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SINGAPORE: More must be done for low-wage workers in essential sectors, as well as for people who have lost their jobs amid the economic fallout of COVID-19, said members of Parliament representing the union movement on Wednesday ( February 24), the first day of the budget debate.
There were also calls to expand the progressive salary model to more industries and for the government to increase subsidies to boost the hiring of premises.
On the progressive salary model, Deputy Koh Poh Koon (PAP-Tampines) said that the labor movement hopes to see it implemented in six more sectors: waste management, retail, food services, pest management, solar technology and strata management. . The policy is designed to increase the wages of low-wage workers by improving their skills and increasing their productivity.
READ: Singapore could expand progressive wage model to retail sector
The government previously announced that the progressive salary model will be incorporated among waste management providers, and authorities are considering introducing it in the retail and food sectors as well.
Koh, who is the deputy secretary general of the National Trade Union Congress (NTUC), said the union will submit a proposal for a progressive pest management wage model to the Ministry of Manpower in the middle of this year. The plan will likely cover about 3,000 workers.
The wages of low-wage workers need to be increased at a faster rate, he added, pointing to the wage gap between wage earners in the 20th percentile and those in the median.
In Singapore, workers in the 20th percentile earn only about half what those in the median take home, compared to workers in OECD countries, where their wages are at least two-thirds of what the median income takes home.
“Our sisters and brothers in the bottom 20 percent should not become an underclass,” Koh said, adding that he hopes the gap can be closed in the next five to 10 years.
He said consumers are willing to pay higher prices if their extra money goes to low-wage workers, citing separate surveys conducted by NTUC and the Sunday Times last year.
Dr. Koh also proposed creating a vocational progressive salary model for lower-paying jobs that span multiple sectors, such as employees and logistics drivers.
Officials could reuse the Salary Credit Plan, where the government co-finances salary increases, to help companies cope with higher salary costs, he said.
In response to questions from Rep. Gerald Giam (WP-Aljunied) about how many workers will be covered by the vocational progressive salary model, the number that will still earn less than S $ 1,300 after all proposed salary models are introduced and if they are self-employed and daily skilled workers will be included, Koh said, these issues are being resolved.
Echoing the call by opposition leader Pritam Singh (WP-Aljunied) to increase the salaries of essential service providers such as transport and waste disposal workers, in line with the salary increase that healthcare professionals will receive, said MP Fahmi Aliman (PAP-Marine Parade). workers should receive a better salary, as COVID-19 has highlighted the value of people as cleaners and security officers.
“These everyday heroes stepped up despite the risks to their health and took on additional tasks such as additional disinfection of heavily touched surfaces and temperature sensing so that we can continue our lives safely,” said Fahmi, director of operations. and mobilization
The government could increase social assistance payments for essential low-wage workers “to recognize their social value and the difficulties they face in their line of work,” he added.
READ: PAP MPs Call for Faster Implementation of Progressive Salary Model, Higher Payments for Essential Workers
UNEMPLOYMENT INSURANCE SHOULD BE CONSIDERED
MP Patrick Tay (PAP-Pioneer) said it is timely to consider introducing transitional insurance, or unemployment insurance, to help workers who have lost their jobs.
Such schemes have worked well in countries like Germany without unduly burdening governments, employers or employees, said Mr Tay, who is the deputy secretary general of NTUC.
However, he noted that there is a need for a “deeper dive” into the mechanisms for implementing such a scheme.
“There are important considerations such as the triggering event, the amounts of the premiums, the duration and the amount of the payments, whether it should be mandatory to avoid self-selection, how we assess risk, the need for critical mass or universality, and whether it will be implemented by any of our tripartite partners or the three partners together or by a private sector entity or a social enterprise ”, he said.
Mr Tay suggested that an insurance or fintech startup might be responsible for coming up with such a plan, along with “strong support” from tripartite partners, especially the Government, in the form of seed funding and co-financing.
READ: Singapore’s labor market shows signs of recovery as unemployment rates fall for the second month in a row
MP-nominee Hoon Hian Teck said such a national unemployment insurance plan could act as an alternative to the Employment Support Plan once it is finalized.
Professor Hoon, who is dean of the School of Economics at Singapore University of Management, noted, however, that the provision of such unemployment benefits could increase the duration of unemployment as it would allow workers to hold out longer sooner. to take a job.
“On the other hand, having an insurance scheme of this type allows workers and their dependents to have access to cash to finance their consumption when the breadwinners lose their job for a prolonged period,” he said.
More studies are needed to examine whether such a scheme is justified in the event of future “long and deep” recessions, he added.
PROTECT THE CORE OF SINGAPORE
Several MPs also called for measures to protect the core of Singapore.
NTUC Undersecretary General Desmond Choo (PAP-Tampines) called on the government to increase Job Growth Incentive grants, designed to encourage companies to hire locals, for workers 62 and older.
“These workers are more prone to cyclical and structural changes. Additionally, they are more likely not to be rehired as companies seek to cut costs. This will help companies continue to hire older workers even during uncertain economic times, ”he said.
Earlier, Tay called for stricter enforcement against errant companies with a weakened Singapore core.
He highlighted “triple weak” companies, those with a disproportionate number of foreign professionals, managers and executives (PMEs) and weak commitment to nurturing and strengthening their Singapore core.
Tay also said anti-discrimination legislation could be considered to address discriminatory practices related to issues such as age, gender, disability and race.
“This legislation could send a stronger signal than current tripartite standards and guidelines, to send a clear deterrence, give the TAFEP (Tripartite Alliance for Fair and Progressive Employment Practices) broader powers, and eradicate all forms of discrimination and practices. discriminatory in the workplace through employers, as well as agents or employment agencies, ”he said.
EVALUATION OF THE BUDGETARY MEASURES
Both Mr Singh and Progress Singapore Party non-constituent MP Hazel Poa called on the government to review the measures that have been put in place to boost the economy hit by the pandemic.
“S $ 100 billion (in budget measures committed last year) is not a small amount. We request a cost-benefit analysis of each implemented scheme. We recognize that it is not easy to propose short-term measures to deal with a pandemic. So we are not asking for a perfect solution, but for an honest and transparent evaluation and review, ”said Ms. Poa.
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Pointing to the SGUnited Jobs and Skills Package, which was allocated an additional S $ 5.4 billion in this Budget, Singh said weekly work status reports should provide information on how funds allocated to the program have been used.
“The effectiveness of government measures should be easy to determine. Without that scrutiny, the perception can crystallize that large sums of money are being deployed to address an issue for which effectiveness is difficult to establish, “he said.
The budget debate continues on Thursday.
