NTUC Doing More For Low-Wage Workers

19 Apr 2010

Low-wage casual and contract workers can now receive employment-related assistance, work-related advices and targeted resources under one roof at the new National Trades Union Congress’s Centre for Contract and Casual Workers at e2i (Employment and Employability Institute). Efforts to help low-wage workers up their skills and pay through best sourcing initiatives have also paid off with over 3,000 low-wage workers benefitting from the Best Sourcing Initiatives Early Adopters Scheme (BEAS) that was launched in July last year.

NTUC’s Centre for Contract and Casual Workers (C3W)

To ensure that low-skill and low-pay vulnerable workers in Singapore are not marginalised in a fast-changing economy, NTUC set up a Unit for Contract Workers in June 2006 to enhance their economic and social well-being. In August 2008, it was renamed Unit for Contract and Casual Workers (UCCW) to extend its outreach to a wider spectrum of low-wage workers in the informal economy.

UCCW’s membership base of over 9,000 low-wage workers were assisted in areas relating to employment, training, medical and insurance benefits, fair employment, financial assistance, as well as social and recreational activities. To improve its outreach, NTUC is setting up a one-stop Centre for Contract and Casual Workers (C3W) at e2i where workers can receive training assistance and job referrals from e2i, and direct assistance from UCCW under one roof. Working with e2i, UCCW will assist workers with the Employment Intervention Programme (EIP). (Details of EIP and services available at C3W are provided in Annex A.)

“Low-wage workers are not stuck in a rut in Singapore as there are many helping hands working to improve their lives, including the Labour Movement. And we are intensifying our efforts to help these workers with the set up of C3W where we pull together all resources from within and outside the NTUC family to provide concerted and targeted assistance to reach out to more low-wage workers,” said Mr Zainudin Nordin, Director of NTUC UCCW. He added, “We engaged 16,700 workers through our outreach programmes over the last four years; and with the setup of the one-stop C3W, we aim to reach out to 20,000 workers this year.”

One low-wage worker who was helped by the Labour Movement was 56-year-old Ms Lee Geok Lan who lost her job as a packer when her contract was terminated early last year. UCCW arranged for her to attend courses progressively through the Attitude, Skills and Knowledge (ASK) workshop, Workplace Literacy (WPL) course and Workforce Skills Qualifications (WSQ) in Security. After she attained the WSQ in Security, she attended a security sector Industry Preview organised by e2i and found a job as school security personnel. She is now earning $1,300, 30% more than her previous pay of $1,000 as a contract packer.

Another UCCW member, 42-year-old Mr Muhammad Iqbal bin Hussain, saw career progression after UCCW worked with his company to send him for training. Mr Iqbal was a hangar assistant in 2008 and was promoted to be a spray painter last year after attending a WPL course. He was promoted because of his ability to read instruction manuals, an essential job requirement, amongst other contributing factors. Mr Iqbal shared, “I have only secondary two education level and could only do simple jobs with lower pay in the past. I am grateful to my company for sending me to attend course to improve my English, and promoted me to be a spray painter with a higher salary.”

3,000 low-wage workers benefitted from Best Sourcing Initiatives

In July 2009, NTUC launched the Best Sourcing Initiative (BSI) Early Adopters Scheme (BEAS)¹ to encourage service buyers to award contracts based on quality and performance standards. In turn, workers will benefit as service providers invest in training of workers and equipment to boost productivity.

To-date, over 3,000 low wage workers across sectors such as Cleaning, Landscape, Security and Facilities Management have benefitted from the scheme. They are better skilled, on better jobs and receive higher pay. 21 organisations received a total grant of $2.75 million under the scheme for 41 contracts that are worth a total sum of $103 million. One successful early adopters of BSI is M1 Limited (M1) that embarked on BSI in February this year.

M1 engages Keppel FMO’s service to maintain the mechanical and electrical (M&E) facilities of MOC, MiWorld and ROC commercial buildings. To provide higher value services, Keppel FMO’s workers underwent training to operate complex and technical equipment, and attended mechanical and electrical-related courses to upgrade their knowledge and skills. Under the BSI contract, performance targets for staff are clearly stated and those who achieve it will be rewarded with year-end bonus. Staff appraisal is also conducted in an objective and transparent manner as staff are appraised by both Keppel FMO and M1 together.

“M1 fully supports the objectives of BSI and aims through its participation in the scheme to contribute to the national effort to upgrade the skills and productivity of contractor staff. As a service buyer, M1 has a stake in the success of the scheme as we will ultimately benefit from the general improvement in the quality of service provided by our contractors,” said Mr Chua Swee Kiat, General Manager, Corporate Communications of M1.

Mr Chua Seng Yew, 53 years old, joined Keppel FMO in November last year as a Maintenance Technician without prior experience in facilities and maintenance. As Keppel FMO is able to leverage on the BEAS funding to invest in workers’ training, besides providing on-the-job training to Mr Chua, he will be attending courses on Mechanical and Electrical Maintenance, and Fire Safety over the next few months to enhance his technical skills. “I joined Keppel FMO without experience in this field. So I am grateful to my company for giving me the opportunity to take on this job and attend courses that can equip me with the relevant skills and knowledge. I believe I will be able to do my job better and with greater confidence,” said Mr Chua. He is now in-charge of maintaining the mechanical and electrical facilities of a building, and draws a salary of $2,000, up from $1,500 before joining the company.

Labour Movement doing even more for low-wage workers

Labour Movement is committed to improve the social mobility of low-wage workers in Singapore. Besides continuing our efforts to help workers re-skill, up-skill and multi-skill so that they can earn higher pay, we will forge more partnerships with organisations and government agencies to uplift industries and jobs through BSI and Job Re-creation Programmes to boost low-wage workers’ employment terms and prospects.

¹Under BEAS, organisations receive funding grants to defray cost incurred in the adoption of BSI practices as they pay more for better quality service.

Annex A: Employment Intervention Programme (EIP)

Services Available at Centre for Contract and Casual Workers (C3W)

- advocate fair employment and responsible outsourcing

- provide advice on employment rights and other work-related issues

- facilitate and help contract and casual workers on training and job placement opportunities

- provide information and help contract and casual workers receive Workfare Income Supplement

- disseminate information and resource materials tailored for contract and casual workers

- support and organise recreational and social activities for contract and casual workers