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SINGAPORE: Local authorities can do more in their bid to protect Singapore’s workforce, union leader Patrick Tay said in Parliament on Monday (August 31).
In his speech addressing President Halimah Yacob’s remarks at the opening of Parliament last Monday, the Pioneer SMC Member of Parliament (MP) and the Undersecretary General of the National Trade Union Congress made several suggestions for the government to consider them to “further strengthen the core of Singapore.”
Like the higher qualifying wage requirement for the financial services sector, the Ministry of Manpower (MOM) should also consider increasing the minimum wage criteria for the infocomm technology and professional services sectors, he said.
In general, there are more companies in these industries on the national watchlist for discrimination in hiring, said the deputy.
On Thursday, MOM announced stricter criteria for Employment Passes and S Passes as labor market conditions worsen amid COVID-19, and an even higher qualifying wage requirement for the financial services industry, the first time the ministry does it.
READ: The qualifying minimum wage will increase by S $ 600 for Employment Passes and S $ 100 for S Passes, higher requirement for financial services
READ: MAS supports raising minimum qualifying wage for entry-level PE holders in the financial services sector
While the minimum qualifying salary for new Job Pass candidates will increase by S $ 600 to S $ 4,500 overall, the amount for financial services candidates will rise to S $ 5,000.
However, Tay acknowledged the concerns raised to him and other union leaders that the new rule could widen the wage gap between foreigners and locals.
They told him that employers would simply raise wages or repackage the benefits of their foreign employees to stay within the limits of the rules, something that is easily done in sectors that traditionally have higher-earning job pass holders, he said.
At the same time, their Singaporean counterparts may not get a similar pay increase, especially during a time when freezes and pay cuts are common.
To address this problem, Mr Tay promised that unions will “closely monitor the actions of employers,” while urging non-union workers to join a union so that they are protected.
HIGHER PENALTIES FOR RECALCITING OFFENDERS
The government could also rescind preferential tax benefits for companies that maintain unfair hiring practices and do not allow them to obtain public sector contracts, Tay said.
Additional sanctions could be imposed on companies that are what Tay called a “triple weak”: companies with a very disproportionate number of foreign professionals, a weak commitment to nurture and strengthen the “core of Singapore” and little relevance to the economy and the Singapore society.
In addition to the existing rules, MOM could publish the names of these companies that repeatedly show no concerted efforts to increase the proportion of Singaporean workers, so that potential loss of reputation serves as a deterrent, Tay said.
And since it appears that many financial incentives are awarded based on the total number of employees created in Singapore rather than sustained local hiring, a formal mentoring process should be applied for foreign professionals to pass on their skills to locals.
This could come in the form of monetary penalties, in which financial incentives end if high-level Singaporean professionals are not hired within a specified period, or there was no transfer of skills, he said.
Tay added that Singapore should reconsider its stance on anti-discrimination legislation and that laws on recruitment bias should be explored, rather than just Fair Consideration Framework guidelines.
READ: 47 Employers Added to Watch List for Suspected Discriminatory Hiring Practices – MOM
More legal power could also be given to the Tripartite Alliance for Fair and Progressive Employment Practices, the agency charged with addressing discrimination and harassment in the workplace.
“The world has moved to adopt sustainability and related environmental, social and governance legislation, encompassing fair employment,” Tay said.
“Likewise, fair employment legislation has not stopped companies like London and New York from being vibrant financial centers.”
He also lobbied for greater transparency on foreign executives moving to Singapore as intra-company transfers, even though they represent less than 5 percent of all Singapore job pass holders.
READ: Names of employers suspected of discriminatory hiring practices should be published: Patrick Tay from NTUC
Under current law, employers do not need to first advertise the role of the assignee on the official job portal MyCareersFuture.sg before applying for their Employment Pass.
In addition to improving regulations, Tay urged organizations and their leaders to be fairer to Singaporeans, changing their mindset about going up against locals and offering regional and global opportunities to Singaporeans, as Singapore has welcomed these professionals. foreign.
EP FEE
If the measures he recommended don’t work, Tay suggested that the authorities impose a quota, which could have two tiers: one for the most highly qualified professionals with significantly higher salaries and another for the middle-skilled executives whose salary corresponds to that of the industry. median salary range.
“With this two-tier quota, companies will still be able to hire foreign talent with specialized skills to drive technology-based initiatives,” he said, adding that this quota could be phased in to help companies adapt.
Resentment towards the foreign workforce
In recent weeks, the country has seen the issue of competition from foreign workers return to the public spotlight.
Many have claimed that foreign professionals take jobs away from locals and that agreements like the Singapore-India Comprehensive Economic Cooperation Agreement (CECA) give preferential treatment to Indian nationals.
Last week, the Ministry of Commerce and Industry issued a statement to dispute claims about the ECSC, saying that it does not automatically grant Indian nationals access to Singapore citizenship, permanent residence or employment here.
READ: CECA does not grant Indian citizens automatic access to citizenship, public relations status, employment: MTI
READ: CECA Does Not Grant Indian Citizens Unconditional Access, Immigration Privileges – Chan Chun Sing
“The disruption brought on by COVID-19 and the resulting economic downturn have raised concerns about increased competition for jobs and employment,” Tay said.
He cited how in the last month, at least 20 professionals, managers and executives (PMEs) told him that they felt discriminated against and that they had lost job and job opportunities.
“I can’t help but wonder if, as a result of uncontrolled conscious and unconscious bias, there may still be instances of nationality bias in hiring and promotion and, in the current context, downsizing.
“The reality is that, if left unchecked, this would exacerbate the glass ceiling effect and job opportunity issues for our Singapore SMEs,” he said.
However, Tay added that he does not advocate for closed-door policies, and agrees that as an open trade economy with low birth rates, Singapore has to bring in foreign labor to address its labor gaps.
But with about 1,200 companies still on MOM’s hiring discrimination watchlist, “there is a market failure in our current employment framework,” he said.
“We need to protect ourselves against abuse of our system by giving Singapore SMEs a fair chance at local job opportunities, which will also mitigate any potential brain drain,” he said.
“This also instills loyalty and fosters a sense of belonging and identity among Singaporeans. This is not diametrically opposed to ensuring Singapore’s economic survival. “
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