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Mr Speaker, I rise in support of the Motion of Thanks to the President’s Address. I would like to focus my speech as Deputy Secretary-General of NTUC, on supporting low-wage workers.
The Covid-19 pandemic has caused major disruptions to businesses and impacted workers’ livelihoods in an unprecedented way. In her address, President Halimah Yacob called on all of us to build a fair and just society and to look after our low-wage workers, especially during this crisis.
In Singapore, our way of helping low-wage workers is via what I call the “Triple Uplift” formula of Progressive Wage Model (PWM) + Workfare Income Supplement (WIS) and of course, the National Wages Council (NWC) recommendations, using all these 3 to uplift their wages.
The strong interlinkages of these 3 components in the “Triple Uplift” formula have increased their overall take-home salaries and overall retirement savings. Importantly, this uplifting of wages is significant for our workers, without imposing additional burden on companies, especially during an economic crisis like this.
Through this “Triple Uplift” formula, the wages of the lowest 20th percentile have seen an annual growth rate of 4.4% from 2014 to 2019, as compared to 2.3% in the preceding five years.
As a result, the income gap between the low-wage workers and the workers at the 50th percentile have narrowed.
The wages of low-wage workers have also been growing faster than those with higher income, hence income inequality in Singapore is at its lowest in almost 20 years.
So the Triple Uplift formula has helped significantly. It is good, but it can be better. So despite all this, I thought this would be an opportunity for me to address areas that we can improve on.
Progressive Wage Model
The Progressive Wage Model (PWM) championed by NTUC was introduced in 2014 and aims to help our low-wage workers to upskill and benefit from higher wages and better work prospects. This is done through a 4-ladder approach – skills upgrading, productivity improvement, wage progression and of course career advancements.
In other words, a “wage ladder” is coupled to a “skills ladder”. Wages go up as skills and productivity improves. It is not a one-size-fits-all approach. But it is different for different sectors. It looks at raising wages sustainably to match the necessary productivity growth for each different sector, which is beneficial for businesses, workers and the Singapore economy at large in the longer term.
Currently mandated in the cleaning, security and landscape sectors, the PWM has helped to substantially raise the wages of workers in these three sectors by around 30% between 2013 and 2018. Cleaners saw their real median wages go up by 30%, while the increases were about 31% for security officers and 32% for the landscape industry.
For example, the starting monthly salary for a cleaner in Town Councils after we introduced the PWM is $1442. With overtime pay and AWS or Bonuses, this could actually be higher.
However I must say, these 3 sectors account for only ~78,000 workers, representing 15% of all the workers in the lowest 20th percentile of salary ranges. So we should do more and expand PWM to more sectors, to help more low-wage workers. In fact, over the last few years, SkillsFuture Singapore (SSG) has comprehensively mapped out the skills framework for many job roles. Leveraging on these skills ladders, we should now move towards Universal PWM across all lower paying jobs. This is in line with what our ITM wants to achieve, some of the objectives of upskilling, job redesign, productivity growth and wage progression.
Some of our efforts undertaken by the tripartite partners prior to COVID-19 will lead to the Lifts & Escalator sector having a PWM becoming mandatory in 2022. The Labour Movement is also now in discussions with our stakeholders to see how we can implement PWM for the Waste Management sector.
Understandably, it is not the best time to raise wages during a global health and economic crisis when businesses are facing challenges of cashflow and disruption. Timing is important. We do not want to put businesses out of action through escalating wage costs in an economic downturn, nor do we want to deter hiring of workers in a distressed job market with a rising unemployment rate. As Brother Heng Chee How said before in an earlier parliamentary speech, even as we endeavour to help low-wage workers, we must make sure a balance is struck, so that “low wage” does not become “no wage”. As a doctor, I think it is quite clear that there are no magic bullets and there are no magic wonder drugs that can heal everything without side effects. So I think when it’s time to push for intervention, we need to find the right timing. When the timing is right, we must move quickly.
So I hope Tripartite Partners can come together even now to conduct an in-depth study on the universal implementation of PWM across more sectors, so that we can move faster in this aspect when the economy recovers post Covid-19. If we truly want to build a more inclusive society and narrow the income gap, the pace of PWM implementation across more sectors must quicken.
To build a more inclusive society that President Halimah Yacob spoke about, companies must find a way to translate the increased productivity into tangible benefits for our essential service workers, many of them are in the low-wage segment, so that they can see how industry transformation will benefit them. Government must also be prepared to use more regulatory levers to widely implement PWM. Clearly, waiting for the market to respond on its own will not produce the results we hope to see.
In moving towards universal PWM, we should explore setting a sectoral wage benchmark for companies as a first step in sectors where there are currently no regulatory levers to mandate a PWM. This can be done through leveraging various data sources that we currently have, such as the Occupational Wage Survey. In sectors with a more variegated employment landscape such as Food Services and Retail, sectoral wage benchmarks may help catalyse more companies to embark on uplifting the livelihoods of our low-wage workers. This of course can eventually evolve into a formal PWM.
Workfare Income Supplement
Next let me talk about Workfare Income Supplement enhancements. To raise the wages of those in low-paying jobs, society at large must also play a role. Many low-wage workers are in sectors that provide essential services. During the Circuit Breaker period that we have just emerged from, many Singaporeans appreciated the work that essential service workers do, to keep our estates clean, our utilities functioning and our transportation nodes running. Members would have read articles and social media commentaries calling for these essential workers to be better paid for the work that they do.
I hope service buyers would price the contracts fairly, so that our workers can be paid fair wages. The adoption of Outcome-Based Contracting must also be ramped up at a quicker pace. We need more progressive service buyers to start awarding contracts fairly to companies based on performance and quality, instead of just looking at price alone. In this way, we can truly recognise the importance and value of the work performed by many of our essential service workers.
This means that as consumers, we must also be prepared to also pay more for essential services. But, in reality, there is a limit to how fast we can raise wages and how much the consumers are prepared to absorb price increases, especially during an economic downturn.
Hence, to further boost wages across the board for many low-wage workers in Singapore beyond the PWM, the Workfare Income Supplement (WIS) scheme is an important one. This was recently enhanced, with the qualifying income cap raised to $2,300 per month and the maximum pay-out increased to $4,000 per year. Through this enhancement, our low-wage workers get to experience strong, real wage growth.
Today, WIS contributes to almost 1/3 of the take-home pay of our low-wage workers. This in itself is an expression of the Social Solidarity that Mdm President spoke about in her address, the larger pool of taxpayers, through our taxpayers’ money has helped to uplift the wages of those earning less. In addition, the Workfare Special Payment of $3,000 announced in the recent Budget, was a good measure to tide lower-income Singaporeans over this difficult period. This was very much welcomed by many of the low-wage workers I met with.
I hope government will continue to strengthen WIS and ensure that the earnings of our low-wage workers keep pace with rising costs of living.
National Wages Council
The third aspect on National Wages Council. The broader articulation of this Social Solidarity is also embodied in the recommendations by the National Wages Council (NWC). The NWC recommendations early this year in March 2020 have sought to further safeguard the interests of low-wage workers, particularly those in the frontline of our Covid-19 response and earning a basic monthly salary of up to $1,400. Some of these recommendations include freezing the wages of workers instead of pay cuts when the company is not doing well. Conversely, increasing the wages by up to $50 if the company is looking at increasing wages across the board.
Given the profound impact of the COVID-19 on the economy, companies and workers, the Tripartite leaders have agreed to reconvene the NWC again later this year, much earlier than the usual timeframe, to review the wage guidelines. I hope during this review, the NWC will continue to protect the wages of our low-wage workers and recognise their contributions in the essential services sector.
Conclusion
Mr Speaker, the “Triple Uplift” formula of PWM + WIS + NWC recommendations has led to higher take-home pay and retirement savings for low-wage workers, particularly those who perform essential services. To benefit more workers and protect workers from stagnating wages, NTUC calls for PWM to be expanded at a quicker pace and be made universal to cover all sectors. Sectoral wage benchmarking could be explored as a first step towards eventual universal PWM to uplift wages for sectors such as Food Services and Retail. WIS should also be strengthened to better provide for low-wage workers.
Taking care of our low-wage workers and giving them the dignity of earning a fair wage, must be an important and tangible manifestation of the Social Solidarity that President Halimah Yacob calls upon us to do as One United Singapore.
Mr Speaker, may I have your permission to speak in Mandarin please.
冠状病毒疫情对新加坡的经济和国人的就业前景带来巨大的冲击。哈莉玛总统在国会掀开序幕的演讲时，呼吁我们在应对这场空前巨大的危机时，必须加倍关注低薪的工友们，以体现新加坡社会团结的精神。
疫情当下，我们更深深地领悟到，必要服务领域的工友们，在这疫情期间为我国付出了功不可没的贡献。在必要服务领域工作的许多低薪工友们，更成为了关注的焦点。
在新加坡，我们通过三个互补的措施，提高低薪工友们的薪水：渐进式薪金模式（PWM），加上就业入息补助计划（WIS），还有全国工资理事会（NWC）。
这三个互补的措施，虽然显著地提高了低薪工友们的薪水，但还是有些美中不足的地方。在此，我要提出以下几点，加强对于低薪工友们的扶持。
“渐进式薪金模式”的普及化实施
首先是 “渐进式薪金模式”的普及化实施。在全国职工总会的带领之下，劳资政三方在2014年推行的渐进式薪金模式 (Progressive Wage Model), 让必要服务领域中的许多低薪工友们，通过提升技能以及生产力, 从而获得更高的薪水和取得职业的发展。在2013年至2018年期间, 这些低薪工友的工资涨幅大概30％。
然而，PWM目前只在清洁，保安和园景这三个领域强制性的实施。受惠仅7万8,000名低薪工友，占15%的低薪工友族群。 我们应该将PWM延伸到更多的工作行业，帮助更多的低薪工友。 电梯和扶梯维修领域的PWM将在2022年成为强制性的措施。职工总会也在与合作伙伴们进行讨论，希望在不久的将来，也能在废物管理领域实施的PWM。
尽管如此，我希望劳资政合作伙伴们能尽快针对PWM的更广泛实施，进行深入研究，以便在冠病疫情平息之后，经济复苏时, 我们可以在这方面更加快速地采取行动。
同时，我们也应该探索更广泛的行业薪金指标, 作为PWM的起点。这或许有助于催化更多的公司，更多的企业，着手提高我们低薪工友们的薪金。
加强就业入息补助计划
第二，是加强就业入息补助计划。除了PWM，政府在就业入息补助计划（WIS）之下所发给的补贴，更占低薪工友们近1/3的实得工资。 这是哈莉玛总统所提倡的社会团结精神的一种体现。通过整体的税收，帮助低薪工友们。此外，在追踪预算案发放的$3,000“就业入息特别补助”现金补贴，将帮助低薪工友应对冠病疫情的冲击。冠病疫情会持续多久，目前还是个未知数。我希望政府在必要时，会加强WIS给于我们低薪工友的扶持。
全国工资理事会继续维护低薪工友福利
第三是全国工资理事会继续维护低薪工友们的福利。 全国工资理事会(National Wages Council) 最近提出的方案，也进一步维护低薪工友的利益。雇主在经济不明朗的情况之下，往往会考虑减薪或裁员。ＮＷＣ建议雇主尽量保持低薪工友的薪水，但可以考虑暂时冻结工资，以保住本地员工的工作。相反的，如果雇主有能力全面提高工资，NWC建议给与低薪工友们高达$50的提升。我希望全国工资理事会这几个月内再度进行工资检讨时， 会继续关注和维护低薪工友们的福利。
议长先生，PWM，WIS还有NWC这三方面的互补措施，有效地提升了低薪工友们的工资和退休储蓄。 为了使更多的工友受益，全国职工总会呼吁政府将PWM扩展到更多，更全面的工作领域。我希望政府也能加强WIS这方面的辅助，扶持低薪工友。在面对经济困难挑战时，利用全国工资理事会的平台，维护低薪工友们的福利。
With that, Mr Speaker, I support this Motion.
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