NTUC CC members, my Parliamentary colleagues, tripartite partners, union leaders, NTUC colleagues, invited guests and all our VIP workers here, a very good morning to all of you. Thank you for attending this very first National Day Observance Ceremony for contract and casual workers. I am happy that we can all come together to mark this special event.
1. It is often said that the sign of a successful nation is not how many millionaires it can create, but the extent to which it renders help to those who have not been able to progress as much as others. This is why we are focusing our attention today on the low wage workers of which many of them are in contract employment and are trying very hard to move up and into the economic mainstream. This event is specially organised to honour and recognise their contributions to Singapore and to assure you - the contract and casual workers - that we have not forgotten about you. You fulfill an integral role in the Singapore economy and we at UCCW will work with the government and employers to do all we can to better your circumstances.
2. Singapore, and more importantly, Singaporeans have come a long way since our independence in 1965. We have grown and progressed together from strength to strength over the past 43 years. The transformation of Singapore from a backwater economy to one of the most flexible and dynamic economies in the world is an achievement not to be taken lightly. Indeed, it has both been an arduous yet amazing journey.
3. Manifestations of progress include the number of jobs created in recent years, the growth in real wages and the low unemployment rate in Singapore. The number of jobs created in 2006 numbered 176000. 2007 was equally comparable with a record number of 172, 400 jobs being created. In the second quarter of 2008, employment grew by 70,600 – though this number is marginally lower than that of the first quarter this year, it is still higher than the job growth in the same period last year. We also noted though the world economy has been somewhat affected by the financial crisis in the US, the job market in Singapore still remains tight (DOS). Real growth in wages rose 5.9% in 2007 and typical bonus payouts averaged 2.36 months (CNA). The unemployment rate in Singapore remains low by global standards. As of June 2008, it stands at 2.3%, the same level as it was a year ago (DOS). Hence, many Singaporeans have and will benefited from such growth and progress.
4. We have heard the Prime Minister at the National Day Rally recently. The government is rolling out a series of measures and generous initiatives to help its people and to make Singapore a better place for all. I am sure many are excited about the new and coming developments.
5. More importantly, for the lower income workers that qualify, the Workfare Income Supplement or WIS would be able to top up their earnings and CPF savings in addition to other relief packages such as U-save, GST offset and growth dividends.
6. In 2001, there were 59,400 individuals on contract employment. However, as of June 2007, this number has increased by more than two-fold to 183,000. This comprises 12 % of the working population. Cleaners, labourers and related workers constitute close to 40,000 workers. Industries they work in include the cleaning, landscaping, construction and logistics sectors. They are the unsung heroes who wake up very early in the morning to clean our office, maintain the garden and ensure that we have clean roads.
7. Through our outreach programmes, we found out that many of them face long working hours, do not have many benefits, no savings, no job security, have low skills and are not interested to go for training and upgrading. For some, they even experienced drop in salaries, no statutory benefits and CPF payments. Some employers also resort to employ illegal workers to replace them.
8. It was highlighted in the Report for Wages in Singapore 2007 that among the blue-collar jobs, the lowest paid groups are the cleaners, labourers and related workers who were paid a median gross monthly wage at around $750 to $800. It was also mentioned for the past decade, all other occupational groups enjoyed wage gains with the exception for the cleaners, labourers and related workers. The highest median gross monthly wages stood at $6,101 for managers. Hence, we can see that the income disparity widens further between the lowly educated and the educated.
9. Today, I would like to appeal and call for a concerted national effort to help bring these disadvantaged workers and their families into the mainstream of our economy through concrete and active approaches that focus on self-sufficiency, advancement, assistance programmes and corporate social responsibility.
10. Every and every one of us can help to champion this cause through various ways. For example:
11. End-User or Service Buyer Companies can help influence good Employment Conditions when contracting Third-Party Services through Responsible Outsourcing.
12. In today’s globalised economy, there is an increasing trend towards outsourcing and responsible outsourcing can be a big challenge for many companies. In March this year, the Tripartite Committee on CPF and Work-Related Benefits for Low-wage Workers (Tricom) had unveiled a Tripartite Advisory on Responsible Outsourcing Practices to help end-user companies enhance the employment terms and conditions of employees of their service providers.
13. The NTUC Unit for Contract & Casual Workers (UCCW) together with our key partners like MOM, CPFB and employers have been sharing with stakeholders through a number of meetings, seminars and workshops to share ideas on best practices, gain insights and get feedback on the challenges faced. We want to strengthen the Corporate Social Responsibility and embed the Corporate Social Responsibility knowledge in all the service buyers and service providers.
14. It was very discouraging to hear that some companies appraise staff on how much cost savings they help to achieve for the company when awarding contracts without looking at the quality of work rendered by the service providers. Price is often the main determinant and service providers end up marking down their price in order to win the contract. Somehow, workers get squeezed in this vicious spiral. In many cases, workers suffered salary decline each time they work for a new employer as a result of his former employer losing the contract to a new service provider.
15. I urge all responsible service buyers to constantly check and review the contract specifications and ensure that the contract specifications are based on performance rather than on price and headcount. The contract specifications should include industry-recognised service standards, trained and experienced workers, good financial standing, fair employment terms and investment in workers’ training. Service buyers should offer longer contract tenure so that service providers are more prepared to invest in equipment and training. Last but not least, service buyers need to have audit and enforcement procedures to ensure service excellence and money well spent.
