A Pro-Worker and Inclusive Budget
Madam Speaker, I rise in support of the Budget that would help to address the current challenges and future needs of Singaporean workers, especially for the lower and middle income. This is a Budget that will spell long term changes for Singapore’s economy and I am heartened that our workers are placed right in the centre of our Government’s considerations. Every worker’s gain from this Budget will translate into a better life for them and their families. I am also touched by the common aspirations that have been drawn up for the context of Budget 2013 in that the Government recognizes we would like to have a strong sense of identity and belonging. That Singapore can be truly a home for our children and future generations.
Rather than to term this as a “Robin Hood” Budget as some analysts have said, I would prefer to describe this as a Budget that values every worker, from the rank and file to the Professionals, Managers and Executives (PMEs for short). This is not just about simply taxing the rich and distributing to the lower income. This is about a Budget that has set aside specific long term resources to help different groups of workers at different life stages.
Value Our Professionals, Managers and Executives (PMEs)
My fellow labour MPs Mr Heng Chee How and Mr Zainal Sapari have just shared their views and wishes for the matured and low wage workers as part of this debate and their wishes for these two groups of workers. Last Monday as I was listening intently to the budget speech, I looked at the budget from the lens of a PME and listed out what the government has in this budget fleshed out for our PMEs, the middle-income, or otherwise known as the sandwiched class.
Overseeing NTUC's newly minted PME Alignment Unit, I also had the opportunity to speak to and engage many PMEs in Singapore prior to and after the budget debate. They range from young PMEs to mature PMEs to female PMEs including Freelance PMEs. They shared with me on a variety of issues and challenges they face as they are at different life stages.
Reflecting on the budget that was delivered last week and some of the views shared by the PMEs I met, I am glad that some firm and resolute steps were taken by the government to look into some of these challenges that our local PMEs face and addressing them from various angles.
Labour Market Testing, Foreign PME Dependency Ratio and Stricter Control on S Pass and Employment Pass
Since August 2011, during Budget Debate and Committee of Supply 2012 and then again recently during the recent debate on the White Paper, I have voiced and advocated on behalf of NTUC and the Labour Movement for labour market testing as well as having a Foreign PME Dependency Ratio. The main purpose of the Labour Market Test is for companies to show evidence that they have carried out the necessary steps such as advertising the jobs and carrying out the due diligence and show proof that no local worker can be found to fill a particular job vacancy before they are allowed to employ a foreign worker. This is practised across many countries such as the UK, Australia and New Zealand. I had also shared and suggested on several occasions the need to also look at a foreign PME dependency ratio for certain sectors and industries with excessive numbers of foreign PMEs.
I am heartened and happy when the budget was delivered last week that the government has responded to NTUC's call and is embarking on a closer study into a framework that will give fair opportunities and consideration to Singaporeans in their hiring practices which is in alignment with the principles behind labour market testing.
Many Singaporeans and union leaders I spoke to recognise and accept the need for foreign workers to help supplement our local workforce and also do jobs which many Singaporeans shun. However, many are concerned with the high concentration of foreign PMEs in particular sectors and industries. I recently met a mature PME in his fifties, he has sterling qualifications and has taken both local and global roles. He was employed at a senior level in the financial sector. He was unfortunately laid off abruptly. After he left, his role was assumed by a foreign PME and at a package with expatriate benefits.
By the same token, I have received feedback from a senior management in a large multinational conglomerate sharing how his organisation hired a foreign PME to do an administrative and support role which he felt a local PME could easily have assumed or taken. Such are the anecdotal evidence I have.
However, I agree that the Ministry of Manpower will have to study this concept of labour market testing more deeply. The reason being that a 'qualitative' approach to labour marketing testing can either be too tight or too loose. Framed too tight, companies will find the hiring process too onerous and cumbersome. On the other hand, if framed too loosely, concerns of local PMEs are not addressed and solved. Hence, and as shared on many occasions is the need to also examine the merits of a 'quantitative' approach such as imposing a Dependency Ratio Ceiling (DRC) on foreign PMEs.
And as we discuss the various possibilities, we should take immediate steps to identify key sectors and companies that have high proportion of foreign PMEs today. Upon identifying them, we need to exert some impetus for them to take conscious and concerted steps and efforts to re-balance the ratio to strengthen the Singaporean Core. We recognize that the change cannot happen overnight, but they should at least be made aware that their our Tripartite Guidelines on Fair Employment Practices does state in clear and explicit terms that companies are expected to take reasonable efforts to attract and develop Singaporeans. As such, more can be done to change their mindsets and practices even before the new measures are eventually introduced. The top management such as the CEOs and The Boards of Directors including their Human Resource teams must recognize that Valuing every local PME is a step forward but a big leap towards a Better Singapore.
Notwithstanding, I am glad to note that the voice of the labour movement has been heard and that the government is prepared to change and have committed to looking into the possibility of introducing some form of labour market testing to allay the fears, concerns and challenges faced by our local PMEs.
In the same vein, I am glad that in this year's budget, the government has announced firm and resolute measures such raising the S pass minimum salary to $2200 and further tightening on the eligibility criteria for the Employment Passes especially at the entry level of EP. This is particularly important as it positively affects the jobs and livelihood or our junior to mid-level PMEs which include many middle income or the sandwiched class. In fact, this is a second round of measures after the stricter requirements that were introduced during last year's budget.
Wage Credit Scheme is also for PMEs
The introduction of the Wage Credit Scheme was somewhat unexpected, even more unexpected was that the government did not cut off the eligibility at the median wage or for just low wage workers as in the many previous schemes but have extended to those who earn up to $4,000 per month. This will definitely serve to benefit junior to mid-level PMEs including PMEs entering the workforce as they earn between $2000 to $4000 per month. In fact, the figure of $4000 covers 70% of our workforce. When I met a group of PMEs last Thursday night for an informal dialogue and shared about this wage credit scheme, many did not realize that even PMEs are impacted through this scheme and may well enjoy wage increases as the ceiling for the wage credit had been unusually stretched beyond the median salary range to $4000. In several ways, it is not the usual budget.
Progressive Wage Model and PMEs
Earlier on my fellow Labour MP Mr Zainal Sapari shared on how the Progressive Wage Model has helped low wage workers. I wish to add that the Progressive Wage Model which DPM Tharman mentioned in his budget speech applies not just to low wage workers but to PMEs as well as the objective is to work towards raising productivity and wages at all levels.
As part of this progressive wage model which NTUC and the Labour movement is advocating, Singapore Power (SP), a unionized company of UPAGE (The Union of Power and Gas Employees), under our NTUC’s Oil, Petroleum, Energy and Chemical (OPEC) Cluster has been in constant pursuit to improve productivity. SP, the leader of the industry, believes in building a strong Singaporean Core and raising wages and productivity. SP has put in place a structured path for Technicians to progress to Senior Technician, and thereafter to Technical Officer, Senior Technical Officer and to an Engineer which earns as much as $7000 per month. One such example is Mr Abdul Rahman bin Suthamoo who joined SP as a Technician Apprentice. He underwent structured training and within 3 years, he became a fully qualified Technician. Last year, he completed his diploma through SP’s sponsorship and is now a Technical Officer. He has now set his sights on moving up the progressive wage ladder to become a full fledge engineer just like many of his other colleagues who have also taken on degrees and higher degree qualifications and moved up the progressive wage ladder.
Another progressive wage example would be the Aerospace and Aviation Cluster, a unionised company under SISEU (Singapore Industrial & Services Employees’ Union), ST Aerospace Services Co. Pte Ltd needs FAA - licensed technicians to service certain US registered aircraft. They used to get sub-contractors from Philippines to do this due to a lack of inspectors. Under the programme, the company trains competent local technicians to take on the role and become inspectors. Technicians are chosen based on their skills and ability, regardless of their educational qualifications. As a result of skills upgrading, they earn a higher salary of around $2500 to $4000, as compared to $2000 to $3000 previously. To date, there are twenty three under this programme.
Enhanced Training Support for PMEs
Finally, I am happy that the budget has introduced an enhanced training support scheme for certifiable courses supported by the workforce development agency. This initiative is particularly targeted at SMEs. PMEs currently enjoy much lower course fee subsidy and absentee payroll funding than rank and file workers. In this Budget, both the course fee funding and absentee payroll has been further enhanced and both rank and file and PMEs now enjoy the same amount of higher course fee subsidy and absentee payroll funding. In fact, I submit that our PMEs should better equip themselves in this uncertain global economic landscape by second-skilling and preparing themselves so that they can fall back on their second skill to stay employed and employable in the event of any economic downturn.
Value Every Worker
Overall, I am happy and thank the government for a very pro-worker budget. More than that, I can see that the government is heeding our NTUC's call to also look after the needs and interests of PMEs. It is my wish that in this three year transition process, I want to see Fair Opportunities for PMEs, Fair Treatment of PMEs and also Fair Wages for them. This will will then help set the stage for Better Jobs, Better Pay and Better Life for them and all towards a Better Singapore.
Madam Speaker, in supporting the Budget motion, I would like to leave with the notion that much work remains ahead and cut out for us to transform our workplaces, society and our economy. Most importantly, we must Value Every PME but not just PMEs but strive to Value Every Worker in this transition and transformation process.
