Employment & labour — Topics

4 Feb 2013

Progressive Wage Features in Cleaning Contracts Awarded by Institutes of Higher Learning

Zainal Sapari questioned the adoption of best sourcing practices, the number of outsourced cleaners and security officers, and the implementation of the Progressive Wage Model in tertiary institutions under the Ministry of Education.
Heng Swee Keat confirmed that all Autonomous Universities, Polytechnics, and ITEs adopted the Tripartite Advisory on Best Sourcing Practices in 2012, with existing contracts covering 2,332 cleaners and 260 security guards as of December 1, 2012.
The institutions are encouraging service providers to pay wages according to the Progressive Wage Model and plan to review future contracts to make this a requirement.

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4 Feb 2013

Progressive Wage Requirement in Awarding of Cleaning Contracts

Mr Zainal Sapari proposed that all hawker centre cleaning contracts be awarded only to NEA-accredited companies that support the Progressive Wage Model and that standard tender specifications be adopted across all centres.
The Ministry responded that NEA already accredits cleaning contractors under the Enhanced Accreditation Scheme, which requires progressive wages starting at $1,000 per month for local cleaners.
NEA is engaging Town Councils and Hawkers' Associations to encourage them to use accredited contractors and share tender specifications, though it remains voluntary for non-NEA managed hawker centres.

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4 Feb 2013

Re-Employment Rate among Recent Retirees

Chen Show Mao asked for specific 2012 data on Singaporeans and permanent residents reaching age 62 under the Retirement and Re-employment Act, including numbers offered re-employment, average wage adjustments, and re-employment disputes notified to the Commissioner for Labour.
Tan Chuan-Jin noted that full 2012 statistics would be available only in March 2013, but shared that 97% of employees who turned 62 in the year ending June 2011 were offered re-employment, with a median wage cut of 12% for those continuing in the same job.
In 2012, the Ministry of Manpower received 32 re-employment dispute cases, mainly over eligibility or terms, with most resolved through conciliation and the rest still under process.
The overall re-employment implementation in 2012 was positive, with the employment rate for older residents aged 55 to 64 rising from 61.2% in 2011 to 64.0% in 2012.
The government will continue monitoring the employment landscape for older workers and encourage employers to follow tripartite guidelines to minimise disputes.

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4 Feb 2013

Impact of Recent Illegal Bus Drivers Strike on Industrial Relations and Dependency on Foreign Workers

The debate focused on the 2012 illegal strike by SMRT Chinese bus drivers, highlighting grievances over pay disparities, insensitive communication, and accommodation, with the Minister emphasizing that while contractual issues are between employer and employee, statutory breaches are enforced and illegal actions are dealt with under the law.
Key lessons included strengthening grievance handling systems, better protecting and educating vulnerable foreign workers, and reinforcing tripartism, with calls for proactive measures in essential services like HR audits and improved intelligence to prevent disruptions.
Discussions centered on enhancing support for foreign workers, including union access (noting current low membership but efforts to increase it), better dormitory access to grievance channels, and ensuring fair contracts, while maintaining Singapore's reputation as a fair destination for foreign labor.

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14 Jan 2013

Unemployment Rate among Singapore Citizens

Gerald Giam asked for the unemployment rate among Singapore citizens, broken down by Chinese, Malay, Indian, and other races.
Tan Chuan-Jin responded that the government provides race-based economic statistics every five years via the Census of Population or General Household Survey.
He cited the 2010 census showing unemployment rates of 3.9% for Chinese, 5.7% for Malays, and 5.2% for Indians.
The response did not provide the rate for "other races" or data beyond 2010.
The answer referenced page 177 of a document but did not mention the specific unemployment rate for Singapore citizens as a whole.

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14 Jan 2013

Workfare Income Supplement Scheme

The Workfare Income Supplement (WIS) scheme, introduced in 2007, supplements wages and CPF savings for low-income workers, with a 1:2.5 cash-to-CPF ratio for employees and full CPF for the self-employed, and targets the bottom 20% of income earners while extending benefits up to the 30th percentile.
Enhancements since 2010 include increased payout quantum and income cap, with payment frequency doubled to four times a year by 2012, and a review is scheduled for 2013 to consider changes in income, inflation, and the balance between cash aid and retirement savings.
The government emphasizes a holistic approach to supporting low-income workers, noting that WIS is one of several schemes alongside ComCare and Medifund, and the review will focus on ensuring the scheme's effectiveness, fiscal sustainability, and targeting of those most in need.

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14 Jan 2013

Foreign Worker Levy Rates

Tan Su Shan asked whether the foreign worker levy could be adjusted based on a sector's strategic importance and its reliance on foreign workers, considering the impact on local inflation.
Tan Chuan-Jin explained that the levy is a pricing mechanism to manage foreign worker numbers, with planned increases until July 2013 to encourage a shift away from labor-intensive growth toward technology and productivity.
He noted that levy adjustments consider factors like productivity gains, foreign worker growth, and local wages, with higher increases for sectors that rely heavily on foreign workers and have stagnant local wages.
The government acknowledged potential inflation concerns but emphasized sending a clear signal to companies to restructure, while offering support through measures like Innovation and Capability Vouchers and the Productivity and Innovation Credit.

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14 Jan 2013

Emolument Criteria for S Pass Applicants

Er Dr Lee Bee Wah queried why bonuses and allowances are not included in the S Pass emolument criteria and asked if the policy will be reviewed to include them.
Acting Minister Tan Chuan-Jin explained that fixed monthly salary, comprising basic salary and fixed monthly allowances, is used as a consistent and reliable proxy for an applicant’s quality and economic contribution.
Variable payments like bonuses and commissions are excluded because they are unpredictable, could lead to applicants falling below salary thresholds, and might be exploited to game the system, undermining the work pass framework.

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14 Jan 2013

Qualification Criteria for Personalised Employment Pass Applicants

The Minister explained that the Personalised Employment Pass (PEP) uses salary as the primary criterion to assess eligibility, with recent increases requiring at least $12,000 monthly for local hires and $18,000 for overseas professionals, reflecting higher standards for the PEP compared to the Employment Pass.
As of June 2012, there were 12,000 PEP holders, with only 1% declared as performing support staff functions, indicating the scheme is largely used for higher-skilled professionals.
Approximately 3,000 PEPs were issued annually from 2010 to 2012, and the government will continue to regularly review the scheme for relevance amid changing needs.

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14 Jan 2013

Reports Involving Women Being Dismissed or Discriminated Against During Work Appraisals

Ms Tin Pei Ling asked for statistics and reasons on reports of women being dismissed or discriminated against during work appraisals from 2003 to 2012.
The Ministry of Manpower receives about 70 cases annually from 2007 involving women feeling unfairly dismissed, with 70% related to pregnancy; most cases involve work issues like misconduct or poor performance and are resolved through mediation.
The Tripartite Alliance for Fair Employment Practices received eight gender discrimination complaints since 2007, mostly at pre-employment stages, with one in-employment case over non-confirmation after probation.
The government emphasized fair employment practices, urging employers to use objective appraisal systems and encouraging workers to seek help from TAFEP if they face discrimination.

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14 Jan 2013

Growth of the F&B Sector in Singapore

The F&B sector's GDP contribution has remained stable at around 1.3%, while the number of outlets grew by 54% and total employment nearly doubled over a decade, with foreign workers increasing to one in three of the workforce.
The government recognizes the sector's role in making Singapore attractive but views the reliance on foreign workers as unsustainable, hence investing $75 million in productivity initiatives like part-time pool programs.
Businesses unable to adapt may close, but entrepreneurs can access government schemes such as SEEDS and TECS to redirect their efforts into new ventures.

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14 Jan 2013

Rewarding Taxi Drivers for Meeting New Taxi Availability Standards

Ang Hin Kee proposed rewarding taxi drivers who meet the new Taxi Availability standards and ensuring that any penalties on operators are not passed on to drivers.
Lui Tuck Yew explained that the standards were developed with stakeholders and are aimed at improving commuter experience, with LTA facilitating but operators deciding on driver incentives.
The Minister noted that no financial penalties will be imposed for the first six months of implementation, with a review to follow, and urged operators not to shift penalties to drivers, citing Comfort Delgro's commitment to support rather than burden its drivers.

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14 Jan 2013

Benefits of Subsidised Training for Cleaning Industry Workers

In 2012, more than $3.7 million in training grants was disbursed for the cleaning industry, with about 15,000 workers trained since the Environmental Cleaning WSQ framework began in 2010.
Surveys show that 69% of trained workers felt more motivated and 17% received a pay rise, while 95% of companies plan to continue sending employees for training.
The Government has committed $6.1 million over two years to train 7,800 cleaners and is enhancing training delivery through mother-tongue languages, technology, and shorter modules.
Additional initiatives include collaborations with the National Environment Agency to share best practices and bring international experts to professionalise the cleaning industry.
The overall approach emphasizes lifelong learning to keep skills relevant and support workers’ job and wage progression.

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14 Jan 2013

Requirement for Employers to Pay Minimum Monthly Wage before Obtaining Exemption from Overtime Pay

Alex Yam raised the need for employers to pay a minimum monthly basic wage to low-wage workers before granting exemptions for extended overtime work.
The Ministry of Manpower explained its current process for approving overtime exemptions, emphasizing careful scrutiny and conditions such as employee consent and a good safety record.
MOM stated it is considering a minimum wage requirement for overtime exemptions as part of broader efforts to raise wages and reduce overtime in low-wage sectors.
The ministry noted that any new measure would be evaluated alongside other policies in its ongoing review with stakeholders like unions and industry groups.

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14 Jan 2013

Salary Terms in Cleaning Contracts Managed by NEA

Zainal Sapari asked for the number of hawker centres with cleaning contracts managed by NEA, who oversees those not managed by NEA, and the average gross salaries of cleaners under both NEA- and non-NEA-managed contracts.
NEA directly manages cleaning contracts for all 25 MEWR-owned hawker centres, covering general, toilet, and table cleaning, while Town Councils and Hawkers’ Associations oversee the 82 HDB-owned centres.
From April 2013, NEA requires accredited contractors under the Enhanced Accreditation Scheme to pay cleaners a minimum basic wage of $1,000 per month.
NEA encourages Town Councils and Hawkers’ Associations to use accredited contractors, ensuring cleaners benefit from progressive wages and other advantages.
The debate highlights NEA’s role in setting wage standards for its contracts and efforts to extend these standards to non-NEA-managed centres.

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14 Jan 2013

Getting Economically Inactive Singaporeans Back to Work

The Ministry of Manpower does not keep a precise record of economically inactive Singaporeans but estimates there were around 418,000 residents aged 25-64 in June 2012, with 90,000 intending to seek work within two years.
To help this group re-enter the workforce, the government provides funding support for flexible work arrangements through the Work-Life Works! Fund and the Flexi-Works! scheme, which helps employers defray costs like job redesign and training.
The Singapore Workforce Development Agency offers skill-upgrading programmes, including Workfare – Skill Up, to improve the job readiness of economically inactive individuals and address manpower shortages.

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16 Nov 2012

Regulation of Despatch Riders with Foreign-registered Vehicles

Foreign despatch riders using foreign-registered vehicles must hold valid work passes under the Employment of Foreign Manpower Act and comply with LTA insurance rules; violators face fines up to $20,000 and two years' imprisonment.
The Ministry of Manpower has not recorded any recent cases of employers being prosecuted for hiring foreign despatch riders without work permits, and all workers are covered under the Work Injury Compensation Act.
Employers are responsible for ensuring their foreign despatch riders have proper work passes and insurance, with LTA requiring compulsory insurance for foreign-registered vehicles used commercially.

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15 Nov 2012

Pay Increments for Healthcare Support Staff

The Minister for Health confirmed that pay increases for healthcare support staff in the intermediate and long-term care sector will be fully funded by the Government in FY2012 and FY2013, with continued subsidies under the normal framework thereafter.
The Government has allocated $110 million from 2012 to 2016 to improve productivity in the sector, aiming to sustain wage increases over time.
The Ministry will monitor costs to ensure ILTC services remain affordable and accessible to Singaporeans, addressing concerns about potential cost pass-through to patients.

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15 Nov 2012

International Labour Guidelines in Public Sector Contracts

The Singapore government upholds ILO Convention No 94 by requiring public sector contractors to provide wages and employment conditions no less favorable than those under local laws, with compliance enforced through regular random audits and a best-sourcing initiative.
From April 2013, new public contracts for cleaning and security services must be awarded only to accredited companies with progressive wage structures and no recent Labour Court defaults, ensuring higher standards and better employment terms for workers.
The government is open to exploring socially responsible procurement terms, such as those used in Germany, but currently does not incorporate National Wages Council guidelines into contract requirements, preferring to monitor existing wage uplift programs.

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15 Nov 2012

Strategic Review of National Wages Council

The Acting Minister for Manpower stated that the National Wages Council has contributed to real wage growth for low-wage workers despite economic recessions, with recent specific recommendations like a $50 monthly increase for workers earning up to $1,000 receiving employer support.
Discussions highlighted the NWC’s evolution from quantitative to flexible wage guidelines and the possibility of returning to more specific dollar-based recommendations for low-wage workers, depending on economic conditions.
A suggestion was made to mandate cost-sharing between service providers and buyers for implementing NWC recommendations, but the Minister responded that market mechanisms and existing measures like Workfare are preferred for now.

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