Madam Speaker,
Let me start by sharing a Chinese idiom: 上有政策，下有对策 (shàng yǒu zhèngcè, xià yǒu duìcè) which means "the higher ups have policies while the lower downs have their own ways of getting around them". I hope Budget 2013 can be carried out according to its rationale and intent so that we can have a better Singapore for all. However, when people try to take advantage of the loopholes, the impact of the policies in terms of benefitting Singaporeans will be limited.
We are not living in easy times with economic uncertainties and our population challenges looming ahead of us. Amidst all these challenges, changes and uncertainties, one thing remains a constant – that Singaporeans ultimately want a better Singapore for themselves, their families and the future generation.
The government has always been cognizant of this and has been working resolutely together with the NTUC Labour Movement, in improving the lot of low wage workers over the years with worker-centric schemes like the Workfare Income Supplement (WIS) introduced in 2007and its many subsequent enhancements; the Jobs Credit Scheme in 2009; the Grow and Share package in 2011, GST vouchers last year and the Wage Credit System (WCS) this year. Government has also been instrumental with its $100 million funding in supporting NTUC Labour Movement’s push to increase productivity and promote best sourcing initiative that will impact 48 000 workers with close to two-thirds expected to see their wages increase by at least 10% over and above current annual increment when projects are completed.
As a Labour MP, I am heartened that the Government has heard the cries of the labour movement for example in increasing the qualifying limit of salary for WIS, allowing low wage workers to get more cash from the scheme to help them with meeting their daily needs, as well as CPF to help them with their retirement savings.
I am also hopeful that the Wage Credit Scheme will be used by companies to restructure given the tightening of the foreign labour supply. I hope that WCS is and not used by companies to increase its profit bottom lines by using it to subsidize their usual wage increase.
Madam, I hope companies can leverage on the WSC to offer higher wage increases or more bonuses to their low wage workers. Only if we consciously offer a higher percentage increase to low wage workers can we collectively narrow the widening income gap. In this aspect, it would also be ideal for government to lead by example and give higher performance bonus rate to low wage workers in the civil service. Low wage workers in the lower substantive grade earning below $1900 should be given a much higher performance bonus rate compared to those at the executive levels. With government leading by example, it will give them a higher moral ground to urge private companies to do likewise.
A better Singapore requires beyond a strong tripartite partnership between the government, workers and employers but also for all companies to have the moral responsibility to ensure workers feel the impact of the Wage Credit Scheme as Singapore journey towards creating a better Singapore for all of us. NTUC Labour Movement will continue to call upon our workers to undergo a mind-set change to think and do things differently through training and re-skilling to increase productivity at the workplace for a sustainable real wage increase in this highly competitive business environment.
Madam Speaker, while I welcome the WCS, I am however very concerned that it may not bring immediate or short term benefit to low wage workers who are working under outsourced contracts like cleaners, security officers, car park attendants and many others. Many of these companies are operating on an amount that is already specified and fixed in the contract with may last for 2 to 3 years with possible options to extend by another 1 to 3 years. Hence, there is little motivation for them to leverage on the WCS to increase the salary of their workers. .
Madam Speaker, many low wage workers are in industries where there is competition from cheaper foreign labour and their companies are servicing outsourced business like cleaning and security. Asking the service providers to pay better wages to their workers and at the same time, asking service buyers to offer better tender amount to enable these outsourced low wage workers earn better salary is difficult. There are many hurdles stand in the way and I sometimes feel like the process of bringing about big change for low wage workers is akin to trying to move a mountain with your bare hands.
I have personally engaged many service providers and service buyers of cleaning, security and landscape industries. All service providers want to offer better wages to their workers and all service buyers want to offer better tender amount but, it cannot be at the expense of them losing their business and being uncompetitive. They want a level playing field. A service provider cannot pay higher wages to their workers if they risk losing the contract to their competitors who are bidding at a lower price due to the lower salary package they have for their workers.
Madam Speaker, bold results to help low wage workers require bold actions. A level playing field for these service providers and service buyers can be created through licensing. The Labour Movement has been pushing for a Progressive Wage Model in order to help low wage workers obtain salary increases based on a wage ladder concept which incorporates skills, productivity and career progression.
A bold action that the government can do is to mandate that for PWM to be a requirement for licensing to enable companies to operate in sectors like cleaning, landscape, and security, which have a high portion of low wage workers.
This potentially could also have a ripple effect on wages of low wage workers in other industries. As the Wage Credit Scheme provides a government subsidy for wage increases, I feel that this will go some way in providing some financial support for companies to adopt the PWM. The PWM, combined with WIS and WCS, is a viable alternative to minimum wage whose impact has been very controversial in countries implementing it.
Madam Speaker, another bold action that we must take is to make National Wages Council (NWC)’s recommendations for low wage workers mandatory for all companies. Last year, many cleaning and security companies, even though they were unionized companies, were not able to give $50 built-in wage increase to their workers because of fixed contract amount they received from the service buyers. The NWC should also go beyond just recommending a quantum increase in salary for low wage workers to providing other possible solutions to address the issue of income inequality. Being in the National Wage Council, I know that this is not an easy and has been discussed by my predecessors but, I am confident that with the good relationship amongst the tripartite partners, we can make it happen.
Madam Speaker, many low wage jobs are shunned by Singaporeans despite the fact them being essential to improve our environment and lifestyle. I am urging the government to do more in terms of changing the mindset of people towards these jobs. I am calling for the government to support the setting up of a low-wage worker centre to look into helping low wage workers to live, work and play in a better Singapore. This centre can play a strong advocacy role to champion for the plight of low wage workers.
Madam, .in some countries such as Norway and Sweden, tax returns including those for the rich, are made public so as to be transparent in the remuneration of senior management and the elite. Could the Government institute legislation so that there is greater transparency in how much is earned by senior management in companies? Hopefully, gain sharing could then be conducted in a manner that would be fair to all the workers.
Finally, madam, I would like to call for a review of the Employment Act so that more protection and benefits can be given to workers under outsourced contracts. MOM should also increase its bite in ensuring that companies comply with the Act. There must also be a greater push for more companies with a high percentage of low wage workers to be unionized and for more workers to join the unions. While unions can negotiate for better employment terms and conditions through our collective agreements, there are many Singaporean low wage workers that are not working for unionized companies. The process of seeking recourse for non-payment of salaries by employers to low wage workers must also be simplified so that enforcement can be done easily and effectively as many low wage workers do not know the procedures of doing so, and may not have the financial means to go through complicated processes.
Puan, izinkan saya berucap dalam bahasa Melayu.
Bagaimanapun, pekerja bergaji rendah terus menghadapi pelbahai tekanan dan masalah dengan inflasi dan kos kehidupan seharian yang semakin meningkat. Pemerintah telah menunjukkan bahawa ia akur tetang isu ini dan akan bekerjasama dengan kesatuan sekerja atau union untuk memperbaiki kedudukan mereka.
Puan, Bajet 2013 menawarkan Skim Kredit Gaji (WCS) di mana pemerintah akan membiayai 40 peratus daripada kenaikan gaji pekerja bergaji rendah. Saya harap ramai pekerja sedemikian akan manfaat daripada skim ini, namun saya bimbang sekiranya syarikat-syarikat tidak akan meningkatkan gaji pekerja mereka kerana khuatirkan kos yang tinggi atau kerana kontrak bagi sesuatu khidmat telahpun ditandatangani dan kosnya dipersetujui. Ini boleh menjejas pekerja gaji rendah dalam sektor seperti pembersihan, keselamatan dan lanskap menghadapi persaingan sengit kerana sektor-sektor ini menggajikan ramai pekerja asing yang dibayar gaji lebih rendah dan bergantung pada kontrak yang harganya telah ditetapkan. Usaha meningkatkan gaji pekerja bergaji rendah bukanlah sesuatu yang mudah dilakukan kerana terdapat banyak batu penghalang. Namun, usaha ini mesti terus dilakukan.
Puan, saya percaya, untuk hasilkan kesan yang besar, kita harus berani membuat perubahan besar, Saya berpendapat bahawa system perlesenan harus diperkenalkan untuk memastikan bahawa syarikat-syarikat yang memerlukan sesuatu khidmat (service buyer) harus memilih syarikat yang bertanggungjawab dan membayar pekerja gaji yang berpatutan, bukan gaji yang rendah demi ingin letakkan harga tender yang rendah. Gerakan Kesatuan Sekerja sedang mengusahakan system Progressive Wage atau Sistem Gaji Berperingkat (PWM) di mana pekerja bergaji rendah akan berpeluang mendapat gaji yang lebih tinggi jika dia mempunyai kemahiran atau kadar produktiviti yang tinggi. Untuk menjadikan usaha ini suatu reality, Pemerintah patut menjadikan system PWM ini sesuatu yang wajib bagi syarikat-syarikat yang menawarkan perkhidmatan seperti pembersihan, keselamatan dan lanskap.
Untuk perkerja-perkerja, amatlah penting bagi mereka merebut peluang yang ada untuk meningkatkan kemahiran mereka melalui latihan agar daya penghasilan mereka dapat diperbaiki. Walaupun permerintah mempunyai rancangan untuk memperketatkan kemasukan kemahiran asing, amatlah penting bagi perkerja terus menjalani latihan untuk memastikan mereka mempunyai kemahiran yang terkini dan relevan.
Madam Speaker, let me conclude my speech in English. This year budget is pro-Singapore and pro-worker. This year budget builds a better Singapore and can create better live for Singaporeans. We are restructuring for quality growth and embracing to be a more inclusive and caring society. Madam, I support the motion.
Thank you.
