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Debate Speech on President’s Address by Desmond Choo, Assistant-Secretary-General, NTUC Member of Parliament for Tampines GRC on 1 September 2020

There are three concerns. First, some younger Singaporeans would take much longer to land a job. The traineeships have helped but are also highly competitive. Second, there is a much larger mismatch of skills and jobs.
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01 Sep 2020
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Mr Speaker 
 
Thank you for allowing me to join in today’s debate on the motion.  I will like to speak on the issues confronting young Singaporeans and self-employed persons. 
 
The graduating classes of 2019, 2020, and 2021 have it tough.  They are certain to find jobs difficult to come by in the next 12 – 18 months.  They are uncertain on what their future might hold beyond that.  With no end in sight to Covid-19, most companies have put off hiring, if they have not already reduced excess manpower.  
 
There are three concerns.  First, some younger Singaporeans would take much longer to land a job.  The traineeships have helped but are also highly competitive.  Second, there is a much larger mismatch of skills and jobs.  In adapting to the new job market, many younger workers had to take on jobs that they were neither trained nor studied for.  Third, their medium term prospects are tenuous because they would also have to compete with later graduating classes.  
 
We might possibly have a generation of younger Singaporeans confronted with the most difficult of financial and social circumstances.  According to overseas studies on previous recessions, graduates entering the job market in a recession year experience negative impact on wages for 3 to 8 years compared to their peers who entered in a normal year.  According to a MTI study in 2011, negative impact can be as short as 3 years if job mobility is high.  Job mobility will require them to deepen or acquire new skills.  Now, because Covid-19- induced recession is unprecedented in scale, depth and duration, we might reasonably expect the negative impact to last longer.  This makes improving job mobility paramount.  We have to invest significantly to safeguard the future of the Covid-19 generation of young Singaporeans. 
 
Many of our younger Singaporeans are understandably anxious.  The Resilience Budget’s student loan repayment relief is a huge relief for our students.  Now I hope that the government can also work with private education institutions (PEI) and banks to provide similar relief for our PEI students.  Their tuition fees are unsubsidised and the amount owed can be substantial.  We also hope that MOM would allow students to be given a longer moratorium to pay back their parents’ CPF monies used for their education. 
 
We need to help the Covid-19 generation with greater job mobility.  For example, companies should be encouraged to convert traineeships into permanent positions after the current 9 months.  Government can also customise incentives via the Jobs Growth Incentive to employers to hire these trainees on a permanent basis.  NTUC would extend its assistance to help younger Singaporeans to navigate the tough job environment and provide protection accordingly.  If the economy has yet to turn around after the 9 months, we can consider giving the option to extend the scheme.  It would also give our younger Singaporeans more time to pick up and deepen their new skills.  We could then consider providing basic employee benefits such as mandatory annual leave if such arrangements are longer. 
 
For some younger Singaporeans, it might be better to stay in school, or go back to school, to further their studies or pick up new skills.  For others, a second diploma or degree over the next 12 – 24 months might be needed for greater job mobility. I suggest that we can help to provide subsidies and loans for their second diplomas or degrees.  This generation will require a career booster more so that other generations.  Covid-19 will probably manifest a resilient generation.  But they would need a helping hand to emerge stronger. 
 
Next, I will like to speak about self-employed workers.  Covid-19 has put into sharper focus their lack of protection and income security.  Of course, these are not new issues.  There are broadly two groups of workers.  First, the dependent contractors who depend predominantly on platform companies for their livelihoods.  They are the workers whose lives are dictated by a couple of apps, whether it is ride-hailing or delivery.  They are affected directly by platform companies’ policies such as incentive schemes or meeting service standards.  They usually have little recourse, except to quit and go without their livelihoods.  Second, the freelancers.  They are the coaches, and artists, and depend largely on service buyers. 
 
During this crisis, both groups suffered sharp drops in income because mass events and consumption have dropped dramatically.  The Self-Employed Persons Income Relief Scheme (SIRS) proved important to help them during this crisis.  In fact, many SEPs were very grateful to be afforded support previously only available to employees.   Beyond this year’s of support, it is likely that many of them will continue to be in dire financial situation because Covid-19 will continue to shutter events and reduce consumption.  I hope that Government can consider to extend targeted support to them.  
 
On a longer term, we will need to examine closely and protect their income security.  There are two areas that require closer examination.  One, because existing laws do not allow them to be collectively represented, their voices might not be heard and interests not advanced.  Thus, the divide in bargaining powers is vast, especially for the dependent contractors.  We need to establish now if they are actually contractors or employees.  And subsequently, the roles and responsibilities of the platform companies.  Only when we can strike an equitable balance can these industries or mode of obtaining services continue to thrive.  
 
Second, for the freelancers, it is also critical to establish the responsibilities of the service-buyers. The current mechanism to manage the fairness of contract terms is via small claims tribunal or a civil court process, both difficult and tenuous for freelancers.  We perhaps require legislation on unfair contract terms to protect freelancers.  These are naturally difficult and market-altering changes and would take time to study carefully.  In the interim, we need to have tripartite standards set in place that guides service buyers and freelancers. 
 
Mr Speaker, please allow me to continue in Chinese:
 
议长先生:自雇人士在工作和收入方面,一向缺乏保障,但这次的疫情加深了这些问题,并且让我们意识到我们必须加强对他们的保护。
 
疫情期间, 自雇人士的收入都受到很大的影响。所谓应民所需,急民所需,我很高兴政府在之前的财政预算案中,正视自雇人士无法享受企业救助的问题,并且推出了针对这个群体的援助,比如“自雇人士收入补贴计划”。这个计划在一定程度上缓解了他们对收入的焦虑。但是同时,也有一些自雇人士虽然收入同样受影响,却因不符合某些条件而没法获得补贴。随着我国的经济萎缩,自雇人士这一群体可能会继续面临工作和收入上的困难。因此我希望政府能考虑根据情况,加强针对自雇人士的援助。
 
当然,给予收入补贴一类的援助只能解燃眉之急。从长远来看,我们需要仔细探讨如何在就业和收入方面更好地保护自雇人士。我想在这里提出两点:
 
其一,根据目前的法律,自雇人士没法形成工会,导致他们的权益和声音在一些情况下没有受到应有的重视。尤其是依靠合约的自雇人士,在和大型平台公司谈判权益方面存在巨大的差距。为此,我们应该确定该如何定义他们:是合约工还是雇员,并且接下来也应该清楚地划分平台公司的定位和责任。这样做才能确保这些行业和营运模式能继续发展并成长下去。
 
其二,对于自由职业者,我们也应该检视服务买家的责任。目前处理服务合同条款的公平性问题的方法是通过小额赔偿或民事法庭,但是我们也许要考虑是否需要针对不公平的合同条款立法,以便更好地保护自由职业者的权益。
 
Mr Speaker, notwithstanding the suggestions and comments, I support the motion of thanks.  
 
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