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SINGAPORE: The move to further increase the qualifying salary for S Pass holders has raised concerns from business owners in some industries, who said they sometimes have no choice but to turn to foreign workers as it is difficult to recruit Singaporeans for certain positions.
The companies CNA spoke to said there are few locals in certain jobs not due to competition from foreigners, and that a general increase in the S Pass minimum wage will add to business costs when they are already struggling in between. of the current economic climate.
Some said further reforms must be made if the goal is to attract Singaporeans to sectors such as the food and beverage industry, retail trade and construction.
READ: The qualifying minimum wage will increase by S $ 600 for Employment Passes and S $ 100 for S Passes, higher requirement for financial services
The Ministry of Manpower (MOM) announced last Thursday (August 27) that the minimum qualifying wage for the S Passes, which are for personnel with average qualifications, will be raised by S $ 100 to S $ 2,500 from October. It is the second increase this year.
S Pass jobs will also be subject to the Fair Consideration Framework publicity requirement beginning in October, in an attempt to promote greater awareness of mid-skilled job openings among local job applicants.
Employers must run the ad for at least 28 days, instead of 14.
MOM also announced an increase in the qualifying minimum wage for job pass holders, which are for foreign professionals, managers and executives.
The Singapore Restaurant Association said it cautions against the move to increase salary criteria, noting that F&B operators face an “unprecedented loss of revenue” due to the COVID-19 pandemic and the need to implement measures. of safe distancing.
“In this current context, we caution against the recently announced measure to increase salary requirements for Employment Passes and S Passes for the F&B industry at this time,” he said in a Facebook post on Saturday.
The association added that it wants to engage government agencies to “further deliberate on the enforcement of these new salary requirements and launch alternative initiatives to encourage and excite more locals to see a career in F&B.”
ONE OF 10 APPLICANTS IS SINGAPOREO
Mr Cedric Tang, owner of Ka Soh Chinese restaurants, said he prefers to hire Singaporeans, but finds it difficult to do so. For example, when you recently posted a job opening for online service staff, only one in 10 applicants was from Singapore.
“We get a lot of foreigners applying, that’s a fact. I don’t think the food and beverage industry is the first industry (unemployed Singaporeans) looking to join, ”he said. “It is a very manual job with shifts, whereas for an office job, you work from nine to six. You need to get used to it. “
He expects to have to increase the wages of some of his foreign workers when their job passes are renewed, but at the same time, it will be difficult to raise menu prices in the current economic climate.
READ: Ministry of Labor will review companies whose ‘Singapore core has weakened’: Josephine Teo
John Ng, CEO of fashion retailer StyleLab, told CNA that while he’s also trying to recruit Singaporeans first, it can be challenging.
“It is an industry problem that all retailers encounter when trying to hire premises, as the response and commitment are very poor,” he said.
Other sectors that Singaporeans can avoid are those related to construction.
Jason Law of SunPro Energies, which deals with solar solutions, said that raising minimum qualifying wages for foreign employees works only for jobs that are more attractive to Singaporeans, and not for jobs that locals don’t want.
“Increasing minimum qualifying wages will not improve recruitment opportunities for Singaporeans as they are not interested in these jobs in the first place,” he said.
“Increasing the wage base can unnecessarily increase business costs and indirectly affect local consumers, as these cost increases can have an impact on them.”
A small proportion of the company’s workers are S Pass holders, he said.
READ: The government will always be on the side of Singaporeans, says Prime Minister Lee amid labor concerns.
Despite the challenges, some bosses said they are testing other ways to attract Singaporeans to join their operations.
Collin Ho, CEO of Collin’s Gastro Dining, said it has always been a challenge to hire locals for roles such as chefs and restaurant service supervisors. He hopes that more Singaporeans will consider a career in F&B.
“We have been working closely with educational institutions and actively engaging students to provide a platform for internships and internships,” he said, and asked those making a mid-career change to also consider the industry.
Nicholas Quek, managing director of soundproofing company Noise Plaster, said the change will not affect his company much, since he only employs one S Pass holder who is responsible for the technical design of the windows.
“Generally, locals who are competent to do this job can easily develop to find a higher value job within a few years. Therefore, it is a challenge to find a candidate with experience in this niche position, ”he said.
“The best way forward is to implement progressive business practices, strategy and use of technology to enhance the value of every position available at the company.”
READ: Singapore seeks ‘quality rather than quantity’: Chan Chun Sing on changes to overseas work pass policy
Fashion retailer Mr Ng added that the government could perhaps offer “structured incentives” to locals if they take jobs in industries such as retail and food and drink.
“I think this would be a direct motivation for all the locals,” he said.
“SMALL FRACTION” OF MEDIUM-QUALIFIED JOBS
Dr Kelvin Seah, Senior Lecturer in the Department of Economics at the National University of Singapore School of Arts and Social Sciences, said the mid-skilled jobs that Singaporeans avoid remain a relatively small fraction of those jobs in Singapore.
“There are a lot of medium-skilled jobs Singaporeans would be happy to do if they had the chance. And the move from MOM would benefit those people.
“That said, given the weak labor market conditions now, some Singaporeans may be open to taking these jobs perhaps because they are involuntarily unemployed,” he said.
It suggests that if the goal was to reduce foreign competition for medium-skill jobs, the minimum qualification wages for S pass holders should be increased along with residents’ median gross monthly income over time, rather than ad-hoc manner.
Mr Lee Quane, Regional Director (Asia) of ECA International, a global employment consultancy, said that MOM’s latest measure can be seen as a means of encouraging companies to recruit among Singapore’s pool of unemployed residents before look outside, making it more expensive to hire foreigners.
“This can reduce the potential unemployment among high school graduates and dropouts entering the job market, as it means there may be less competition from abroad in the entry-level positions that may be available,” he said.
READ: MPs Call for Companies to Be More Transparent on Foreign Hiring, Push to Prioritize Singaporeans
Lee added that with the recent rise in unemployment levels, there will be more potential workers within Singapore for sectors such as F&B. But as soon as the economy recovers, this group of new hires will likely leave these types of roles as they find jobs that are more attractive, unless the COVID-19 pandemic causes structural unemployment.
“If companies want to avoid relying on foreign workers to fill those positions, they will have to invest in technology to increase productivity or automate certain roles,” Lee said.
Following the announcement, Human Resources Minister Josephine Teo said the ministry always considers the impact on companies with changes to the job pass requirements.
He urged companies to intensify their efforts to hire premises and consider schemes such as the Job Growth Incentive and other training and attachment support programs. He also asked companies to consider whether they should update their hiring practices or job design to better suit local candidates.
“Of course, you can adjust the salaries of your EP or S Pass employees when you renew. But consider the missed opportunities to develop your local job and the strong government support to do so, ”she said.
He emphasized in a speech in Parliament on Tuesday that MOM will put additional emphasis on whether an employer has maintained its support for local PMETs, for example, by looking at their track record in handling downsizing exercises.
“For example, is an EP or S Pass applicant replacing a local who was recently laid off? If so, MOM will ask why and reject the application unless there are very good reasons, ”he said.
“We will also place additional emphasis on whether the employer has responded to the efforts of government agencies to help them recruit and train local PMETs.”
