Various measures are in place to help workers and companies amidst the growing concerns on job opportunities and security. We listen in on the Ministry of Manpower’s (MOM) Committee of Supply discussion on quality job creation, workforce adaptability, inclusiveness and complementarity, and fair and progressive workplaces.
Quality Job Creation
Gain-sharing
Speaking during MOM’s Committee of Supply, Minister Lim said that quality of job creation is key for Singaporeans amidst a manpower-lean environment.
Senior Minister of State for Manpower Teo Ser Luck said that the Lean Enterprise Development Scheme (LEDS), which was launched in 2015, is one key way of helping workers with productivity gains. Since it was launched, there has been an average of 18 per cent wage increase for workers whose roles were redesigned or upgraded through LEDS projects supported by NTUC’s e2i (Employment and Employability Institute).
Sharing of productivity gains was an issue brought up by Young NTUC Director and MP for Tampines GRC Desmond Choo, who said that the Government has over the years supported companies with various grants. The Inclusive Growth Program Programme by e2i is a direct approach whereby companies must share productivity gains with its employees. He suggested that there was a scope to expand this approach to other government grants.
Mr Teo assured Mr Choo that all firms, whether through LEDS or other grants, are provided with subsidies for workers’ training and absentee payroll.
He acknowledged that more can be done to encourage productivity gain-sharing and MOM will explore this with the LED Taskforce agencies in the future.
Manpower Minister Lim also said that over 2,000 companies, especially small- and medium-sized enterprises (SME), across 18 sectors have benefited from LEDS.
Helping companies transform
Mr Teo said that MOM is going to strengthen LEDS as a bridge of innovation for companies. MOM will make innovation more pervasive in the business community, especially among the SMEs. This is to help nurture more industry cluster-based projects to create a positive effect among the industries.
LEDS will not just help individual companies but also support the development of “cluster” solutions. This is to prepare the companies to be capable of productivity improvement, skills development and innovation across each industry.
This announcement came after Mr Choo asked MOM how it plans to enhance LEDS to help SMEs as they make up 99 per cent of companies in Singapore, employing 70 per cent of the workforce and contributing 50 per cent to our gross domestic product.
SMEs, however, are caught between the fastest-changing business environment in decades while in a slower growth cycle.
Workforce Adaptability
Enhancing the Jobs Bank
Minister Lim announced that the current Jobs Banks will transform into a one-stop online marketplace. It will cater to various groups of jobseekers such as young graduates looking for their first job, workers looking for their next job and workers looking for a different career.
It will also be linked to the individual Learning Portfolio portal, which will be launched by SkillsFuture Singapore.
Minister Lim added that jobseekers will also be updated on their job application status. This came after NTUC Assistant Secretary-General and MP for West Coast GRC Patrick Tay asked whether some employers are merely paying lip service to fulfil the mandatory requirement for Employment Pass application.
MOM will also be expanding the channels of job matching services by working closer with two leading private sector employment agencies. This partnership will be launched in the second quarter of 2017.
This also came after Mr Tay suggested a comprehensive big data analytics module to be incorporated into the Jobs Bank to educate jobseekers with the trends and types of in-demand skills that employers desire.
Professional Conversion Programme
To encourage employers to offer more Professional Conversion Programme (PCP) jobs at mid-level, MOM will be raising the salary support cap from the current $2,000 to $4,000, capped at 70 per cent of monthly wage support. This effectively means that the Government can support mid-level employees, who went through PCP, up to $5,700.
Mature professionals, managers and executives (PME) aged 40 and above or those unemployed for six months or more will stand to benefit up to $6,000 in wage support, up from $4,000, capped at 90 per cent of workers’ monthly wage. This effectively means that the Government can support workers in mid-level jobs earning up to $6,700.
These announcements came after Mr Tay said that he found it unsatisfactory when mature PMEs, who have accumulated decades of work experience and skills, have to start off at an entry-level whenever they move into a new sector.
Attach-and-Train
Under the Attach and Train programme, Minister Lim said that the Government will be providing workers with training allowance of 50–70 per cent of prevailing salaries for the jobs they are being trained for, capped at $4,000 a month. This is in lieu of salary grants given to employers.
He added that, to lower the risk of non-placement, trainees will be attached to companies as an integral part of the conversion process. This is to familiarise them with their new jobs, and they can be more ready when companies are ready to hire them.
To minimise potential abuse by employers, MOM will be selecting a few sectors – logistics is one of them – to scrutinise the programme closely with industry partners. Selection will be based on the promising outlook for the sector and industry leaders must be committed to help select and place trainees.
These industry leaders must also be committed to jointly spearhead industry transformation and develop manpower for their industry.
This was a concern brought up by Nominated MP and NTUC Central Committee Member K Thanaletchimi, who asked how will MOM ensure students or workers on the programme are fairly remunerated and can be placed in a job after training.
Returnship Programme
Minister Lim also said that MOM will support the “Returnship Programme” proposed by the Labour Movement and Mr Choo. MOM will partner NTUC to tap on the various support schemes under Adapt and Grow.
The “Returnship Programme” was called for by Mr Choo during the Budget debate to help women get back into the workforce.
Inclusiveness and Complementarity
On strengthening inclusiveness of the local workforce and enhancing the local and foreign workforce complementarity, the Minister Lim spoke of several measures during the Committee of Supply debate.
Company Watch-list
Since the implementation of the Fair Consideration Framework watch-list in 2016, some 250 companies were put on it as at end February 2017.
Out of that, 50 companies are being closely watched as they have not been receptive or cooperative in adopting fair and progressive hiring practices.
“We will continue to curtail their work pass privileges until they improve,” warned Minister Lim.
Other companies on the watch-list for a period of six months have improved their hiring practices by stepping up local recruitment with the help of Workforce Singapore and NTUC’s Employment and Employability Institute (e2i).
During the debate on MOM’s budget, Mr Tay asked for an update on implementing the Fair Consideration Framework.
“How successful have we been in the drive towards hiring and developing a strong Singaporean core. Can MOM share whether the ICT, financial and professional services sectors continue to be among the top few industries where most of the watch-list companies are and whether we will impose even more punitive sanctions against those recalcitrant companies,” asked Mr Tay.
Going forward, as part of the Human Capital Partnership programme, MOM will have a differentiated approach with a “fast” lane as an added incentive for its human capital partners.
Such “fast lane” partners or companies have shared commitments to strengthen the Singaporean core and strengthen the transfer of know-how. In the “fast lane”, the partners will have a dedicated hotline to address queries expediently and be given quicker access to government scheme and resources.
For the majority of employers who are fair, they will fall in the “normal” lane.
Companies in the “slow” lane are those on the watch-list with unfair practices. They will face additional scrutiny of work permit applications.
Fair and Progressive Treatment of All Workers
The COS also saw the announcement of starting the Tripartite Alliance for Dispute Management (TADM) and the Employment Claims Tribunal on 1 April 2017.
TADM will mediate disputes beyond those under the purview of the Employment Claims Tribunal.
Mr Tay reacted and said: “I am delighted that the Employment Claims Tribunal will come into operation next month. The Employment Claims Act currently covers all workers in an employment relationship but limited to 18 contractual and 43 statutory type of salary-related claims.
“With greater complexity in the terms and conditions of work as well as cases of unfair termination of contract where workers, especially professionals managers and executives are just given notice pay and told to leave the company, I hope the Act can keep pace with the developments and address some of these issues which may not be salary related.”
More Help for Foreign Workers
Meanwhile, to better help foreign workers in need, the Migrant Workers’ Centre (MWC) from 1 April 2017 will partner with TADM to set up a new office at the MOM Services Centre at Bendemeer Road. This will be in addition to MWC’s two offices in Serangoon and Geylang.
MOM said foreign workers who need help can approach MWC at any one of these three locations.
Tripartite Standards
Minister Lim also introduced Tripartite Standards, which will complement the existing Employment laws and Tripartite guidelines and advisories.
MOM said that while Singapore mandates basic workplace practices and promotes progressive work practices through tripartite advisories, there is a gap between the two. The first series of tripartite standards will be launched by the end of the year.
Protection of Workers
The Manpower Minister also announced the formation of a tripartite workgroup to look into the concerns of freelancers and come up with workable solutions.
NTUC Assistant Director-General Ang Hin Kee spoke about the growing freelancing profession during the MOM Committee of Supply debate.
He said: While freelancers do have some flexibility of time, they face concerns such as unstable income stream, inadequate savings for retirement and lack of protection when disputes between them and the service buyers occur.”
MOM conducted a survey last year to better understand the freelance landscape. There were about 167,000 primary freelancers in 2016. These are workers who freelance as their main job. If secondary freelancers were to be added, then there are some 200,000 of them.
Secondary freelancers are those who freelance part-time alongside other jobs. They include students, housewives and retirees who take on side jobs for additional income.
And their main concerns - finding sufficient customers, lack of income security, timely and complete payment from clients and savings for housing and retirement.
Minister Lim assured MPs that his Ministry is taking these concerns and will study them in the tripartite workgroup.
Other Announcements by MOM
Work Trial
To enhance the support for rank-and-file workers, the Ministry of Manpower (MOM) has enhanced the Work Trial to address job mismatches. It also aims to help more long-term unemployed to return to work, especially the lower-skilled and lower-wage workers.
The current 80 hours – or 2 weeks – of Work Trial will be extended to as long as three months.
During or at the end of the work trial, if employers offer employment to the workers who have been unemployed for more than a year, MOM will be providing 30 per cent of wage support, capped at $600 for the first six months of employment.
Workers will also be incentivised with an additional $500 for staying in the job for at least three months. For workers unemployed for more than a year, they will be incentivised with $1,000 if they stay in the job for at least six months.
This enhanced Work Trial will also support persons-with-disabilities.
Enhancements to Career Support Programme
To address wage mismatches for Professionals, Managers, Executives and Technicians (PMETs), the Career Support Programme (CSP) was also enhanced by MOM.
Mature PMETs age 40 and above unemployed for a year or more will get a higher tier of salary support for a longer duration – 50 per cent of salary for the first six months, 30 per cent for the second six months and 20 per cent for the third six months.
PMETs age 40–49 who are made redundant or unemployed for six months will now receive the same level of support as those aged above 50. They will receive 40 per cent of wage support for the first six months and 20 per cent for the second six months.
Younger PMETs who are unemployed for more than six months will now also get salary support regardless of whether they were made redundant or not. They will receive 20 per cent of wage support for the first six months and 10 per cent for the second six months.
Source: NTUC This Week
