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Budget Debate Speech by Zainal Sapari, Assistant Secretary-General, NTUC and Member of Parliament for Pasir Ris-Punggol GRC on 26 February 2020

This year’s budget intends to mitigate the short-term vulnerabilities faced by businesses and workers without taking our eye off the future. I would like to urge companies to translate savings from Budget measures into saving jobs and reducing workers’ vulnerability due to COVID-19.
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26 Feb 2020
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Model ID: 05a0a8b5-56fa-4cae-ad16-623e752024b1 Sitecore Context Id: 05a0a8b5-56fa-4cae-ad16-623e752024b1;

Mr Speaker,

I rise in support of the budget. This year’s budget intends to mitigate the short-term vulnerabilities faced by businesses and workers without taking our eye off the future. The budget has addressed these vulnerabilities due to COVID-19 through various schemes such as Jobs Support Scheme, tax rebates, bridging loans, rental waivers and many others. I would like to urge companies to translate these savings into saving jobs and reducing workers’ vulnerability due to COVID-19.

Workers’ Vulnerabilities

In the medium and long-term horizon, the rapidly changing job market and business models can leave many workers behind if they are unprepared. The vulnerability of workers can manifest itself in the form of stagnating wages, job insecurity, skills redundancy, and poor working conditions amongst many others. While the budget can help mitigate these vulnerabilities, a concerted effort by the tripartite partners and a mindset change in our society is still needed to alleviate some of these vulnerabilities because every worker matters and every job counts.

Expanding PWM

There are workers providing essential services that are very susceptible to low and stagnating wages and poor working conditions due to the business nature of their industry characterised by competitive biddings and undercutting.

In terms of mitigating workers’ vulnerability due to low and stagnating wages, it is undeniable that the tripartite partners have done a lot to help our workers in the outsourced industries such as cleaning, security and landscape.

Given that PWM has shown its effectiveness to help improve workers’ skills and wages, I urge the government to support industry stakeholders if they are keen to adopt PWM so that more workers can enjoy better wages, coupled with better skills and increased productivity. Sectors like waste collection and strata management are keen to have mandatory PWM and it is important to have government’s support to identify and leverage on the key levers that would encourage widespread adoption.

Wage Benchmark by Occupation

Lack of knowledge on what constitutes fair wages can also increase workers’ vulnerability. Given that wage data are collected in the Annual Occupational Wage Survey, we can help these workers by having a wage benchmark by occupation and sector so that workers can identify a fair wage for their occupation, and be more aware of the industry standard to make informed decisions about their careers. Perhaps, as a trial to set industry wage benchmark, the tripartite partners could start with the F&B industry where there are around 180,000 workers in diverse roles.

Bringing Employment Support for People with Disabilities

I also welcome the Enabling Employment Credit that was announced in the budget to provide wage offsets to companies hiring Singaporeans with disabilities. There are many with disabilities who are working or would like to seek employment. However, it may not be easy for them to work in a building where the physical structure may pose a big hindrance or for them to find companies that offer employment to people with disabilities.

In this aspect, I would like to call for the government to consider providing funding support to help employers offset the costs needed to modify infrastructure at workplaces, especially in older buildings, to encourage employment of people with disabilities. The various job portals such as MyCareersFuture.sg or the national jobs bank should indicate positions that welcome persons with disabilities. All these measures would promote more inclusive workplace. Because every worker matters and every job counts.

Wider Coverage for Short-Term Relief Fund

Workers are also vulnerable if employers cannot pay their wages because the company has ceased operations. While these workers can lodge their salary claims with the Tripartite Alliance for Dispute Management, in most cases, their salaries cannot be recovered once the company has ceased operations.

We need to do more to protect our workers from failed businesses. Currently, there is a Short-Term Relief Fund administered by the NTUC U Care Centre to help low-wage workers who are owed salaries because their companies have ceased operations. I would like to call for the fund to be extended to help more workers, beyond low-wage workers. Many of these workers who are owed salaries are sole breadwinners and for them and their families, the hardship is real and painful. All workers deserve to have their rice-bowl protected and we must continue to explore ways to help and protect more workers.

Fair Employment Clauses

Workers can also become vulnerable due to unfair employment contracts. Some employers have included in employment contracts certain clauses that may not be fair to the workers, perhaps to address staff attrition, recoup losses that they incur due to liquidated damages, or protect their business interests. Regardless, including unfair clauses is unethical and they abuse the vulnerable position the workers might be in.

There needs to be greater engagement to help workers understand employment contracts, and this outreach could start in our tertiary institutions. In addition, MOM would also want to consider a “cooling off period’, perhaps up to five working days, that will allow workers to rescind the contract they have signed, without penalty. MOM may also want to consider starting a watch list if companies are found or to have reported to have unfair clauses in their employment contracts. Administrative penalties should be imposed on companies on this watch list.

Support to Building Owners to Provide Rest Areas

Tripartite partners must also work together to ensure that all Singaporeans can work with dignity. A Tripartite Advisory on Provision of Rest Areas for Outsourced Workers has been released to act as a guide for service buyers and service providers in providing proper rest areas for outsourced workers. We would like to call on the government to provide incentives to urge more building owners to provide rest areas for their outsourced workers.

Perhaps, a tipping point that the government can seriously consider to encourage a higher take up rate is to allow for rest areas not to be counted as part of the Gross Floor Area of a building as the area is usually an unused space or have little commercial value. This would help many building owners that have already maxed out their GFA to provide a rest area without penalty.

Improving Job Prospects for Mature or Elderly Workers (In Malay)

Saya mengalu-alukan segala tokokan kepada SkillsFuture, dan amat gembira dengan perhatian khusus yang diberi kepada pekerja matang menerusi Pakej Bantuan Pertengahan Kerjaya SkillsFuture (SkillsFuture Mid-Career Support Package) yang membantu mereka meningkatkan kemahiran ataupun belajar kemahiran baru. Walaupun pemerintah telah memberikan insentif bagi majikan untuk menggajikan pekerja matang tempatan, usaha untuk menyedarkan majikan supaya mempunyai tenaga kerja yang benar-benar inklusif mesti diteruskan. Di samping itu, kita juga harus menimbangkan hukuman pentadbiran jika majikan didapati bersalah atas amalan diskriminasi umur.

Saya juga amat gembira dengan Pakej Bantuan Pekerja Lanjut Usia (Senior Worker Support Package) untuk pekerja yang lebih tua bagi mengurangkan pendedahan mereka kepada masalah pekerjaan. Pakej ini akan memberi lebih banyak jaminan kepada pekerja lanjut usia bahawa mereka akan terus dapat bekerja jika mereka mahu. Ini adalah peluang yang baik untuk pihak syarikat memanfaatkan Geran Pengamal Awal bagi Pengambilan Pekerja Lanjut Usia (Senior Worker Early Adopter Grant) untuk menaikkan usia persaraan dan umur bekerja semula sebelum perubahan perundangan berlaku. Tidak kira umur, setiap pekerja penting dan setiap pekerjaan mustahak.

(While I welcome all the various top-ups to SkillsFuture, I am encouraged at the special attention given for mature workers through the SkillsFuture Mid-Career Support Package to help them upskilling and reskilling. While government has given hiring incentives for employers to hire local mature workers, efforts to enlighten employers to have a truly inclusive workforce must continue. In addition, we should also consider administrative penalties if employers are guilty with age discriminatory practices.

I am also equally heartened with the Senior Worker Support Package for older workers to reduce their employment vulnerability. This package will give our older workers greater assurance that they can continue working if they want to. This is a good opportunity for companies to tap on the Senior Worker Early Adopter Grant to raise their retirement and re-employment ages ahead of legislative changes.  Regardless of one’s age group, every worker matters and every job counts).

Conclusion

In conclusion, every budget must provide funding and resources to help workers reduce their vulnerabilities. We need to work together to reduce workers’ vulnerabilities and to show we care for the workers. While I call upon employers to uphold their responsibilities to their workers and do more for their welfare and well-being, I would also like to remind all my fellow workers to take charge of their career development and be future-ready. All of us have a part to play in creating an inclusive and caring society where every worker matters and every job counts. I support the budget. Thank you.

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