By Naseema Banu Maideen
Employers in the service sector now have new initiatives to help them better optimise their foreign manpower. The Ministry of Manpower has rolled out two measures – the Job Flexibility Scheme (JFS) and a market-based skills framework for businesses in the service sector.
Focus Must Be Raise To Productivity
The Labour Movement welcomes these initiatives, said NTUC Hospitality and Consumer Business Cluster Yeo Guat Kwang, who is also Migrant Workers’ Centre Chairman.
Through the Job Flexibility Scheme, from 1 July 2013, businesses in the services sector can offer their Work Permit Holders (WPHs) the opportunity and flexibility to work across different job functions within the same firm.
This will help them reduce the need for additional manpower, as well as better optimise and adjust the deployment of their staff according to the demands of their businesses.
“We urge employers to tap on the JFS sensibly and reasonably as part of a holistic plan to raise productivity,” he said.
In a gist, he said employers must keep in mind these issues.
Focus On Quality Over Quantity Of Foreign Workforce
The current skills framework for WPHs to upgrade from the ‘Unskilled’ (R2) to ‘Skilled’ (R1) status was first introduced to encourage employers to hire and retain skilled foreign workers. The levy rate for R1 WPHs is lower than that for R2 WPHs.
In addition to the current qualifications – and - skills test - based criteria for a WPH to be considered skilled, the market-based skills framework allows WPHs in the services sector to upgrade from R2 to R1 status. MOM will also extend the 10-year cap for WPHs in the services sector to 16 years to encourage employers to retain experienced and skilled foreign workers.
Mr Yeo said that this is in line with MWC’s call for tripartite partners to focus on quality over quantity for our foreign workforce. Local workers will also benefit because employers are discouraged from recruiting foreign workers who are less experienced and regarded as cheaper labour alternatives, who are more likely to hold down salaries for locals, he explained.
He also called on MOM to curb companies from merely increasing salaries of their WPHs who meet the years of experience to $1,600 to enjoy the skilled levies.
