The year of workplace accidents

Workplace fatalities may have fallen on the whole, but you wouldn’t have known from the news, as one major incident after another made headlines. Janice Heng reports

Straits Times, Published on Dec 31, 2012

The stricken oil rig on Dec 4. The jack-up rig, which was under construction, tilted 30 degrees a day earlier due to a braking system failure. The 980 workers on board fled as it tilted over, with many jumping into the sea to escape. In all, 89 people were injured. -- ST PHOTO: KEVIN LIM
 

The underground scaffolding at the Downtown Line Bugis station worksite that collapsed in July. The ministry and Institute of Engineers Singapore say the workers should not have been under the formwork. -- LIANHE ZAOBAO FILE PHOTO

OIL RIG ACCIDENT
Shipyard mishap among the worst
IT WAS called one of the worst industrial accidents in recent times.
On Dec 3, a partially built oil rig with 980 workers on board tilted 30 degrees, forcing them to flee - with many jumping into the sea - and leaving 89 injured.

THE BIG PICTURE
SINGAPORE is the world's biggest player in jack-up rig building, with about 70 per cent of the market. Sembcorp Marine, which owns Jurong Shipyard where the accident occurred, is the world's second-largest rig-builder.

The accident thus has the potential to dent Singapore's reputation or hit SembMarine's order books. But investors seem unfazed. The company's share price dipped on the day of the accident but recovered within two days.

THE AFTERMATH
THE Manpower Ministry's order to stop work at the site has yet to be lifted and investigations by SembMarine are ongoing.

The rig remains tilted though the company is working to right it. The rig was originally due to be delivered to an American customer in the first quarter of next year.

While its value is not known, previous reports said such rigs usually cost US$220 million (S$268 million).

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MILITARY DEATHS
Seven died in camp or training
IT WAS a year of tragedy for the Singapore Armed Forces (SAF), with seven servicemen dying in camp or a training area.

The tally includes Private Amirul Syahmi Kamal, 19, and Second Sergeant Suresh Seluras, 24, who were both found hanging - the former in a locked toilet cubicle at the Guards camp in Bedok, the latter at Changi Air Base.

Corporal (NS) Li Hongyang, 28, collapsed after his 2.4km run in the Individual Physical Proficiency Test in January. Lance Cpl (NS) Tan Tai Seng, 23, died when a tree fell on him.

And in what is thought to be the worst non-fatal military accident, Navy regular Jason Chee, 29, escaped with his life but lost both legs and his left arm. He was caught between a motorised winch and a berthing rope onboard warship RSS Endeavour.

THE BIG PICTURE
WHILE each death was a grave loss, the ones which happened during training exercises also raised questions about the SAF's safety procedures and culture.

THE AFTERMATH
COMMITTEES of inquiry into two of the incidents found clear breaches of training safety rules. Seven commanders were found negligent and redeployed, while investigations continue to see if they should be prosecuted.

Private Dominique Sarron Lee Rui Feng, 21, died of an allergic reaction after a platoon commander threw six smoke grenades in a training exercise. The maximum allowed under regulations: two.
Third Sgt Tan Mou Sheng, 20, died after his jeep overturned. He had not belted up or worn a helmet. The driver was unlicensed.

Investigations continue into several incidents, including the death of Cpl Muhammad Fahrurrazi Salim, 20, who went missing during training in a river in Brunei and was later found drowned.
Navy serviceman Chee, a Military Expert 2, is still in hospital.

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EAST VILLAGE FIRE
Blaze at upcoming Marine Parade hotel puts 11 in hospital
FOR five hours on July 16, flames filled the basement and ground floor of the retail annexe of East Village Hotel in Marine Parade. No one was killed but 11 people were taken to the hospital.

THE BIG PICTURE
BETTER risk management could have prevented the incident, the Manpower Ministry said after initial investigations. The fire is thought to have begun when sparks from upgrading works on the first floor fell to the basement, which had polystyrene boards and cans of thinner and paint.

THE AFTERMATH
THE hotel, which was undamaged, is set to open next year. It is owned by Far East Organization.
MOM and the Singapore Civil Defence Force are still investigating the fire.

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CONCRETE MOULDING ACCIDENTS
Two workers buried in wet concrete
ON JULY 18, two Chinese national workers died at the Downtown Line Bugis station's worksite under a deluge of wet concrete, after scaffolding above them buckled.

It had been supporting a formwork or mould into which concrete was being poured. Eight other workers and nine rescuers were also hurt.

Wet concrete rained again on Nov 18, this time from the 15th storey of the Orchard Gateway construction site. The mould it was being poured in had given way.
Fortunately, no one was hurt.

THE BIG PICTURE
INDUSTRY practice may have parted ways with legal requirements. The Manpower Ministry and Institute of Engineers Singapore said workers should not have been under the formwork at Bugis.
But contractors said this is a common practice. The formwork and its support should have been able to bear at least twice the weight of the concrete poured in. But it seems the scaffolding which collapsed was designed to bear just 1.2 times the weight.

THE AFTERMATH
THE ministry issued a stop-work order for the Downtown Line site, which was lifted on Aug 28.
The Orchard Gateway site also had work stopped for nine days.

Investigations into both incidents continue.

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HIGH-RISE FALLS
Deaths of 9 maids spur more safety measures
NINE maids fell to their deaths in the first six months of the year, with many cleaning windows or hanging out laundry then. The accidents cast a spotlight on the need to improve maids' safety.

THE BIG PICTURE
NINE deaths in a year is worryingly high, compared to 24 deaths in the past five years. This is despite measures such as a safety awareness course that new maids have had to attend since 2004.

More maids coming here are inexperienced, as the veterans are drawn to places with better working conditions, such as Hong Kong. Industry experts have suggested that this could make accidents more likely to happen.

THE AFTERMATH
IN MAY, the Manpower Ministry launched an orientation programme introducing new maids to high-rise settings.

It rolled out safety measures in June, such as requiring home owners to install window grilles and supervise window cleaning. Since Dec 1, employers of new maids have had to sign an agreement to ensure these rules are followed.

In May, the Indonesian government forbade new maids from cleaning out-facing windows or hanging laundry outside high-rise homes. Bosses found asking their maids to do so will be blacklisted and barred from hiring Indonesian maids. But lawyers said this would be hard to enforce.

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Background story

WHAT'S BEING DONE
Workplaces safer as agencies hammer home importance of vigilance
THIS year's headlines may not suggest it but workplaces have actually become safer.
In the past two years, there were slightly more than two deaths a year for every 100,000 workers - compared to a rate of almost five deaths back in 2004.

But the journey towards safe and healthy workplaces is long and challenging, acknowledges Workplace Safety and Health Council chairman Lee Tzu Yang.

"We believe that every accident is preventable," he said.

But this can happen only if everyone - employer or employee, general worker or specialist - takes safety to heart. Meanwhile, government bodies continue to hammer home the importance of vigilance in the workplace.
WSH COUNCIL

• Launched CultureSAFE, which helps organisations draw up roadmaps to improve safety.
• Plans to reach out not just to workers but also families and students.

MINISTRY OF MANPOWER

• Surprise inspections have been stepped up, especially at construction sites.
• New guidelines have been introduced for working at heights.

MINISTRY OF DEFENCE

• More full-time Unit Safety Officers are on the ground.
• A board, chaired by a senior civil servant from outside the ministry, will review the army's safety structure, processes and culture.
• A new inspectorate, reporting directly to the Chief of the Defence Force, will oversee safety culture across the armed forces.

LAND TRANSPORT AUTHORITY

• New tenders for rail or road projects face tighter safety requirements. For instance, contractors must have a programme to correct risky behaviour.
• The safety promotion scheme for large civil contracts now has larger bonuses - and penalties, up from $1.25 million to $1.5 million.
• Higher safety standards must be met to get the bonus payout.

 

Retailers still facing labour crunch despite raising wages

Straits Times, Published on Dec 31, 2012
By Chia Yan Min

Some retailers say they continue to face staff shortages despite implementing wage hikes of between 5 per cent and 10 per cent. Fewer people are applying to work at retailers like Wing Tai Retail, which operates 160 fashion outlets including Topshop (above). -- ST FILE PHOTO

SALES from festive shoppers this year may have slowed for many retailers, but that is not the only problem plaguing them.

Despite offering higher wages to lure Singaporeans to work as sales staff, the industry is still facing a manpower squeeze that has been especially painful over the festive shopping period.

Retailers The Straits Times spoke to said they have implemented wage increases of between 5 per cent and 10 per cent compared with last year, yet continue to be beleaguered by staff shortages.
Fewer people are applying to work at retailers such as Wing Tai Retail, which operates 160 fashion outlets including Karen Millen and Topshop.

Its spokesman said that between June and September, the number of applicants for its retail jobs fell by 52 per cent, compared with the same period last year.

This decline was in spite of higher salaries for its front-line retail employees. Part-time staff now earn $10 an hour on weekdays and $11 an hour on weekends. Previously, the respective rates were $6 on weekdays and $7 on weekends.

Increasingly stringent regulations on the hiring of foreign labour are also a key factor in the manpower crunch, retailers said.

The industry is highly dependent on foreigners. About half of all front-line retail employees here are foreigners, said Mr Josh Goh, assistant director of corporate services at human resources consultancy The GMP Group.

In July this year, the Government tightened foreign labour quotas in several industries, including the service sector. Firms are now allowed to have foreign workers fill up only 45 per cent of positions, down from 50 per cent previously.

Wing Tai also attributes the staff shortage to greater competition in the market, and the acceleration of expansion plans by existing brands.

Mr David Tang, chief executive of department store Metro, echoed this, saying more foreign retailers entering the local market meant higher industry demand for manpower.

But retailers said their hands are tied. The Wing Tai spokesman said the company has "limited affordability to 'hire at all cost' even in this tight labour market", as operating costs, including rent, have also been on the rise.

Ms Kiran Kaur, regional human resources director of Courts Asia, said that while less than 20 per cent of its employees in Singapore are foreigners, this ratio might not be sustainable in the long run due to difficulties in hiring Singaporeans.

The company increased the pay of front-line retail staff by about 5 per cent in April, in a bid to hire more Singaporeans put off by the long hours and physical demands of the job.

But attracting Singaporeans to work in retail continues to be "our greatest challenge", said Ms Kaur.
Despite the wage increases, those in retail continue to make less than their counterparts in other industries.

Mr Goh said front-line retail staff, who work for about eight to 12 hours a shift, typically earn a base salary of about $1,200 to $1,400, plus an average monthly commission of $200.

In comparison, non-graduates in other industries draw an average salary of about $1,600 to $1,800, a difference of 25 per cent to 45 per cent.

Many retailers, including home- grown shoe chain Charles and Keith, where foreigners make up 40 per cent of its workforce, have tried to plug staffing gaps with part-time staff.

But as a Charles and Keith spokesman said: "They do not have as much product knowledge as our full-timers due to their short stay."

The lack of front-line staff is making retailers like fashion and lifestyle distributor Jay Gee Enterprises wince at the lost opportunities in making a sale.

"This crunch affects us in all aspects - beginning with lost business opportunities with under-staffing, compromising on quality time to serve customers at the stores, and eventually business expansion," said its managing director R. Dhinakaran.

The Wing Tai spokesman said retail outlets require a "minimum headcount" to ensure basic customer service needs are met and store operations run smoothly.

Singapore Human Resources Institute executive director David Ang said relying on part-time staff does not solve retailers' long-term staffing issues.

He said more can be done to alleviate the physical demands of retail jobs.

"Companies could look into how they can design the work environment to be more friendly, for example, providing a chair so cashiers won't have to stand."

He added that companies could also do more to cultivate a sense of job ownership among employees.
Polytechnic student Elaine Tham, 19, who has worked as a part-time sales assistant during term breaks, said she would not consider a long-term career in the industry.

"I feel that career advancement is limited. I might consider working in retail if the pay was higher," she said.

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Background story

NOT FOR THE LONG TERM
I feel that career advancement is limited. I might consider working in retail if the pay was higher.
- Polytechnic student Elaine Tham, 19, who has worked as a part-time sales assistant during term breaks
 

Foreign workers and ageing citizens in the spotlight

CHATROOM DR REUBEN WONG, DR CHUA HAK BIN & SHAIKH SYED ISA SEMAIT

The year 2012 was an eventful one for the political arena, and next year promises more of the same. But what kind of politics can Singapore expect to see in the year ahead? Dr Reuben Wong, Dr Chua Hak Bin and Shaikh Syed Isa Semait discuss with Andrea Ong the defining issues of 2012 and how Singapore can move forward in 2013. Dr Wong is a political scientist at the National University of Singapore, Dr Chua is an economist with Bank of America Merrill Lynch and Shaikh Syed Isa is the former mufti of Singapore and the vice-president of the Inter-Religious Organisation.

Straits Times, Published on Dec 29, 2012

With the national conversation well under way, Dr Reuben Wong hopes for more mature and reasoned public debates next year. -- PHOTO: WANBAO

Dr Chua Hak Bin looks forward to a better global economy and is monitoring Malaysia’s upcoming general election. -- ST PHOTO: LIM WUI LIANG

Shaikh Syed Isa Semait believes the way forward is to live happily in peace amid the different cultures, religions and languages. -- PHOTO: MOHD TAUFIK A KADER

• What do you think were the issues that defined 2012?

Dr Reuben Wong: Nimby (not in my backyard). It's defining because we are on the cusp of having a very large proportion of aged people in Singapore and yet we are not very well prepared. We are preparing the infrastructure, but socially and attitudinally, Singaporeans are not prepared.
One in three Singaporeans will be at least 65 by 2030. That's only 17 years away.
Our whole population make-up and infrastructure, everything has to change. We need eldercare facilities in the neighbourhood, not some far-off place. If one in three of the population is elderly, you shouldn't be making him take a taxi halfway across town.

Dr Chua Hak Bin: The theme of this year seems to be restructuring - the deliberate and calibrated shift towards a less labour-dependent and higher-quality growth model. That's been the ongoing experiment, but it has come with mixed results.
Ideally, the hope was that the shift would drive productivity growth and inflation would not result.
On the good side, core inflation is contained somewhat, wages are rising for the low-income group and the labour market remains fairly tight.
On the more disappointing side, growth has been somewhat lacklustre, with the risk of a technical recession a very likely reality. Productivity growth has been somewhat elusive.
All those efforts and initiatives, budget incentives and so on, but the results are clearly not visible.

• Looking back on the year, what made you most happy or unhappy?

Dr Wong: I think the xenophobia towards foreigners quite marked 2012, like the way people reacted to everything from Sun Xu to Ma Chi, the man involved in the Ferrari crash.
The foreign workers involved in the SMRT strike were also Chinese. I think those who were already sympathetic to Chinese workers felt more sympathetic because they realised that they live in pretty bad conditions. Those who felt anti-Chinese probably felt more anti-Chinese. This whole issue is quite polarised.
Government engagement is definitely better than before last year's general election.
Before that, it was talking about feedback; now it's a conversation. The very idea of feedback is so anti-democratic - citizens should be involved in making policies and decisions. A conversation at least goes somewhere down that line, towards co-decision making.
I'm still looking forward to the conclusion to all the discussions, to see where we're going to go.

Dr Chua: It's a balance between the social concerns and the trade-offs of economic costs. There was an effort to try and make up for some shortfalls of previous years, in terms of public transport and shortage of public housing.
But the issues of low-wage workers are not going to go away. The demographic trends in Asia will bring up some of these forces even more dramatically in the coming years: The labour market is tightening across Asia, in part because China is facing a turning point with labour shortages and rising costs.
Over the past decade, we've seen wages of the lower-income folks being depressed somewhat by this huge pool of workers from China and India. That looks to be coming to an end.
The bargaining power of the low-wage worker is coming back. Across the whole region, you suddenly see lower-income workers able to negotiate and bargain for a fairer share, a group which has been somewhat marginalised in the last decade. That's a positive development.

Shaikh Syed Isa: As a country, we are lucky that our Government and social workers here are quite aware about what is the good thing and not-so-good thing to do.
Our lives here are much better than in other countries. Our standard of education is much better, our people do not face the difficulties that other people face.
We should thank God for giving us the community, the way of life, the situation here. And we hope it will continue or improve much, much more.

• What do you think next year will be about?

Dr Wong: The economy. The global economy is unstable, so Singapore has got to manoeuvre in a very unstable situation - how the recovery in the US, Europe and Japan will affect us, whether China continues to grow at a reasonable pace and whether we can ride on China's and India's growth.
If there is a by-election, it will be an election where the PAP has a lot to lose and the opposition has something to gain. If the PAP wins, it has to win reasonably well. If it just squeaks past or loses it, oh dear.
But the by-election is still a sideshow domestically.
I think the population White Paper is the main show. That's really important - to figure out the trends of the population, what we need to change, how to adapt our population profile for our workforce, infrastructure and economy.
Health care is also an issue which is a long time coming. We have to think about more sustainable health care that covers the growing bulge of old people without over-straining our resources.

Dr Chua: Things may also get uglier for SMEs next year, when their existing permits expire. If they are still above their foreign worker dependency ratio ceiling then, they cannot renew their permits.
I think complaints will come over the strict foreign worker policies. There will be tension between those who argue that we need to clamp down and those who say companies and SMEs which have relied heavily on foreign workers are going to feel the bite a lot more.
As the policy effects become more visible, there could be more cases of shutdowns or losses. There will be more blood.
What do you hope to see next year? How can Singapore improve its politics?

Shaikh Syed Isa: I hope that Singapore will prosper and peace will prevail.
The best thing is peace, that we can live among ourselves in peace, although we have many cultures, religions, languages. So I hope we can live in peace and be happy. That's the best gift from God to our country and to the people of Singapore.

Dr Wong: I would like to see more reasoned, more dispassionate debate, not the kinds of shrill debate we've heard so far.
It will happen as society matures and people get used to having debates and having disagreements in public. We don't have that culture yet, but I think it will come over time.
It will be good if we have more such debates and the institutions which can cultivate this - universities, social institutions, the media, the alternative media and blogosphere - will be the gatekeepers that set their own standards.
I think we should also put a cap on unbridled capitalism.
We've cut down on what politicians should earn, but we should also have some sort of limit on sky-high salaries that bankers earn. This has already started happening in the US and London.
I hope there will be some checks on the salaries of big corporations. If we don't set an example, our Gini coefficient (a measure of equality) will continue to worsen.

Dr Chua: My wish list is for the pressures that are hurting the global economy to dissipate.
Basically, if the US can recover a lot more strongly next year, if the Europeans can somehow contain the debt crisis and China holds firm, and Asean makes a very clear commitment on economic integration, then I think Singapore is in a good position to benefit.
Most important would be the outcome of the Malaysian elections, since that is in our immediate neighbourhood. I hope that whatever the outcome, any kind of transition will be a smooth one.
As for Singapore, I think it should focus - as it always has been - on remaining resilient and anticipating some of these shocks. It can help companies which may be struggling because of the ongoing restructuring, and continue to target the right kind of investments, the higher-value investments.

THE YEAR public transport MADE THE NEWS

Straits Times, Published on Dec 29, 2012

Five new routes and 89 buses have been rolled out this year, as part of the $1.1 billion Bus Service Enhancement Programme. -- ST PHOTO: CAROLINE CHIA

The transport sector went down many roads in 2012, from a high-level probe into two massive train breakdowns last year to a two-day strike by SMRT bus drivers from China against wages and living conditions. Several figures, such as new SMRT CEO Desmond Kuek who endured a baptism of fire in his new role, featured prominently in the year's events. In aviation, the shutters came down on Changi Airport's Budget Terminal, which will make way for a new and bigger Terminal 4 in 2017. The Government also announced details of the 22-station Thomson Line and measures to ensure more taxis ply the roads. Royston Sim reports.

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MRT
A major disruption every few months
MRT breakdowns continued to tax commuters' patience, with a major disruption every few months even as a six-week Committee of Inquiry (COI) hearing in April and May into last December's two major disruptions was under way.
In March, two broken overhead steel cables crippled a stretch of the North-East Line for more than 10 hours, affecting 90,000 commuters.
That was followed by a spate of disruptions in April.
In September, a faulty power cable that was exposed to water caused train service on the entire Circle Line to be shut down for nearly an hour.
On last year's North-South Line breakdowns, the COI concluded in a 358-page report that SMRT's maintenance lapses had led to the two disruptions that inconvenienced more than 200,000 commuters. SMRT was fined $2 million for the breakdowns.
The report also laid out an extensive list of recommendations to prevent a recurrence and improve the overall response to such incidents.
Work is under way to improve the reliability of the entire MRT network, and this will carry on to next year.
A joint Land Transport Authority-SMRT team is implementing the recommendations.
For instance, SMRT will install sensors on two trains plying the North-South and East-West lines to improve detection of problems with the power rail.
On the Circle Line, sub-aquatic cables that can withstand being submerged in water are likely to be used when the three-year-old line is recabled - a first here.
Commuters can also expect the unveiling of new MRT lines next year when the LTA reveals its updated Land Transport Masterplan.

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BUSES
$1.1b from Govt to improve network ...and a strike
COMMUTERS disenchanted with overcrowding on trains and buses will get more breathing room from the Government's injection of $1.1 billion to improve the bus network.
It recognised that building up rail capacity would take some time and viewed buses as a way to relieve train congestion.
Under the $1.1 billion Bus Service Enhancement Programme, 800 buses and about 40 routes will be added in the next five years to ease the peak-hour squeeze and boost connectivity. Five new routes and 89 buses have been rolled out this year.
But service hit a bump when 171 SMRT bus drivers from China went on strike last month to protest over wages and living conditions in dormitories.
They were unhappy about getting lower wages and salary adjustments compared to their Malaysian counterparts.
The Government, which labelled the two-day strike as illegal, charged four drivers in court, jailed one of them, and repatriated another 29 to China.
In the wake of the dispute, SMRT has set up a 24-hour hotline for its drivers and a dedicated team of liaison officers. It is also considering housing its drivers in Housing Board rental flats when the dormitory leases expire.

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CABS
Boosting the availability of taxis
GETTING a cab promises to be less of a headache after the LTA introduced several measures to tackle the issue this year.
In March, it rolled out three new requirements for operators to renew their licences. They included doubling the minimum fleet size to 800.
Last month, it set standards for the number of taxis that must ply the roads during peak hours and the minimum mileage cabbies have to clock a day.
Operators must ensure at least 70 per cent of their fleets are on the road during peak hours from next month.
The six taxi companies have about 28,000 cabs in all. At least 70 per cent of each operator's fleet must also cover a daily average of 250km a cab from next month.
Both standards will go up to 85 per cent in 2015. Taxi firms must meet the standards at least four times in six months before they can expand their fleet the following year.
London cabs that can accommodate larger wheelchairs were also given a new lease of life this year. Fifteen such taxis were due to be phased out but operator SMRT was awarded a $3.1 million grant in August to buy 30 new London cabs.

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CARS
Rocketing  COE prices
CAR buyers renewed calls to tweak the Certificate of Entitlement (COE) system after premiums surged to record highs.
Notably, the price of small-car COEs breached the $80,000 mark this month. The premium for cars up to 1,600cc has steadily risen over the months, in spite of measures taken by the Government earlier this year.
It had allowed the annual vehicle population rate to grow at 1 per cent from August instead of 0.5 per cent, providing about 10 per cent more COEs between August and January. It also reduced the allocation of COEs to the Open category and took taxis out of the bidding process.
With the 0.5 per cent growth rate set to kick in next February, motor traders predict that COE premiums will continue to rise as supply shrinks.
The premium for cars up to 1,600cc is expected to cross the $100,000 mark later next year.
Lamenting that even bread-and-butter cars are now out of their reach, some Singaporeans have suggested having a bidding system that gives preferential treatment to first-time owners.
roysim@sph.com.sg

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People who featured prominently

Lui Tuck Yew
ARGUABLY the busiest Cabinet member this year, the Transport Minister started 2012 with an explanation to Parliament about the major MRT breakdowns in December last year.
He then fielded questions from MPs after he unveiled a $1.1 billion plan to ramp up bus services. He pledged that it would not be used to boost operators' profits. Mr Lui then had to deal with breakdowns on the North-East and Circle lines in March and April.
In July, he delivered the Government's response to findings from a Committee of Inquiry and said his ministry had to share the blame. He pledged to improve the MRT's reliability.
Mr Lui drew the ire of commuters this month for saying bus fares might go up in future to improve the wages of bus drivers. A week later, he elaborated that fare increases must come with service improvements.

Desmond Kuek
AFTER a long search for a new chief executive that saw names such as former NTUC deputy secretary-general Ong Ye Kung bandied about, SMRT hired former Chief of Defence Force Desmond Kuek (right) to fill the hot seat vacated by Ms Saw Phaik Hwa.
The 49-year-old has undergone a baptism of fire since taking over in October, with a massive Circle Line breakdown and then a strike by the company's Chinese-national bus drivers - episodes that underscored what a tumultuous year it has been for the operator.
Mr Kuek has since begun a major reshuffle to address what he termed as "managerial, structural, cultural and systemic issues" in SMRT. Eight management staff have been hired to steer the company back on track.
Mr Kuek has also set up a division manned by 20 people to focus on customer issues.

He Jun Ling
IDENTIFIED as a key architect behind the first strike in Singapore in 26 years, He Jun Ling (right) was one of four SMRT bus drivers charged in court with instigating last month's two-day walkout.
The 32-year-old also drew an additional charge of inciting his compatriots from China to go on strike via an online post that he made on Chinese website Baidu. Among other things, He had railed against the difference in pay between Chinese and Malaysian drivers. He urged his fellow drivers not to show up for work so that SMRT's management would come under scrutiny from the media and Land Transport Authority.
Along with the other three, he has engaged a lawyer and is out on bail. He will have to appear in court again on Jan 10. A fifth driver - Bao Feng Shan, 38 - was jailed for six weeks earlier this month for taking part in the strike on both days and making "threatening comments" to officials. Another 29 drivers were repatriated to China.

Maid's 9-storey death fall likely an accident: Coroner

She probably lost balance on stool next to window

Straits Times, Published on Dec 29, 2012

By Khushwant Singh

 

A MAID had been warned by her employer not to stand on a stool next to the window of her room to reach items she had hung on a bamboo pole.

But in March, the body of Ms Etik Darmayanti, 29, was found sprawled on the ground nine storeys below, an inquiry into her death heard yesterday.

State Coroner Toh Yung Cheong said that in all probability, Ms Etik was standing on the stool and stretching her hand to reach the bag hanging from the pole when she lost her balance and accidentally fell through the open window.

Police do not suspect any foul play while investigations revealed she was not depressed or unhappy.

Ms Etik, an Indonesian national, had been happy working for the family of Madam Tok Bi Chen. She had not once complained to her agent about her working conditions or the family, whom she had been with for about a year.

Madam Tok had woken her husband when she was unable to find the maid in their flat in Dover Road at 6.30am on March 5. They then looked down from the open window of the maid's room and saw her body on the ground.

The 34-year-old housewife had told the police that Ms Etik had the habit of climbing on the stool to take down items from the bamboo pole hanging from the ceiling. The maid would do this every morning if her clothes or other items had dried.

Madam Tok also said that she had warned her three children and the maid many times not to climb on the stool, especially when the window was open.

Manager Lim Kim Hong, 44, of the maid agency told investigators that Ms Etik was an experienced maid, having worked in Hong Kong and for other households in Singapore. Neither was she in financial difficulties or in any relationship.

Her foster father, 53, had also not voiced any suspicions over her death when the maid agency representative visited him in his village in Indonesia.

Tan Chuan-Jin to focus on productivity, labour ties

Straits Times, Published on Dec 29, 2012

By Janice Heng

 

STRENGTHENING industrial relations and increasing productivity will be among key areas to improve on in 2013 - a year "likely to be challenging", said Acting Manpower Minister Tan Chuan-Jin yesterday.

He said 2012 was "a reasonably decent year" with real median income growing nearly 1 per cent, citizen unemployment staying low and improved laws to protect foreign workers.

Yet there is room for improvement in areas such as workplace safety, labour relations and looking after vulnerable workers.

For instance, tripartite partners "will have to work even harder to strengthen industrial relations", he said, adding that last month's bus drivers' strike "underscored this important lesson".

In a post on the ministry's blog, he said 2013 includes such "sobering realities" as low projected economic growth of 1 to 3 per cent for Singapore, and "painful" economic restructuring.

But the latter process is essential for sustainable growth, he added. Productivity-led growth - not growth fuelled by adding more workers - is what will create higher-value jobs with higher wages.

The Government will continue supporting firms' efforts to innovate, through schemes such as the Inclusive Growth Programme. It will also "look at doing more" in job-matching, said Mr Tan.

Workers can also tap the Workfare Training Support Scheme, which gives incentives for training. The amount given out is being reviewed to ensure that it provides "adequate encouragement".

The eligibility criteria for that and the Workfare Income Supplement Scheme - which tops up the income of low-wage workers - are also under review, with the outcome to be announced early next year, said Mr Tan.

The ministry has much more on its plate for 2013, such as the review of Singapore's main labour law. Mr Tan ended his post with a reminder that the Government is not the only factor.

From workplace safety to work-life balance, "establishing the right environment cannot just depend on laws and regulations", he said. "Culture and attitude matter, and that is where the real fundamental changes occur."

Productivity goal tough: Federation

Straits Times, Published on Dec 29, 2012

By Jonathan Kwok

 

SINGAPORE'S largest business group said yesterday that the Government's productivity goal may be difficult to achieve.

"The 2 to 3 per cent (a year) productivity growth that Singapore is aiming for appears to be a stretched target," said the Singapore Business Federation (SBF).

It said that developed countries tend to achieve only 1 per cent to 2 per cent productivity growth a year, on average, noting that Singapore is a developed nation.

The Government has made it one of its top economic priorities to raise productivity, with a target of 2 per cent to 3 per cent a year.

But SBF chief operating officer Victor Tay said that the productivity target could be hard to achieve in Singapore.

"We think it (productivity growth) is important," he said.

"But as a developed economy, the room for improvement is not as much as the developing economies, with their inefficiencies."

He noted that Singapore's small size has reduced inefficiencies in transporting goods around compared with larger countries.

Local companies are also already digitised and wired up, relying on computer applications for many processes.

"The productivity gains will have to be drawn from remote, esoteric areas. It is harder to get," said Mr Tay, on the sidelines of a press briefing yesterday.

Singapore has struggled to achieve gains in recent years, recording just 1 per cent labour productivity growth last year.

Analysts said that part of the reason for the dismal productivity gains so far is that Singapore's productivity is tied to the business cycle.

This means that productivity shoots up with economic growth but falls when growth is slow.

Singapore is expected to grow by about 1.5 per cent this year and between 1 per cent and 3 per cent next year, implying that productivity gains will be hard to achieve, said Bank of America Merrill Lynch economist Chua Hak Bin.

But Mizuho Corporate Bank economist Vishnu Varathan remains optimistic that the initial payoff from productivity will come in two or three years' time.

"With regard to the episodes of negative productivity growth during this time, we can consider it as 'creative destruction'," he said. "What's more, given increasing competition in the region, productivity gains may be the differentiating factor."

Tight foreign worker policy 'could stifle growth'

Business federation wants labour rules calibrated in targeted approach

Straits Times, Published on Dec 29, 2012

By Jonathan Kwok

The Singapore Business Federation (SBF), representing more than 18,000 firms, warned that the foreign worker policy could stifle economic growth, drive some businesses to the wall and others overseas. -- ST PHOTO: SEAH KWANG PENG

SINGAPORE'S largest business grouping yesterday sounded its loudest alarm yet over the Government's tighter labour policies.

The Singapore Business Federation (SBF), representing more than 18,000 firms, warned that the foreign worker policy could stifle economic growth, drive some businesses to the wall and others overseas.

It said the Government's goal of higher productivity could not compensate for labour shortages in the short term.

The SBF also warned that the official 2 per cent to 3 per cent a year productivity growth target may not be achievable in a developed nation such as Singapore.

The Government has progressively imposed tougher restrictions on foreign worker numbers and urged firms to focus on productivity.

"Given the shortage of local workforce, foreign manpower is integral to the workforce," SBF said.

"Singapore should continue to keep its door open to them. This approach will enable the Singapore economy to remain competitive and dynamic to fuel higher standards of living for all Singaporeans."
It said the "foreign manpower policy should be calibrated in a targeted approach".

The Government has acknowledged the tight labour market.

In a blog post yesterday, Acting Manpower Minister Tan Chuan-Jin said that overall, the labour market will continue to remain tight, if not become tighter, next year. "The pressure on businesses to expand through product innovation and making their workforce more productive will be more intense," he said.

The SBF held a briefing to present its wide-ranging position paper on population issues. It had been invited to give its views by the Government's National Population and Talent Division.

SBF chief operating officer Victor Tay warned of the side effects of the tighter foreign labour policy such as higher costs for businesses and residents.

Innovation will be hampered, and the service sector could suffer from a lack of manpower, leading to a drop in service standards at hotels and restaurants.

In charting population policy to meet Singapore's economic and social needs, SBF talked of taking a short-term, mid-term and long-term approach to the issue.

In the short term, SBF said local firms recognise Singaporeans should be the core of the workforce, and suggested that the Government offer more help to firms to tap on retirees and housewives.

But it wants Singapore to remain open to foreign labour, pointing out that their presence can help locals move up the economic value chain.

For the mid-term, SBF urged a focus on productivity. It called for the development of industry clusters, where big firms can transfer knowledge and raise the productivity of their suppliers.

In the long term, a good-quality local workforce can be achieved with the Government's support of marriage and parenthood.

Some economists said a return to a liberal foreign labour policy would be unnecessary.

United Overseas Bank's Mr Francis Tan said: "We can meet our economic targets by continuing the programmes of increasing labour productivity by using technology and better systems design - all without the need to have more foreign workers."

Companies are adapting by continuing to move lower-value operations to neighbouring countries like Malaysia and Indonesia. "I think this will continue now in a more accelerated fashion," said SBF chief executive Ho Meng Kit.

Printing firm Winson Press' CEO Tan Jit Khoon said he has difficulty in hiring for some positions."Productivity growth needs time to realise," he said, adding that he is not asking for a reversal of the policies but hopes that they will not be tightened further.

MOM cautions all firms after workplace deaths

Ministry issues safety reminder, warns of prosecution

Straits Times, Published on Dec 28, 2012
By Janice Heng

 

A worker with a harness on scaffolding. Four workplace deaths took place in seven days from Dec 19 to 25, and were the most recent of nine workplace accidents this month, which resulted in six deaths. -- ST PHOTO: LAU FOOK KONG

AFTER four workplace deaths in seven days, the Ministry of Manpower (MOM) is reminding companies to ensure workers' safety - or risk prosecution.

In a statement yesterday, MOM said it was concerned about the spate of accidents. It urged companies to "proactively carry out thorough risk assessments and enforce safety measures, to ensure the safety and health of their workers".

The four incidents took place between Dec19 and Dec25. On Dec 19, a stack of glass panels fell on two workers helping to move them, killing one and injuring another.

Two days later, a skip bin skidded, trapping a worker between it and the track of a boring rig. He died.

The next day, a truck driver died, apparently after falling while climbing into its cabin.

Then, on Christmas Day, a worker fell while plastering a wall on the roof of a building and died.

These were just the most recent of nine workplace accidents this month, which resulted in six deaths, mostly in the construction and manufacturing sectors.

All nine cases are being investigated by MOM's Occupational Safety and Health Inspectorate.

Director Kevin Teoh said initial findings were that the accidents could have been prevented with proper risk assessment and good safety practices. By law, all stakeholders - occupiers, principals, contractors and workers - must take "reasonably practicable measures" to ensure health and safety. Those found guilty of failing to do so can be fined up to $200,000, jailed for up to two years, or both, for the first offence.

Companies can be fined up to $500,000, and workers who fail to comply with safety measures can be fined up to $1,000.

Two cases from 2010 resulted in prosecutions this month. One employer was fined $100,000, with two workers involved fined $800 each. In the other, the worksite occupier was fined $60,000.
The deaths close a year which saw fewer workplace deaths in the first six months, but also high- profile accidents, such as the Downtown Line scaffolding collapse which killed two workers.
MOM stepped up safety inspections in August.

Firms must never take a chance when it comes to safety, said labour MP Yeo Guat Kwang, a member of the Workplace Safety and Health Council, which yesterday e-mailed more than 26,000 industry players, highlighting the four accidents and urging companies to stay vigilant.

Mr Md Zin Abdol Azis, a storekeeper for an industrial gas manufacturer, oversees the handling of flammable cylinders.He said: "We tell new workers it is about making sure you can go home safely to your family at the end of the day."

***

Background story

SAFETY FIRST
We tell new workers it is about making sure you can go home safely to your family at the end of the day.
- Mr Md Zin Abdol Azis, a storekeeper for an industrial gas manufacturer, who oversees the handling of flammable cylinders
 

Foreign worker policies through lens of economics

Problems posed by large number of foreign workers in Singapore require not just the right incentives but also right norms and institutions

STRAITS TIMES, Published on Dec 28, 2012

By Donald Low And Rachel Hui For The Straits Times

-- ST ILLUSTRATION: MIEL

THE recent strike by a group of bus drivers from China at public transport operator SMRT has polarised public opinion in Singapore.

On one side, civil society groups have framed the issue as one of human rights and morality. They have decried the uneven distribution of power between corporations and workers, the unfair wages paid to foreign workers, and the poor conditions they labour under.

On the other side, the Government has emphasised the illegality of the drivers' actions, the availability of legitimate channels for workers to voice their grievances, and the country's "zero tolerance" of acts which disrupt industrial harmony.

What seems to be missing from the debate is an economist's perspective. There has not been a wider discussion of the economic rationale and implications of the Government's foreign worker policies.

Analysing Singapore's foreign worker policies through the lens of economics leads to some surprising conclusions which suggest that neither the position taken by the civil society groups nor the current government approach is viable on its own.

A good place to begin our economic analysis is to ask whether foreign workers are properly priced. Foreign workers are prepared to work for lower wages than Singaporeans doing the same job. Allowing low-skilled foreign labour unfettered access to Singapore would therefore depress wages in those sectors that are more dependent on foreign labour.

A tempting, but economically flawed solution, is to require employers to pay differential wages so that a Singaporean worker earns more than the foreigner doing the same job. But somewhat counter-intuitively, this does not serve the interests of Singaporeans. If Singaporeans are paid more than foreign workers who are equally productive, what incentive would employers have to hire the Singaporean worker?

The argument that Singaporeans should be paid more because they have more needs or face higher costs is also misguided. Wages should reflect the marginal productivity of the worker, not his needs. If wages are based on needs, workers would be justified in demanding a wage increase from their employer for having more children.

Externalities
IF IT is bad economics to (artificially) raise the wages of Singaporean workers relative to foreign workers, should we then impose additional costs of the latter so that they are more expensive to hire? Foreign workers impose "external" costs on society. These costs include increased congestion, competition for infrastructure and public goods, and wage depression. These costs are not borne by the foreign workers or their employers; instead, they are borne by society.

The standard economic response to this market failure is to impose a tax that forces the parties in the economic exchange - in this case, the foreign workers and their employers - to internalise the social costs of their exchange. This provides the economic justification for the foreign worker levy that the Government imposes on employers who hire low-skilled foreign workers.

Economically speaking, it does not matter which party the Government imposes the tax on. Economics predicts that the foreign worker levy would be borne by workers.

This is because employers' demand for labour is elastic while workers' supply of labour is not. This means that employers' demand for workers is very responsive to wages since they can hire more, or fewer workers, depending on the amount of wages they have to pay. They can also fire one group of workers and hire another.

In contrast, foreign workers can't just switch employers easily if they are unhappy with their wages or working conditions, especially when their work permits are tied to specific employers.

Employers thus have superior bargaining power and can pass the added cost to foreign workers in the form of lower wages.

This situation leads one to question the efficacy of the foreign worker levy in reducing the demand for foreign labour, and in raising the costs of foreign labour. Since it is the foreign workers who bear most of the tax, employers will still find them cheaper relative to Singaporean workers. And if Singaporean workers are pricier, why would employers want to hire them in place of foreign workers? This is perhaps why, in addition to the foreign worker levy, the Government also needs the dependency ceiling to manage demand for foreign workers.

All this suggests that the foreign worker levy, on its own, is unlikely to "protect" Singaporean workers from the wage pressures created by our open foreign worker policies. In the short run, the only way to assure Singaporeans of wage increases is to continue tightening our foreign worker policies. The reduction in the supply of cheap foreign labour would raise wages, particularly in those sectors which have been more reliant on cheap foreign workers. But there is a price for this. Rising wages would translate into rising prices - unless productivity, or output per worker, increases at a faster rate.

Collective action
ANOTHER perspective which is useful in analysing Singapore's foreign worker policies is the economics of collective action. Besides the collective action problems faced by workers who are not all organised into unions, we can also view the employers as facing a collective action problem of their own.

While it may be in the common interests of all firms to be responsible employers, to pay their foreign workers fairly, to provide them with proper housing and health care, and to maintain a motivated (foreign) workforce, individual firms may find it in their own interest to gain a cost advantage by shirking from these responsibilities. Such an employer would enjoy the collective benefit - of Singapore being perceived as an attractive destination for economic migrants - without having to contribute his fair share to the production of the collective good.

The economics of collective action says that in these situations, the outcome we should expect is one in which individual actors rationally "defect" from contributing to the collectively desirable outcome. As Mancur Olson argues in The Logic Of Collective Action: Public Goods And The Theory Of Groups: "Unless the number of individuals is quite small, or unless there is coercion or some other special device to make individuals act in their common interest, rational, self-interested individuals will not act to achieve their common or group interests."

The collective good which our foreign worker policies should strive to provide is Singapore's reputation as an attractive place for immigrants and foreign workers. Maintaining this reputation requires employers to play their part. But as Olson and other economists have pointed out, the logic of collective action says that individual employers will always face a strong temptation to free-ride, shirk or act opportunistically. The larger the group (of employers), the harder it is to organise collective action.

The standard economic solution to the collective action problem is to have a central authority to impose the cooperative solution, monitor for compliance and punish defections. This is also the solution advanced by some civil society groups that have called for stronger government regulation and enforcement against abuses in the foreign labour industry.

But greater government regulation, while necessary, faces inherent limitations. The most serious is the fact that individual employers will always seek ways to circumvent regulations. Government also often lacks the information to act against defectors. This increases the benefits, and therefore likelihood, of defection.

Besides the policy solution of stronger regulation and enforcement, we need an institutional solution where groups (of employers) come together to set standards for themselves, enforce their codes of fair employment practice, and punish or shame recalcitrant members.

Such self-organising, self-regulating solutions are likely to be more sustainable, and are less likely to suffer from the informational problems that typically afflict regulatory agencies. Having small groups of employers (say organised by industry) also reduces the risks of free-riding and increases the likelihood that such collective goods would be provided.

Identity
A THIRD economics perspective relevant to the current debate is provided by George Akerlof and Rachel Kranton in Identity Economics: How Our Identities Shape Our Work, Wages And Well-Being. Akerlof and Kranton argue that the worker's identification with the organisation partly determines his work effort and productivity. They argue that the worker's output is determined not just by monetary incentives but also by his "identity utility".

Workers who identify with the firm and see themselves as "insiders" put in higher work effort, as that increases their identity utility. The opposite is true for workers who see themselves as "outsiders" - they are more likely to shirk or put in low work effort.

Akerlof and Kranton also found that in organisations where employees had a strong identification with the organisation, the pay needed to induce higher effort (and higher productivity) was lower than that for organisations with low worker identification. The worker's identification with the employer in turn derives from his sense of being fairly treated and remunerated.

The economics of identity challenges standard notions of cost savings. Encouraging companies to "invest in identity" and job satisfaction among employees may raise business costs in the short run but reaps benefits for our economy in the long run. Normalising such practices also means that as our domestic services, public transport, construction and health-care industries require more foreign workers in the future, Singapore does not have to compete for these workers on the basis of monetary incentives alone.

As with many other policy challenges Singapore faces, the problems posed by the large number of foreign workers in Singapore require not just the right incentives but also the right norms and institutions. Economists have widened their analysis beyond the study of incentives to incorporate ideas on how the right rules and norms can sustain cooperative solutions and promote collectively desirable outcomes.

Singapore's foreign worker policies should not only aim to create the right incentives but also
promote the right employer norms of fairness, industry self-organisation and regulation, and employee identification and well-being.

Donald Low is a Senior Fellow at the Lee Kuan Yew School of Public Policy, National University of Singapore. Rachel Hui is a Research Assistant at the Institute of Policy Studies.

 

"Sobering realities" in labour market in 2013: Tan Chuan-Jin

TODAY, 08:33 PM Dec 28, 2012

 

SINGAPORE - Singapore's Acting Manpower Minister Tan Chuan-Jin has pointed to some "sobering realities" to the labour market in his latest blog post.

Mr Tan said the overall labour market may become even tighter next year.

Thus, there will be more pressure on businesses to expand through product innovation and creating a more productive workforce.

Mr Tan said Singapore's strong growth in employment may at first glance sound good, but the country's productivity growth has been decreasing.

He explained that the rate of growth in employment level has exceeded the rate of GDP growth.

This means that with every additional worker employed, the economy became less productive on average.

It is only by improving productivity and moving up the value chain, he said, that will ensure a better skilled workforce and in turn wage increases.

Mr Tan said the government will continue to support the efforts of businesses.

For workers, there will be a review of Workfare, to ensure the initiative provides adequate encouragement for workers to upgrade and earn more.

He said: "At the same time, we want to focus our attention on Singaporeans who most require our help - the bottom 20 per cent of Singaporean workers, who are usually older as well. To do so, we will be reviewing the eligibility criteria for the two schemes. We will announce the Workfare review outcome in early 2013."

The Employment Act is also being reviewed to enhance basic employment standards for workers, while giving employers sufficient flexibility to manage their manpower resources.

"We are still seeking feedback from the public and we look forward to announcing the first phase of the recommendations in the first quarter of 2013," said Mr Tan. CHANNEL NEWSASIA

Private school's manager jailed for not refunding fees

She is first person to be imprisoned for offences under Private Education Act

Straits Times, Published on Dec 28, 2012
By Sandra Davie, Senior Writer

Hazel Margaret Duclos, 63, failed to comply with an order to refund about $190,000 in fees to 30 foreign students. -- FILE PHOTO

THE manager of a private school yesterday became the first person to be jailed for offences under the Private Education Act, which came into effect three years ago in 2009.

Process College manager Hazel Margaret Duclos was sentenced to four weeks' jail after she pleaded guilty to failing to comply with an order from the Council for Private Education (CPE) to refund about $190,000 in fees to 30 foreign students.

The 63-year-old was also fined $5,000 for failing to keep proper records of student contracts.
CPE chief executive Henry Heng said the court's decision sent a strong signal that the welfare of students will be protected at all costs against errant private education institutions (PEI) and their managers.

"The CPE will continue to keep a vigilant watch to ensure that all PEIs meet the mandatory registration requirements and legislative obligations," he said. "We will also step up efforts in consumer education so that students can make informed decisions on their choice of course and school."

A statement released by the council last month revealed that the 30 students had signed up for two hotel management diploma courses which were never run.

The courses were to have led to a diploma or advanced diploma in hotel management conferred by the Confederation of Tourism and Hospitality, an England-based body which awards professional qualifications for the hospitality industry.

The CPE, which regulates private schools in Singapore, received complaints from Process College students in 2010 and directed the college to refund their fees. The school had initially agreed to refund the fees in instalments, but Duclos failed to pay up and the council proceeded to file charges against her in June this year.

Private schools have to meet a stringent set of criteria, including having independent exam boards and adequately qualified teachers, after rules for the industry were tightened in 2009. Schools were given a two-year grace period, during which they could operate without being registered.

The grace period ran out in the middle of last year.

The CPE said Process College never qualified for registration.

Very little is known about the school. A check with the Accounting and Corporate Regulatory Authority showed Duclos listed as managing director and part-owner of the college, which has a registered address in Middle Road.

Besides Duclos, the former managers of Asia Learning Group (ALG) Education Centre, Cambridge Business School (CBS) and The School of Applied Studies were also charged in court this year with contravening the Private Education Act.

Ken Yong, former manager of ALG, was convicted and fined $4,000 in April while Tan Cheng Hoe, Tan Cheng San and Guo Qiaoli, all former managers of CBS, were issued stern warnings in lieu of prosecution.

The former manager of the now- defunct School of Applied Studies, Jeremy Low, faced charges of failing to keep proper records and to refund students when directed.

He was also charged with making a false statement in the school's Edu-Trust certification application. His case is pending.

Strong growth in foreign workers' dormitory business

TODAY, 05:37 PM Dec 27, 2012

 

SINGAPORE - Commercially-operated foreign workers' dormitories are a big business in Singapore, with the sector being estimated to be worth about S$450 million this year.

Some industry players expect this figure to rise by some 20 per cent next year due to growing demand from employers.

Singapore has seen a jump in the number of foreign workers in recent years. However accommodation to house them has not kept pace.

There are 39 approved commercial dormitories in Singapore as of last month.

Industry players attribute the rise of foreign workers in the construction industry to new housing developments in Singapore.

"Clients have difficulties finding big spaces for their workers so there are long waiting lists, given the current supply of about 150,000 to 160,000 in government approved dormitories. The amount of foreign workers far exceed that," said Mr Shaik Mohamed, director of dormitory operator MES Group

MES Group currently operates four purpose-built dormitories which house 24,000 workers. It is in the midst of redeveloping one of its older dormitories, which would be able to accommodate 4,400 foreign workers by 2014 instead of the 3,000 previously.

Apart from purpose-built commercial dormitories, employers also turn to other alternatives to accommodate their workers. Options include quarters within construction sites and converted industrial premises like factories.

Despite recent policies to curb foreign labour, industry players say growth in the business is sustainable.

However like all businesses in Singapore, commercial dormitory players also have to cope with operational challenges, which include labour shortages.

Meanwhile, the Dormitory Association of Singapore plans to work with authorities to release more land for the construction of dormitories.

It also hopes to work with authorities to improve the conditions of commercially-run dormitories, having released a set of benchmarks for dormitory housing earlier this month.

The association was founded by a group of foreign workers' dormitory operators and is self-regulated.

"There are comments and pictures out there that show a poor side of the industry and we definitely want to improve that. As the bigger players (we came together to form this association, hoping that)... we can share knowledge and work with smaller operators," said Mr Simon Lee, secretary-general of the Dormitory Association of Singapore. CHANNEL NEWSASIA

Keeping public transport affordable

Straits Times, Published on Dec 27, 2012
IN NOT ruling out an increase in bus fares to meet rising operational costs, Transport Minister Lui Tuck Yew was being utterly pragmatic, even though he knows all too well that fare hikes have always been deeply unpopular.

When looking at costs rationally, commuters can also appreciate the need to pay bus drivers more in order to attract Singaporeans, not least because locals make up only slightly more than half of the 7,500 bus drivers, a precipitous decline from almost 80 per cent six years ago. Paying more for locals to run such an essential service is seen as preferable to an overdependence on foreign bus drivers, a sentiment brought into focus by the recent strike involving bus drivers from China.

Even if the dominant local workforce principle is commonly accepted, disquiet will no doubt emerge over how a cost-sharing balance is struck among public transport operators, the Government and commuters. In this exercise, public sentiments are wont to tip against transport operators when their stated focus is also on maintaining shareholder value. For example, even after SMRT's trimming of its dividend per share, the payout ratio is still about 80 per cent of profit after tax. Hence the perception that the interests of shareholders are being placed ahead of the plight of those striving to cope with the rising cost of living.

Mr Lui has emphasised that the Government is "fully committed to an affordable public transport system, for the middle-income, the low-income, the disabled community and other vulnerable groups". To maintain this affordability, there will have to be agreement on just how rising costs should be borne. Certainly, commercial entities should be allowed to generate profits - an incentive to improving services and achieving efficiency. But what is a reasonable profit margin for those providing essential services? And just how much should taxpayers as a whole bear so rides on buses and trains are priced reasonably?

These are crucial questions that should be addressed squarely. Given the mixed nature of the public transport model, profit and reliability could be seen as competing goals and calls will continue to be heard to nationalise public transport. But the dismal record of such nationalisation elsewhere should not be overlooked.

Operators here can help shape public perception significantly if they seek and are seen to balance their corporate and public responsibilities in an even-handed way. The vulnerable, especially, need help to cope with any fare increase. Public transport should not be viewed as just another business or investment vehicle. It is a strategic asset which underpins both economic activity and quality of life.

Ensuring workers' dorms are A-OK

The state of accommodations for foreign workers was thrust into the spotlight in the wake of last month's strikes by Chinese bus drivers. Amelia Tan goes on duty with the Building and Construction Authority to see how it maintains standards at these places.

Straits Times, Published on Dec 27, 2012

SAFETY: Building and Construction Authority officer Ivy Chia checking electric adapters to see if they are overloaded in one of the dormitory rooms at Cochrane Lodge 1 last week. She points out any problems on the spot to dorm assistant manager Henry Wong. -- ST PHOTO: KEVIN LIM

WORK PERMITS: Ms Chia chatting with workers to find out how they are. She also checks their work permits to ascertain that they are working here legally. -- ST PHOTO: KEVIN LIM

GENERAL MAINTENANCE: Even railings and paintwork must be inspected for rust and other signs of wear. Ms Chia photographs problem areas for her report. -- ST PHOTO: KEVIN LIM

EVERY day, Building and Construction Authority (BCA) officer Ivy Chia travels all over the island checking the living conditions at foreign worker dormitories.

Ms Chia, who is in her 30s, is one of seven officers who inspect the 25 purpose-built dorms overseen by the authority. She gives feedback to operators to improve dorm cleanliness and safety.

BCA and Manpower Ministry (MOM) officers, who conduct checks on accommodation for foreign workers, told The Straits Times that their inspections are thorough and regular.

Mr Alan Lum, who heads MOM's Housing Enforcement Branch, said these inspections help ensure that dormitory operators toe the line.

He claimed that even illegal dorms are now being run on a smaller scale because operators know inspections are frequent and they can be caught easily.

"Up to a few years ago, we would find about 1,000 workers in an illegal dorm, but now about 20 and 40 workers are found in such places," he said.

Statistics back up observations that standards are improving.

From January to October, 648 employers were served warning letters for providing unacceptable housing for their foreign workers, down from 886 last year and 1,591 in 2010.

A total of 91 errant employers were fined as of October, down from 180 last year, and 226 in 2010.
Employers can be fined up to $10,000 or jailed for up to 12 months, or both, for each foreign worker who is housed in unacceptable conditions.

Besides the MOM and BCA, other government agencies, such as the National Environment Agency, also conduct regular checks at such worker quarters.

They ensure that the accommodations meet requirements for land use, structural integrity, fire safety, hygiene and sanitation.

The 25 dorms overseen by BCA are inspected at least four times a month by its officers. Their checks are unannounced.

Each inspection takes about two or three hours, depending on the size of the dorm. Dorms usually accommodate 3,000 to 9,000 workers.

The Straits Times accompanied Ms Chia on an inspection of Cochrane Lodge 1 at Admiralty Road West, which houses about 5,000 construction workers.

Together with the dorm's assistant manager, Mr Henry Wong, Ms Chia combs the common areas, such as the kitchens, toilets, corridors and rooms, to check if they are clean and that refuse has been disposed of properly.

She also checks if amenities such as taps and showers are working well. They enter the rooms of workers who are present to check that they are neat and if there is any uneaten food which could attract pests.

Ms Chia approaches some workers and asks to look at their work permits to ascertain that they are not here illegally.

She photographs problem areas and submits a report summarising her observations, noting areas in need of improvement on BCA's online system.

The report will be viewed by her supervisors and the dorm operators, who will also receive automated e-mail messages daily from the BCA to remind them of the deadline to rectify problems.

MOM's housing enforcement team conducts regular checks on foreign workers' living quarters in a similar way.

Its team of more than 20 inspectors scrutinise factory-converted dorms and residential premises such as shophouses about two or three times a week.

These inspections are part of regularly scheduled checks as well as in response to tip-offs from the public and workers.

They are usually done by a team of about five inspectors at night and last until the wee hours of the morning.
The ministry also organises major joint inspections about once a month with other government agencies such as the police to crack down on areas known for poor living conditions such as Little India and Geylang.

These inspections usually involve over 50 officers from the various agencies.

MOM senior housing enforcement inspector R. Ganesh said he needs to be observant and thorough to do his job well.

He remembers walking past a factory in Sungei Kadut last year which had few windows and little sign that workers were living inside. He decided to enter it anyway as he and his colleagues had already covered the other factories on the same street. They found 26 workers living in the poorly ventilated warehouse on rickety makeshift beds.

Dormitory operators said these inspections keep them on their toes.

Said Cochrane Lodge's Mr Wong: "We are checked about three times a week by the various government agencies and they come at any time of the day.
"It can be quite stressful. But it also means that we are meeting the standards."

***

Background story

STRINGENT CHECKS
We are checked about three times a week by the various government agencies and they come at any time of the day. It can be quite stressful. But it also means that we are meeting the standards.
- Cochrane Lodge 1 assistant manager Henry Wong