Debated in Parliament on 15 Nov 2012.
Mr Alex Yam asked the Acting Minister for Manpower (a) whether labour clauses applicable under International Labour Organization Convention No 94 have been included in public sector contracts for services during the pre-tender process; (b) if so, how have such clauses been enforced; and (c) if the clauses have not been included, why have public sector contracts not conformed to ILO Convention No 94.
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International Labour Organization (ILO) Convention No 94, otherwise known as the Labour Clauses (Public Contracts) Convention, stipulates that labour clauses should be included in all government procurement contracts that involve the expenditure of public funds and employment of workers. These labour clauses should require contractors to provide wages and other employment conditions that are not less favourable than those established by law or collective bargaining for similar work.
Singapore upholds the principle of ILO Convention No 94. In the absence of industry-level collective agreements in our national context, this requires that contractors and vendors of the Government should not provide their workers with poorer standards relative to our laws. This extends to all companies in Singapore, and includes compliance with the basic standards in labour laws, such as the Employment Act and Central Provident Fund Act. The Government enforces compliance by conducting regular random audits on companies.
The Government further affirms its commitment to the principle of the Convention through our best-sourcing initiative, which encourages service buyers in all sectors, and not just for public contracts, to outsource responsibly and adopt best practices. Good practices include having service buyers incorporate in their contracts a requirement for providers to comply with employment laws, and provide written employment contracts and training for their workers. This helps to raise the productivity and professionalism of workers, translating to higher wages and better employment terms.
The Government will continue to take the lead to shape responsible buyer behaviour. From 1 April 2013, it will be mandatory for all Government agencies to award new public contracts for cleaning and security services only to cleaning companies accredited under the National Environment Agency's Enhanced Clean Mark Accreditation Scheme and security companies with an "A" or "B" grade by the Police Licensing and Regulatory Department. Such companies are expected to be able to deliver higher service standards, and have better trained workers who can progressively earn higher wages. Accredited cleaning companies, in particular, will also have to show that they have in place a progressive wage structure for its cleaners such that they receive appropriate wages commensurate with the higher training standards and productivity required. In addition, to ensure better employment standards, accredited cleaning companies must not default on any Labour Court orders in the preceding 12 months. These requirements for public sector contracts ensure contractors are subjected to strict standards and accord better employment conditions to their workers.
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Mr Speaker, I thank the Acting Minister for his comprehensive reply. I have three very quick supplementary questions. One is with regard to the requirement under ILO Convention No 94, whether the NWC guidelines should also follow part of this requirement for employers under public sector contracts to pay their workers the guidelines recommended. Secondly, based on what the Acting Minister shared earlier, whether any contractors so far have been taken to task for any lapses in the requirement to pay their workers a fair wage? Thirdly, in Germany, based on my understanding, this year, 10 out of 16 of the Federal States have introduced socially responsible procurement standards. These include tenderers having to declare that they will adhere to all arbitration contracts as well as recommendations by states for increase in wages as well as equal opportunities for workers, whether the Ministry will consider including these socially responsible procurement terms in future tender requirements.
I would like to thank the Member for the three supplementary questions. With regard to the first question, it is slightly related to my response to the question raised by Member Zainal Sapari earlier. This is with regard to whether the requirements could be worked into the NWC guidelines. At present, we do not believe that is necessary. Right now, what we have found is that, by and large, most companies do respond to the NWC recommendations. The main issue at hand really is whether we are able to uplift the wages of the workers at the lower income brackets. There are a number of programmes we are putting in place. So, let us work those programmes and measures and let us see how the situation unfolds. We will explore what are better ways to improve the situation should it not progress as we desire.
Secondly, with regard to the number of companies, I do not have the specific data with me. However, we do expect companies to adhere to the requirements stated. We will stipulate some of these standards and, in violation of some of these standards, action will be taken. But I do not have the specific numbers. Lastly, with regard to the suggestion on some of the terms that companies have worked into contracts in Germany, we will be quite happy to take a look at some of the socially responsible terms and conditions being applied in countries like Germany and elsewhere. We could explore as to whether, from a responsible best-sourcing initiative point of view, we could work this into future contracts. So, that is something that we are open to exploring.
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