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Parliament Motion on Inclusive Growth by Mr Yeo Guat Kwang, MP for Aljunied GRC on 12 January 2011

This House reaffirms its commitment to inclusive economic growth and calls on the Government to continue doing more to support low-skilled and low-wage workers so that all Singaporeans may share the fruits of our prosperity through better skills, better jobs and better incomes.
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12 Jan 2011
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It has indeed been a Happy New Year for Singapore. The Singapore economy grew a stunning 14.7% in 2010, making it Asia’s fastest growing economy for the year. The economic recovery is something to celebrate.

As part of the labour movement, I think we have more reason to celebrate because we have not overlooked the underprivileged, the low wage or the low skilled worker even as we achieved economic recovery. Indeed, we are glad that the tripartite social partners here are committed to inclusive growth for all.

In searching for solutions to help the lower income groups, we should be mindful that it is not a case of just having alternative views. This may be fruitless, as an old Chinese saying goes:”只听楼梯响, 不见人下来”or “雷声大雨点小” – a situation where we are not effective, unable to implement concrete action or face poor buy-in from stakeholders.

Like many Singaporeans, In the labour movement we believe in “4D”, but our 4Ds stand for “Do good, Do well, Do together and Do more”, thus in searching for solutions, we often seek alternative views and look for overseas case studies and experiences, consult widely and then we “do” with dedication.

As a worker-centric and practical movement, we are committed to ensuring that, not just look for alternative views but initiate action and results-orientated solutions that suit our political and social context. These need to truly benefit the low wage and low skilled worker. Like what we were taught in school: 做事要四到: “眼到, 耳到, 心到, 手到”; We must ensure that apart from our eye, ear and our hearts being in the right place, our hands also be ready to be hands on, so we need workable programmes.

For instance, in the services sectors, we already have various schemes to helped companies strengthen their competitiveness and in doing so, upgrade the service skills of their employees. Many companies have also reported increased revenue and the trickle-down advantage means better job and pay for their workers.

ENABLING COMPANIES, HELPING WORKERS

I am pleased to share the success stories from Customer-centric Initiative or CCI. It has made good strides in helping companies help themselves. Their staff also benefit from associated training and performance-based reward system.

CCI is led by SPRING, the National Trades Union Congress (NTUC), the Workforce Development Agency (WDA), the Singapore Tourism Board (STB) and the Singapore National Employers Federation (SNEF). It aims to enable companies to take the lead in raising service standards in their industry.

For Healthcare service provider, Alliance Healthcare, which runs a medical centre and numerous General Practitioner clinics across Singapore, the CCI programme has helped it to better respond to the escalating demands and expectations in the different customer segments built a strong service culture, maintained strong customer relationships, and tracked service improvement and made continuous improvement.

With service excellence emphasized in the daily work and routine, employees are inculcated with happy and positive mindset, happy serving mentality, passion to serve, and values in their professionalism.

An example is Traditional Chinese Medicine (TCM) retailer, Eu Yang Sang. The company implemented a loyalty programme, online portal, staff training, service audits and a staff reward initiative. These have resulted in customer satisfaction level improved by 21% and revenue increased by 6.5%. Staffs also benefit from enhanced workplace recognition for good service and performance, as the company rewards employees with company-wide bonus/ incentives to all employees based on increase in revenue and customer satisfaction level, boosting morale.

At Han’s Group of Companies, which runs F&B outlets across the island, they managed to make CCI work for them and their employees. Through the programme, Food ordering and arrival times were reduced by 93.9% and 65.4% respectively. Overall productivity improved by 118% and staff productivity (return on manpower cost) improved by 291%. The company has also seen an increase of 58.9% in revenue, and 428% in profit. For Han’s commitment to profit sharing meant staffs were awarded a bonus – amounting to a generous 15 per cent of the group’s profits.

Such initiatives in the private sector companies are spreading. At Sakae Sushi, it has kicked off its new “Inclusive Growth Programme (IGP)” that aims to improve service standards, food ordering time and payment speed at their restaurants. To encourage staff to sustain these improvements, a monthly financial incentive will be rolled out. Workers in the outlets that meet the KPIs can receive average monthly increase of up to 17% (about $200).

Such profit-sharing and performance awards have multiple benefits – they raise the morale of staff, boost their salaries, improve service and customer satisfaction. These Singapore companies that continue to build a culture of inclusive growth should be commended for their commitment to fair and equitable employment practices.

A farmer once told me when I was a little boy that you have to keep chickens healthy so you can expect to have a good egg every day. I find this is a good way of looking at things. We need to keep our companies competitive and companies need to keep their workers happy and self-fulfilled so that we can continue be productive and continue to see gains.

TALES OF EMPOWERMENT

On the ground, we have also seen programmes enhanced to enablelow skill and low wage workers to find suitable jobs, upgrade their skills, enhance their employability and increase their earning power.

With the support of North East CDC and e2i, the employment assistance programme in Aljunied GRC has been strengthened by having WorkCare Agents who have made a difference in the lives of local residents who have lost their jobs or who are looking to improve their job situation.

Aljunied-Hougang resident Mdm Annie Koh, 64 years old, with no education qualification, had a tendency to change jobs and had been unemployed for three months when she sought help. At this point, she was feeling depressed about her situation. Our WorkCare Agents did not only help her find a job, but initiated counselling so that Mdm Koh could regain her mental wellbeing and remain positive. WC Agent, Peggy, found Mdm Koh a job as a plate collector at Kopitiam in Hougang Point with a monthly pay of $800, and Mdm Koh has been happily working there for nine months now and benefited from Workfare Income Supplement (WIS).

Resident Ong Eng Siong, 45 years old with primary education qualification, was working as a machine operator since 1995 to 2009, he was retrenched. He could not find a job for 4 mths. Our WCA, Ann has helped him with a job in F&B as a service crew earning $1,300 a month. He has been working there till now.

For 30-year-old Johnny Tan with N level education, work over the last five years only took the form of odd-jobs and part-time work. When friends introduced him to our WorkCare Agents, he was keen to better himself. Our Agents encouraged him to take up a Security Course and later found a full-time job as a Protection Officer at Aetos Security Management where he has now been working for nine months earning a monthly income of $1,600.

This is just a sampling of the good work that WorkCare Agents have undertaken. In addressing the practical side – finding suitable work – and the emotional side – counselling residents to build their self-esteem, self-reliance and mental well being – they have been able to help residents sustain longer and more satisfying employment.

Apart from raising employment levels and employability, WorkCare Agents also set job-seeking residents on the first step of a journey to better things. Government incentives also kick in to encourage these low wage and low skill workers to remain employed and upgrade their skills through the Workfare Income supplement Scheme and Workfare Training Support (WTS) scheme

I am pleased to start the New Year with these tales of success and optimism. It gives us reason to be optimistic that our many helping hands approach is working. We are on the right track.

From the people sector, private sector and public sector, we have managed to engage our tripartite energies to look out for those in need, enhance the potential of every individual and give people the right mix of practical tools and emotional support to elevate themselves and their lives. The Government has to continue doing more and explore more ways to support our low-skilled and low-wage workers so that all Singaporeans may share the fruits of our prosperity through better skills, better jobs and better incomes.

Sir, I support the motion.