The chicken-and-egg problem of wage and productivity

Letter from Ong Qiyan

TODAY, Voices, Apr 30, 2012

PROFESSOR Lim Chong Yah has suggested a wage increase of 50 per cent over the next three years for low-income earners. Is this at odds with government policies?

A reduction in dependency ratio ceilings of foreign workers in manufacturing and services, and a hike in levies for some foreign workers in construction, were announced in this year's Budget Statement.

The intent is to signal to businesses to invest in productivity changes and to decrease their reliance on foreign labour. The inevitable consequence would be an increase in the wages of low-income local workers, as the demand for them would increase.

Incentives are in place to train local workers, raising their productivity to match wage increases. Therefore, it appears that the Government has already implemented policies to raise wages of low-income workers.

Since Prof Lim's proposal and government policies are both about raising low-wage workers' salaries, where do they diverge? Fundamentally, they disagree on the chicken-and-egg problem: Should wages rise before or after productivity increase?

Prof Lim's assumption in approaching this problem is that low-wage workers here are "underpaid by much more than 100 per cent of their pay when compared with their counterparts in countries with comparable national affluence".

If local workers are paid below their productivity levels, wages should first be increased to a fair level, and further wage increase be fuelled by productivity gain.

The Government, on the other hand, appears to believe that low wages reflect the workers' productivity, which has to be addressed first.

The crux, therefore, seems to be whether low-wage earners believe their current wages are fair. There is good reason to believe why they would not. For instance, with the same pay, foreign workers have higher purchasing power back home than locals have here.

If this is true, the findings of a recent research by noted behavioural economist Ernest Fehr and his team suggest that raising wages of the lowest income earners in Singapore may actually increase productivity.

In the 1990s, Nobel laureate George Akerlof proposed the fair wage-effort hypothesis, which states that when actual wage is less than what a worker considers fair, he supplies lower effort than he otherwise would.

Workers who perceive their wages as unfair would have lower productivity than they otherwise are capable of.

Professor Fehr and his team found evidence supporting the hypothesis. They conducted a field experiment in which they increased the wages of a group of workers while keeping constant the wages of a control group. Workers who felt underpaid at the baseline wage raised their efforts substantially when their wages were increased.

If the same story could be told in Singapore, Prof Lim's proposal could do more than close the income gap. Firms could be surprised by what they have been missing all these years.

Supply of cheap foreign labour drying up

More demanding higher pay; companies going further afield to recruit

Straits Times, Published on Apr 30, 2012

By Yunita Ong & Lo Yee

 

Photo caption: The labour crunch is especially acute in the construction sector. Many foreign workers are giving these lowly paid jobs a miss, citing better pay now in their own countries. -- ST PHOTO: SAMUEL HE

FIRMS in Singapore which rely heavily on unskilled labour at rock-bottom pay rates say they are being adversely affected on two fronts.

First, the Government is making it harder and more costly for firms to hire cheap unskilled foreign labour.

The double whammy is that even when they try to hire foreign workers, many of them are giving these lowly paid jobs a miss.
 These workers say they can earn almost as much back home in countries such as China, Thailand and India, where the economy is growing at a rapid pace.

Wages back home are much better than they were a few years ago, and they don't have to contend with Singapore's high cost of living.

Firms now find that they have to pay more or go further afield to hire the workers they need.
The problem is especially acute in the construction sector, which has long relied on cheap foreign labour.

Some firms say they have to pay as much as 30 per cent more to hire foreign workers on the Work Permit pass from two years ago.

Mr P. Ramar, who runs FRR Consultants, said that Chinese workers are demanding at least $50 a day, compared with $35 a day two years ago to take up a job here as a general worker.

'They say they earn at least 200 yuan (S$40) at home. And for the semi-skilled workers, like technicians, they want at least $100 a day to come,' said Mr Ramar, who specialises in recruiting and placing workers from China, India and Bangladesh in the construction sector.

He added that foreign workers complain that the cost of living in Singapore is rising and that it is 'not worth it' to take up the jobs.

Chinese worker Xu Guo Tuan, who earns $40 a day hauling sand and cement at construction sites in Singapore, is one such worker thinking about whether he should continue to stay here to work.

The Jiangsu native, who came to Singapore last year, said there is not much difference between what he can earn back home and what he is earning now.

'I earn $40 a day here, but at home, I would earn about 200 yuan and some companies are offering more. I chose to work in Singapore for personal reasons, but my friends are not interested in coming,' he said.

The difficulty in getting Chinese workers to work here is not surprising, as firms within China are also facing similar issues, said HSBC economist Donna Kwok.

She said that over the past few years, manufacturing firms were moving inland from coastal cities to hire staff they need.

'This is a trend which started since the economic recovery back in 2009,' she said. Last year, wages in China shot up 20 per cent over the previous year's, said Ms Kwok.

There were 702,000 Work Permit pass holders in Singapore last year, up from 670,000 in 2010.
The Government has been raising foreign worker levies to wean firms off cheap foreign workers, especially unskilled labour.

To cope with the situation, firms are turning to less traditional sources to recruit the people they need.
Managing director of plastics engineering firm Roechling Singapore Y.K Wong said that his firm is going to the more remote parts of China, as far in as the mountainous regions of Inner Mongolia and other remote regions.

Others are hiring more from India, Bangladesh and Myanmar, said Dr Ho Nyok Yong, president of the Singapore Contractors Association. 'Workers from Tamil Nadu, where Indian workers in Singapore are predominately from, are coming in reduced numbers to Singapore now as their economy moves up the value chain,' he said.

Mr Ramar said that Bangladeshi and Indian workers are now asking for at least $20 a day to work, higher than the $15 a day two years ago.

'They are still cheap but their demands are getting higher,' he said.

Economists said firms are better off focusing on raising productivity as a way to cope with the manpower crunch.

Given the Government's drive to reduce reliance on foreign workers, it is unsustainable to chase cheap foreign workers, said DBS economist Irvin Seah.

'The best option for firms would be to up their productivity by reducing their reliance on foreign workers, which would be the best outcome for all.

'That would reduce the need to deal with rising levies and wages,' he said.

Economic restructuring 'may strain labour ties'

But S'pore must not lose the special trust forged between tripartite partners, says DPM Tharman

Straits Times, Published on Apr 30, 2012

By Aaron Low & Amelia Tan

AS SINGAPORE restructures its economy, businesses will fold and jobs will be lost.
This could put a strain on the special relationship between the Government, labour unions and employers, warned Deputy Prime Minister Tharman Shanmugaratnam yesterday.

There is now greater expectation for the tripartite partners to speak out in public on employment matters and even be more adversarial.

But the challenge will be to avoid playing to the gallery and advancing positions for short-term gain, he added.

'This trust (between the partners) is one of Singapore's most valuable assets,' said Mr Tharman, addressing more than a thousand unionists at their annual May Day dinner last night.

'We must keep our advantage in Singapore by maintaining a frank, open and constructive dialogue, which is always aimed at the shared objective of meeting the long-term interests of Singapore and Singaporeans.'

Speaking at the Orchid Country Club, Mr Tharman - who is also the Manpower Minister - warned that economic restructuring will take 'at least the better part of this decade' to complete.

He said that companies may be phased out or move overseas, and productivity innovations at the workplace may also not work out as well as planned. This may pose problems to the tripartite relationship.

'The partners do not necessarily agree or take identical positions on many issues, and this has always been the case,' he noted.

'However, there are some calls for the partners to be more adversarial, to push their positions more openly and to let the matter be decided in a court of public opinion.'

Another challenge that the labour movement faces is to evolve with the profile of the Singapore workforce and cater to the needs of both low-wage workers and more educated executives, said Mr Tharman.

He said the Government will work to help low-wage workers benefit most from the economic restructuring.

One of the ways it is doing this is to inject another $70 million into a programme that helps firms raise productivity, on the condition that the firms share the gains with the low-wage workers.

As for the professionals, managers and executives (PME) group, Mr Tharman noted that many of their counterparts are facing high unemployment and low wages in the United States and Europe.

In the US, for instance, 44 per cent of those working on minimum wages in 2010 had either attended or graduated from college, he added.

'We must never get close to the situation that we see in these economies,' he said, noting that the Government has been expanding both job-matching and training programmes for PMEs.

Unionists interviewed yesterday agreed with Mr Tharman on the challenge of dealing with economic restructuring, but many still believe in a vocal public stance on a worthy cause.

'At the end of the day, we may reach a consensus because of our strong tripartite relationship, but it is important that there is a discussion and our views are heard and considered,' said Mr David Phang, executive council member of the United Workers of Electronic and Electrical Industries.

Mr Yeo Chun Fing, deputy general secretary of the Amalgamated Union of Public Employees, added that it was important to be seen by members to be representing them.

'I believe we can manage the relationship well so that the trust is not lost,' he said.

Last night, the labour movement paid its annual tribute to individuals who have contributed most to the union, giving out a total of 92 May Day awards.

Leading the list were NTUC president emeritus John De Payva and Manpower Ministry senior director Ong Yen Her, who were both given the highest Distinguished Service (Star) Award.

Do more to help foreigners adjust: DPM

Teo Chee Hean urges Singaporeans to do their part at annual community dialogue

Straits Times, Published on Apr 29, 2012

By Tessa Wong 

As more Singaporeans go out into the world to study, work and live overseas, more foreigners are moving here and helping to make Singapore cosmopolitan and vibrant.

Deputy Prime Minister Teo Chee Hean yesterday noted this reality of globalisation as he highlighted the need for Singaporeans to do more to welcome and help foreigners integrate here.

One measure of Singaporeans overseas is that there are 280 Singapore clubs in 120 cities worldwide, 'a network of little red dots'.

He was in New York two weeks ago and met 5,000 Singaporeans at the Singapore Day festivities, which included hawker food, updates on national service and a rousing rendition of the National Day song, Home.

'I am sure the sights, sounds and smells brought back many fond memories for the Singaporeans who attended the event, but we also want to make sure that Singapore is not just their home from the past, but also a place in their hearts and where they want to build their future,' he said.

Addressing 600 community leaders at the annual National Community Engagement Programme Dialogue at the Regent hotel, he said the flip side of Singaporeans moving elsewhere was the arrival of foreigners drawn here.

But a greater number of people of different races and religions in a dense city like Singapore could result in greater consciousness of the differences in behaviours and norms, he said.

'When we live close together on a sustained basis, it is so much easier to dwell on the differences, rather than build upon the commonalities,' he said.

'And those differences when accentuated can quite easily develop into fissures in our society, and weaken our unity as a country.'

Mr Teo, who is Coordinating Minister for National Security and Minister for Home Affairs, said more had to be done to help new immigrants ready to sink roots to integrate into society more quickly.

'We expect that over time, they and their children will pick up Singaporean ways and become more like us. After all, many have come here because they value what we value - the well-integrated, harmonious, multi-racial society in Singapore,' he said.

'However, Singaporeans can also do our part to make them feel more welcome, and to help them imbibe the values that we hold dear as a people, which have made us strong as a society.'

The tension between old and new Singaporeans was the subject of five group discussions helmed by various ministers at yesterday's event - Mr Teo, Minister in the Prime Minister's Office Lim Swee Say, Minister for Information, Communications and the Arts Yaacob Ibrahim, Acting Minister for Community Development, Youth and Sports Chan Chun Sing and Minister of State for Manpower Tan Chuan-Jin.

Asked to discuss the possibility of riots happening here again, such as those seen in London last August, some participants thought it was unlikely as Singaporeans prized social harmony. But others raised the prospect of riots fuelled not by racial or religious clashes, but xenophobic discontent over foreigners.

Mr Tan said the silver lining in this discontent was that it reflected a growing sense of a Singaporean identity. 'The question is, what is this Singaporean identity, what kind of values should we hold?' he asked.

Mr Chan felt that for a start, people should try to relate to one another as human beings first. 'When we look at an issue, let's try not to pigeonhole each other as a Singaporean or a foreigner, which can complicate the problem.'

Health Ministry working to dispel myths about TB

Straits Times, Published on Apr 28, 2012
By Judith Tan

PUBLIC education efforts are under way to dispel the misconceptions surrounding tuberculosis (TB), which is making a resurgence after some years in decline.

The Ministry of Health (MOH) told The Straits Times that it is working with the Health Promotion Board (HPB) and other partners to run community and workplace talks on this bacterial disease.
Information booklets are being distributed in schools for teachers and parents.

By making information on TB more widely available, the MOH also hopes to reduce the stigma and discrimination against those with the disease.

The HPB's message for those with the disease is to seek early treatment and ensure complete treatment.

This is crucial because patients who do not take their medication regularly or stop taking it too soon risk treatment failure, said Associate Professor Sonny Wang, director of the TB Control Unit at Tan Tock Seng Hospital.

The bug in them could develop resistance to drugs, paving the way for a relapse in the patients, and possibly spreading the disease in the community, he said.

The public education drive is part of the MOH's review of its TB elimination programme, which seeks to come up with new measures to detect and treat the disease, and prevent its spread in the community.

Last year, 1,533 new cases among Singapore residents were diagnosed, up from 1,478 cases the year before.

Of the 1,533 cases, 593 or nearly four in 10 were diagnosed in foreigners here. This is why foreigners are required to undergo an X-ray or be screened; those found with active TB have their applications for work permits and passes rejected or cancelled, said an MOH spokesman.

Respiratory and infectious diseases experts The Straits Times spoke to say more can be done.
Two TB specialists brought in by the MOH had three recommendations.

Professor Lee Reichman and Dr Paula Fujiwara have called for the latest drugs to be made available; for TB treatment to be made free; and for foreigners, particularly those coming here to work, to be screened back in their home countries, rather than after they arrive.

Dr Philip Eng, a respiratory doctor in private practice, believes that more can be done to ensure that those already down with the disease are treated 'properly and completely'.

TB, which typically attacks the lungs, is marked by symptoms such as prolonged coughs, fever and fatigue. Unlike influenza, where illness occurs within hours or days of infection, the TB germ can take months or years to develop.

Left untreated, the infection can spread to others and eventually kill.

Yet another maid falls to her death

Straits Times, Published on Apr 28, 2012

By Cherie Thio 

AN INDONESIAN maid fell to her death from the ninth floor of a Woodlands flat on Thursday, apparently while cleaning windows.

This is the eighth incident of a maid meeting such a fate this year. Last year, four maids died this way.
The latest incident happened at about 6.20pm at Block 801 Woodlands Street 81. A stool and cleaning materials were believed to have been found next to the window that the 25-year-old fell from.

A first-floor resident, who said he heard a loud thump, looked out of the window and saw the victim lying on a grass patch. 'She hit the roof of the small balcony attached to my flat first before falling onto the grass,' said the 18-year-old, who did not want to be named.

'The sound was so loud, I thought a car accident had happened,' added the student.

According to him, the two children of the maid's employers were also at the scene and looked very shocked.

Neighbours said the maid had been working for four to five months for a family of four. The couple have a son in secondary school and a daughter in primary school. Neighbours described the victim as small-built and quiet.

According to Chinese-language newspaper Shin Min Daily, only the children were at home when the incident happened.

Yesterday, the parents declined to be interviewed when The Straits Times visited their flat.

In the past five years, 24 maids have fallen to their deaths while working. Some 14 employers have been fined for putting their maids in the way of danger.

Contacted yesterday, Madam Halimah Yacob, Minister of State for Community Development, Youth and Sports, emphasised that safety precautions have to be taken. 'Employers should look at alternative ways to hang the clothes or clean the windows if it's too dangerous,' said Madam Halimah, who has spoken out several times before about the welfare of maids.

On Tuesday, The Straits Times reported that migrant worker group Humanitarian Organisation for Migration Economics had started a petition to ban maids from cleaning the outside of windows.

When contacted, the Manpower Ministry said it is 'gravely concerned' about the recent spate of accidents involving maids. 'We will also continue to explore what more can be done with our relevant stakeholders to prevent such unnecessary deaths,' said a spokesman.

Police are investigating Thursday's incident as an unnatural death.

Firms urged to opt for best sourcing

Straits Times, Published on Apr 27, 2012

CORPORATE governance should extend beyond the company gates and into the wider community, according to the Minister of State for Finance and Transport yesterday.

Mrs Josephine Teo urged bosses to improve the lives of their low-wage workers such as cleaners, landscape technicians and security guards.

She noted that when procuring a contractor, companies base their decisions on getting value for money.

'This is not wrong,' she said.

'But before you award the contract to the lowest-cost bidder, I would like to encourage you to probe the contractors to find out the terms of employment they offer to workers, the training and the tools they are provided to do their jobs effectively.'

Some contractors may not be running their business in a robust and sustainable way, so by exercising duty of care towards these workers, companies can signal to the contractors, and their own staff, the duty of care expected from them.

Mrs Teo, who was speaking at the CPA Forum 2012 yesterday, added: 'Cost is not the only measure of value. We support this move towards best sourcing rather than cheap sourcing to meet standards of good employment and business practices.'

The event was held in conjunction with the release of the Governance and Transparency Index scorecard on Singapore's listed firms.

Mrs Teo also noted that the Government procures services only from accredited cleaning service providers and well-graded security agencies.

But the Government, whose contracts cover about 10 per cent of the cleaning workforce, cannot transform the cleaning and security sectors on its own.

'I am urging you (the private sector) to consider adopting best sourcing as part of your corporate citizenship,' she said.

Mrs Teo also noted that good governance goes beyond systems, processes and controls as no organisation can institute such comprehensive safeguards as to eliminate all risks.

'A culture where duty of care permeates the whole organisation can be a powerful safeguard against gaps in governance that are yet to be uncovered and filled,' she said.

Building knowledge and capabilities is equally important to good corporate governance as it complements systems and processes, allowing an organisation to get more value out of its investment.
She cited the gateway process set up by the Ministry of Finance that strengthens the management of large infrastructure projects by instigating reviews and approval 'gates' for concept and designs.

Another example is the Centre for Public Project Management or CP2M, set up last year to build up public sector expertise in building design and project management to achieve greater value for money in infrastructure projects.

'We can well imagine such capacity building to be even more important in the private sector, driven by (the) bottom line,' she said.

ANITA GABRIEL

Shipyard not liable for man hurt there

Engineer a trespasser due to improper entry, so cannot claim damages: Court

Straits Times, Published on Apr 27, 2012

By K. C. Vijayan, Law Correspondent 

AN ENGINEER was sent to a shipyard on Tuas Basin Close to service the radar equipment on a tugboat.

But Mr See Toh Siew Kee turned up at the wrong address - 15 Tuas Basin Close - and was told that the boat was berthed next door, at 9/11 Tuas Basin Close.

Instead of entering the grounds of 9/11 Tuas Basin Close via the main gate, he did so via a gap in a fence which separated 9/11 Tuas Basin Close and 15 Tuas Basin Close.

In the shipyard, he was hit by a metal cable and suffered severe injuries. He sued the occupants of 9/11 Tuas Basin Close for negligence and failing in their duty of care as occupants.

He also sought compensation for medical costs and loss of future earnings, among other things. The quantum sought could have topped $1 million.

At issue before the High Court was whether the three defendants owed a duty of care to Mr See Toh and, if so, to what extent.

It is understood that the case also raised a landmark question of law concerning the degree of liability owed by occupants to trespassers who were on their land without their knowledge.

Justice Woo Bih Li, in judgment grounds released on Wednesday, held that Mr See Toh could not hold the occupants of 9/11 Tuas Basin Close liable for negligence, as he had trespassed knowingly into the premises where the mishap occurred on Feb 13, 2008.

Instead of entering the grounds of 9/11 Tuas Basin Close via the main gate, the engineer, then 48, had crossed over where the fence that separated 15 Tuas Basin Close and 9/11 Tuas Basin Close ended about 5m from the shoreline.

As he approached a ramp linked to a barge that was to be towed by the tugboat, a 32mm-in-diameter metal mooring cable suddenly hit him in the chest, and he fell motionless.

He suffered serious injuries, including a left neck fracture and tongue laceration, and was hospitalised at the National University Hospital.

He sued three defendants, including shipbuilder and repairer Ho Ah Lam Ferrocement, which had leased 9/11 Tuas Basin Close.

He also sued Lal Offshore Marine, which was using the premises to fabricate a set of living quarters, and Asian Lift, which was contracted to deliver the quarters to an offshore oil rig.

Ho Ah Lam, Lal Offshore and Asian Lift, defended by lawyers M. Nagaraja, S. Selvaraj and Magdalene Chew respectively, denied liability.

The judge said in his 64-page judgment grounds that though Mr See Toh did not climb over the fence, but went round it, his actions were 'akin to a trespasser who deliberately climbed over a fence'.

He found the defendants owed no duty of care to Mr See Toh, who had no reasonable excuse to enter Ho Ah Lam's premises as a trespasser, and who knew entering via the seafront access was not the proper route.

'He could, and should, have waited for the main gate of 9/11 Tuas Basin Close to be opened and to be allowed to have access into 9/11 Tuas Basin Close.'

'Mr See Toh was anxious to get his job over and done with,' said Justice Woo.

He noted that Mr See Toh had some 26 years of experience, and was familiar with operations that might occur at a shipyard and the precautions to be taken when boarding a vessel.

He said there was no reason to think that an adult would cross over in the way that Mr See Toh did when there was a main-gate entrance.

The judge added that even if there was a sign that indicated that something was going on at the premises, Mr See Toh would have disregarded the sign.

Justice Woo dismissed the list of negligence claims, describing them as 'a machine-gun approach that is spraying bullets randomly without focus'.

Asked if he would appeal, Mr See Toh's lawyer Lawrence Lee said he is studying the judgment.

Body of Myanmar man missing at sea found

Straits Times, Published on Apr 27, 2012
By Jose Hong

HE WAS found floating near the spot he disappeared at on Tuesday.

Yesterday morning, the authorities recovered the body of Myanmar national Maung Zaw Myo Win, off Marina South Pier.

Mr Zaw was last seen by his friend, captain Junrey Millan Hipe, three days ago on board a boat moored in the waters off the pier.

Mr Hipe, 33, said he had heard someone shouting about a man falling overboard in the morning, and immediately began a frantic search for Mr Zaw.

A search and rescue operation began the same day, involving the Maritime and Port Authority, the Police Coast Guard and divers from the Naval Diving Unit.

Mr Zaw, 32, was a crew member employed by Everlast Marine Services.

He came to Singapore in 2008 and had lived here since then.

Everyone who knew him was saddened by his death. His colleagues and superiors described him as an exemplary worker and person.

Mr Boon Tee Thiow, supervisor of Everlast Marine Services, said Mr Zaw did not drink, smoke or 'fool around'.

'He was a very good worker. He never said no,' said Mr Boon, 57.

Mr Hipe recalled the happy times that they spent together eating, chatting and watching television.
'But now, my friend is gone,' he said.

Mr Khun Con, 47, is a relative of Mr Zaw's and works in the same company. He said Mr Zaw's family was 'very sad' upon receiving news of his death.

The foreign worker is survived by two brothers, both in their 40s, a 50-year-old sister and an 80-year-old mother, said Mr Khun Con.

They used to be farmers in Naypyidaw, the capital of Myanmar, but their farm was 'taken over by the government'. They relied on the salary that Mr Zaw sent back monthly, he said.

Mr Zaw's family said they would not be sending for the body; it will be cremated tomorrow at the Mandai Crematorium.

Mr Win Zaw Linn, manager of Everlast Marine Services, said the company would pay for the funeral costs.

Police investigations are ongoing.

 

Productivity drive has to be sustained, says bosses' group

This will help counter rising business costs and labour shortage
Straits Times, Published on Apr 27, 2012

By Janice Heng & Toh Yong Chuan 

 

THE president of an employers' group has urged bosses not to be discouraged by last year's dip in productivity growth, but to persevere in improving it.

'Productivity is key to countering rising business costs and manpower shortages, as well as (to) the upgrading of low-wage jobs,' said Mr Stephen Lee, president of the Singapore National Employers Federation (SNEF).

Mr Lee made the call yesterday in a message to mark May Day, an annual celebration of workers' contributions, which falls next Tuesday.

Productivity grew just 1 per cent last year, below this decade's target of 2 per cent to 3 per cent each year.

Yet employers should not falter, said Mr Lee: 'Raising productivity over the long term requires perseverance and sustained efforts.'

He told The Straits Times that management must continue to lead the drive, but also needs to engage and involve unions and workers, and upgrade workers for better jobs.

His message comes amid high inflation, which hit 5.2 per cent last month.

But raising productivity will help businesses cope, said Mr Lee.

'Doing more with the same or less resources will help companies cushion the impact of rising business costs,' he told The Straits Times.

In his message, he also exhorted bosses to build an inclusive workforce, and share gains with low-wage workers.

'In this way, workers will be further motivated to support productivity efforts,' he told The Straits Times.

In a separate May Day message, Deputy Prime Minister Tharman Shanmugaratnam, who is also the Manpower Minister, pledged that the Government will continue to bring inclusive growth to Singaporeans.

'Everything we do is ultimately aimed at... growth which benefits all Singaporeans,' he said.
The key priority is to 'press on' with economic restructuring, so that higher productivity supports higher wages for workers, he added.

Mr Tharman promised to lend a hand to both companies and workers in the restructuring.

Small and medium-sized enterprises will get government help to upgrade operations to stay competitive, he said. Also, various training schemes for professionals, managers and executives will be expanded.

The DPM singled out low-wage workers and older workers as needing 'special support'.

He laid out the various schemes to improve the lot of low-wage workers such as Workfare, NTUC's Inclusive Growth Programme and the Government's 'best sourcing' drive to award contracts to companies with good employment practices, instead of those with the lowest bid.

For older workers, he pledged that the Government will 'closely monitor' the implementation and impact of the Retirement and Re-employment Act and Special Employment Credit scheme, which gives companies incentives to hire older workers.

It is important to strike the right balance between keeping Singapore open to foreign talents and expertise, and giving Singaporeans opportunities, he said.

Rounding up his message, Mr Tharman exhorted the tripartite partners to work as 'one family' to grow Singapore.

WAGE SHOCK THERAPY - SMEs will be hit hard under plan, SBF warns

Concerns over how pay increments are achieved

Straits Times, Published on Apr 27, 2012

By Aaron Low, Economics Correspondent 

 

THE debate over a prominent economist's plan to close the wage gap continues to rage, after a major group representing employers criticised the plan by saying it will hit small and medium-sized enterprises (SMEs) hard.

The Singapore Business Federation (SBF) warned that the proposal to lift wages of the lowest-paid by more than 50 per cent over three years would have 'untoward consequences'.

It said wage increments must be accompanied by productivity gains to make such a move sustainable.
The SBF said that businesses were not against wage increases for lower wage workers, but added that how such rises are achieved is as important.

Professor Lim Chong Yah sparked a huge national debate earlier this month after he suggested that Singapore drastically raise wages at the bottom while freezing wage increases of the highest earners.
He said that the move will help close the income gap, which was approaching dangerous levels, and tackle the problem of low productivity among firms.

Government officials and the labour union leadership have come out strongly against his plan, saying it was risky and that there are better ways to reduce the gap.

Yesterday, the SBF, which represents about 12,000 SMEs, noted that SMEs employ 70 per cent of Singapore's workforce, and that Prof Lim's 'wage shock' proposal would hit them hard.

Mr Lawrence Leow, chairman of the SBF's SME committee, said that an 'unmitigated wage increase without productivity improvements will stifle growth'.

He said that pay raises must be justified on productivity gains, or else there is a real chance many firms will simply shut down.

'Firms can maybe set a five- year target to raise productivity and wages and they can tilt any wage gains towards the lower income,' he said.

'But they will need time and a clear plan, as opposed to simply giving higher wages without a clear business reason.'

The president of the Association of Small and Medium Enterprises, Mr Chan Chong Beng, added that Prof Lim's plan will hurt the bottom line and cash flows of many SMEs, which are already being squeezed by escalating business and labour costs.

Mr Chan said he thinks that firms can endure a sharp 20 per cent increase in wages for one year, but they will need to justify the increase over the next two to three years through higher sales or profits.
'I think bosses already know they just can't pay $800 for workers and that the benchmark is closer to $1,000 to $1,200 now,' he said. 'But they will need to find ways to make workers do more on higher salaries, or raise revenues to pay for the higher wages.'

Still, regardless of what firms think of the plan, SBF chief Ho Meng Kit said that the best part of it was simply that it had set people thinking hard about the problem.

He said the SBF supports the current approach of firms working with the unions and the Government to raise productivity. 'This requires more effort but the result would be more sustainable.'
 

Snappy way to report unsafe work practices

MOM's new app allows users to easily report problems - and send praise

Straits Times, Published on Apr 27, 2012

By Janice Heng 

 

Photo caption: When users of the Snap@MOM app spot good or bad safety practices, they can snap a shot, tag their location, write a description and send the feedback to MOM. -- ST PHOTO: MALCOLM MCLEOD

 

MEMBERS of the public are being roped in to spot - and report - shortfalls in workplace safety and health with a new cellphone application (app) developed by the Ministry of Manpower (MOM).
When users of Snap@MOM see, for example, a construction worker working at a height without using a harness, they may use their cellphone cameras to snap a shot.

They can next identify their location using the app's Global Positioning System, insert a short description and then hit 'Submit'.

The feedback goes straight to MOM.

If the occupiers of the workplace are registered on the app, they will receive an alert.
The app is available on iPhone and Android devices.

Minister of State for Manpower Tan Chuan-Jin said at its launch yesterday: 'We want to build a culture that does not tolerate unsafe work practices.'

The usefulness of the app cuts the other way too: Apart from reporting lapses, the public can send in praise when they see instances of good safety practices.

The app is one of several initiatives introduced with this year's National Workplace Safety and Health Campaign.

The message this year is: 'Stop the assumptions. Stop work accidents.' It will feature in print and television advertisements.

Workplace Safety and Health (WSH) Council acting chairman Heng Chiang Gnee said: 'The assumption that safety has been taken care of, or is the responsibility of someone else, is a key contributing factor to many accidents.'

The campaign thus hopes to get supervisors and workers alike to stop making such assumptions and take personal responsibility for safety in the workplace.

Another initiative launched under the banner of the campaign is a professional qualification for occupational hygiene officers who oversee workplace safety and health issues.

The holder of the Workforce Skills Qualifications Specialist Diploma in Occupational Hygiene would have been trained in identifying and lowering workplace health and safety risks.

The diploma was developed by the Workforce Development Agency and the WSH Council, in collaboration with MOM.

The pilot batch of 22 occupational hygiene officers graduated yesterday; the target is to have 2,000 people trained in this area by 2018.

Among the graduates was Mr Francis Ong, the vice-president of operations at oil and gas firm Halcyon Offshore. He already oversees the company's workplace health, safety and environment (HSE) issues, but still found the course useful.

'When we study HSE, we tend to go in depth into safety, rather than health or the environment,' he said, adding that the course has taught him about exposure to chemicals and noise-induced deafness, a big problem in his industry.

He has since introduced measures to reduce workers' exposure to noise, such as by putting up noise barriers around those doing work that generates high sound levels.

Small- and medium-sized enterprises (SMEs) will also get a helping hand with workplace safety and health issues, with the WSH Council dropping in to run awareness talks and roadshows.

The target is to reach 6,000 SMEs in three years.
 

More workers laid off last year, but job market grew

Published on Apr 27, 2012

ALTHOUGH more workers were laid off last year, the job market also grew, bringing the proportion of employees who lost their jobs to an all-time low.

Some 9,990 workers were given the pink slip, up slightly from 9,800 in 2010.

But set against a labour market which grew by 117,700 workers last year, the figures translate to a 'new low' of 5.5 workers let go for every 1,000, said the Manpower Ministry (MOM) yesterday.

Eight in 10 of the 806 companies that trimmed their workforce last year were small- and medium-sized types.

The main reasons were restructuring, reorganisation and downsizing to reduce both labour and non-labour costs.

Staff in the manufacturing sector bore the brunt of dismissals, with 4,460 let go - or 11 for every 1,000 in the sector.

Comparatively, this is well above the 3.8 workers retrenched in the services sector and 4.2 in construction.

In absolute numbers, fewer construction workers were laid off - 1,050, down from 1,350 in 2010 - because of a boost from public projects, said the MOM.

In contrast, more service sector workers lost their jobs - 4,430, up from 3,960 in 2010 - which the MOM said was linked to these employees' growing share of the workforce. About two in three in the workforce are from the services sector.

Higher-paid staff were not spared the axe. Some 4,170 professionals, managers, executives and technicians (PMETs) lost their jobs, up from 3,450 in 2010.

The trend is a concern for Mr Patrick Tay, MP for Nee Soon GRC and head of the National Trades Union Congress' (NTUC) PME unit. He hopes the Employment Act review will give more protection to workers, especially PMEs. MOM announced that the Act would be reviewed this year but gave no details.

Associate Professor Randolph Tan of SIM University sees the overall picture as 'not a bad one'.
'Increased churn is always a sign of good health in the labour market because the turnover ensures there is room for businesses to vary their headcount to meet changing needs,' he said.

While more people were laid off, they were also quick to bounce back. Seven in 10 had found jobs by year-end.

TOH YONG CHUAN

 

Nightingale Nursing Home in more trouble

It faces charges of illegal deployment of foreign workers

Straits Times, Published on Apr 27, 2012

By Janice Heng 

NIGHTINGALE Nursing Home, which was investigated last year for the mistreatment of a resident, was slapped with fresh charges of flouting employment laws yesterday.

It faces 31 charges of illegal deployment of foreign workers, and one charge of false declaration of salaries to the Ministry of Manpower (MOM).

Separately, the Ministry of Health (MOH) confirmed yesterday that it has taken legal action against the home for the alleged mistreatment of the elderly resident, who was flung onto her bed and slapped by its staff.

The employment offences, which occurred in 2010, include illegally deploying nursing aides as food and drink sellers, cheerleaders and security personnel at Toa Payoh Stadium during football games.

Foreign workers are not allowed to be deployed for jobs outside of what their work permits were issued for.

Illegal deployment carries a fine of up to $5,000.

Two other organisations under the Nightingale Group were also charged yesterday for employment offences.

Greenview Nursing Home, on Braddell Road, faces 11 charges of illegally deploying its foreign nursing aides at football games and as general and administrative staff. 

Civic Ambulance Services faces nine charges of false declaration of salaries for its foreign staff, from 2007 to 2009.

In applications for S Passes, the organisation falsely declared that its employees would be paid monthly salaries of $1,800 - which was then the minimum required to qualify for the work pass for mid-skilled workers.

Employers falsely declare salaries to get S Passes in order to save on monthly levies, which are lower for S-Pass holders than for unskilled Work Permit holders.

Making a false declaration in a work pass application is punishable with a fine of up to $15,000, a jail term of up to 12 months, or both.

MOM said the prosecution of the three organisations indicates that it takes a serious view of the flouting of the laws on employment.

The three organisations were also accused of making their foreign employees work excessive hours, failing to make overtime payments and failing to produce attendance records, said MOM. 

Nightingale Nursing Home, also on Braddell Road, made headlines last year when a video showing staff members mistreating an elderly resident came to light.

The incident in November 2010 was secretly filmed on a camera installed by the resident's son. 

Footage showed that Madam Peh Siew Lay, 75, was left sitting topless under a whirring fan for about 30 minutes. She was later flung onto her bed by the home's staff, and slapped on her mouth when she groaned.

In February this year, Minister of State for Health Amy Khor said in Parliament that police investigations of the incident had been completed and the home would face legal action.

An MOH spokesman yesterday said that the ministry has taken legal action against the home under the Private Hospitals and Medical Clinics Act. 

'As the matter is currently before the courts, it is inappropriate for MOH to comment further,' she added.

Following the incident, MOH suspended the home from taking in new patients. This remains in force, said the spokesman. 

Two foreign workers at the home also had their work permits revoked. Another worker, who was filmed slapping Madam Peh, quit after the incident.

The ministry said it will continue to ensure that patient care at the nursing home is not compromised.

Nursing home charged over alleged patient abuse

by Claire Huang Jingyi

TODAY, Apr 27, 2012

 

SINGAPORE - About a year after a shocking case of patient abuse by its staff came to light following a MediaCorp report, the Nightingale Nursing Home was yesterday charged with allegedly flouting the Private Hospitals and Medical Clinics Act.

It has also emerged that prior to the alleged mistreatment, the nursing home along Braddell Road was already under investigation by the Ministry of Manpower (MOM) for employment breaches.

Yesterday, it was also slapped with 32 charges for flouting the Employment of Foreign Manpower Act (EFMA) and Employment Act (EA), mostly for illegal deployment of workers. Apart from Nightingale, MOM has also charged two other organisations - Greenview Nursing Home and Civic Ambulance Services - for similar breaches.

Last March, a man had secretly captured on video his elderly mother being flung onto a bed and slapped by the staff of Nightingale, and the video clip was later televised.

The legal action brought by the Ministry of Health (MOH) against the nursing home came after Minister of State (Health) Amy Khor revealed in Parliament, about two months ago, that police investigations into the incident had been completed.

The alleged mistreatment breaches the licence guidelines under the Act: Nightingale's nursing department allegedly failed to provide optimal quality care and did not ensure that the nursing care provided to the patient is of approved standards.

If found guilty, the home's management faces a fine of up to $20,000 or jail of up to two years, or both.

An MOH spokesperson said: "As the matter is currently before the courts, it is inappropriate for MOH to comment further. Patient welfare is our top priority. MOH will continue to ensure that patient care at NNH is not compromised."

She added that the suspension of Nightingale from admitting new patients, which took effect last April, is still in force.

On Nightingale's employment breaches, MOM said the alleged offences took place in 2010.

Of the 32 charges faced by Nightingale, 31 related to illegal deployment on multiple occasions between 1999 and July 2010, and one of false declaration to the MOM in April 2009.

Greenview Nursing Home faces 11 charges, which are all related to the illegal deployment of foreigners against work permit conditions between June 2007 and July 2010.

Civic Ambulance Services had allegedly falsely declared salaries on nine occasions between September 2007 and May 2009.

All three organisations were charged by MOM in court yesterday.

According to court documents, Nightingale and Greenview had allegedly illegally deployed nursing aides to be cheerleaders, to work at football games and as general or administrative staff.

Other charges the three organisations face include false declaration of salaries, excessive working hours, failure to make overtime payments, and failure to produce attendance records.

An MOM spokesperson said the prosecution showed that the ministry "takes a serious view of the flouting of the laws on employment, in this case where foreign employees were made to work illegally without adequate rest and proper compensation".

For illegal deployment, an organisation could be fined up to S$5,000. If convicted of false declaration, the penalty is a fine not exceeding S$15,000, jail of up to 12 months, or both.

Lay-offs up but most find jobs again quickly

by Cheow Xin Yi

TODAY, Apr 27, 2012

 

SINGAPORE - Even as the number of workers made redundant crept up last year, re-entry into employment for such workers was at a three-year high - with 70 per cent able to find new jobs within 12 months of being laid off, up from 66 per cent in the 2010 cohort and 65 per cent in the 2009 cohort.

The statistics - which were released yesterday by the Ministry of Manpower (MOM) in an annual report - paint a picture of an economy undergoing the pain of restructuring, while enjoying the fruits of the Government's push for retraining and skills upgrading, economists told Today.

According to the MOM report, about 9,990 workers were laid off last year amid more moderate economic growth, up from 9,800 in 2010. The last three months of last year accounted for almost a third of the lay-offs, with 3,250 residents losing their jobs - the highest recorded in 10 quarters.

Economists attributed this to worries of the euro zone debt crisis, which intensified towards the end of last year, before confidence rebounded.

Seasonal factors also played a part as well, said CIMB regional economist Song Seng Wun. "We do see business usually taking the opportunity to lay off during the year end ... when they look at next year's plan to see if they need this size of workers," he said.

Manufacturing remained the most vulnerable sector to lay-offs, with the highest incidence of 11 workers made redundant for every 1,000 last year.

While the number of lay-offs fell for clerical, sales and service as well as production and related workers, it rose by 21 per cent for professionals, managers, executives and technicians (PMETs). Nevertheless, production and related workers remained the most vulnerable occupational group to lay-offs in terms of incidence, MOM said.

Said OCBC economist Selena Ling said: "The bulk of redundancies coming manufacturing means (the economy) is still reflecting the restructuring story, the push for productivity and the use of less cheap and unskilled labour to move up the value chain."

DBS senior economist Irvin Seah pointed to the statistics on re-entry into employment as a sign that "structural unemployment can be kept low despite the pain of restructuring". They also suggest that the Government's push for retraining and up-skilling seemed to have bore fruits, he said.

However, going forward, he expects some "slight deterioration" in the re-entry into employment figures as restructuring goes into full steam, especially with recent policy changes to reduce foreign worker inflow including the raising of foreign worker levies and the tightening of dependency ratios.

Said Mr Seah: "We are only at the start of the exercise. There could be more pain for companies and more may move out of Singapore. Some workers may then find it difficult to adjust and maintain a job."

But Mr Song disagreed. The tightening of imported labour inflow would result in better work conditions and wages - this would in turn entice Singaporeans to sectors where there are demand, such as the public transport sector.

Said Mr Song: "We know there would be more buses going forward, where hiring typically comes from Malaysia and China. Would raising salary and conditions help to entice more Singaporeans to become bus-drivers or not? I think it's slowly happening."

Barclays economist Leong Wai Ho believed that the employment picture would be rosier in the months ahead. He said: "In January, we realised that Europe's troubles will not become systemic. The climate of fear dissipated and business confidence came back. With that confidence, I think people started rehiring."

In Singapore, our domestic helpers have no names…

From Mrbrown.com,

Thursday, April 26, 2012

…just product numbers.

URL: http://www.mrbrown.com/blog/2012/04/in-singapore-our-domestic-helpers-have-no-names.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+mrbrown+%28mrbrown%29&utm_content=Google+Reader

Unlike HK, Singapore has easy access to cheap foreign labour

Straits Times, Forum, Published on Apr 27, 2012

 

UNLIKE Hong Kong, the market forces of demand and supply do not apply here because of the abundant source of cheap foreign labour ('About that superior Hong Kong wage comparison...' by Mr Toh Cheng Seong; last Saturday).

The buoyant economy and slow productivity growth over decades discouraged mechanisation, and so the construction industry here lags behind that of Hong Kong.

We should not accept the widening income gap any longer. It is easy to insist that higher wages must be predicated with higher productivity and economic growth to meet global competitiveness.

But the reality on the ground suggests that the disparity must be tackled in a positive way.

What strikes me most is that despite the four times higher wages in Hong Kong for construction workers, they can still get a decent bowl of wonton noodles for HK$20 (S$3.20) and a plate of rice with mixed vegetables and meat for HK$30 at street stalls.

Fair wages should be commensurate with the prevailing cost of living and should precede productivity.

Paul Chan

Impose safety precautions now

Straits Times, Forum, Published on Apr 26, 2012

SEVEN maids have plunged to their deaths in less than four months, most of them falling while cleaning windows in the higher floors of flats ('Maid falls to her death - 7th so far this year'; last Friday).
It seems obvious that the Ministry of Manpower's warnings are inadequate and drastic action is required.

There should be an immediate ban on maids cleaning the outside of windows in all private apartments and HDB flats, and the penalty for ignoring the ban should be punitive.

Town councils and management corporations must arrange for windows in higher floors to be cleaned professionally.

In the longer term, developers should be incentivised to install windows that can be pivoted, so that a person does not need to stretch precariously to clean any part of them.

Clothes should not be hung on bamboo poles outside HDB flats; instead they should be hung at designated washing areas inside the units, like at private apartments.

I hope the Manpower Ministry, together with the National Development Ministry and the Housing Board, will act with more urgency to implement these safety precautions and practices.

Dr Huang Shoou Chyuan

 

FATAL FALLS, INCOMPETENCE... Maids: Legislate quality control

Straits Times, Forum, Published on Apr 26, 2012

I WAS aghast upon reading Tuesday's report that a maid used her employer's toothbrush to clean the basin ('Teacher pleads guilty to caning maid repeatedly').

While I agree that the employer's reaction was inexcusable, the episode highlights a common problem that employers face and which creates unnecessary anxiety: the lack and, perhaps in this case, absence of basic quality control benchmarks governing the hiring of maids here.

Not only should we ask whether maids are trainable, but also whether they are sufficiently intelligent to be trained, undertake basic domestic duties and adapt to urban living.

How did such maids get past the relevant authority's screening process in the first place?

The question of whether the Government should legislate quality control is more pressing now, given the recent spate of deaths arising from maids falling from high-rise flats while cleaning windows.

Cleaning the outside of windows in high-rise flats is dangerous, unnecessary and should be avoided.
The seven deaths so far this year, all involving Indonesian maids, suggest that the Ministry of Manpower and maid agencies must tighten qualifying criteria for maids from Indonesia ('Ban cleaning to save lives?; Tuesday).

Perhaps a specific law should be crafted to ensure quality control of maids heading here to work.

Ang Chin Guan

Search on for Myanmar boatman missing at sea

Man believed to have fallen overboard into waters off Marina South Pier
Straits Times, Published on Apr 25, 2012

By Jose Hong 

 

THE search for a Myanmar national, who is believed to have fallen overboard into the waters off Marina South Pier yesterday morning, continued into the night.

The Maritime and Port Authority of Singapore (MPA), in a statement last night, said that passing vessels and operators of waterfront properties have been notified to keep a lookout for Mr Maung Zaw Myo Win.

The 32-year-old lives and works on a 12-seater passenger boat operated by Everlast Marine Services.
His colleagues told The Straits Times yesterday that he could not swim.

Mr Zaw was last seen at about 7am yesterday by Mr Junrey Millan Hipe, the captain of another vessel belonging to Everlast Marine Services.

Five boats from the same operator were moored together off Marina South Pier yesterday, said Mr Boon Tee Thiow, a supervisor at the firm.

Mr Hipe, 33, said he heard someone shouting about a man falling overboard yesterday and immediately began a frantic search for Mr Zaw.

The captain said he contacted Mr Boon 30 minutes later, after he was unable to find the missing man. Mr Boon alerted his company director and port master, who raised the issue to the MPA and the Police Coast Guard.

Two MPA vessels and one from the Police Coast Guard were deployed for the search and rescue operation shortly after.

The MPA said it has issued navigational broadcasts to nearby vessels to keep clear of the search and rescue area and 'to report any sighting of the missing person'.

The Naval Diving Unit also deployed five divers to join the search at 2.30pm. But they returned to shore at about 5pm, without any sign of Mr Zaw.

Second Warrant Officer Wee Boon Siew, who is from the Naval Diving Unit, said underwater search and rescue operations can 'take days'.

The MPA said last night that it is investigating the incident.

In the meantime, a relative of Mr Zaw was worried about how he would break the news to Mr Zaw's family back home.

Mr Khun Con, 47, who is married to Mr Zaw's cousin, said his wife already knows what happened but 'does not know how to explain' it to the missing man's family.

He said Mr Zaw has not returned to Myanmar since 2008 when he first arrived here for work. His 80-year-old mother, two brothers and sister live in Naypyidaw, Myanmar's capital.

Lighting three candles, he knelt in front of them and prayed for Mr Zaw as the search and rescue operation continued.

Ensuring the safety of maids

Straits Times, Published on Apr 25, 2012

By John Gee, For The Straits Times

SEVEN reported deaths of maids in falls from buildings this year have prompted questions about what can be done to keep these workers safer.

In the last five years, 24 maids fell to their deaths while working. Another 45 fell and survived. Fourteen employers were fined for putting their maids in the way of danger.

The issue is not new.

When Transient Workers Count Too was first established in 2003, researchers found that around 90 domestic workers had been killed in falls over the previous four years. The Ministry of Manpower (MOM) systematically advised employers and workers about good safety practices in high-rise homes.

In February 2004, all employers were sent a letter accompanied by a leaflet on their responsibility for ensuring their workers' safety: Workers were not to risk their safety cleaning the outside of windows. They were advised on the safe hanging of laundry, not to lean out, overload any pole, and only hang heavier items close to the wall. This compulsory safety awareness course for new workers and the orientation programme for first-time employers was launched in April 2004.

The safety message was reinforced with punitive action. For the first time in 2006, an employer was sentenced to two weeks' imprisonment for jeopardising her worker's life by getting her to climb onto a ledge to hang out washing. The worker fell and died.

These measures have made a difference. Despite an alarming 15 lives lost last year, the overall death rate is significantly down from earlier levels: 27 in the five years to 2010 compared with 99 between 1999 and June 2003. This despite a nearly 50 per cent rise in the number of maids working in Singapore, up to 206,000 this year from 140,000 in 2003.

So part of the solution to curbing the toll in lives and injuries is to do more of the same, and to see if it can be done more effectively.

This might include re-examining how safety is taught, so that workers and new employers are asked more searchingly about their safety awareness courses to ensure compliance. Workers may be pushed to risk their lives by their employers, but it should also be recognised that some may well feel that they should clean outside windows regardless of circumstances. But they need to know they must not risk their lives for any reason.

Educational initiatives might be focused on the more vulnerable: Indonesians and now, Myanmar workers as well.

Punitive measures could be increased for irresponsible employers. Although it is not a punishment, an obligation to compensate the family of a worker who falls, including payment for loss of potential earnings, might also provide a powerful incentive for employers to ensure that workers are not put at risk.

When maids first arrive in Singapore, they generally face eight or nine months of salary deductions while employers recover the placement cost. Workers are especially vulnerable then as they avoid annoying their employers and being sent home, with no earnings to show for their work.

Maids need to be assured that they can refuse work that endangers their health or breaks Singapore law, without finding themselves on the next airplane home. This means being told they can make a report to MOM and be protected from being sent home, if necessary being assisted to find another employer at no extra cost.

It should also be made an offence for an employer to send a worker out of Singapore to prevent her from pursuing a complaint.

But there is another darker dimension to this issue of maids falling to their deaths: Some are non-accidental falls. Some women may have fallen intentionally (suicide) or were trying to climb out of windows (escape).

One common explanation was that village women unused to working in high-rises were more accident-prone.

But Hong Kong also employs many domestic workers from a similar background. Yet the numbers dying in falls there are lower than in Singapore.

In the Hong Kong case, one difference was that maids had days off by right, so no worker was likely to kill herself or die trying to escape from an employer's residence.

Desperation might explain women falling while trying to escape from their employers' flats. Anyone free to walk through the front door would not need to risk a climb down the outside of a tall building.
Suicides and hazardous escapes may not form most of the falls, but they almost certainly account for some.

Deaths and injuries of maids can be reduced further. Enhanced education and protective measures are one route, and the recent institution of a regular day off will provide another.

The writer is the immediate past president of Transient Workers Count Too.

 

Which path to take?

Under Govt's projected scenarios, 20,000 to 25,000 new immigrants are needed annually to keep citizen population size stable

by Tan Weizhen

TODAY, Apr 25, 2012

 

SINGAPORE - To keep the size of its citizen population stable, the Republic would have to increase the rate at which it is giving out new citizenships - by up to 1.4 times compared to average figures over the past five years.

The National Population and Talent Division (NPTD) released a paper yesterday illustrating five scenarios based on certain assumptions about future demographics trends over a projected period.

Under the projections - which are not targets or forecasts - an intake of 20,000 to 25,000 new citizens each year would be necessary to keep the citizen population size stable, assuming Singapore's total fertility rate (TFR) stays at its current rate of 1.2. Should Singapore be able to increase the TFR to 2.1, the citizen population size would be stable even if no new citizenships are granted.

In the worst-case scenario - where no new citizens added and the TFR stays at 1.2 - Singapore's native population will start shrinking around 2025, with citizen deaths exceeding births. And there will only be 2.1 working-age citizens to each elderly citizen by 2030.

According to NPTD, Singapore, like most East Asian cities, is faced with a declining TFR. It also has an increasing life expectancy, which is one of the highest in the world. As a result, the Singapore population will age rapidly, with the median age of citizens rising to 47 years in 2030, from 39 years last year.

The NPTD said the paper "seeks to provide a picture of our demographic challenges to facilitate review of population policies".

It added: "Our starting point when looking at the population is our citizens, who form the core of our population. Hence, the objective (of the paper) is to lay out the demographic characteristics of our citizen population under various population scenarios."

The paper will form the basis for a White Paper on population goals and policies, which will be released by the end of the year.

The NPTD said: "We have started with focus group discussions with different segments of the community, to gain a better understanding of the various views on population-related issues."

From the middle of the year, NPTD will engage members of the public through various avenues, "including dialogues and online channels to discuss these issues holistically".

It added: "Through this process, we hope to bring to light issues that are important to Singapore and Singaporeans, and develop a shared understanding of our strategies to build a sustainable population that secures Singapore's future."

Between 2007 and last year, on average, about 18,500 new citizenships were granted each year. During this period, the highest number of new citizenships granted was 20,513 in 2008.

On the projected scenarios, sociologists Today spoke to raised concerns on how the society would cope with increasing social tensions as the number of new citizens goes up.

They also noted that NPTD's projections do not take into account the number of permanent residents (PRs), which should be reduced correspondingly should the number of new citizens increase.

Also, Singapore may have to become more attractive to get as many as 25,000 new citizens a year, they added. National University of Singapore sociologist Paulin Straughan suggested that citizenship benefits be increased while the authorities seek to draw new citizens of better calibre.

Responding to media queries, an NPTD spokesperson reiterated that the Government "will continue to ensure that we take in immigrants who are of good quality and able to integrate well into our society". The spokesperson added: "We assess applications holistically on a set of criteria that includes the applicants' family ties to Singaporeans, economic contributions, qualifications, age, family profile, length of stay in Singapore, and their commitment to sinking roots in Singapore."

Still, Institute of Policy Studies research fellow Leong Chan-Hoong noted that without projections for the number of PRs, "it is difficult to decide what is the preferred landscape" - since PRs also put a strain on public amenities and housing, and the numbers are much larger than that of new citizens.

The sociologists stressed that moving forward, the strain on infrastructure caused by an influx of new immigrations must be addressed.

An "optimal position" would be one that can "best handle the conflicting demands and tensions", said NUS sociologist Tan Ern Ser. He added: "Apart from enhancing our infrastructural capacity, we would still need to enhance Singaporeans' sense of security and promote social integration."

Singapore takes in "good quality" immigrants

TODAY, Apr 24, 2012

 

SINGAPORE - The National Population and Talent Division has said that Singapore will continue to take in immigrants "who are of good quality and able to integrate well into society".

Analysts Channel NewsAsia spoke with have stressed that Singapore needs to be mindful of the kind of immigrants it attracts.

Immigrants have to be young, can contribute economically and can adapt to Singapore culture, say analysts.

Associate Professor Paulin Tay Straughan, a sociologist at the National University of Singapore, said: "If we're talking about trying to attract 25,000 new citizens, then an important consideration would be, we want to make sure we attract good quality applicants.

"So how do we do that? Do we invite more to grow the pool of non-residents so that the probability of finding a segment with the desired attributes will be higher or do we look at immigration concerns with a more targeted approach?

"In short, don't just open doors but be very careful with outreach efforts. We must know who we want to target.

"We want to target younger new citizens because they would have a younger lifespan in terms of their productivity years and with younger citizens, they grow families.

"So the outreach must be a very targeted one and in order to make Singapore an attractive place for these talents, we also have to be careful that we do not send out signals that foreigners are not welcomed."

The National Population and Talent Division said Singapore assesses citizenship applications holistically.

The assessment includes looking at the person's family ties to Singaporeans, qualifications and length of stay in the country.

A spokesperson from the National Population and Talent Division said: "We will continue to ensure that we take in immigrants who are of good quality and able to integrate well into our society.

"We assess applications holistically on a set of criteria that includes the applicants' family ties to Singaporeans, economic contributions, qualifications, age, family profile, length of stay in Singapore, and their commitment to sinking roots in Singapore."

The National Population and Talent Division added that most new citizens come from Asian countries and between 2005 and 2010, more than half of them were aged 30 or below.

It also explained why its report does not account for the number of permanent residents.

It said citizens are its starting point when looking at the population because they form the core of the population.

"Hence, the objective of this Occasional Paper is to lay out the demographic characteristics of our citizen population under various population scenarios, so as to provide a picture of our demographic challenges," said the spokesperson.

Commentary - Beefing up the Employment Act

Law must keep up with changes such as rising pay and PME numbers

Straits Times, Published on Apr 25, 2012

By Toh Yong Chuan, Senior Correspondent 

JUST four years after its last update, the Employment Act is up for another revamp. The Manpower Ministry (MOM) has pledged to consult unions and employers in its review of the law this year.

The Employment Act protects workers by setting out minimum employment terms and benefits. It also provides redress for workers to recover salaries and to resolve disputes with employers.

The last update in 2008 took place after 13 years. It brought 200,000 more workers under its ambit, covering 1.6 million workers. This time round, a mere four years has seen sweeping workplace changes, making a review timely.

Changes in four areas in the workforce underpin the need for an updated law.

First, fast-rising wages.

In 2008, the Act was amended to cover workers earning up to $2,000 each month, up from $1,600 previously. There were calls for the ceiling to go up to $2,300, which was then the median wage.
In the last three years, the bar has been raised further. Median gross monthly income from work for the resident workforce rose from $2,588 in 2008 to $2,925 in 2011.

This puts pressure on the salary ceiling to go up. If it does not, more workers will find themselves falling out of the protection of the Act.

Second, there are more professionals, managers and executives (PMEs) in the workforce. The number of resident PMEs in the labour force grew from 573,000 in 2008 to 629,400 last year.

PMEs are given some protection under the current Employment Act. Those earning below $4,500 can turn to the MOM and Labour Court for help in salary disputes.

The amount of $4,500 is thus the threshold where the law now says: 'You are on your own' in pay disputes.

But is the threshold realistic today?

According to the latest available Report on Wages in Singapore, the median wage for professionals in 2010 was $4,300. The median wage for managers was $6,300, with the bottom quarter earning below $4,399. This means that only about one in four managers earn below $4,500 and are covered by the Act.

The limit was first set at $2,500 in 2008, and subsequently raised to $4,500.

To cover PMEs, the $4,500 ceiling has to go up. If not, the majority of professionals and managers will fall out of the protection of the law.

Third, the need to boost medical benefits of low-wage workers.

In 2008, the Act was updated so that workers can get paid medical leave after three months of work, instead of six previously. While it was meant to help low-wage workers, it can go further.

Employers are now required by law to bear the doctor's consultation fee of their workers. But they are not obliged to pay for medication, treatment or hospitalisation, unless it is in the contract made with the worker or the collective agreement signed with the union.

This means that employers can dodge paying the medical fees for workers who are not unionised, and they can thrust a lopsided contract to workers and say: 'Take it or leave it.'

Two labour MPs interviewed pointed out that foreign workers get better medical benefits than some low-wage workers.

Employers of foreign workers are compelled by law to provide medical insurance for hospitalisation and surgery set at a minimum of $15,000 a year.

It is time to extend this to cover local workers. This won't be financially ruinous to companies, since a basic health plan - pegged to the nation's MediShield Basic plan - has monthly premiums of less than $30 for a worker below 65 years old.

Fourth, with a much bigger proportion of foreigners in the workforce and some evidence of rising tension between locals and foreigners, it is time to deal with the issue of discrimination head-on.
Excluding domestic maids, the number of foreigners in the workforce grew from 866,300 in 2008 to 991,600 last year. Foreigners took up 32.8 per cent of jobs last year, up from 31.4 per cent in 2008.
Whereas most foreigners used to fill jobs unpopular with Singaporeans - such as in the construction or cleaning sectors - more foreigners in Singapore these days are PMEs in service jobs. Examples include infocomm, retail and customer service jobs.

Foreign PMEs in Singapore grew from 63,000 in 2006 to 112,000 in 2010. In the services sector, the numbers soared from 51,000 to 90,000.

Back in 2008, some people had suggested that the Act be expanded to include an anti-discrimination law. The suggestion was not taken up but deserves another look.

The top complaint received by the fair employment watchdog Tafep (Tripartite Alliance for Fair Employment Practices) was on bosses preferring foreigners over Singaporeans. This included discriminatory job advertisements. Tafep received 277 complaints last year, up from 115 a year ago. But Tafep as an alliance lacks legislative force and enforcement clout.

To be sure, introducing an anti-discrimination law is a major exercise that should not be undertaken lightly. Many different interests have to be balanced in drafting such a law.

For example, while Singaporeans may press for an anti-discrimination law to protect citizens, foreigners in the workforce may demand that the law protects them from discrimination on the basis of their nationality.

There would also be calls for an anti- discrimination law to be worded to prevent any form of discrimination in the workplace - on nationality, race, gender or religion, for example.

While difficult to resolve with a law, the thorny issue of discrimination deserves more discussion. A human resource manager I spoke to flagged this as one issue that should be dealt with in the review of the Act. A frank debate on this would be a good first step towards the stamping-out of discriminatory workplace practices.

Many more suggestions to review the Act will be raised in the coming months. Not all will be accepted. But the overall thrust of the changes must keep the law in sync with the fast-changing workplace.