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Mr Deputy Speaker,
Introduction
Thank you for allowing me to join the Debate. The world is still mired in COVID cases and lockdowns. We are now seeing shoots of growth in key economies as vaccination efforts continue to expand. While the worst of the pandemic has seemingly been averted, the future recovery is far from certain. It must not be lost on us as we conduct the Debate that we had narrowly averted a much deeper recession. And that the next cliff can be just the next cluster away.
So while it is important to deal with the current pandemic and recession, and the problems that come with it, it is equally important to plan for the nation’s future in the post-pandemic world. We must tackle structural changes such as accelerated digitalisation, the new normal of remote working and reconfiguration of supply chains. These are existential challenges. We must retool, reskill. We must transform.
Enhancing local hiring demand
First of all, we must continue to support Singaporeans through difficult times by enhancing and shoring up local hiring demand. Protecting the Singaporean Core is a key priority for both the Government and the Labour Movement. Our labour market has shown a marked improvement. Resident employment has, in fact, returned to pre-pandemic level at the end of 2020. This is the result of the Government’s initiatives in protecting the Singaporean core, and the sacrifices of workers and companies.
Jobs Growth Incentive
The Jobs Growth Incentive (JGI) has seen extremely promising results, with more than 110,000 local hires last year. This is an important measure in shoring up local hiring and protecting the Singaporean Core. I fully support the extension of the JGI in Budget 2021. And that of the enhanced subsidies for mature workers over the age of 40, ex-offenders and persons with disabilities. While some companies have progressively started to hire as we emerge from the depth of the crisis, many others are still hesitant. The JGI extension helps to bridge this hiring gap.
To better support this vision, I also suggest that the Government can consider enhancing JGI for our workers above the age of 62 through added subsidies. Now these workers are more prone to cyclical and structural changes. Furthermore, they are more likely to not be re-employed as companies seek to reduce costs. This will help companies to continue to hire older workers even during uncertain economic times.
Supporting Businesses
Next, the JSS – the Job Support Scheme, is one massive lifeline. It kept businesses afloat, and workers in their jobs. Some industries have since stabilised, others have grown. The Labour Movement supports the extension of the Job Support Scheme to companies and workers in sectors that are still hard-hit. Unions and workers in the aviation, aerospace and hospitality sectors registered their appreciation. With the current border restrictions globally, these sectors will need longer recovery timelines as they reconfigure their business models. These sectors need workers and companies to be ready to capture rebound opportunities when the world is eventually opened for business.
Supporting young Singaporeans
Next, we need to provide additional assistance to our younger Singaporeans to adapt to the new economy. The pandemic has accelerated the growth and demise of many industries, jobs and skillsets, but many younger Singaporeans now find themselves on the wrong side of the growth curve and are unable to take advantage of the new growth opportunities in fast-growing industries. To do so, I have three suggestions to make.
Support for Second diploma and degree
Some studies have suggested that students graduating in recession years earn less than their peers graduating in non-recession years. And the effects persist for a few years. For some younger Singaporeans, they need to pivot to other sectors that are growing. I suggest that we can help to provide subsidies and loans for their second diplomas, or degrees. Not only would this improve the economy structurally, but this would also complement the lifelong learning attitude we wish to instil in all Singaporeans.
SGUnited Traineeships – Conversion to full-time hires
Second, I support the Government’s move to extend the SGUnited Traineeships until 31 March 2022. In the annual Joint Autonomous Universities Graduate Employment Survey, SGUnited Traineeships made up 16.9% of graduates who found employment. This shows the importance of the programme in helping our graduates get skills and opportunities even during the pandemic. Could the Ministry consider the provision of incentives to encourage and support host companies to convert these trainees to full-time hires? This can help companies hire these graduates ahead of time.
Mental well-being in youths
Third, we must enhance the mental well-being support for our workforce. The economic outlook has understandably caused much stress across the workforce, especially that of younger Singaporeans still hunting for full-time jobs. To better support the mental well-being of our youths, could the Ministry consider training youth care ambassadors equipped with the requisite adjunct support skills to help fellow peers? The Labour Movement, especially that of the Young NTUC, will work towards extending our utmost support for the Government’s initiatives in providing peers with emotional and employment support.
Strengthening the Gig Economy
Mr Speaker Sir, my last point relates to supporting the gig economy. The key attraction of the gig economy is in its flexibility. It gives workers the autonomy to choose when, where, and how they want to work. As of 2019, there were about 200,000 residents who did freelance work as a regular form of employment. With the creation of new business models, this segment of the workforce is expected to grow. It is already an important and permanent part of our workforce. And the measures must recognise that and support that growth.
The pandemic has unearthed structural problems within the current state of protection for the platform workers. The Self-Employed Persons Income Relief Scheme (SIRS) was instrumental in supporting these workers during this crisis. Going forward, it is timely for us to review the regulatory framework to protect these workers. This is especially important for workers dependent on large platform companies or organisations as their primary source of income.
There are three salient issues to be tackled; 1) platform workers are unprotected by key employment legislation, 2) there’s insufficient social protection, and 3) the lack of incentives to upgrade this segment of the workforce.
Regulatory protection
Firstly, the lack of protection for platform workers under the Employment Act and the Industrial Relations Act has provided significant power to platform companies relative to the workers. This has left platform workers on the shorter end of the stick without statutory recourse such as medical benefits. This is understandable as the Employment Act and the Industrial Relations Act are premised on an employer-employee relationship. And platform workers are not employees. Yet, most of these workers are lowly-skilled and wholly dependent upon the platform companies for their livelihood. The lopsided bargaining powers also means that companies can unilaterally change the terms of their service and incentive structures. Moreover, as workers are classified as independent contractors, they lack the ability to collectively bargain and negotiate wages or change working conditions with these companies.
The Labour Movement’s recent formation of the National Delivery Champions Association is a positive step ahead. But their hands might be tied by legal restrictions on collective representation for service or employment terms. I believe more can be done to level the playing field between workers and platform companies to ensure that the parties are treated fairly. I suggest that we can consider either allowing the unions to represent these workers collectively or to provide these workers with some level of statutory protection under the Employment Act.
Social protection
Next, on the lack of social protection for platform workers. The crisis and rapid growth of e-commerce have provided a livelihood for workers performing work for platform companies. This is seen in food or goods delivery, especially in the circuit breaker. Yet, this can be a problem in the long run. Because there are no CPF contributions from both employers and employees, the state will have to shoulder social support eventually. There is a pressing need to review the social protection of these workers if we want this sector to thrive.
Ideally, platform companies should voluntarily commit to the protection of their workers’ social security. On the other hand, if there are such contributions, this might reduce the take-home pay for such workers.
The current nature of regulation towards these companies is rather light-touch, as with many other countries. Many platform companies enjoy employer-type of powers without similar and few responsibilities. There can be more room for companies to commit to the protection of our workers, without curtailing the industry’s viability. In this vein, can we consider looking into subsidies and or disincentives to further encourage platform companies to commit to the longer-term social protection of our workers?
Training Support
Lastly, because these workers are considered independent contractors, there are no incentives from companies to train them. Yet, there are long term impact on Singapore’s workforce productivity. To ensure that these workers can thrive as an essential part of the workforce, workers must continually upskill for greater employment security. Could the Government look into cost-sharing schemes with platform companies to encourage training support for these workers?
Now, there are difficult trade-offs in developing the gig economy, especially for the platform workers. This is a big piece of work that the country has to work on and the Labour Movement stands ready to support the Government’s initiatives to better protect gig workers to ensure the development of the gig economy as a permanent fixture of our workforce.
Conclusion
Mr Deputy Speaker, the Labour Members of Parliament before me have spoken at length on behalf of our workers. We have advocated for the greater protection and empowerment of vulnerable groups including lower-wage workers, Professionals, Managers and Executives, Self-Employed Persons, and mature workers. We recognise that many of these challenges, the cyclical ones, are still before us. And we also deeply recognise that many of the challenges, the structural ones, are existential threat to Singapore if we don’t manage them carefully. It will take strong tripartism to tackle them. Therefore, we must work even closer to retool, reskill, and transform.
We will and must continue to work with the government as partners to support for workers through job re-design, training, and workplace support. Our message is a simple one – “Protect Vulnerable Workers, Protect Jobs”. The Labour Movement will continue to work closely with the Government and employers to do right by our workers.
Over the course of the five Budgets in 2020, according to the Ministry of Finance, 27.4 billion dollars in grants were used to shore up beleaguered companies; 155,000 jobs were saved or created; we shaved 1.7% from the rise of unemployment. I think that is putting workers at its core. I believe that similarly, this Budget reflects the PAP’s Government and NTUC’s DNA that every worker matters. So, we must work together to emerge stronger from this crisis, to ensure that workers continue to enjoy better wages, welfare, and work prospects in the years to come. Mr Deputy Speaker, I stand in support of the Budget.
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