limited cash and CPF savings because wages were lower 30 years ago, he noted. The Minimum Sum they had to set aside then in their CPF for retirement was much less.

So, to boost their retirement savings and coax more to keep working, the CPF contribution rates of those between 50 and 55 years will be eased up slowly to the 36 per cent younger workers get. Calls for this have been growing in the last year, with the labour movement publicly advocating it in December.

Yesterday, Mr Tharman said the Government - in the face of a tight labour market, better-educated and skilled older workers, and flattening wage scales - believed the right time had come.

From September, employers will pay a CPF rate of 14 per cent for workers between 50 and 55 years old, up from the current 12 per cent. For workers between 55 and 60 years, they will pay 10.5 per cent, up from 9 per cent.

For workers between 60 and 65 years old, they will pay 7 per cent, up from 6.5 per cent.

At the same time, workers aged between 50 and 60 years old must also put in an extra 0.5 percentage point into their CPF accounts.

Mr Tharman did not specify when the next increase would be for older workers, or when the full rate would be restored, only that 'we cannot make this major move in one step'.

'We will have to watch how the employment market develops before making any further moves,' he said.

In another bid to encourage older workers to keep working, he made the historic move of doubling the share of their tax-free income. The last time the earned income tax relief for older workers was raised was in 1983.

From Year of Assessment 2013, those between 55 and 59 will enjoy $6,000 worth of tax relief, up from $3,000. Workers aged 60 and older will enjoy $8,000 of tax relief, up from $4,000.

With the bait for older workers set, the enhanced Special Employment Credit (SEC) should get companies to bite.

Under this wage bill subsidy scheme, which is locked in for at least five years, the Government will effectively pay employers for hiring workers aged above 50.

It will pay 8 per cent of the wages of those earning up to $3,000 a month. For those earning between $3,000 and $4,000, it will pay a smaller proportion.

All together, the scheme will cover 80 per cent of the older workforce or 350,000 people, and cost the Government $470 million a year.

This amount is more than double the $190 million companies will fork out for the higher CPF rates of older workers.

For employers interviewed, the SEC news more than makes up for the rise in CPF contributions.

'I'm very pleasantly surprised,' said Mr Arthur Goh, 47, operations manager for Shine security agency. 'This will be very good motivation for us to recruit more older and able folk.'

The ball is now in the older workers' court, said 68-year-old environment health officer Tan Boon Heng.

'The Government has shown it is serious about helping. Now, us old people must also try harder.'

Singapore households earned more last year

2012-02-15T21:02:00.000+08:00

Straits Times, Published on Feb 15, 2012
By Cai Haoxiang

THE median income of a Singapore family has gone up, and it rose faster than inflation last year, according to a government report.

This income, which is the mid-point in a range, jumped 11 per cent to $7,040 a month last year as more family members went out to work in a growing economy overflowing with jobs.

As inflation was around 5 per cent, the family enjoyed a real income growth of 5.6 per cent, said the report of Key Household Characteristics and Household Income Trends in 2011, released yesterday by the Department of Statistics.

This was double the 2.8 per cent real growth in 2010.

Associate Professor Randolph Tan of SIM University attributed the increase particularly to the momentum of a strong economy in 2010 carrying over to last year.

The median income in the report refers to that of Singaporean and permanent resident households, with at least one working member. It includes employer Central Provident Fund (CPF) contributions.

Besides overall household income, the median income per household member was also given in the report.

This income of each member rose from about $1,850 in 2010 to around $1,990 last year, a jump of 7.9 per cent.

But taking into account inflation of around 5 per cent, the real increase is 2.7 per cent.

To show how families with different earning power fared, the report grouped the households into 10 income groups and compared the average income of each.

Incomes in every group went up (see table).

Families in the top 10 per cent saw their real household income soar 7.9 per cent, compared with 0.9 per cent for the bottom 10 per cent.

Those in the middle, between the 51st and 60th percentiles, saw their real income going up by 2.4 per cent.

Economists like Mr Irvin Seah of DBS Bank cheered the achievement, saying: 'The fact that real income has risen across the board suggests all Singaporeans have benefited from the healthy economic growth in recent years.'

But Prof Tan is concerned about the widening income gap between the top and bottom 10 per cent.

The Gini coefficient, a measure of income inequality, went up to 0.473 last year, indicating the gap has widened. It was 0.472 in 2010.

But when government aid to the poor and taxes on the rich are taken into consideration, the gap narrowed last year, from 0.455 to 0.452.

This shows, said the report, the 'redistributive effect on household income', which is that taxes on the spending of the rich, say on cars, are used to pay for government transfers, like the Workfare Income Supplement, to the poor.

Prof Tan, however, foresees this gap growing in the long-term, with globalisation.

'While white-collar workers can compete globally and command higher wages, blue-collar workers lack the information processing and technology-related skills to do so,' he said.

The situation is no less worrying for the 'sandwiched class', said economists such as National University of Singapore's Associate Professor Shandre Thangavelu and Barclays Capital's Mr Leong Wai Ho.

They were referring to families in the 31st to 60th percentiles: The lower-middle and middle-income.

Their real income grew by 2.4 per cent or less as a result of high inflation.

Hence, Mr Leong is calling for more generous subsidies on childcare and pre-school education for them as well as larger income tax rebates for the middle-income.

Besides overall household income, the report also gave the average income per household member.

It showed that wages of those at the bottom increased at a faster rate than those at the top. The reason, said a Department of Statistics spokesman, is the change in the family size, albeit slightly.

The family size of the bottom 10 per cent shrank last year, while that of the top 10 per cent grew.

But to sustain the swifter pace of income growth for those at the bottom, Mr Seah of DBS called for 'more support to enhance their employability and social mobility'.

Dairy Farm honours 'golden employees' at Marriott Hotel

2012-02-11T16:33:00.000+08:00

Company has offered re-employment to all workers since 1990s
Straits Times, Published on Feb 11, 2012
By Phua Mei Pin

More than a decade before the law made it compulsory for companies to offer to re-hire their older workers, Dairy Farm Singapore was already putting it into practice.

Since the 1990s, the company - which runs six retail chains - has offered re-employment to all employees when they turn 62, said its human resource director Carol Yong on Friday.

These post-retirement age workers continue working with the same pay and benefits, including getting the same annual leave, an annual wage supplement of 1.5 months and promotion prospects.

The only difference is a cap on their annual medical bill, in contrast to the unlimited amount younger workers can incur when treated by the company's in-house panel of doctors.

Ms Yong declined to disclose the limit.

Dairy Farm has 275 re-employed staff on its payroll of 9,700 workers. They can be found across the island at supermarket chains Cold Storage, Market Place, Giant and Shop N Save, as well as 7-Eleven stores and the Guardian pharmacy chain.

On Friday, it honoured these 'golden employees' with a celebration lunch at Marriott Hotel attended by Minister of State for Manpower Tan Chuan-Jin.

It also lauded six of the longest-serving workers among them, as well as six model employees.

Mr Arumugam Haridass, 63, department manager of warehouse stocks for Giant Hypermarket, said his re-employment terms persuaded him to continue working.

'It boosted my morale to stay,' he told The Straits Times, smiling proudly with his Model Employee plaque.

His career with Dairy Farm is illustrative of how companies can value their older workers, said Mr Tan.

Mr Haridass joined Giant 11 years ago as an assistant department manager.

Today, he is a department manager of receiving operations, known for always being 'available to help his colleagues and share his knowledge and experience', noted Mr Tan as he dwelt on the need for employers to prepare for a multi-generational workplace.

With Singapore ageing and people living longer, the re-employment law that took effect last month is just one step in the national effort to improve ways for older workers to keep on working, he said.

While it is still too early to draw conclusions about its effect, he said: 'I am optimistic that with the initiatives we have introduced, implementation should be relatively smooth.'

The initiatives include a guidebook, a one-stop information online portal, as well as training programmes on how employers can implement the law, which requires them to re-hire medically-fit workers with satisfactory performance when they turn 62, up till age 65.

With more older workers, Mr Tan urged companies to also look at ways to improve their skills, plus redesign work processes and work arrangements to support a multi-generational workforce.

'How you as an employer treat your older workers will be noted by your younger workers as they too someday will become older workers. This is important not just from a workplace perspective but how we do shape society at large,' Mr Tan said.

Companies that do it better 'gain the loyalty of their workers who will then see an incentive to stay on', he added.

At Dairy Farm, one of its longest-staying employees is Mr Tan Kim Hai, who has worked for 54 years as a storekeeper with Cold Storage.

'Coming to work is like coming to a big family every day,' the 77-year-old said.

His younger colleagues are happy to learn from him, he added. 'If you're nice to them, they'll treat you with respect.'

Technician's fatal fall an accident, says coroner

2012-02-10T16:01:00.000+08:00

Straits Times, Published on Feb 10, 2012
By ELENA CHONG

A CORONER yesterday found that the death of a 17-year-old technician who fell off a ladder while fixing a cable TV connection was accidental.

Mr Mong Chu Da was on a routine assignment in Bukit Batok on Aug31 last year when the incident occurred. He was found lying on his side about a metre away from the ladder outside a flat in Block 310, Bukit Batok Street 32. He died from head injuries about two hours later at the National University Hospital, despite efforts to resuscitate him.

The court heard that during his five months of employment with Avanzare Solutions, a subcontractor for SingTel, he had completed some 300 broadband and Mio cable TV installations for customers.

At the inquest yesterday, Station Inspector Yow Meng Pun from Jurong police station told the court that on the morning of his death, Mr Mong and another man were at the flat to fix the Mio TV system. The other man then left, leaving Mr Mong behind to complete the job.

Mr Mong asked the couple living in the flat for a ladder so that he could check the telephone wiring outside, and they gave him one. Minutes later, the couple, who were watching TV in the living room, heard the sound of something dropping.

The wife, Madam Aminah Amat, 55, went outside and saw Mr Mong lying on the ground.

The investigation officer said that as he was 1.8m tall, Mr Mong could have reached the exposed wires easily using the ladder.

In court papers, Mr Mong's widowed mother - who has two other sons - described her youngest son as very good and filial, with no problems.

State Coroner Imran Abdul Hamid said the evidence showed that the death was accidental.

Mr Mong's brother Mong Chu De, who attended the inquiry, told reporters that he was in reformative training when he heard about his younger brother's death.

'We were very close. He and my mother were supporting the family,' said the 20-year-old private school student.

He said his brother, who finished his N levels but could not get into the Institute of Technical Education, had previously worked in a fast-food outlet and as a waiter. Asked by the court earlier, Chu De said his 54-year-old mother, who had been working in a coffee shop, was 'doing better'.

He told reporters that initially, his mother did not know what had happened as she did not understand English.

He said her supervisor had not allowed her to take half a day off after she received a call from the company about the fall.

Mindset change needed to help low-wage workers

2012-02-07T21:32:00.002+08:00

Society must be prepared to bear the cost of raising wages at the bottom
The Straits Times - February 7, 2012
By Radhu Basu

MR JOHARI started out as a cleaner in an industrial building 20 years ago, earning a basic monthly pay of $900.

Now 44, he does the same job. But his basic pay has shrunk to $650 a month. His wife cannot work as she needs to look after their special-needs son. So times are tough for this family.

I thought of Mr Johari while listening to academics and policymakers discuss the dilemma of income inequality at two recent seminars organised by the Institute of Policy Studies.

The big picture is that wages at the lowest 10 per cent of the income scale have remained flat over the past decade. For some professions like cleaning, they have fallen. In 2000, the median gross wage for cleaners and labourers was $1,277. By 2010, it fell to $960. For cleaners of industrial buildings like Mr Johari, the median gross wage is even lower, at around $600 in 2010.

Government figures released last week show that there were 236,300 Singaporeans and residents who earned a gross income of less than $1,000 per month as of June last year, up from 218,700 a decade earlier. The figure excludes incomes of full-time national servicemen.

If you take household, not personal income figures, the picture does not get rosier. In 2010, there were more than 100,000 households with an average monthly income from work of $1,400.

The latest available expenditure figures, covering 2007/2008, show that Singaporean households in the bottom fifth of the income scale needed around $1,700 a month to cover basic costs of living like food and utilities. At the time, they earned an average of only $1,274 per month. The average household here has 3.5 members. The shortfall between income and expenditure is made up at least in part by government assistance such as ComCare.

At the other end of the scale, the number of individuals who earn at least $10,000 a month here has jumped from 48,400 to nearly 140,000 in a decade. Singapore has the highest proportion - one in six households - of millionaires in the world.

What can be done about the problem of incomes stagnating at the bottom? This has been a topic for keen discussion.

Some argue that the Government can do more. To be sure, policy changes make a difference. But at one of the IPS seminars, businessman Ho Kwon Ping went beyond asking what the state can do for the low-income, to asking what Singapore can do as a society to ensure that everyone gets a decent wage.

In a stirring speech, the executive chairman of Banyan Tree Holdings suggested that Singapore needs to build a more equal and self-reliant society by 'gradually but relentlessly' increasing wages in the domestic service industries and reducing the influx of low-cost foreign labour.

At the same time, he said, Singapore needs to foster a culture which respects quality plumbers, builders and food service staff, as has already happened in so many developed countries.

Mr Ho is right. Those who live in Singapore are complicit in this situation of low-wage workers toiling for little, while incomes at the top stretch higher. Higher-income Singaporeans benefit from cheap domestic service, cheap service staff and cheap meals, because wages in these sectors are so low.

What does it take to change? Mr Ho spoke of a 'wage revolution'. He might just as well have called for a moral or mindset revolution.

For far too long, Singaporeans have been comfortable being served by an underclass of workers - mainly foreign migrants - clutching the moral fig leaf that low wages for them are justified since they spend the money in their home countries, where costs of living are lower.

But the reality is that there are tens of thousands of Singaporeans who do the same jobs as foreigners do - for the same or slightly higher pay - and have to combat soaring prices here with diminishing wages. Will middle-class Singapore countenance wage increases that will raise their cost of a restaurant meal, a haircut or a car wash?

Perhaps the question should be put the other way round. Perhaps Singaporeans should consider if they can countenance being a society where the well-off live well, on the low cost of service provided by workers who cannot make ends meet.

Is Singapore comfortable being an increasingly ossified society with an underclass that might one day be permanent, as social mobility slows? Should we aspire to be like egalitarian Denmark or divided Dubai?

Settling these questions requires a certain level of commitment from a society. This is a phase other developed countries have gone through.

Many have introduced formal mechanisms to give their poorest workers a decent wage, precisely because unfettered free markets risk depressing their wages. Some - like the United States, Britain, Australia and Canada - have minimum wage laws which protect the working poor and prevent companies from exploiting immigrants willing to work for rock-bottom wages.

In some European countries such as Austria and Italy, wage bargaining is centralised, with unions and employers negotiating a fair basic wage for an entire sector. Last June, Norway went further to directly impose and publicise a new minimum hourly wage of €19 (S$30) for cleaners, to protect their wages from being eroded by cheap migrants from Eastern Europe.

Singapore's approach has been to focus on retraining to raise skills and productivity levels. But decades of this approach have not significantly boosted wages at the lower end.

The Workfare Income Supplement for low-wage workers, institutionalised in 2007, is promising. But most of the payout goes into their Central Provident Fund accounts, boosting retirement but not monthly savings.

There is a clear need for a major rethink on how best to help low-wage workers. This is an effort that goes beyond policy, to Singapore society at large.

Sometimes, change comes only when our consciences are pricked. A 'wage revolution' requires that someone pay those higher wages. Singapore as a society has to share the pain of higher costs. Only then will Mr Johari - and the more than 100,000 working households in the bottom deck of the income scale - have a fair shot at a decent life.

7 things holding back the Singapore stork

2012-02-06T10:10:00.000+08:00

The decline in Singapore's total fertility rate needs reversing. The Prime Minister said recently the focus is now on creating a supportive social climate and attitudes that encourage child-bearing. TohYong Chuan identifies seven attitudes that seem to stand in the way of couples having more babies.
Straits Times, Published on Feb 3, 2012

Kids too expensive

THERE are many things one can do with $190,000.

That sum of money can buy a Mercedes-Benz C class luxury car or make the down payment on a small condominium apartment.

It can also be used to raise a child from birth through to tertiary education.

That is according to a Straits Times survey in 2010, which estimated that it costs new parents between $190,000 and $700,000 to bring up a child here.

Tertiary education was the largest single cost. Other big ticket items included primary, secondary and pre-university education.

In terms of monthly cost, each child can cost parents between $800 and $3,000.

Weigh that against the median household income of $5,000 in 2010 and it is easy to understand why parents hold off having children, or have fewer of them, for fear they will break the bank.

But IT support engineer Eric Goh, 42, who works in a local bank, did not allow that fear to stand in the way of his and his wife's dream of having children.

The father of four school-going children aged between eight and 14 years old is the sole breadwinner and earns just below the median household income. His wife is a homemaker.

The family live in a three-room flat and are saving up for a larger place. They eat at home, the children walk to school and the family get around on public transport.

Mr Goh says it is all about living within one's means.

'Distinguish between wants and needs, make do with what you have, give what you can, but give the best to the kids,' he says.

The baby bonuses for the third and fourth child, as well as Edusave, provided some financial relief and helped pay for the children's education. But he stressed that the bonus played no part in their decision to have more children.

'It is something we wanted when we got married.'

His eyes light up when he talks about how his children are growing up.

'I see them becoming more dong shi, (sensible in Mandarin), and see them as they grow closer to one another with good, strong values. This is what parenting is about.'

No flat, no baby

MANY young couples blame their housing woes for stalling their marriage and baby plans.

Their cries for help have been heard.

National Development Minister Khaw Boon Wan has made meeting the housing needs of young couples a top priority. He said the Housing Board will ramp up the supply of new flats to help young couples own their homes as soon as possible, so they can start families.

Housing has become so tied to couples' decisions to procreate that economist Tilak Abeysinghe found a correlation between housing affordability and fertility.

He found that when housing affordability drops, fertility appears to also dip.

'It may be the case that young couples want to secure a roof over their heads before getting married and having children.

'When housing affordability drops, they will have to wait longer to secure a house and this may come at the expense of family size,' said Dr Abeysinghe, deputy director of the Singapore Centre for Applied and Policy Economics at the National University of Singapore.

A similar correlation has been observed in Hong Kong.

Even when couples own their own homes, they may choose to stop at one because of space constraints. They may prefer that each child has his own room.

Sociologist Paulin Tay Straughan sees it differently. She believes there are advantages to having children share rooms in their early years.

'It teaches them how to share resources, and build negotiation skills,' she says with a laugh.

One couple who went ahead to marry despite not having their own home are pharmacist Chen Woei Lee, 32 and writer Tang Li Jun, 30.

They tied the knot in 2009. Since then, they have been sharing a flat with Mr Chen's sister and hope to find their own home soon.

The couple tell Insight they are not letting their current situation put them off trying to have their first child.

For Ms Tang, the reason is simple: 'We love kids.'

Kids get in the way

WHEN company director Serena Ng, 37, agreed to meet Insight this week, she asked that the meeting be held at a cafeteria near her children's preschool.

She would drop her children off, then do the interview while waiting for them to finish so she could drive them home.

The 30-minute interview was interrupted twice by business calls, which Ms Ng took in fluent English and Mandarin.

She then apologised for not being able to chat longer as she had to meet some other people, at the same cafeteria, about a project to help deaf people.

The mother of five tells Insight her secret to juggling family, career and charity work.

'Discipline. I keep to a tight schedule, and I sleep only five hours a day, and I keep smiling,' she says with a laugh.

Sleep was one of the things the sprightly mother was prepared to give up for her children. What she was not prepared to give up, however, was her career.

This is how a typical day goes for her.

She heads to work early in the morning, then returns home just before lunch to ferry the children to preschool. She tries to get some work done while waiting for them to finish school. After dropping them off at home, she heads back to work in the afternoon.

She is home for dinner with her husband and children every evening.

Ms Ng's experience shows it is possible for a woman to have both career and children.

It is difficult to say for sure to what extent career concerns are hampering women's efforts to procreate.

What is clear from national statistics is that the number of married couples without children is on the rise.

Among the married women aged between 30 and 39, the share of those who are childless rose from 14 per cent in 2000 to 20 per cent in 2010.

The flip side of the problem is that many women who take time off to care for their children find it difficult to return to work. The resident labour force participation rate for women was 56.5 per cent in 2010, significantly lower than the 76.5 per cent for men.

Another worry is that children are all work and no fun, and will severely limit one's lifestyle options.

In 2007, the South West Community Development Council surveyed 270 women and found that many cited lifestyle changes as a key reason for putting off having babies.

But company executive Rudy Tan, 36, a father of three, disagrees that all children do is cramp one's lifestyle.

His first two children - a pair of twins - were born in 2006. Since then, he and his wife have not taken a holiday on their own. Mr Tan also gave up playing golf.

Still, they went on to have a third child.

For him, the simple joy of one's own family more than makes up for those lifestyle changes.

'The family now spends time at home or in the park nearby, and the children have fun playing with the dog. This is the joy of parenting,' he says.

Only the best will do

IT CAN start as early as pregnancy, when some mothers begin to feel anxious about breastfeeding. They ask themselves: Will I have enough milk, how long should I do it for, will it make my child smarter and stronger?

The next big headache might be securing a spot in the best preschool centre one can afford, followed by strategising to get the child into one's primary school of choice. The latter could involve buying property, or hours spent as a parent volunteer.

It is also not uncommon for mothers to take a whole year off work to help their children prepare for the PSLE, which most 12-year-olds here take.

Sociologist Paulin Tay Straughan says education has become a big source of stress for parents, and that is because 'it is the parents who are competing in the early formative years, not the children'.

She calls this approach to parenting the 'idealisation of the child', where parents believe that they have to give their children the very best head start in life.

While it is good for parents to be responsible for their children, she warns that 'there is a line somewhere where responsibility becomes an obsession'.

The danger is that in the long run, such an approach can cause parents to have fewer children so they can better focus their energy and resources. It can also scare the people around them and make them think twice about getting hitched and having children, says Dr Straughan, an associate professor at the National University of Singapore.

In 2009, the Economist magazine laid out the two extremes in people's approach to reproducing.

At one end are parents who churn out offspring in large numbers, turn them out into an uncaring world, and hope that one or two of them make it.

At the other are parents who have but a few progeny and 'dote on them, ensuring that they grow up with every possible advantage for the ensuing struggle with their peers for mates and resources'.

The latter approach seems to predominate in East Asian societies like South Korea, Japan and Singapore, where education is a national obsession and fertility has plummeted.

Even if parents want to change, they find it tough to break out of the norm.

Dr Straughan, a mother of two sons, has this advice for those with young children: 'Don't rob them of their childhood.'

And as a child grows up, there will come a point when parents have to let go and say it is not my race any more, she adds.

Dads don't get it

IN THE last decade, the length of maternity leave for mums has doubled.

Maternity leave was just eight weeks long in 2001. It went up to 12 weeks in 2004 and 16 weeks in 2008.

Employers pay staff for the first three months, while the Government picks up the tab for the fourth month.

Dads, however, do not enjoy the same privilege.

Among those who have been lobbying for paternity leave to be written into the law is National Family Council (NFC) chairman Lim Soon Hock.

In 2008, when the Government reviewed its fertility package, the NFC made a case for the fourth month of maternity leave to be made 'gender-neutral'. That would mean either mum or dad could take the leave, to care for their newborn.

Mr Lim says such a change 'would give more opportunities to men and send a strong signal of the shared responsibility of parenthood'.

But the Government was not persuaded.

In 2010, Dr Vivian Balakrishnan, then Minister for Community Development, Youth and Sports, said that the Government needed to 'study the implications of such a change on employers, the employability of workers, and the needs of mothers', before deciding on whether to legislate paternity leave.

The current situation is one in which some companies provide paternity leave of a couple of days. A Ministry of Manpower study in 2010 found that half of 3,400 companies surveyed did so.

The law also provides for six days of paid childcare leave a year for employees whose children are aged seven and below. These six days can be taken by either fathers or mothers.

Mr Lim, however, believes that if men are given more opportunities to be involved in raising children, that will encourage women to have more babies.

The push also comes from fathers who want to play a bigger role in bringing up children.

There are now at least three non-governmental groups centred on fatherhood: the Centre for Fathering set up in 2000, and the Dads for Life movement and Fathers Action Network, both launched in 2009.

They seek to strengthen families and improve children's lives by promoting active and responsible fatherhood.

Mr Jason Wong, a member of Dads for Life, says: 'Children from strong families today will want to get married and have children when they grow up. This will help bring more marriages and babies, but maybe one generation later.'

On his part, Mr Lim acknowledges that government moves alone will not be enough. Fathers themselves need to change their attitudes so they see success not just in terms of career, but also family and children.

Mothers too need to be less protective.

Mr Lim says 'gatekeeping mothers' - those who throw a protective ring around their children - can discourage fathers. That is an area that the Centre for Fathering plans to work on in the next five years.

Let singles be: Society

WHAT can society do about the growing number of singles?

Should it intervene?

Some unmarried or yet-to-be married people, like former Nominated MP Calvin Cheng, have made it clear they dislike social pressure to tie the knot.

During a debate in Parliament on this issue last March, he said: 'Although it is a good thing that the Government encourages singles to get married, I am concerned that the policy may make singlehood look like a crime. Being single is not a sin.'

Mrs Yu-Foo Yee Shoon, who was then Minister of State for Community Development, Youth and Sports, swiftly clarified that the Government sought only to support singles in their search for a life partner.

She said: 'We are only providing a platform; we are not pressuring the young. Some singles told me that they really need help.'

Still, the growing number of singles is a national concern. Among citizens aged 30 to 34, the proportion of male singles rose from 33 per cent in 2000 to 43 per cent in 2010. Female singles in that age group also rose from 22 per cent to 31 per cent.

Last year, Mr Wong Kan Seng, who was then Deputy Prime Minister and population czar, spoke frankly about singlehood standing in the way of the stork.

He pointed out that many of those who marry do have children.

'While the TFR of ever-married women has declined, they still have around two children per couple.

'The other contributing factor that has the greatest impact on our low TFR is that more Singaporeans are remaining single,' he said, referring to the total fertility rate (TFR).

A study by Associate Professor Norman Li of the Singapore Management University last year threw some light on the causes of singlehood.

His study found that the top criterion Singaporean women look for in a potential husband is social status, whereas men go for looks first.

There is thus a mismatch of expectations.

Mr Jackiey Kwek, co-founder of dating agency CliqueWise, believes the gap in expectations can be narrowed if singles keep an open mind about the people they meet.

They should also seize opportunities to widen their social circle.

His advice for singles is that they should not 'jump the gun' on the people they meet. Neither should they 'close the door on meeting other people'.

Your family is not my business: Employer

FOR some women who work, falling pregnant may be something they need to hide from their employer, at least for the first three months. That is because the law protects expectant mothers only for the six months up to their due date.

If a pregnant woman is sacked without sufficient cause during that period, her employer would have to pay her maternity benefits.

This clause in the Employment Act is needed because such discrimination remains a reality.

Every year, pregnant women file wrongful dismissal complaints with the Ministry of Manpower.

The number of such complaints rose from 72 in 2007 to 95 in 2008, before hitting a record 147 in 2009. In 2010, there were 84 complaints.

Most of the complaints were filed against small and medium-sized enterprises. These employers said their manpower constraints make it difficult for them to let a staff member go on maternity leave for four months. That is the main reason they end up letting their pregnant staff go.

The law also prohibits the employer from terminating a mother's services while she is on maternity leave. If he does, he will be liable to a fine and imprisonment.

****

Supportive boss helps new mum cope
Straits Times, Published on Feb 3, 2012

MS MICHELLE Charn, 34, had heard 'horror stories' about bosses piling work on pregnant women so they would quit.

An assistant human resource and training manager, she had worked at the Sheraton Towers Singapore hotel for five years when she became pregnant with her first child in 2010.

But she saw no reason to hide her good news. She recalled how her employer had been flexible and adjusted her working hours after she got married two years earlier.

'I knew they would help me with my baby,' she tells Insight.

The trust paid off.

Together, they agreed that she would take five consecutive months off work after her son Preston was born in May last year, including one month of annual leave.

Ms Charn, who has been with the hotel since 2005, now works in the mornings. In the afternoons, she returns home to take care of her son.

'I now have to work faster and do eight hours of work in four hours,' she says with a smile.

She is working out a contract with the hotel on her flexi-work arrangements.

Sheraton's human resource director Francis Tan says an employer's behaviour has an impact on staff when they make major decisions like marriage and having babies.

'And it is not about meeting the law. The law provides minimum protection, but employers can do more,' he adds.

Mr Tan says it makes good business sense to help staff juggle work and family. Such good employment practices have helped the hotel retain staff in a sector where salaries are very competitive, he adds.

As for Ms Charn, her supportive bosses are a key factor in her keeping the door open to having more children.

When asked how many, she answers shyly: 'Maybe one more.'

'Best sourcing' guide to help firms - and workers

2012-01-31T16:14:00.002+08:00

Straits Times, Published on Jan 31, 2012
By Cai Haoxiang

A NEW guidebook was introduced yesterday to give added impetus to the national drive to improve the stagnating pay of low-wage workers.

It is aimed at helping companies look beyond the lowest-price bid, or 'cheap sourcing', when awarding contracts for services such as cleaning and security.

But this move to get companies to practise 'best sourcing', which looks at whether the bidder is offering fair wages and employment terms to its workers, has been an uphill task.

Many companies say they do not know how to do it, prompting the tripartite partners, comprising the National Trades Union Congress (NTUC), the Government and the Singapore National Employers' Federation (SNEF), to join forces and produce the free guide.

It includes checklists and scorecards for companies to evaluate the contract of bidders as well as ready-made clauses they can insert into contracts.

Mr Koh Juan Kiat, SNEF's executive director, believes the 'easy practical steps' it offers will encourage businesses to adopt best sourcing.

The reason: Companies want consistent and high-quality service and to achieve it, they know workers have to be 'properly treated and paid, motivated, and well trained', he said.

Labour MP Zainal Sapari, director of NTUC's Unit for Contract and Casual Workers, is particularly pleased with the advice to companies to ask how much the service provider is paying its workers if the bid price is much lower than that in the market.

'We've encountered cases where the same cleaning workers are doing the job in a building but at a lower pay because they are now working for a new employer,' said Mr Zainal.

Best sourcing as a practice to help low-wage workers earn more has been endorsed by the Government. Prime Minister Lee Hsien Loong said as much at the opening of Parliament last October.

In 2010, the median wage of an industrial establishment cleaner was $572 a month, a sum that includes overtime payments and allowances. Office cleaners make slightly more, at $800 a month, and security guards, $1,367.

Yesterday, the tripartite partners also issued a revised advisory to guide companies on outsourcing.

Its guidelines want companies to consider, among other things, if service providers give cash incentives to motivate workers to perform beyond expectations.

The new advisory follows feedback from a public consultation exercise led by Senior Parliamentary Secretary for Manpower Hawazi Daipi last August. The feedback also led to the new guidebook.

A Manpower Ministry survey in late 2010 shows best sourcing practices, promoted since 2005, have yet to take root. The poll of over 1,000 establishments shows more than half adopted three out of the six practices in the advisory.

One employer that favours best sourcing is Resorts World Sentosa. 'We make sure workers are paid a competitive wage. To us, their ability to respond in a friendly manner is as important as their ability to keep the place clean,' said its senior vice-president of human resource and training Seah-Khoo Ee Boon.

TriCom encourages responsible outsourcing

2012-01-31T16:03:00.000+08:00

By S Ramesh | Posted: 30 January 2012 1245 hrs

TriCom encourages responsible outsourcing
By S Ramesh | Posted: 30 January 2012 1245 hrs
Singapore workers

Photos 1 of 1

Singapore workers

inShare2
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SINGAPORE: The Tripartite Committee for Low-Wage Workers and Inclusive Growth (TriCom) has updated the Tripartite Advisory on Best Sourcing Practices to encourage service buyers to outsource responsibly and adopt best practices when doing so.

This is the first update since the Advisory was launched in 2008.

Service buyers are encouraged to consider five principles when outsourcing.

These are to safeguard the basic employment rights of workers; specify service contracts on the basis of service-level requirements rather than headcount; recognise factors that contribute to service quality; seek to establish a long-term collaborative partnership with the service provider; and provide a decent work environment for workers.

The Ministry of Manpower, the National Trades Union Congress, and the Singapore National Employers Federation have also launched a step-by-step guidebook that explains the business case for Best Sourcing, as well as gives detailed and practical guidance on how to implement Best Sourcing.

It includes useful examples of clauses that can be inserted into tender requirements, and examples of key performance indicators for managing the service provider.

Chairman of the Tripartite Committee for Low-Wage Workers and Inclusive Growth, Senior Parliamentary Secretary (Manpower & Education) Mr Hawazi Daipi, welcomed the updated Advisory.

He said, "Some service buyers assume that going for the lowest quotes makes good business sense for their bottom line when they outsource their services. What they may not realise is that cheap sourcing increases time spent on managing contract non-performance and the risk of service disruptions.

"The TriCom calls on employers to do the right thing and adopt best sourcing, to look at service quality factors rather than price. Together with employers, unions, and workers, I am confident we will be able to benefit businesses, outsourced workers and employers through Best Sourcing rather than cheap sourcing."

Director of the Unit for Contract and Casual Workers (UCCW)and MP for Pasir Ris-Punggol GRC, Zainal Sapari, said, "Outsourcing is increasingly becoming a common business practice for many organisations. It is, therefore important to ensure that outsourced workers will get fair wages and continue to enjoy their statutory employment benefits."

Executive director of the Singapore National Employers Federation, Koh Juan Kiat said, "Best-sourcing can provide the win-win-win approach for service buyers, providers and workers. Best sourcing practices assure service buyers of quality and reliable services delivered by trained workers, who are motivated to excel in their work when they trust their employers to treat them well."

- CNA/cc

TriCom for Low-Wage Workers Calls on Companies to Balance Price Considerations with Quality Factors Such As Accreditation

2012-01-31T15:16:00.000+08:00

Updated Tripartite Advisory on Best Sourcing Practices & accompanying Guidebook released to help Businesses Best Source, rather than Cheap Source

30 January 2012

1. The Tripartite Committee for Low-Wage Workers and Inclusive Growth (TriCom) has updated the Tripartite Advisory on Best Sourcing Practices to encourage service buyers to outsource responsibly and adopt best practices when doing so. This is the first update since the Advisory was launched in 2008, and the changes take into account feedback gathered over six months from industry stakeholders, unions, workers and the public.

2. Recognising that service buyers' procurement practices have a direct impact on their outsourced workers, Prime Minister Lee Hsien Loong1 had expressed the Government's support for best practices in outsourcing. He stressed that outsourcing based on not just price but also quality, was one important way to ensure that low-wage workers benefit from Singapore's progress.

3. The updated Tripartite Advisory on Best Sourcing Practices (See Annex A) incorporates feedback gathered on outsourcing practices, and provides greater clarity on how workers, service buyers and service providers can benefit from adopting the suggested practices. Specifically, service buyers are encouraged to consider the following five principles when outsourcing:
* Safeguard the basic employment rights of workers;
* Specify service contracts on the basis of service-level requirements rather than headcount;
* Recognise factors that contribute to service quality;
* Seek to establish a long-term collaborative partnership with service provider; and
* Provide a decent work environment for workers

4. The revised Advisory also highlights service quality factors to consider, such as grading and accreditation schemes, when evaluating the value for money of a service contract. Service buyers are also encouraged to provide incentives to motivate their service providers to improve work quality. By taking a more proactive role in ensuring that their service providers comply with employment laws, service buyers will benefit from better services as their outsourced workers will be more motivated to do their work well.

5. The Ministry of Manpower, the National Trades Union Congress, and the Singapore National Employers Federation have also launched a step-by-step guidebook that explains the business case for Best Sourcing, as well as gives detailed and practical guidance on how to implement Best Sourcing. It includes useful examples of clauses that can be inserted into tender requirements, scoring templates for evaluating proposals from potential service providers and examples of key performance indicators for managing the service provider and is particularly useful for organisations that outsource cleaning, security and landscape services. PDF copies of the Advisory and guidebook can be downloaded for free from the MOM website. Hardcopies can be requested at mr@snef.org.sg or uccw@ntuc.org.sg, and companies may email NTUC's Unit for Contract and Casual Workers (UCCW) at uccw@ntuc.org.sg for queries and assistance in implementing best sourcing. Companies can also look forward to a series of radio advertisements2 where the Tripartite partners will be sharing more about best sourcing.

6. Chairman of the Tripartite Committee for Low-Wage Workers and Inclusive Growth, Senior Parliamentary Secretary (Manpower & Education) Mr Hawazi Daipi, welcomed the updated Advisory. He said, "Some service buyers assume that going for the lowest quotes makes good business sense for their bottom line when they outsource their services. What they may not realise is that cheap sourcing increases time spent on managing contract non-performance and the risk of service disruptions. The TriCom calls on employers to do the right thing and adopt best sourcing, to look at service quality factors rather than price. Together with employers, unions, and workers, I am confident we will be able to benefit businesses, outsourced workers and employers through Best Sourcing rather than cheap sourcing. The revised Advisory and Guidebook will also serve to provide practical steps on how employers can implement best sourcing practices for their business outcomes."

7. Director of the Unit for Contract and Casual Workers (UCCW) Mr Zainal Sapari, said, "Outsourcing is increasingly becoming a common business practice for many organisations. It is, therefore important to ensure that outsourced workers will get fair wages and continue to enjoy their statutory employment benefits. The Labour Movement hopes that this Tripartite Advisory on Best Sourcing Practices will give guidance to companies and organisations to create a positive business environment for their customers and service providers."
8. "Best-sourcing can provide the win-win-win approach for service buyers, providers and workers. Best sourcing practices assure service buyers of quality and reliable services delivered by trained workers, who are motivated to excel in their work when they trust their employers to treat them well." Mr Koh Juan Kiat, Executive Director, Singapore National Employers Federation. 1 During PM Lee's speech at the debate on the President's Address in 2011

2 Positive Business Minutes on 938 Live (Feb); Capital 95.8 (Feb)

Singapore still has 'ample job openings'

2012-01-28T14:31:00.000+08:00

Straits Times, Published on Jan 28, 2012

Report shows demand for mid-management and low-wage workers

By Cai Haoxiang

JOBS remain plentiful in Singapore, with many openings for low-wage workers such as waiters, security guards, cleaners, sales assistants and bus drivers.

The situation is also bountiful for professionals, managers, executives and technicians (PMETs). In this category, demand is particularly strong for teachers, management executives and sales managers.

Four out of 10 job vacancies in September last year were for PMETS, according to the latest Job Vacancies report, released yesterday by the Ministry of Manpower.

Overall, however, the number of vacancies dipped last September after having risen for a year - a decline which some economists say is a sign that employers have slowed their hiring.

Vacancies fell from 56,000 last June to 54,000 last September.

The drop is not considered significant by Barclays Capital economist Leong Wai Ho because the number of unemployed in Singapore still closely matches the number of vacancies available.

'Excess demand for labour is dissipating, but not to the point where there are large-scale retrenchments,' he said.

National University of Singapore (NUS) economist Shandre Thangavelu said he expects fewer jobs to be created this year than was the case last year - especially in the export sector and the retail and wholesale industries.

'The electronics sector might see some restructuring, and an economic slowdown generally affects the retail and wholesale sectors. Banks are also streamlining their operations,' he added.

The job vacancies report is based on a survey of 12,600 companies and public-sector organisations carried out between September and November last year.

It found that the proportion of vacancies for jobs requiring secondary education or less increased from 50 per cent in 2010 to 54 per cent last year.

Many of these non-PMET job openings went unfilled for at least six months.

NUS labour economist Hui Weng Tat said the job outlook for those with lower educational qualifications is good.

'This could be the result of the tightening of inflow of lower-skilled foreign workers into the country,' he said.

To make these jobs more attractive to locals, economists and human resources experts said companies should improve wages or work conditions.

Meanwhile, PMETs remained in demand, accounting for 21,500 job vacancies, or 41 per cent.

Ms Andrea Ross, the managing director of recruitment consultancy Robert Walters, said much of the demand is coming from multinationals venturing into Singapore and from small and medium-sized enterprises that are expanding. She said they would be 'keen to strengthen middle management'.

The services sector accounted for more than three out of four job openings, in areas such as community, social and personal services, wholesale and retail trade, accommodation and food services, and administrative and support services.

Mr Leong said: 'The very large capacity increases in key services industries, with new malls, office towers and hotels opening in the last three years, have pushed up demand for service, support and administrative staff. A lot of this demand is still unmet.'

How to cut costs and pay workers more

2012-01-27T14:07:00.001+08:00

Straits Times, Published on Jan 27, 2012

By Cai Haoxiang

HIGHER wages do not have to mean higher business costs.

A cafe in Melbourne managed to achieve the reverse when it introduced gain-sharing last year.

Its story was told by Australian expert Peter Gahan, who was in Singapore last week to teach local small and medium-sized enterprises (SMEs) how to do the same.

The cafe in question was hit hard when food prices soared after floods in Queensland last January. The price of bananas, for example, shot up from A$2.50 (S$3.30) to A$18 a kilogram.

The managers of the cafe told the staff that if they came up with ideas to help cut costs, half of the cost savings would be given back to them in the form of bonuses.

The 45 employees, many of them part-timers, began generating ideas. One idea that worked was to use the same perishable ingredients for the food on lunch and dinner menus so as to cut waste.

They did not always meet savings targets, but in the months that they did, the employees, who are on the minimum Australian wage of A$14.50 an hour, received an extra of up to A$90 a week.

Associate Professor Gahan of Monash University told Insight: 'The cafe thus weathered the storm without having to increase prices which would threaten its business.'

He added that the staff 'became almost partners in the business' - they started caring about the business in a new way and thinking about their jobs in terms of improving the cafe's business model.

Prof Gahan was in Singapore to speak at a series of seminars organised by Spring Singapore and the Singapore National Employers Federation.

He spoke to companies about productivity gain-sharing, a way to motivate workers so as to improve their performance. It works by involving workers in improving business processes, and rewarding them when the organisation achieves cost savings.

Prof Gahan specialises in research on high-performance work systems and labour relations. Through his work at the non-profit Asian Productivity Organisation based in Tokyo, he advises regional governments on ways to grow SMEs and boost their productivity.

Most companies, he said, pay bonuses based on profitability rather than productivity.

But a company can be productive yet not profitable. It can, for instance, improve its processes to become more productive but its revenues may take a hit when external factors cause the prices of its products to fall.

Because businesses have control over their productivity, introducing gain-sharing is a forward-looking effort that can help them become more competitive and profitable in the future.

Prof Gahan said gain-sharing does not have to be hugely complicated or involve huge investments in new technology. It could comprise simple initiatives that give rise to productivity growth.

Despite the benefits, gain-sharing has not taken off much outside of the United States, where it originated in the 1930s. That could be due to various 'upfront sunk costs' involved in implementing such programmes, Prof Gahan said.

For example, bigger companies might have to spend a long time consulting and negotiating with diverse groups of employees and then setting up formal structures like committees.

Companies also need to train workers and managers to think about their roles 'not in a traditional command and control way, but how they can collaborate and solve problems together'.

There might also be costs involved in bringing in external consultants to help design the necessary rules and pay structures.

'Unless employers can get a handle on what the benefits of gain-sharing might be, they are understandably reluctant to make that upfront investment,' he said.

But the benefits can be significant if companies stick with the process. That is especially so for companies in labour-intensive industries, in which there might be limits to mechanisation.

Studies show that companies which have used gain-sharing programmes for less than five years report a 7 per cent to 8 per cent increase in productivity a year. Those that have implemented the programme for more than five years improve their productivity by an average of 18 per cent a year, said Prof Gahan.

Governments can step in to help reduce the upfront costs for businesses. In this aspect, Prof Gahan thinks the Singapore Government is on the right track as it funds productivity-related consultation for SMEs.

Its $40 million Inclusive Growth Programme also gives grants for investments in high-tech equipment and the redesign of jobs to help workers become more productive and earn more.

While observing that one cannot legislate productivity and workplace collaboration, Prof Gahan noted: 'You can build the capabilities required through training programmes, advertise or promote success stories.

'You might not get a majority of companies to take it up, but if you can get a growing number to do so, then it gradually gets embedded in business culture and the benefits will outweigh the costs.'

The wage revolution, interrupted

2012-01-27T14:04:00.000+08:00

Straits Times, Published on Jan 27, 2012
By Janice Heng & Cai Haoxiang

Businessman Ho Kwon Ping says wages of workers in the services sector lag behind others' because of Singapore's incomplete wage revolution. What will it take to complete it? And at what price?

IN THE 1970s, Singapore's economy was more 'assembly line' than 'top of the line'.

The symbol of industry was the flatted factory, in which rows of workers assembled electronic goods or sewed textiles.

But by the end of the decade, things were set to change.

Labour-intensive manufacturing faced a tightening labour market and low-cost competitors emerging in the region.

Policymakers had begun looking to technology and education, not employment, as the driver of growth.

And in 1979, a revolution happened.

It was not one led by workers, but a three-year wage restructuring exercise by the National Wages Council (NWC).

The NWC recommended wage increases of about 20 per cent each year.

Yet one sector of the economy was left behind: low-skilled domestic services.

This incomplete revolution was the theme of Banyan Tree Holdings executive chairman Ho Kwon Ping's speech at an Institute of Policy Studies (IPS) seminar this month.

Today, low wages and low-skilled labour still characterise industries such as construction and retail.

If Singapore continues on this track, it will be 'an increasingly rich and unequal society with growing dependence on an underclass of lowly paid foreign workers', warned Mr Ho.

Insight takes a look at why the high-wage wave passed some industries by, and what it might take to complete the revolution.

An incomplete revolution

THE Government's high-wage policy from 1979 to 1981 meant that low-skilled, labour-intensive industries had to upgrade, move away, or simply close shop.

To help firms make the shift, the Economic Development Board (EDB) promoted automation, mechanisation and computerisation.

It also courted multinational companies in new, high value-added industries and invited them to invest in Singapore.

The strategy worked, said Mr Ho. 'Today's life sciences, pharmaceuticals and other high-tech manufacturing industries testify to the correctness of that vision.'

Yet the domestic service sector - including retail, hospitality, and construction - failed to similarly reinvent itself.

It was not that the Government targeted only manufacturing firms, says Professor Lim Chong Yah, who helmed the NWC from its inception in 1972 till 2001.

'At the time, when we were restructuring the economy, the labour-intensive industries were ubiquitous.' Domestic service industries were among the many labour-intensive ones.

Rather than having been neglected, domestic service industries may have failed to board the high-wage, high-skilled train because they did not feel the pressure to do so, say economists.

Wage restructuring succeeded in manufacturing because firms faced global competition, says Singapore Management University (SMU) economist Davin Chor.

'It was a case of 'upgrade or fall behind to foreign competitors'.'

Firms which could not move up the value chain had to exit. But it is 'harder for this same logic to play out for the services sector', adds Dr Chor.

Industries such as retail or food and beverage are non-tradable, and do not face direct global competition.

'It is unlike manufacturing where if you're uncompetitive, you lose your supply orders to an alternative producer who might be based in another country.'

Data on wages seems to bear out Mr Ho's thesis of an incomplete wage revolution.

Citing Central Provident Fund (CPF) data on incomes, National Trades Union Congress (NTUC) deputy secretary-general Ong Ye Kung says: 'It would appear that manufacturing wages are higher, based on published statistics.'

In manufacturing, the average monthly income - including both white-collar and rank-and-file workers - more than tripled from $1,240 in 1989 to $4,260 in 2010.

In construction, incomes grew more slowly, from $1,130 in 1989 to $3,110 in 2010. As for the hotels and restaurants sector, incomes did not even double during that period. They went from $830 in 1989 to just $1,510 in 2010.

The dual economy

SINGAPORE'S incomplete wage revolution has given rise to a 'dual-income economy', argued Mr Ho.

Alongside an internationally competitive, well-paid economy is the low-cost, low-skilled domestic service economy.

The fortunes of employees in both sectors differ greatly, and to a greater extent than in other countries.

Data which Mr Ho obtained from the IPS showed that the income gap between professionals and low-skilled workers is much larger in Singapore than in eight other developed countries.

In Singapore, construction workers earn less than a tenth of a doctor's pay. In the other countries, they earn about a third of what a doctor does, and up to half in Germany and Australia.

The stark difference remains even in comparison with Hong Kong, a fellow small city-state.

Doctors in both territories earn similar salaries, the study said.

Yet a construction worker in Hong Kong earns a quarter of a doctor's salary.

Mr Ho surmised that the difference was because Singapore's construction industry uses more low-cost, unskilled foreign workers, which keeps wages low for Singaporeans in the same jobs.

The wage gap between professionals and lower-skilled workers has existed for a long time, says Associate Professor Tilak Abeysinghe of the National University of Singapore (NUS), who conducted a similar study in the 1990s.

Then, Singapore had the widest wage gap of 10 cities studied. Prof Abeysinghe attributed this to labour market openness, and a high proportion of low-skilled workers in the labour force.

Associate Professor Hui Weng Tat of NUS observes that Hong Kong has 'stricter control over the import of lower- skilled foreign labour'. Hong Kong admits only a few thousand foreign workers to lower-skilled jobs each year. Before turning to foreign labour, Hong Kong firms must first source for local workers through the Labour Department's job-matching service. They must also offer a wage no less than the median wage of comparable local workers in similar jobs, he says.

In contrast, Singapore's foreign labour policy between 2005 and 2008 was 'much more liberal but clearly unsustainable', with lower-skilled workers admitted in the tens or hundreds of thousands.

The ready availability of foreign workers has contributed to a vicious circle of wage-dampening, in which Singaporeans avoid certain low-paying jobs, causing firms to resort to yet more cheap foreign labour.

Prof Hui says: 'As long as companies can pay low wages to their workers, there will be less motivation for them to engage in skills upgrading of the low-wage workers or actively seek improvement in their work processes.'

No pain, no gain

THERE is broad agreement with Mr Ho that the effects of Singapore's incomplete wage revolution are 'no longer sustainable'.

Economic efficiency is one concern. Low-cost labour facilitates growth, but 'at the cost of stagnant productivity'.

Mr Ho also worried about the creation of a low-income 'underclass' stuck in low-skilled jobs, an underclass of 'low-income foreigners living in enclaves', and resulting social tensions.

Dr Chor says raising wages in the service sector is 'absolutely crucial... if we are to address the widening wage gap and concerns over decreasing social mobility that have come to dominate the political discourse especially since the last general election'.

NTUC's Mr Ong says 'there is a need to raise the income of the lower rungs to hold our society together'.

But the question remains - how best to complete the wage revolution?

Some like Prof Hui advocate minimum wage legislation, which he believes is 'certainly viable, as has been shown to be the case in other advanced economies'.

Dr Chor disagrees. He says legislation may boost wages in the short term, but will not compel firms to improve productivity.

In his speech, Mr Ho noted that low-wage domestic services have kept the cost of business low, helping export industries to be cost-competitive. This edge will be lost if wages rise.

It has also helped to keep costs down for consumers.

The good lives of Singaporeans today have been built on the back of foreign workers, observed Mr Ho.

'Middle-class Singaporeans didn't complain that the cost of their hawker food was kept reasonable because of low-paid hawker assistants from China or Indonesia,' he said.

Are Singaporeans prepared to pay higher prices so workers at the bottom can enjoy higher wages?

Or will they, as Mr Ho put it, 'complain if costs rise because of higher wages'?

Mr Ong says that as a society, 'it is not tenable for us to demand higher wages for the lower-income, yet refuse to accept higher costs'.

The sustainable way to raise wages in the domestic services is by raising productivity, he says. That means innovation, new products and services, new markets and new and smarter ways of doing things.

'Education, skills training, encouraging IT and automation, breaking into new markets - all these are critical things to do,' he adds.

But parts of the process will be painful because, as Mr Ong notes, it is 'not the natural state of things' for management and workers to come together to raise productivity.

That is why there is a need to restrict the inflow of foreign workers, so businesses do not have that option to fall back on.

That in turn means some businesses which cannot compete without easy access to cheap foreign labour will have to close.

Costs for both businesses and consumers will also go up.

But that, in Mr Ong's view, is a necessary part of economic development. He points out that no country brings about better lives for its people by lowering consumer costs, otherwise known as deflation.

'Things may become cheaper and people may be happy, for a while. But with lower prices, businesses start to hold back investments, since their expected revenue will also drop. Consumers start to hold back spending, since things will be cheaper tomorrow or next year. Activities go down in a spiral, incomes drop, and life actually gets worse despite cheaper prices,' he says.

'A healthy economy will have some inflation, not too high, that encourages investments, spending, that brings about even higher wage increases for the people.'

There will be those who cannot cope because their wages do not keep up with inflation. Mr Ong says the Government will have to step in to help them through targeted subsidies and other forms of aid, including education and training to help these low-wage workers and their children move up.

DBS economist Irvin Seah offers a different perspective. He believes that in trying to raise wages at the bottom, Singapore must take care not to tilt the balance too much in the other direction.

He notes that only about 20 to 25 per cent of Singaporean and permanent resident workers are in direct competition with low-wage foreign workers. Yet 'in a bid to raise the well-being of this group, we essentially increase the burden on the rest of the population'.

Productivity must go up, mindsets must change

If anything, the Government may have moved too quickly, says Mr Seah, who thinks that the supply of work permits for lower-skilled workers has been too drastically tightened.

A more calibrated approach will avoid 'abruptly adding to the cost burden of companies' and of consumers, he says.

It can be complemented by enhancements to the Workfare Income Supplement scheme, through which the Government tops up the wages of low-income workers, he adds.

A way forward

THERE remains an uncomfortable possibility: that many Singaporeans are content with the status quo.

For one thing, higher wages may not suffice to attract Singaporeans to certain jobs.

It will be easier to reduce dependence on foreign labour if local workers can pick up the slack. But that is far from guaranteed when it comes to being a construction worker, waiter or nurse.

'Bear in mind that these are jobs that Singaporeans shunned in the first place,' says Mr Seah. Getting Singaporeans into such jobs will require a shift in mindset, not just monetary incentives.

In his speech, Mr Ho called for just that: 'We must create a culture which respects quality plumbers, builders, food service staff - and the entrepreneurs who will be self-employed in providing these services.'

Still, even if Singaporeans continue to shun such jobs, improvements in productivity could help lower dependence on foreign labour. Fewer foreign workers will be needed if one who is higher-skilled is able to do the work of several lower-skilled ones.

The bitter pill of higher consumer prices might be easier to swallow if sweetened by improvements in quality.

'Singaporeans may be less averse to paying slightly more for services if they recognise that they are paying for genuine improvements' such as better or more efficient service, says Dr Chor.

But it remains to be seen if this basic hurdle of political buy-in can be crossed.

Closing his speech, Mr Ho spoke of the need to create a social ethos to underlie the restructured economy.

'The supposed social compact between the Government and its people must be underpinned by a consensus about the nature of Singapore society itself,' he concluded.

If Singaporeans want a country where the fruits of wealth are shared more equally, then they must also be willing to share in the costs of realising that vision.

That is the key to completing the wage revolution.

13th month pay 'part of basic wage' in SIA case

2012-01-25T13:58:00.000+08:00

Straits Times, Published on Jan 25, 2012

By K. C. Vijayan

THE 13th month annual wage supplement is part of basic pay, an Englishcourt has ruled, in a case involving Singapore Airlines and a consultant firm.

The issue had emerged as a preliminary point to be settled in a court suit in London between SIA and Buck Consultants.

SIA hired Buck in 1997 as a pension benefits consultant and administrator. But the airline sued Buck for alleged negligence over its drafting of revised pension scheme rules in 2000.

While the ruling is not legally binding here, lawyers say that the Englishcourt's rationale could be a reference point for employers mulling over whether to give the 13th month pay to older workers renegotiating their jobs.

An SIA spokesman said the ruling had no impact on the airline as it had been including the 13th month payment when rehiring workers in Singapore past the retirement age of 62.

'The recent ruling in the UK court has no bearing on the practice,' he said. Under newly enacted laws that took effect this month, employers must offer re-employment to workers who turn 62, though not necessarily in the same job or on the same terms.

Workers have come to see the 13th month pay as part of their overall package and it is understood that most employers who re-employ workers are expected to pay the sum so as not to demotivate them.

Under the Employment Act though, the 13th month pay is not a guaranteed or statutory payment, unlike over-time pay to which a worker or re-employed worker is automatically entitled.

The payment is discretionary under the Act, unless provided for in collective or individual agreements.

Contacted for its comments, a Manpower Ministry spokesman said: 'Under the re-employment law, employers and employees can renegotiate employment terms taking into consideration job scope and responsibilities and arrangements such as part-time.

'In line with the Tripartite Guidelines on the Re-employment of Older Employees, employers should recognise that re-employed employees are an integral part of the organisation. Where employers already extend the 13th month annual wage supplement to their employees in general, they should extend the same to their re-employed workers.'

The SIA case first cropped up as a preliminary point over whether the term 'earnings' should include items like the 13th month pay when computing the amount of pension for eligible SIA staff.

Traditionally, bonuses and other supplements are not included and pensions are computed based on basic pay. These points had to be settled as a separate case before the negligence suit could proceed.

In January last year, an English High Court judge ruled against SIA, saying that the 13th month pay was part of basic pay.

SIA had argued that 13th month pay was part of 'fluctuating emoluments' which included payments such as commission, over-time and bonuses. But the judge held the 13th month pay was fixed on an annual basis and an entitlement based on the contract with workers.

Justice Peter Smith noted the 13th month pay was an additional month's pay issued annually to all workers 'more or less' since the scheme started in 1974, and was part of the basic pay, not a 'fluctuating emolument'.

He ruled that even though it was subject to review annually, 'if they were held to fluctuate that would mean that every payment, even basic annual salary, which was also subject to review, would fall to be categorised as a fluctuating emolument'.

SIA went next to the English Court of Appeal, arguing that 13th month pay was paid in addition to basic pay. Disagreeing, the three-judge court said last month: 'One might consider basic remuneration to include remuneration that employees received 'come rain or shine'. I consider that this aptly describes the position in relation to the... (13th month pay).'

Young Singaporeans needed in construction

2012-01-23T13:55:00.001+08:00

Straits Times, Published on Jan 23, 2012
By Tay Suan Chiang

Hard to draw talent to replace fast dwindling local workforce on site

Photo caption: Mr Jerry Lee, safety officer at Swee Hong Engineering Construction, is one of the small number of young Singaporeans who choose to join the construction industry. He spends at least two hours a day, five-and-a-half days a week, inspecting construction sites. -- ST PHOTO: CHEW SENG KIM

TOILING under the sun for 10 hours a day, six days a week is work that most young Singaporeans would shun. But not Mr Willie Tan, 25, an assistant mechanical and electrical engineer at Kimly Construction.

'I get satisfaction seeing buildings being constructed, and that I played a part in it,' said Mr Tan of his industry choice. 'An office job is boring.'

For Mr Jerry Lee, 27, a safety officer at Swee Hong Engineering Construction, spending at least two hours a day, five-and-a-half days a week, inspecting construction sites is the norm. He starts work at 8am and usually finishes at 5pm, but can stay past midnight when emergency situations crop up on site.

'Other young people like to join the financial sector, but not me. I like more technical work,' said Mr Lee.

Mr Lee and Mr Tan, however, are but a small number of Singaporeans below 30 who have chosen to join the construction industry. Many of their peers are put off by the less than glamorous job scope, which requires them to work long hours in hot and dusty conditions.

A 2010 manpower survey by the Building and Construction Authority (BCA) on the 25,000-strong local workforce on site shows that of those within the tradesmen or foremen and supervisory levels, only about a fifth - or 5,000 workers - are below the age of 30.

Construction companies The Straits Times spoke to say they are having trouble attracting young, local talent to the industry, despite a steady supply of projects lined up for this year and the next few years.

The manpower challenge was also highlighted earlier this month by Mr Tan Chuan-Jin, Minister of State for National Development and Manpower, at a seminar organised by the BCA and the Real Estate Developers' Association of Singapore.

The situation is cause for concern, given that about half of the workforce is set to retire in the next 10 to 15 years. As such, construction companies are taking steps to attract younger talent.

Swee Hong Engineering Construction is incorporating technology into its business.

'When the company is tech-savvy, it helps to attract more talent,' said its assistant director Kenneth Lim, 37.

For example, it developed its own iPhone applications to help staff manage projects and carry out and track tasks remotely. It also adopted 3-D Building Information Modelling software, which uses graphics and other technology to carry out pre-project modelling of construction projects, cutting down time spent outdoors.

At Unison Construction, the company made efforts to provide its staff with a more conducive work environment, such as reusing and recycling of demolition materials, and installing noise barriers at its construction sites to reduce noise pollution. Last year, it won the BCA's Green and Gracious Builder status, given to builders who adopt environmentally friendly practices.

Its director Tan Soon Kian, 51, is convinced that a better working environment will attract the new generation of workers.

On its part, BCA offers two scholarships for university and polytechnic students, as well as an apprenticeship for Institute of Technical Education (ITE) students to encourage them to join the industry.

Remuneration packages are also getting better. Industry players say that an engineer fresh out of school at a construction company can earn about $3,000 a month, compared with a newly graduated accountant in the same firm, who may earn $2,600.

'The engineers are paid more as they have to work under the sun,' said Mr Neo Tiam Boon, 49, group CEO and executive director of TA Corporation, a construction and property firm.

Engineers can progress to project manager roles in about six years, with a salary of at least $7,000.

But the long hours and unfavourable working environment remain a main stumbling block to attracting younger workers, said Mr Neo.

Added Mr Philip Seah, 43, project director at Kimly Construction: 'Construction is still seen as an old-fashioned industry. You get dirty, sweaty and there is a lot of hard labour.'

He has had workers who quit two days into the job after finding it a hard slog.

While older staff bring experience to the workplace and can help mentor co-workers, the value of also having younger workers is not lost on Mr Neo.

He noted that younger staff are very keen to learn and are full of drive and energy, adding: 'They bring along with them new ideas and concepts. Their level of creativity and innovation is better compared to older staff, who may have become too complacent and reluctant to improve.'

Flexible work arrangements can help elderly stay active

2012-01-23T13:54:00.000+08:00

Straits Times, Published on Jan 23, 2012
By Salma Khalik , HEALTH CORRESPONDENT

COMPANIES should offer more flexible arrangements so as to allow older people to keep working, said Mr Heng Chee How, Senior Minister of State in the Prime Minister's Office.

He said companies should model themselves on adaptor plugs that fit any type of socket. For example, they could offer multiple working platforms - part-time work, flexible hours or working from home.

Such arrangements would allow them to take advantage of a large pool of older people who have stopped working, but could be persuaded to re-enter the workforce given the right conditions. Offering greater flexibility would also help companies cope with a tight labour market, said Mr Heng.

The employment rate among men starts to decline from the age of 50, Ministry of Manpower figures show. By the time they hit 55 or 60, the rate is accelerating rapidly.

Among women, the slide starts much sooner, in their 30s - an age when many start having children.

Only slightly more than three in four men aged aged 55 to 64 are still employed, while less than half the women this age are still working.

Mr Heng said that part of his job on the Ministerial Committee on Ageing is to 'make sure that as people want to work longer, and need to work longer, the health part is better taken care of to enable them to do so'.

From this year, companies have to offer employees who turn 62 - which remains the official retirement age - a chance at continued employment.

The Government is not expecting companies 'to do national service' with this change in the rules, said Mr Heng.

He noted: 'Most people in their 60s today are still very fit and able to carry on working. Health has become less of a barrier to employment. Sixty-year-olds can contribute better than they were able to 40 years ago, so we should tap them.'

Keeping older people employed can help them remain healthy, he said.

'Keeping active is the point, whether in employment or off regular work, because of the longer runway ahead. They should not just stall and degenerate.'

To that end, Mr Heng is testing out several schemes in his Whampoa constituency aimed at keeping people active and socially involved. If successful, they could be rolled out nationally.

With the help of the Health Promotion Board, Mr Heng is asking general practitioners in Whampoa to urge their older patients to join community activities.

Instead of just telling them they need to exercise more, he wants the doctors to recommend taiji or brisk walking activities organised by the community centre.

He wants older people to be drawn from one activity to another, such as singing or dancing, or an outing. This way, they will have a group of friends of their own age.

They can share their health experiences, and someone who discovers a chronic ailment, such as diabetes, can turn to these friends as a resource.

'They would not feel insulted if one of these friends 'nagged' them to go for treatment,' said Mr Heng. 'This social glue is very important.'

parliament - Do more to promote best sourcing: Labour MPs

2012-01-18T15:02:00.001+08:00

Straits Times, Published on Jan 18, 2012
By Toh Yong Chuan

FOUR labour MPs urged the Government yesterday to do more to promote best sourcing, which looks beyond the tender price to whether the bidder for a contract is offering fair wages to its workers.

Mr Zainudin Nordin (Bishan-Toa Payoh GRC) started the ball rolling when he asked the Finance Ministry to spell out how government agencies support best sourcing.

Minister of State for Finance Josephine Teo replied that the agencies are 'encouraged' to follow a 2008 tripartite advisory on responsible outsourcing from the Government, employers and the labour movement.

It is being updated and when ready, 'the Ministry of Finance will ensure that public agencies are aligned with the revised recommendations', she said.

She also cited examples of how government agencies have taken the call to heart.

The National Parks Board requires landscape contractors to employ certified workers, while the National Environment Agency has introduced a voluntary accreditation scheme for cleaning companies that meet the standards it set.

Mr Zainudin, however, felt more can be done. 'There needs to be some willpower among the ministry and the Government for this change to take place. So is an advisory sufficient... or should there be more than just advisory?'

His call for greater action led three other labour MPs to weigh in.

Mr Alex Yam (Chua Chu Kang GRC) wanted to know how many of the workers of contractors engaged by government agencies are hired to work on best-sourcing projects.

Mr Zainal Sapari (Pasir Ris-Punggol GRC) sought an assurance that these best-sourcing workers will fare no worse than other workers.

Replying, Mrs Teo assured the MPs that advisories were effective in signalling the ministries to incorporate it into their procurement procedures.

She also said the cleaning companies engaged by the Government employ 6,000 cleaners, out of some 46,000 local cleaners.

It can therefore help ensure that workers on best-sourcing contracts are not worse off than others, she added.

Replying to Mr Patrick Tay (Nee Soon GRC), Mrs Teo said that while it was possible for the government to coax statutory boards to support best sourcing, government-linked companies have 'their own employment practices'.

She also told the House the Government is working with its tripartite partners to come up with more measures to raise the productivity and professionalism of low-wage workers for them to get higher wages.

'More details on these measures will be announced later,' she said.

F&B firms' labour crunch spins off new market

2012-01-08T17:17:00.002+08:00

More companies offering services like food processing and reservation systems to ease manpower woes
Straits Times, Published on Jan 8, 2012
By Jessica Lim

For a year, Union Farm Eating House could not find anyone who would work as a dishwasher.

'We advertised so many times, but no one applied. We had part-timers, but they would quit after a month,' said its owner, Mr Chia Kar Wing, 49.

So the Chinese restaurant decided to outsource its cutlery cleaning - it turned to Synnovate Solutions, a company that does dishwashing contract work for restaurants and catering companies.

'This really works for us, it solves the worker problem,' said Mr Chia.

The severe labour crunch that food and beverage businesses face has created a new market: companies that take the manpower woes off restaurateurs.

At least 15 such companies - ranging from food processing to paging services - have either sprung up or started offering value-add services in the last two years.

And all say they are doing a roaring trade.

Synnovate Solutions was set up specifically to take advantage of this particular situation.

The company, which started operations in December 2010, has 13 customers, mostly food caterers. It is in discussions with companies like Ikea, NTUC Foodfare and Resorts World Sentosa, said owner Lawrence Low, 48.

The target, said the former restaurant manager, is to have 40 customers by the end of the year.

'They won't have to hire a dishwasher or allocate space for washing. They will also save on utilities,' he said.

'I am an F&B man so I know the problem. Since last year, many companies have been crying out for help.'

The Government recently capped the hiring of foreign workers and embarked on a drive to push businesses towards higher productivity.

Foreign worker levies were raised progressively from July 2010 and foreign worker quotas tightened.

The move led to a show of public disapproval, with major associations warning of even greater labour shortage and companies claiming that they were understaffed despite numerous hiring runs.

The services sector has been the hardest hit. Here, foreigners can make up only half of a company's total workforce, compared with other industries like manufacturing, which has a 65 per cent quota.

Job vacancies in the services sector stood at 41,200 as at the end of September last year, making up 76 per cent of the total number of vacancies in Singapore.

Fassler Gourmet, which supplies seafood to hotels and restaurants, has 250 customers buying pre-cut and marinated seafood - an increase of 30 per cent in the past year.

Owner Martin Fassler, 50, put the increase down to the opening of the two integrated resorts.

'It was a huge business opportunity. Some of the hotels were so short of staff they were in panic mode,' he said, adding that hotels used to buy whole salmon from them.

'They are telling us that they are short of people and they want us to pre-cut and portion fish for them.'

The company now gets specific orders of salmon cuts, down to the gram.

At Seah's Spices Food Industries, demand for pre-made bak kut teh spices and fried chicken batter has doubled in the past year.

Its owner, Mr Seah Seow Khiang, 64, supplies these items to 20 large hotel and eatery chains, up from 10 in 2009.

'Companies are struggling due to the labour shortage and they are changing the way they do things,' he said, pointing out that the industry also has a very high turnover rate.

'This way, you don't have to keep teaching new workers recipes.'

It is the same story at pre-mix manufacturer Prima Taste and marinated meat supplier Mohamad Armiya Food Industry.

Other businesses like eat2eat, Chope and Verz Consulting are also doing brisk business.

eat2eat and Chope help companies migrate their table reservation systems online; Verz Consulting provides a paging system that beeps when food is ready.

eat2eat has 22 restaurants using its system, up from four at this time last year.

'It lets eateries deploy workers to do other things,' said chief executive Vikram Aggarwal, 47, adding that the system also logs repeat visits and items ordered, which helps make data collection easier.

Verz has 20 clients including Marina Bay Sands, up from five in 2010, because 'more restaurants are going self-service in the light of the labour shortage', said owner Henry Ng, 40.

Chope's CEO Arrif Ziaudeen, 30, called the current labour situation 'the perfect storm'. It has 70 restaurants using its system, up from 10 last June.

A Ministry of Trade and Industry spokesman said companies are encouraged to think about how they can redesign business models and processes to cope with various resource constraints.

'Done properly, outsourcing can help improve productivity,' she said.

Caterers and restaurants are more than happy to take the outsourcing route.

F&B businesses say streamlining their work processes has also led to cost savings.

Tung Lok Group uses a paging system at its self-service Chinese food eatery Ruyi, which has three outlets.

Pagers, handed to diners when they order their food, will beep when their meals are ready for collection.

Tung Lok's managing director Andrew Tjioe said: 'It's definitely one way to save manpower. We don't need people to track who ordered what, and we didn't want servers screaming over the counter.'

****
Dishing out a much-needed service
Straits Times, Published on Jan 8, 2012
By Jessica Lim

Every day, two trucks from Synnovate Solutions make the rounds to hotels and restaurants, collecting tubs of dirty dishes.

Back at the company's dishwashing facility in Sembawang, workers remove residual food from the plates before loading the crockery into a giant dishwasher.

The plates are cleaned and returned in 24 hours.

Mr Lawrence Low, 48, says he cleans 22,000 plates a day from 13 companies - and the number will go up. He invested close to $1 million to set up the business in December 2010, a large chunk of the money going to setting up the factory and buying the German dishwashing machine.

The math is simple, said Mr Low, who has managed several restaurants, catering companies, country clubs and hotels in China, Malaysia and Singapore.

A small-sized restaurant with one employee washing dishes would spend about $4,000 a month on water, wages and space.

Synnovate Solutions, he claimed, can do it for $2,500.

'The savings are even bigger for bigger restaurants,' he said, adding that his dishwashing facility can handle up to 600,000 plates a day.

'At my company, we need only four employees to do the work of 20 people,' he said, adding that the only drawback is that his customers need to have an extra day's stock of plates to spare.

'But it really increases efficiency.'

****

'Best sourcing': responsibility is key
Straits Times, Published on Jan 8, 2012
By Jessica Lim

Be a responsible contractor.

This is the message that the Ministry of Manpower (MOM) wants to send out to companies that provide contract services.

A ministry spokesman told The Sunday Times that the problem that can arise with outsourcing, is the depression of wages.

The cleaning, security and landscaping sectors are more susceptible to the problem, because service buyers go for low prices.

'This often results in service providers depressing wages to reduce costs in order to win contracts, as manpower is a major cost,' she said, adding that low-wage workers bear the brunt in terms of stagnant wages, poor employment conditions and few opportunities to upgrade their skills.

She added that companies that outsource should work with their third-party contractors to ensure the well-being of the workers.

Companies, for instance, could insist that outsourcing companies have written contracts with their workers. These contracts could include specifics like a breakdown of their salary to avoid any ambiguity.

Companies are also advised not to award service contracts based solely on price. Checks should also be conducted to ensure that outsourcing companies are not financially distressed when deals are being made.

The MOM, with other members of the Tripartite Committee for Low Wage Workers and Inclusive Growth (Tricom) - made up of the Government, unions and employers - is working on a step-by-step guidebook to help companies with 'best sourcing'.

Current recommendations are also in the process of being tweaked to make them clearer and easier to implement.

Workers win fight for pay increase, bonuses

2012-01-07T21:56:00.000+08:00

Global Yellow Pages agrees to pay up just in time for Christmas after a long battle
Straits Times, Published on Jan 7, 2012

By Toh Yong Chuan

FORTY-SEVEN workers at public-listed company Global Yellow Pages received a Christmas gift late last year - when they finally obtained salary increases and bonus payments for which they had been fighting for many months.

The Singapore Manual and Mercantile Workers' Union (SMMWU), which represented the workers, took the unusual step of going to the Industrial Arbitration Court (IAC), which handles labour disputes, to claim the wage increases and bonuses.

A court hearing was set for Dec9 last year.

Before the hearing took place, however, the Ministry of Manpower (MOM) decided to intervene.

Following a meeting between the three parties on Dec 16, Global Yellow Pages, which publishes directories, relented and agreed to pay the workers two months' bonus, and a monthly pay increase of 5per cent, backdated to July11 last year.

Confirming the settlement, an MOM spokesman said: 'Both the union and company reached an amicable settlement after a conciliation meeting on Dec 16 at the ministry.'

The workers received the payments in their bank accounts on Dec23, just before Christmas.

The 47 workers in the company are covered by a collective agreement covering the period January 2010 to December 2012.

The agreement, however, does not spell out the size of increments and bonuses. Hence, yearly meetings are held.

Talks began in August last year, but hit gridlock despite earlier attempts by MOM to mediate.

The union then took the case to the IAC.

Explaining the union's move, its deputy secretary-general, Mrs Cheong-Law Swee Hong, said: 'We were reluctant to do so, but it was something we felt we had to do for the workers.'

The union felt that it had a compelling case, she said.

In its court papers, the union pointed to the company's profitability to back its claims. The company has been profitable since it was listed in 2004. Profits after tax rose from $15.2 million in 2009, to a record $16.4 million in 2010. Last year, profits after tax fell but were still $11.3million.

The 47 workers, however, had not received any bonus payments since 2009, the union said.

And the only pay rise they received in the last three years was in 2010. The increase was 2.75 per cent, but it has already been 'stripped away by inflation', said Mrs Cheong-Law.

Last year, the union asked for a 7per cent wage increase for the workers, and one month's bonus for each of the last two years.

It argued that the company was 'well able to pay' for the raise, and bonuses.

The company counter-offered a 3 per cent pay rise and half-a-month of bonus in total.

Global Yellow Pages chief executive Stanley Tan explained in a letter to the IAC that the company was 'fighting back in the face of declining revenues with cost management and new business initiatives'.

The company's annual reports show a steady decline of revenues, from $59.3 million in 2009, to $41.5 million last year.

There was an impasse, and the IAC set a date for hearing on Dec 9.

Cases before the IAC are rare: two in 2008, six in 2009 and four in 2010.

One of the most high-profile cases in recent years was that between Singapore Airlines and its pilots over pay and flying allowances.

With the settlement reached, SMMWU will be withdrawing its application to the IAC.

Mr Tan of Global Yellow Pages has since written to SMMWU secretary-general John De Payva to say that arriving at the agreement to avoid the IAC process 'is in the best interest of all concerned'.

The settlement brought relief to the workers.

A female worker who declined to be named to avoid being singled out by the company, told The Straits Times she is very happy with the outcome, as 'things were not going anywhere'.

She added that she had worked for the company for 'several years'.

Veteran unionist Mrs Cheong-Law was glad the matter was resolved at the end of last year.

'It is the best year-end present that we can give to our workers,' she said.

Cleaners waste no time

2012-01-02T11:48:00.001+08:00

Straits Times, Published on Jan 2, 2012
By Shuli Sudderuddin shulis@sph.com.sg

AN ARMY of cleaners hit the streets within minutes of midnight yesterday, even as the last fireworks lit up the skyline and strains of music still played over the air.

Their mission: To rid the streets of trash left behind by revellers, who had gathered as early as Saturday afternoon at various places such as Marina Bay, Orchard Road and Sentosa, to bid farewell to 2011 and welcome the New Year.

Marina Bay, the Promontory and The Lawn - a new and usually pristine field in the Marina Bay Financial Centre (MBFC) - were littered with plastic bags, cups and bottles, sheets of newspaper and the odd bunch of tinsel yesterday morning.

Lessons learnt from countdown parties in previous years, however, meant cleaning and maintenance firms were already out in force before the first fireworks were launched.

They said clearing up some of the litter during the celebrations would prevent the rubbish from piling up the next morning. But Ms C. F. Chong, an operations manager with Chye Thiam Maintenance, which cleared up the Marina Bay area, said cleaners were told to be careful when working among the revellers.

'If they cannot move in an area because of the crowd, they can wait for people to move away,' she said.

Cleaning firms said they had to deploy more staff this year because of more countdown parties and new spaces for people to enjoy the fireworks.

Ms Chong said almost 400 additional cleaners, including sweepers and scrubbers, were involved in the cleanup over the weekend. She is also expecting her firm to dispose of more than the 20 to 25 tonnes of waste they have been handling in previous years.

So far, the National Environment Agency said 3.8 tonnes of refuse has been collected from Orchard Road on New Year's Eve, up from 2.8 tonnes in 2010, said a spokesman yesterday.

Purechem Veolia, which was cleaning up after the Orchard Road party, deployed almost twice as many cleaners this weekend than previously. They worked between 10pm on Saturday and 3am yesterday.

Trash was also found on Siloso Beach in Sentosa, where about 18,000 people partied through the night.

Sentosa's environmental control executive Lee Pei Shi said 68 cleaners and two machines had been dispatched since 3pm on Saturday for the cleanup. She said progressive cleaning had to be carried out throughout the night to ensure that others could enjoy a clean beach the next morning.

At 7am yesterday, an hour after the party ended, one truck filled with about five tonnes of compacted rubbish left the beach, with some still to go. There were also large masses of foam left over from the foam pool, which Ms Lee said would either be raked over with sand or dissolved with water.

Cleaner Sundram Vallachamy, 44, who was at Sentosa, said: 'It is quite difficult to clean because there is so much trash and so many people. I think it will still be another two hours before we are done.'

Lorry crane operators to undergo mandatory certification

2011-12-20T22:18:00.001+08:00

Straits Times, Published on Dec 20, 2011
By Jermyn Chow

AROUND 5,000 lorry crane operators will have to take a training course and pass a test if they want to continue in their jobs after September 2013.

Under new rules that come into effect then, they must be certified before they can operate Singapore's 3,500-plus lorry cranes, which are frequently used to lift heavy equipment during construction and road works.

In the past five years, there have been more than 40 accidents involving lorry cranes, resulting in four people being killed on the job.

There are currently no formal training and certification courses available in Singapore, apart from classes conducted by the handful of lorry crane suppliers or manufacturers here.

The Building and Construction Authority's (BCA) chief training officer, Mr Paul Yap, said the new course - which starts next month - is aimed at plugging the gaps in knowledge and skills of current crane operators.

'They don't know how to estimate the load and lifting capacity of the cranes, and tend to overload the cranes, which can be very risky,' he said.

Mr Ismadi Mohd, deputy director of equipment safety at the Manpower Ministry's Occupational Safety and Health Division, said the current courses are 'not very well-regulated'.

'We want a more structured and consistent course that is applied across the board,' he said.

The 21/2-day Lorry Crane Operator Course, offered by the BCA, was designed by the Workplace Safety and Health Council and the National Crane Safety Taskforce. It consists of classroom and on-site lessons that will teach trainees how to follow safety guidelines, spot hazards and respond to emergencies.

The course will apply to all lorry crane operators. Those who have operated lorry cranes for at least three years will just have to sit, and pass, the test. Should they fail, they will then have to attend the course.

The latest move follows the implementation of new rules that took effect in September.

Under the new regulations, operators have to go through a checklist before lifting anything with cranes.

Crane operations are a concern for safety officials here.

The number of crane-related fatalities has declined from 10 in 2009 to two last year.

However, the number of dangerous incidents involving cranes went up from 21 in 2009 to 26 last year. A total of 14 such dangerous incidents were reported in the first half of this year.

Mr Kelvin Tan, 39, who has operated lorry cranes for six years, was one of five who took the pilot course at the BCA in July.

'Previously, the lessons were more to familiarise workers with the lorry cranes. But now, there is a lot more focus on safety procedures and regulations,' he said.

Lorry driver 'should not have been on barge'

2011-12-19T22:36:00.000+08:00

Passengers not allowed on barges being towed, state MPA regulations
Straits Times, Published on Dec 19, 2011
By Elizabeth Soh and Royston Sim & Tham Yuen-C

Photo caption: Nine out of 10 barges here must be secured to a tug and towed, with no proper safety features to secure vehicles. -- ST PHOTO: CHEW SENG KIM

DRIVER Jason Lim Wei Kwan, who died after his lorry slipped into the sea from a barge, should not have been on the barge.

Under Maritime and Port Authority of Singapore (MPA) regulations, passengers should not be on board barges being towed by tugboats.

All lorry drivers and attendants are required by law to be in the tugboats towing the barges, or in other passenger craft.

But in reality, many operators of barges, especially those that ferry vehicles to nearby offshore islands, allow the drivers to remain on board.

Seven out of 10 barge companies The Straits Times spoke to said they were not aware that passengers were not allowed on barges being towed.

They added that it was more convenient for the drivers to remain in their vehicles, as they are often transported to offshore islands without any proper ferry service or arrival point.

'It really does not make sense for the driver to travel separately to an island - there are no ferries or other forms of transport there,' said a manager of a barge company, who declined to be named as it continues to allow drivers to travel on board vehicles on barges.

The Straits Times understands that hundreds of barges traverse Singapore's waters each day with all kinds of cargo, from raw materials and sand to chemicals and heavy vehicles. Many of these barges ferry cargo as part of land reclamation work.

In Mr Lim's case, he had just delivered a load of chemicals to Pulau Sebarok, the site of Singapore's first 'megafloat', a pilot project to store oil on large floating structures.

He was using the barge to return to the mainland's Pasir Panjang Terminal when the accident occurred on Dec 10.

Mr Lim, 37, drowned, while the lorry attendant, who got off the lorry in time, survived.

There are two main types of barges, with one kind that is permanently attached to its own tugboat. The second kind, which makes up nine out of 10 of the barges in operation here, is known as a 'dumb' barge. It needs to be secured to a tug and towed.

According to marine safety specialists, most of these 'dumb' barges do not have proper safety features needed to secure vehicles.

Barges to ferry vehicles should at least have a raised grid to provide some friction for the lorry's wheels, said one specialist.

'Unfortunately, most of these barges were simply converted from being used for ferrying sand to ferrying vehicles, and are not properly equipped,' he added.

He also noted that sometimes remnants of sand are left on the barge, resulting in an even weaker grip when vehicles come on board.

Some barge companies have resorted to equipping drivers with life jackets or flotation devices in case of an emergency.

However, safety specialists said a life jacket is of little use, unless it is worn at all times on the trip.

Barge owners or operators face having their licences revoked and being fined up to $5,000 should they fail to comply with the MPA's licensing conditions.

These include failing to secure vehicles to the barge.

S'pore workers 'demanding more of their union leaders'

2011-12-14T15:40:00.000+08:00

Change due to higher qualified workers, more PMEs, say unionists
Straits Times, Published on Dec 14, 2011
By Toh Yong Chuan

SINGAPORE workers have become more demanding of their union leaders, expecting them to be more vocal and transparent as well as to respond swiftly to their feedback.

Unionists interviewed say they can no longer adopt a low-key approach and work behind the scenes on, say, negotiating a wage agreement with employers.

'Now, we have to get their suggestions before negotiations start, keep them informed on the progress of talks and explain at the end why every one of their suggestions could not be met,' said Mr K. Karthikeyan, vice-president of the National Trades Union Congress (NTUC) and a member of its top decision-making body, the Central Committee.

With e-mail and social media, workers also expect union leaders to reply swiftly to queries, sometimes instantly, said union leaders like Mr Andy Lim, 35, president of the Singapore Manual and Mercantile Workers' Union and a newcomer on the Central Committee.

But like Mr Karthikeyan, Mr Lim and four other Central Committee members interviewed are taking the new expectations in their stride, a change former NTUC president John De Payva had described in a Straits Times interview before he stepped down last week.

Mr De Payva had said: 'Younger people don't really want to subscribe to behind-the-scenes hard work. They want us to be transparent and vocal, take nasty employers to task and even tell the Government, 'This is not enough, you have to do more'.'

The unionists trace the change to the higher educational qualifications of their members, who are raised in a more competitive environment, as well as the growing pool of professionals, managers and executives (PMEs) in their midst.

NTUC has 150,000 PMEs, who make up about one-quarter of its membership. The number is 15 per cent more than last year and is set to keep rising in line with the growth in the labour force.

Said Mr Benjamin Tang, 35, president of the Port Officers' Union and a new face on the Central Committee: 'With better education, they are being taught not to take things at face-value.'

Citing his union members, all PMEs, he said they recently rejected the arguments for a salary ceiling in the Employment Act for seeking redress.

They want the $4,500 monthly salary cap removed completely, although it was raised just 10 months ago.

With the new demands, union leaders like Mr Lim work late into the night replying to members' e-mail messages and doing union work.

'Typically, I spend about two hours after office on union work and activities to maintain the personal touch,' he said.

Workers' demands to be kept informed sometimes put union leaders in a bind, especially during wage negotiations. 'We often need to keep our cards close to our chest to secure the best deal for workers, said Mr Karthikeyan.

Another problem he cited is when a dissatisfied member of a branch goes to the union, and its top officials pursue the matter successfully with management. The worker 'may think his union representative didn't do his job in the first place'.

As workers demand union leaders to be seen as well as heard in promoting their interests, Singapore witnessed two unusual moves by the labour movement in recent months.

In October, the NTUC and the Singapore National Employers Federation (SNEF) openly disagreed on whether new measures were needed to make it harder for employers to turn to foreigners when hiring workers.

Last week, it went public on the issue of the Central Provident Fund (CPF) rate for older workers before it held discussions with SNEF and the Government.

It called for a delay in the mandatory cut in the employer CPF rate for a worker who turns 50.

Such public displays are, however, not likely to become routine any time soon, said the unionists.

They were unanimous that the fundamentals of the tripartite relationship between NTUC, SNEF and the Government will remain unchanged.

Said NTUC vice-president Edwin Lye, 41, who is general secretary of the Singapore Teachers' Union: 'Not everyone will be comfortable with the open airing of positions in negotiations.

'All parties have to find a comfort zone and see how far we can stretch it to make the process more visible.

'The labour movement cannot do it unilaterally, as it can be misconstrued as breach of trust.'

When that happens, discussions may break down and everyone will be worse off, he added.

S'pore firms prefer not to lay off workers: Poll

2011-12-08T22:22:00.001+08:00

Experience in last recession may explain reluctance to cut headcount
Straits Times, Published on Dec 8, 2011

By Kor Kian Beng

SINGAPORE companies are more inclined to keep their workers in a downturn than retrench them as many did in the 2008-09 recession, according to a survey of employers.

Fewer than 4 per cent of 272 companies polled in October would consider cutting their headcount while only 1 per cent would lay off their workers.

In the last slump, 2,453 companies either laid off workers or ended their contracts prematurely. Over the same two-year period, 34,080 workers were laid off.

The current reluctance by companies to let workers go stems from their experience in the last recession, said Mr Koh Juan Kiat, executive director of the Singapore National Employers Federation (SNEF), which did the survey informally in October.

Employers that sent workers for training in the recession could ramp up production quickly when the economy picked up from mid-2009.

'Had they retrenched, they would have had difficulty rehiring workers quickly and with the relevant experience,' Mr Koh said.

The SNEF survey, released to The Straits Times yesterday, also found that slightly less than half the employers said they would redeploy staff to other areas of work.

About 40 per cent would send excess manpower for training or adopt flexible work arrangements such as a shorter work-week or have the staff take their annual leave. About 15 per cent would adjust wages.

The findings mirror a trend seen by other employer groups, recruiters and economists.

They attribute it to other factors such as the tight labour market, stricter foreign labour controls and companies having lower headcounts.

These factors led Barclays Capital economist Leong Wai Ho to forecast that retrenchments next year would climb to around 10,000, from about 8,000 this year. Last year, the figure was 7,740.

Still, employer groups such as the Association of Small and Medium Enterprises (Asme) hope the Government will introduce aid early, like the wage subsidy Jobs Credit scheme, as the economy enters a new period of slow growth.

Said Asme president Lawrence Leow: 'Prevention is better than cure. We already see companies, especially manufacturers, being hurt by reduced demand or cashflow problems because banks are stricter on granting loans.'

He noted that the swift government action in the last recession helped put a lid on layoffs, citing measures such as the Skills Programme for Upgrading and Resilience that subsidised worker training.

Retrenchments reached 13,920 in 2008 and 20,160 in 2009, against 29,090 in the 1998 Asian financial crisis and 25,840 in 2001 in the aftermath of the Sept11 terrorist attacks.

Singapore Chinese Chamber of Commerce and Industry president Teo Siong Seng said its members were hoping for help to mitigate costs on other fronts, such as office rents.

But economists interviewed argued that the Government needed to look beyond just giving aid to help keep business costs down.

National University of Singapore labour economist Shandre Thangavelu said it was important to help employers seek new markets or growth opportunities.

Mr Leong believes the Government needs to take a longer-term view, possibly 'dwelling on the more radical ways to improve productivity and increase resilience for the long haul'.

Similarly, Mr Koh said: 'Companies will need to look at doing more with fewer or the same staff. They should pursue productivity improvements aggressively and restructure to do their business differently to make themselves even more competitive.'

Recruitment agency Adecco South East Asia's regional director Lynne Ng said organisations had to become smarter in how they planned for and used talent.

One company that will keep its more than 1,000 workers in the event of a downturn is Reda Production Systems, the Singapore office of international oil and gas tool manufacturer Schlumberger.

It will do so by halving overtime hours, said centre manager Maha Ramanathan.

'It is hard for us to retain skilled workers, and we want to make sure we have the technological edge by upgrading their skills during any downturn,' he said.

Younger workers want 'transparent, vocal unions'

2011-12-08T22:20:00.000+08:00

Straits Times, Published on Dec 8, 2011
By Toh Yong Chuan

YOUNGER workers want more transparency in dealings between unions, employers and government - a departure from the behind-the-scenes approach that has thus far marked tripartism here.

That is the view of the labour movement's longest serving president, Mr John De Payva, 62, who retires today after 15 years at the post. He believes meeting these changed expectations will pose the biggest challenge for union leaders.

'Younger people don't really want to subscribe to behind-the-scenes hard work. They want us to be transparent and vocal, take nasty employers to task and even tell the Government, 'This is not enough, you have to do more',' he said in an interview with The Straits Times.

If union leaders' work in standing up for workers' rights becomes more visible, that in turn could help to attract more younger workers to join the labour movement, he added.

'There could be a bigger catch of young leaders who say, 'They are actually doing so much, and it didn't dawn on me they were doing all this, I think I can help, and I also want to come in and do my part',' he said.

Mr De Payva and several other long-serving National Trades Union Congress leaders were thanked by Prime Minister Lee Hsien Loong and NTUC secretary-general Lim Swee Say on Tuesday, when they opened the three-day National Delegates Conference. It ends today with the election of a new Central Committee, the labour movement's highest decision-making body.

Mr Lee praised Mr De Payva for leading 'the NTUC through many ups and downs, crises and good times'.

All 10 who step down from the Central Committee today are 'passionate and well-respected leaders serving with workers at heart'.

Mr Lee singled out three for special mention: financial affairs secretary Teo Yock Ngee and vice-presidents Cyrille Tan and Thomas Tay.

Mr De Payva's journey to the top ranks of the labour movement began in 1973. As a 26-year-old accounts clerk at United Engineers, he joined the house union, becoming its branch secretary in 1975 after the union was taken over by the Singapore Manual and Mercantile Workers' Union (SMMWU).

Four years later, in 1979, he resigned from United Engineers to become an industrial relations officer at SMMWU.

His manager offered to retrench him so he could get a payout, as the company was then going through restructuring. He had worked for nine years and would have received a tidy sum, but he said no.

'I am going into SMMWU to represent workers... My conscience wouldn't allow me to take the money,' he explained.

He rose rapidly through the ranks to become SMMWU deputy secretary-general in 1985 and secretary-general in 1988, a post which he still holds. Under his watch, the union grew from 12,000 members in 1988 to 83,000 today. It is now the largest union here.

He first became active in NTUC in 1982, when he was made the secretary for organising, the equivalent of today's director of membership.

He was to be thrown into the thick of action as Singapore headed into a recession in 1985.

He remembers meeting then Deputy Prime Minister Goh Chok Tong to discuss a 15 per cent cut in employers' Central Provident Fund contribution and rallying workers to support the move.

Recalling that episode, he said: 'To me, it was the first strong demonstration of tripartism. We put our trust in tripartism without knowing if employers will keep the faith. We know very well the Government will.'

In 1988, Mr De Payva was elected to NTUC's Central Committee.

Six years later, he became a Nominated Member of Parliament. He spoke up on workplace safety, the use of CPF for part-time studies and taking errant employers to task for not paying workers' CPF, among other issues.

During his tenure as NTUC president, Singapore went through the Asian financial crisis in 1997, Sars in 2003 and the financial meltdown in 2008.

Known for being a soft spoken but tough negotiator, he was modest about his contributions. 'I look at things using common sense, and I let my conscience guide me,' he said.

On being NTUC's longest-serving president, he said it was 'not something that I could even imagine'.

As he prepares for a new role as adviser and mentor to younger union leaders after today, it is plain that some issues still irk him.

He points out two: Managers and executives who do not want to deal with unions, and labour MPs who do not speak up on labour issues.

'You can print that,' he said firmly, 'because I want to send a strong message to them.'

On his retirement, he said: 'I would rather be a person who is prepared to step down rather than be a person who is asked to step down.'

He sits on the boards of several regional and international labour organisations, and will continue to be involved in them.

And he will keep his door open to fellow unionists: 'Hey, I am still going to be around. I mean you need to chit-chat on issues or what, just come.'

Singapore workers earning more

2011-12-03T22:01:00.000+08:00

Mid-point in range of incomes up 5.3% from last year to hit $2,633
Straits Times, Published on Dec 1, 2011By Cai Haoxiang

THE monthly salary of Singapore workers went up this year, for the second year in a row.

Their median income - the mid-point in a range - was $2,633 in June compared to $2,500 a year ago, a 5.3 per cent increase led by economic growth and a tighter labour market.

The rise is even steeper when part-time workers are taken out of the equation, according to a Manpower Ministry report yesterday on the earnings and employment of residents, including permanent residents.
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It shows full-time workers' median income to be $2,925 a month against $2,708 last year - an 8 per cent rise.

After taking into account projected inflation of about 5 per cent, their real wages rose by an estimated 2.8 per cent, said the ministry's Singapore Workforce 2011 report.

But for all workers, including part-timers, the real wage increase was just 0.1 per cent, said labour economist Hui Weng Tat of the Lee Kuan Yew School of Public Policy.

Noting the Government's goal to raise real median incomes by 30 per cent over 10 years, Dr Hui said it would require an average increase of 2.7 per cent a year.

'Attention thus needs to be focused on improving the wages and work opportunities of the 194,700 part-time workers, as they are increasing in number, and half of them indicate they want to work longer hours,' he added.

The report also disclosed for the first time median income figures that include the Central Provident Fund (CPF) contributions of employers.

With CPF, the income of full-timers soared to $3,250, which is $250 more every month than last year.

Explaining the new move, a ministry spokesman said employer CPF contributions form a 'significant part of compensation... and can be used for housing and health care'.

Hence, it will publish the figures yearly to give 'a more complete picture of residents' income growth', she said.

The rise in income this year builds on last year's increase, which was a turnaround from the decline caused by the 2008-09 recession.

Last year, the strong economic recovery lifted the monthly income by 3.3 per cent, from $2,420.

This year, the increase is fuelled largely by strong employment growth, especially in the services sector, coupled with curbs on the inflow of unskilled labour and stricter conditions for employing skilled foreign workers, said economists interviewed.

'Wages were pushed higher with the big projects like the Marina Bay Sands and Sentosa resorts needing a lot of labour, together with the tightening of foreign worker inflows like increased levies,' said National University of Singapore economist Shandre Thangavelu.

These moves pushed the employment rate to a new high of 78 per cent for residents aged 25 to 64.

At the same time, immigration conditions were tightened, causing a decline in the number of permanent residents.

As a result, the resident labour force went up by just 1.6 per cent to 2.08 million, compared to an annual average of 2.6 per cent in the past 10 years.

On the other hand, more older residents and women were working this year.

A record 61.2 per cent of residents aged 55 to 64 were working, up from 59 per cent a year ago.

Similarly, with women aged 25 to 54, the number of employed rose to 73 per cent, from 71.7 per cent last year.

Labour leader Cham Hui Fong cheered the increases in these two groups, saying they show that efforts of unionists are paying off. Said Ms Cham, assistant secretary-general of NTUC: 'Companies are now prepared to hire and spend time training these workers.'

Also, more government funds are available, she added, citing the Advantage scheme that helps companies redesign jobs for older workers.

Another is the Inclusive Growth Programme, which gives grants to companies to invest in high-tech equipment and redesign jobs for low-wage workers in return for raising their pay.

'We hope these schemes will continue because we need to build up the momentum,' said Ms Cham.

Older, low-wage workers get Workfare bonus

2011-11-30T15:30:00.000+08:00

Straits Times, Published on Nov 30, 2011

BY TOMORROW, some 354,000 older, low-wage workers will have received the second instalment of their Workfare Special Bonus payment.

Announced as part of the Grow and Share package during the Budget in February, the bonus is meant to help them cope with rising costs of living.

The first tranche was given out in May this year.

Eligible workers - those who earn under $1,700 and are 35 years and older, among other criteria - will receive their bonus payments fully in cash.

The bonus is on top of their regular Workfare Income Supplement (WIS) payouts.

This year's two bonus instalments are, in total, equivalent to half of their full-year WIS payments based on work done last year.

Next year and in 2013, they will get bonuses equivalent to 25 per cent of their WIS, to be paid in cash in December each year.

For example, a low-wage worker aged 60 and earning $1,000 a month will get $1,400 in Workfare Special Bonus this year: $700 in May and $700 by Dec 1. This is on top of the $2,800 that he would have received from WIS this year.

Eligible self-employed workers will receive half of their bonus in cash, and the other half in their Medisave CPF account.

Self-employed persons are eligible for the bonus if they declare their income and make Medisave contributions. Those who did so by Oct 31 this year will receive their bonus on Dec 1.

Those who declared their income by May 31 this year but have not yet contributed to their Medisave will still qualify for the bonus and the WIS for work done in 2010, if they make their Medisave contributions by Dec 31 next year.

The Workfare Special Bonus is expected to cost the Government about $450 million over three years.

For more information, visit the website www.growandshare.gov.sg or call 1800 2222 888.

Bigger bonuses for some unionised workers: NTUC

2011-11-26T15:34:00.000+08:00

Those in unionised firms get bigger pay rise too this year
Straits Times, Published on Nov 26, 2011
By Kor Kian Beng

Workers in unionised companies are getting bigger bonuses this year, following the strong recovery of the Singapore economy last year.

This higher payment was disclosed by the National Trades Union Congress (NTUC) on Friday, one day after the Government announced that its 76,000 civil servants will get a lower bonus this year in the face of projected slower growth and global economic uncertainties.

On average, the bonus for the unionised workers amounts to 3.08 months, inclusive of the 13th month payment, according to latest figures from NTUC.

Last year, their bonus was 2.66 months.

Their pay increments this year are also higher: 4.3 per cent, on average, compared to 3.3 per cent last year.

The improved payments for the workers of 1,200 unionised companies were announced on Friday night by NTUC president John De Payva.

He credits union leaders for helping to get the deal for the workers, who make up more than one-fifth of Singapore's two million-strong resident workforce.

But just as swiftly, he warned unionists of challenges ahead, saying 'things are slowing down fast' as a result of the troubled global economy.

Other challenges he listed include: the ageing workforce, the need to attract more professionals into unions, securing real wage increases, helping low- wage workers and getting more women into the workforce.

Union leaders collectively, he added, 'have a heavy responsibility on your shoulders not only for speaking out for members but also the working people in Singapore', he added.

Mr De Payva was speaking at NTUC's Unite Leadership Summit, an annual dinner to honour stalwarts who have made contributions to NTUC's self-renewal efforts.

NTUC assistant secretary-general Cham Hui Fong said this year's bonus was the best since 2007 when 3.42 months was given, and the pay increment, a new high since 2000 when it was 5.26 per cent.

She attributes the latest achievements to companies agreeing to base the bonus and pay rises on their performances last year, when the economy grew 14.5 per cent.

In contrast, civil servants will get a total bonus of 2.25 months plus $250 this year, compared to 2.5 months plus $300 last year.

At last night's event, attended by more than 800 unionists and guests, 11 veteran union leaders were honoured with NTUC's Unite Leadership Tributes for stepping aside voluntarily for young blood and taking up advisory posts.

Pointing to the 11, labour chief Lim Swee Say said such selfless leaders should not be taken for granted, as they ensure the labour movement remains strong to tackle new challenges.

'When someone turns 50, we say the person is 50 years old. But when the labour movement turned 50 this year, we say we are 50 years young,' he said.

He added the unions will grow stronger over the years with the renewal efforts.

Since October last year, the NTUC has urged unions to adopt a three-pronged framework for attracting and grooming young leaders as well as get older ones to step aside and be advisers.

Taking the lead are 10 veterans, including Mr De Payva, 62, who are stepping down from the Central Committee (CC), NTUC's top decision-making body. They are not seeking re-election at its National Delegates Conference from Dec 6-8.

But 22 nominees are seeking a seat on the 21-member CC, which is set to have a more youthful profile and possibly be led by its first woman president.

The push for new blood is endorsed by former president of the Attractions, Resorts and Entertainment Union, Mr Abdullah Abdul Talib, 65, one of the 11 honoured.

He sees a pressing need to nurture younger leaders as the workforce gets more professionals who see no need to join unions to look out for them.

To older unionists reluctant to retire, he has this message: 'It is better to step aside voluntarily than to be asked to go or voted out. Better still if we leave behind successors who can do the job well.'

***

Background story

Veteran unionists honour roll

* Abdullah Abdul Talib, 65, president, Attractions, Resorts & Entertainment Union

* Ricky Cheng, 62, general treasurer, Amalgamated Union of Public Employees

* Teo Yock Ngee, 62, general secretary, Amalgamated Union of Public Employees

* Dorothy Chia Puay Hong, 59, general treasurer, DBS Staff Union

* Mohan Dass, 63, president, Singapore Air Transport Workers' Union

* Victor Pang, 65, general secretary, Singapore Air Transport Workers' Union

* Lim Chin Nam, 60, president, Singapore Chinese Teachers' Union

* Jayakumar Mannar, 62, president, Singapore Shell Employees' Union

* A. Visvalingam, 62, general treasurer, Singapore Tamil Teachers' Union

* Durai Pandian K, 62, general treasurer, Union of Power and Gas Employees

* Edwin Low Hock Chye, 62, general secretary, Union of ITE Training Staff

Hawker stall rentals are 'still lower than those of food courts'

2011-11-23T12:24:00.000+08:00

by Esther Ng
TODAY, Nov 23, 2011

SINGAPORE - They may be pegged to market rates but hawker stall rentals are "significantly lower" than those of food courts. Also, rentals are but one component that determines the price a hawker charges, Minister for the Environment and Water Resources Vivian Balakrishnan said in Parliament yesterday.

The viability of a hawker's business is a combination of what the market can bear, traffic, competition and the hawker's fame, he told Parliament.

Dr Balakrishnan also reminded the House that hawker centres came about in the interest of hygiene and public safety - by bringing itinerant hawkers under a central infrastructure and not out of social policy.

He was responding to Member of Parliament Lim Biow Chuan (Mountbatten), who wanted to know if the National Environment Agency would review the policy of pegging hawker stall rentals to market rates.

Increasing the supply of hawker centres would add "downward pressure" on market rentals, said Dr Balakrishnan, but whether hawkers lower their prices in response to that is a "market test which time will prove in one way or another".

Ms Denise Phua (Moulmein-Kallang GRC) pointed to the prevalence of "Cash Over Valuation" as high as S$300,000 when transferring stalls and wanted to know what action the ministry would take.

Dr Balakrishan said he was aware of such practices and that his ministry would look into it. He reiterated that hawker stalls should be operated by the person who had tendered or rented the stall.

As for the suggestion by Mr Liang Eng Hwa (Holland-Bukit Timah GRC) to build more than 10 hawker centres in less than the announced period of 10 years as that would put downward pressure on hawker rentals, Dr Balakrishnan said: "Another general rule in politics is always under-promise. I hear your request and will consider it. I'm not making any promises at this point."

Dr Balakrishnan announced last month that the Government would resume building hawker centres in new towns, such as Pasir Ris and Punggol, after a 26-year hiatus. Esther Ng