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SINGAPORE: The Ministry of Manpower (MOM) intends to review the hiring practices of companies whose “Singaporean core has weakened”, as well as those whose Employment Pass (EP) and S Pass workforce is ” excessively concentrated “in a single source foreign nationality, said Labor Minister Josephine Teo.
The move comes amid a heightened sense of job insecurity, in an economy hit by the COVID-19 pandemic.
Announcing the measure in Parliament on Tuesday (September 1), Ms Teo said that MOM will work with other agencies to actively intervene and help these companies reshape their workforce profiles.
The ministry will also engage the human resources community to “do more,” he added.
READ: The qualifying minimum wage will increase by S $ 600 for Employment Passes and S $ 100 for S Passes, higher requirement for financial services
Ms Teo was responding to several Members of Parliament (MP), who had raised the issue of job competition between Singaporeans and holders of work passes.
He noted that job pass policies have been adjusted regularly, slowing the growth of job pass and S pass holders.
Between 2014 and 2019, the number of Employment Pass and S Pass holders grew on average by less than 9,000 per year, compared to the average annual growth of 30,400 between 2009 and 2014.
By comparison, the number of locals in professional, managerial, executive and technical (PMET) positions increased by an average of around 35,000 annually between 2014 and 2019, Ms Teo said.
With COVID-19, the number of Employment Pass and S Pass holders has also dropped dramatically, he said, adding that this group of workers declined by 22,000 between January and July this year.
RETURNS
Singapore’s overall unemployment rate has risen to its highest level in more than a decade, and staff reductions have more than doubled due to the COVID-19 pandemic.
In the second quarter, staff cuts more than doubled to 6,700, from 3,220 in the previous quarter.
Ms Teo said that MOM actively monitors the downsizing exercises and that so far the vast majority have been carried out fairly and responsibly.
“In general, there has not been a weakening of the core of Singapore either,” he said.
Despite these “reassuring remarks,” Ms Teo said, MOM will work with businesses and unions to “promote sound practices,” such as updating the Tripartite Advisory on Managing Excess Manpower and Responsible Reduction, or through the Fair Reduction Framework proposed by the National Trade Union Congress (NTUC).
READ: MPs Call for Companies to Be More Transparent on Foreign Hiring, Push to Prioritize Singaporeans
FAIR DEALING FOR LOCAL JOB SEEKERS
The ministry will also step up other efforts to ensure fair treatment for locals applying for jobs, Teo said.
For example, when evaluating Employment Pass and S Pass applications, MOM will place additional emphasis on whether a company has maintained its support for local PMETs in their employment.
“Among other things, an employer’s track record on how it handles cost-cutting exercises will certainly play a role,” he said.
“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 request unless there are very good reasons. “
MOM will also look at whether companies have responded to government efforts to help them recruit and train local PMETs, he said.
“Therefore, in specific areas of skills shortage and where there is great interest from the locals, we will also assess whether agencies such as WSG (Workforce Singapore), MAS (Monetary Authority of Singapore) and IMDA (Infocomm Media Development Authority ) have been able to get an employer on board their numerous programs to strengthen the development of local PMETs, ”said Ms Teo.
This will influence your job pass and S pass applications, he added.
READ: Union leader urges tougher measures to address hiring bias, including PE quotas and end of tax breaks
MOM will also consider whether an employer has discriminated against qualified local PMETs, he noted.
“Of all the possible infractions, this is the thing that offends Singaporeans the most: that they have the qualifications, but they lost to a foreign candidate who didn’t seem to be better,” he said.
MOM regularly criticizes companies for practices such as shortlisting a foreign candidate and disregarding qualified local candidates, Teo said.
He noted that this year alone, 90 employers’ work pass privileges were suspended due to violations under the Fair Consideration Framework.
Ms. Teo gave the example of a multinational company in the healthcare sector that did not pre-screen or interview any of the 26 local candidates who had applied for a position advertised on MyCareersFuture.gov.sg.
“This company clearly did not take local applicants seriously. As a sanction, he will not be able to hire or renew EP holders for 12 months ”, he said. “To stay in business, they will have to hire more locals, something they should have done all the time.”
READ: Foreigners keep Singapore ‘economically relevant’, but pay attention to Singapore worker: Pritam Singh
Ms. Teo noted that since 2016, more than 1,200 employers have been screened under the Fair Consideration Framework (FCF), which requires companies to rate Singaporeans fairly for all job openings.
While these companies did not break any rules, they were noted for their “unusually high dependence” on foreigners in their PMET workforce, compared to others in the same industry.
“Until they improve, we will deny or hold their applications for job passes,” he said. “At the same time, TAFEP engages them to understand their problems and help them strengthen their hiring practices.”
“In total, the MOM has rejected or withheld 3,200 PE applications, or employers have withdrawn them while they were being examined,” said Ms Teo.
“But these employers have hired more than 4,800 PMET from Singapore as a result,” he noted.
“In other words, this specific approach has helped maintain and expand local employment of PMETs in these companies.”
NTUC Deputy General Secretary Patrick Tay, who is the MP for Pioneer SMC, had called last month for these errant companies to be named, in order to deter unfair hiring practices.
However, Ms Teo said Tuesday that a “name and shame” approach would backfire and frustrate companies’ efforts to expand local hiring.
“Our alternative approach to scrutinizing and engaging employers is resource intensive, but is actually a more effective way to get companies to reshape their human resource practices.”
READ: 47 Employers Added to Watch List for Suspected Discriminatory Hiring Practices – MOM
NEW BRAND OF THE PROGRESSIVE SALARY MODEL
While Singapore has not legislated a single minimum wage across the board, the features of a “minimum wage plus” have been implemented through a progressive wage model, Ms Teo said, noting that the model currently benefits some 80,000 workers in the cleaning, security and garden sectors.
Workers in the progressive wage model sectors have seen cumulative wage growth of about 30 percent compared to the past five years, he noted.
However, as companies are still trying to find a firmer base and great uncertainty in the labor market, any attempt to expand the progressive salary model to new sectors “carries a higher risk,” Teo said.
“While it may be too risky to require PWM in more sectors immediately, we can still promote its voluntary adoption by progressive employers who can,” he said, adding that the government would work with its tripartite partners to introduce a new Model Brand. progressive salary.
This Mark of the Progressive Salary Model would recognize companies that voluntarily pay progressive wages and provide career progression pathways to their lower-income workers, he said, noting that sectors such as food service and retail had the potential to participate.
“For the PWM Brand to work, there must be a broader movement that involves society at large. As consumers, we must be prepared to pay a little more and intentionally support these forward-thinking companies by purchasing their products or services, ”said Ms. Teo.
“This will stimulate more companies to be progressive and embrace the PWM brand, which in turn will benefit our lower-income workers.”
“I hope MPs agree with me that we should keep it in our hearts to see this as a small price to pay for better jobs and income security for those of us who need it most.”
With tears in her eyes at the conclusion of her speech, Ms. Teo said that just as workers care for their families and loved ones, the Ministry of Human Resources also has the best interests of workers in mind.
Human Resources Minister Josephine Teo cries at the conclusion of her speech in Parliament on September 1, 2020.
“Please know that you are always in our hearts too. No matter how long this storm lasts, MOM will make the journey together with you. As difficult as it may be, we will help you recover,” he said.
“Our mission is to help each of you emerge stronger, never giving up hope and working with employers in Singapore to treat them fairly, so that your hard work pays off,” he said.
“Our work is not done yet. We have taken firm steps forward and we will move forward with any challenge – with you, for you, for Singapore.”
