The Labour Movement’s Hospitality and Consumer Business Cluster unveiled its Integrated Progressive Wage model today that will help 3,000 rank and file workers and executives in the hotel sector earn higher wages and have multiple career paths. Some 250 Singaporean PMEs (professionals, managers and executives) stand to benefit in the first phase of a new programme, Executive Development Programme (EDP) that was launched today.
The Hospitality and Consumer Business Cluster has two immediate objectives—strengthen the Singaporean Core through Integrated Progressive Wages and secure Better Jobs For All through leveraging technology, multi-tasking and cross-deployment for the hotel sector. The Cluster comprises three NTUC-affiliated unions from related industries: Food, Drinks and Allied Workers Union (FDAWU), The Singapore Manual & Mercantile Workers’ Union (SMMWU) and Attractions, Resorts & Entertainment Union (AREU).
Progressive Wages for 3,000 Workers in Hotel Sector
Since August 2010, the Inclusive Growth Programme (IGP) has helped 38 hotels or 1,600 Singapore workers, of which 1,200 are low-wage workers. The Cluster will continue to improve the lot of low-wage workers and help them earn better wages via a new Progressive Wage model unique to selective sectors within the Cluster.
Today, those in rank and file positions are in rooms, and food and beverage (F&B) departments and are mostly low-wage workers whose wage progression has been slow. Meanwhile, the supervisory level shows a slow Flow In of new entrants, especially Singaporeans, hence fewer Singaporeans Flow Up to fill supervisory positions.
For a start, the Cluster will target to help 3,000 rank and file workers and executives in the sector achieve progressive wages. It has worked with hoteliers to devise an integrated hotel-specific Progressive Wage model that meets the Cluster’s objectives through two strategies: 1) raise wages progressively through productivity; and 2) build a Singaporean Core of managers and supervisors in the hotel sector.
Strategy 1: Raise Wages Progressively through Productivity
Under the new Progressive Wage model, the most junior-level rank and file workers such as room attendants who are now earning $1,000 can rise up the rungs to become room associates through deep-skilling and job re-design. This helps to raise their wages to more than $1,300. Subsequently, through continual training, they will be further equipped with more skills to Flow Up the wage ladder to command $1,600 as a supervisor, more than $2,000 as an assistant manager and more than $3,000 as a manager.
Alternatively, they may join HOST (Hotel Operations Specialist Team), a unique structured job re-design scheme which equips them with two or three cross-skills in housekeeping, F&B services and front office so that they become multi-skilled and more productive. With higher productivity, staff from Rooms can be cross-deployed to either the F&B department or Front Office through HOST. (See Diagram1)
Diagram 1
For those who wish to sharpen their skills to an even higher level and enhance their employability and improve their wages, they can tap on the new Executive Development Programme (EDP) launched today.
Strategy 2: Building a Singaporean Core of Managers and Supervisors through Executive Development Programme (EDP)
The EDP is a structured management trainee programme mooted by the Cluster in consultation with NTUC’s e2i (Employment and Employability Institute) and the Singapore Workforce Development Agency (WDA) to attract and retain mid-level Singaporean PMEs with the aim to build the Singaporean Core in the hotel sector. To qualify for EDP, the hotel will first put in place a 12 to 18 month structured training programme and ensure there is work-life balance for trainees.
If the hotel wishes to place existing Singaporean staff who are currently getting $1,300 monthly salary on the EDP, it must up their salary to $1,800 before the start of the programme. Upon completion of the EDP, the hotel will increase the staff’s basic salary to at least $2,000.
For Singaporeans who wish to join the hotel sector at mid-career stage, their starting pay must be at least $1,800 to qualify. After completing the programme, the hotel will increase their basic salary to at least $2,000. The Cluster targets to reach out to 250 PMEs in the first phase through EDP so that more Singaporeans can Flow In to strengthen the Singaporean Core of the sector. (See Diagram 2)
Diagram 2
Hospitality and Consumer Business Cluster Lead, Mr Yeo Guat Kwang said: “The new progressive wage system for the hotel sector is a highly versatile one that enables low-wage workers in rank and file positions to Flow Up vertically as they deepen their skills and raise their productivity; it also gives them the flexibility to Flow Across laterally to other job functions upon completion of HOST and to Flow Up if they upskill through the Executive Development Programme. Also, Singaporeans looking for a mid-career switch can tap on the programme to get inducted into the sector. This helps to strengthen the Singapore Core in the hotel sector and bring about Better Jobs For All.”
Hospitality and Consumer Business Cluster Chairman, Mr Tan Hock Soon added: “With the new progressive wage model, workers can optimise their time and skills, and earn extra pay without working extra hours.” (See Annex 1 for examples of hotel workers who earn higher pay by working the same hours).
“The SHA supports progressive wage for hotel employees who have acquired new skills to expand their job scope and when there is an increase in output as a result of a change in work processes leading to higher productivity,” said Ms Margaret Heng, Executive Director of the Singapore Hotel Association (SHA).
The new Progressive Wage model and EDP were announced during the 30th FDAWU/NTUC/SHA Productivity Seminar cum “Employee of the Year” and “Productivity Idea” Awards Ceremony where outstanding hotels and workers received their awards from Guest-of-Honour NTUC Deputy Secretary-General Ong Ye Kung.
