Friday, December 26, 2008 14:23

Employees need to be protected from unethical employers in bad times

In Beat Recession, Guest Writers • 3,934 views • 16 Comments

The following is a letter to TOC from Max Chua.

Dear people at TOC, First of all, thank you for being such a fabulous site!! :)

Currently, there is a situation that I feel needs to be promptly addressed or looked into, at this present moment of economic crisis/financial turmoil.

Apart from people (especially citizens) loosing their jobs, getting retrenched, becoming unemployed, which is one problem, the other is that these same people ARE NOT getting back the same level of pay/salary even when they are REHIRED. The excuses (real or imagined) the employers will give now are usually, “oh times are bad, we can only afford to pay you this little… etc etc….  we have a certain budget…. etc etc”

(I don’t have exact statistics or figures but from ground sentiments and observations I believe the trend is on-going, and it greatly affects middle and lower level workers, more so than top level workers)

The impact is that, with the reduced income, A LOT of people are NOT going to be able to cope with their bills, commitments, lifestyles, and expenses that they once were able to afford with their previous salaries. While it’s easy to tell them to readjust their spending and expenses, some things are just not so “adjustible”. For example, if a family has 3 children, can you simply just tell them to live on the budget of 2 children just to make ends meet, while at the same time trying to convince the sole bread winner of the family who has just got retrenched to accept a rehired pay which is 2/3 (or even less) of what he used to be getting?  To a foreign worker who is single and not staying around long, it may not matter. BUT for people (locals especially), who have dependents or even housing/car/insurance/bills commitments, it becomes a BIG issue. You cannot just simply tell people to adjust by giving up/downgrading ALL or SO MANY of these things overnight. It’s easier to said than done.

So to summarise, what I want to put across is this. Don’t just undercut our pay while all other things are rising and increasing (fares, inflation) and just blame it on the recession. I believe more analysis (with regards to maybe even really looking into accounts) by some official government body is needed than to just simply accept what employers dish out these days.

We employees cannot just be at the mercy of employers just because of desperation to make ends meet. There should be some form of control in check, to prevent abusive, unethical practice. The question is: who shall enforce the checks?

Well, I have to end here. The debate on a minimum wage has been going on for too long (or has it been brushed aside? hmmm.. ). There is definitely a need to implement this at some point in time. Because, as far as I can see, the effects of undercutting workers’ salary perpetually will not come to any good (not for
the general population) in time to come.

Thanks for your time.

Best Regards,
Max

—–

*** See related posts

Related posts:

  1. More flexibility for bosses but what is there for employees?
  2. Tripartism not the cure-all for employees
  3. MOM advises Employers and Workers on Better Management of Foreign Worker Disputes
  4. Employers still discriminating against older workers
  5. Profit-driven vs reasonable care for employees



16 Comments

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gemami
Dec 26, 2008 16:33

Retrenchment is something the govt has to seriously look into and where possible, it must never happen.

In good times, the govt has encouraged companies to adopt a variable component in the worker’s salary. This is helpful to the worker because he can pre-empt any pay cut and get himself in tune with the reduced pay packet. The amount to be deducted in bad times is there for him to see and make the necessary adjustments.

Unfortunately, we have been sold the idea that most govt-link companies and institutions have adopted this practice, only to see DBS being the first to clear deadwoods. This is a very big slap on the govt’s face and it shows the level of integrity it has with such big players, zero.

Another way to go about preventing retrenchment is what Tan Kin Lian has suggested; to cut the operational work day by 10%. Give the workers an extra day or two off. This will help to offset production cost of the companies by 10%, which is better than laying off 10% of the workers.

Solutions are plenty. It is whether this govt is willing to listen to them. They have already failed in their drive to get companies to install the variable component. They have lost credibility. They are continuing to lose it by turning a deaf ear to the people.

There can only be one end to this.

ForeverBoom
Dec 26, 2008 16:53

I agree that, these same people ARE NOT getting back the same level of pay/salary even when they are REHIRED, becos some are getting more. Dun worry, if you are talented you will be head hunted in good times or bad, and vice versa of course. Also agree that, when the economy expands wages tend to go up, and when it contracts wages are reduced, nothing rocket science abt that. Finally, if you have not spend unnecessarily or geared up your lifestyle to meet the jacks and jonases during boom time, this is the best time of a lifetime to bargain hunt and upgrade. it has always been a buyers market in any downturn, this is no exception. We should look at this free market place, positively and be glad that jobs are still available to most.

john
Dec 26, 2008 20:42

You can’t pay your bills? Money no enough? Will you protest in the streets? No right? That’s good. Then Singapore will be peaceful and everything looks OK.

Also you may be the minority. Majority (66%) can pay their bills when election time come. That’s why the PAP is not worried. They will remain in power and SIngapore is peaceful. What more do a gahmen want?

MoleHill
Dec 27, 2008 0:06

To summarise, this is not a command economy; but if total control over your life and job are what you are seeking, the DPRK and the soviet countries may be interested in you. So cheer up.

agongkia
Dec 27, 2008 9:19

Unethical employers, there are and I agree .But I will prefer pay cut if it is really necessary than to see retrenchment or company closing down.

Employers, though not all , seems to be in a hard time too.
Instead of crying abuse and someone to check for unethical employer,we should help our employer by being more productive.

Hard times?Almost everyone is facing .Is it so difficult to give up our car and consider cycling or walking to work.No?Then consider Public transport .
If I go for interview and the employer humbly tell me that they cannot afford to pay what I expected,I will take it graciously and walk away.I don’t blame them because they dun owe me anything and must pay me what I ask for.I will even thank and praise them for being honest and not to promise me my expected salary when they need me but pay me a lesser pay on my pay day.

When times are good some employee hop here and there and some even to a rival company for a better pay after their company send them for courses and upgrading .We say he is capable.
Some companies cut salary as a last resort before retrenchment or closing down to ensure everyone is still together .We think of the word unethical.
And we tend to think that we should deserved the same level of pay when we are rehired .We tend to think of unethical employer but are there no unethical employee?

Small Time Businessman
Dec 29, 2008 2:22

I agree with agongkia. As a small time businessman, I run a one-man operation to cut down on cost. It is tough to be a ‘real’ entrepreneur in Singapore, as the cost of doing business here is NOT LOW. We have to compete in the ‘real’ market, unlike some companies protected by ‘you know who’.

If one is to think that employers are taking the economic downturn as opportunity to reduce your pay package, then I will ask that fellow,’since you think it is so rosy to run a business, by all means, please start one.” Then you will never need to begrudge how your employers are treating you in good times or bad.

loop
Dec 30, 2008 10:46

I was asked to resign on my own many years back in a company previously located at pasir panjang. When I wrote to MOM, their reply was it is inevitable that during bad times companies had to look for ways to trim cost. MY FOOT! Even our MOM is siding companies, who else can you rely on to help.

AdamSmith
Dec 31, 2008 18:01

When times are good, your salary remains stagnant. When times are bad, workers get a pay cut. Just imagine, after a few cycles of good times and bad times. Where does all that lead to? Lesser and lesser pay for all the people. While only a few minority will get higher and higher pay. Isn’t that the end result?

agongkia
Jan 1, 2009 10:58

Like small time businessman say,why not try to be an employer if you think taking advantage of employee is so easy and especially for those who think MOM is siding with employer?
Experience how true that employee can be make to work like a slave llike someone claim .
Try to be a good employer and let your employee continue to enjoy their deserve salary even when the company is not making profit.
Try to be a good employer and help the employee not to deduct their CPF so that they can have more take home pay………………
Try to be a good employer and allow employee do excess OT upon their request, for more pay and see how ……..
Experience the need to get approval from the Authority to hire someone on one hand and the need to be a good employer on the other hand to help an applicant start work early so that he can have an income for his family asap .

Experience how the Authority can tell you verbably that you can let an applicant start work within 1 week after screening while waiting for approval but take 2 months without replying you,despite several faxes.
Be a good employer and allow him to work because he need an income to support his family ,and see how you ended being charge in Court for employing him without approval.
And being fined for the offence and risk being jailed,just because you want to be a good employer which is totally not your fault but due to the inefficiency of the Authority ,got your Company name published in paper ,lost your potential client and even being accused of cutting corner probably because you are not a member of certain association.etc …..And the risk of offending the Authority where you are at their mercy…..the list goes on….

For those who are called up on the discussion for pay cut should ask themself instead.Why is it me and is it worthwhile to stay since I am chosen.Ask myself whether I had spend too much time surfing the net during my working hours …..
and prepare for the worst if pay cut is not acceptable to me……

patriot
Jan 1, 2009 15:15

It seems, small time employers are suffering too.

Employees suffer, employers suffer =(equal) all Singaporeans suffer.

Do CEOs and State Managers(Parliamentarians) suffer too ???

patriot

moshedyan
Jan 1, 2009 15:54

[i] patriot on January 1st, 2009 3.15 pm It seems, small time employers are suffering too.

Employees suffer, employers suffer =(equal) all Singaporeans suffer.

Do CEOs and State Managers(Parliamentarians) suffer too ???

patriot
[/i]

remember ngiam
the ex-government high ranking civil servant?
till his retirement/promotion to hdb pte inc…
he learnt a very valuable lesson
end of month
so much salaries to pay har?
wah utilities not free mey?
he calculate
recalculate
and he comes to 1 conclusion
in singapoor
its not wise to be a small towgay
even if you were ex-minister of neptune/whatever inc…
which ex-ministers is running his owned buisness and profited?
even tigerong
the infamous ex-numero incik of SAF tigers
had to rely on singapore tech inc for his annual contracts
without singapore tech inc…
he just another serangoon road bangali contractor

agongkia
Jan 2, 2009 9:26

Patriot
Agree.The rich will be richer and the poor will be poorer.

On small time employer ,Iet me share with you a case which I know of today.

Today ,a school in Tampines who had so called produces the best student .
They get the company who handle security for many schools in the east to take care of their school .Fine ,the buyer’s choice but instead of offering the small company who had served for at least 4 years , a chance to continue,the school rep. induce the small company employee to join the incoming company and carry on with the school .This had actually happened before but had not work as the employee feel bad at that time.
Few months back Suka Suka they ask the small company to work till end of the month but when the incoming contractor cannot get their men to take over ,they ask the small company to help again.Month after month till the new big company get their men ,even the contract is till end of the year as contracted.

The employer foresees that the employee will not be loyal this time.
True, yesterday the employee told his boss that the school can use the school fund to loan him 5 K if he go back and help the incoming company taking over .
The employer had wanted to choose not to believe the employee but as this had happen to him before when a primary school in Hougang did that to him.As such he loses an employee again .
What is the moral of these cases?
School encourage disloyalty?Employer unethical?School as employer,unethical?Employee not loyal?

If school can encourage this sort of practice,what so great even if you can produce the best?This only teaches future generation not to be loyal to their employer and to the country.

So actually think of it ,sometime we cannot blame employee not willing to suffer pay cut when their employer is in difficulty or not to be loyal and unethical.Our society taught ,inculcate and make them to be like that.

We live in a make believed world and we tend to point the finger at the wrong direction.The true culprit who is unethical is out there and not necessary the employer.

patriot
Jan 5, 2009 9:00

Dear Agongkia;

You are giving me the impression that poaching had been incited by clients to favour certain employers. Such unhealthy practices are common in the market place.

It is not easy to be an entrepreneur in Singapore, the bureaucratic processes, the complex rules and regulations(cpf/labour law etc), the high costs of rental(office), transport and employee healthcare on top of the complex poaching and manipulation(play-out) by clients and employees, as related by You in this thread, made many a towkay(small time businessman) gave up.

Unless conscience return to this society, dare I say things and matters will get worse and all I can wish is that bad things do not get out of our leaders’ abilities to control.

Or,

may we have effective, efficient and upright people to better our society.

Good luck to all of us!!!

patriot

patriot
Jan 5, 2009 15:20

Btw agongkia;

exploitations on menial workers in Singapore is rampant.

Just talk to some of those workers.

Large organization employers are just as bad; contract says 8hrs shift, but changed to 12 hrs after a while and then ‘asked’ employees to do overtime after 12hours of duty.

Pitiful Singaporeans, including You,me and lots of others.

patriot

TskTskTsk
Jan 6, 2009 9:43

The issue of unethical employers in the case menial workers and that of employers who have to retrench people for financial troubles should not be mixed up. In the later, if the government were to step in to create protectionistic policies to protect jobs; companies will not even come to Singapore to start their businesses in the first place and existing foreign companies will speed up their move to countries with lower costs .

In my opinion, the root of the problem is not with the employers but with the economy. Contrary to what many say, I think the problem is not a cyclical one (global financial crisis) but a more structural one in our Singapore economy. Over the last decade, MNCs in certain sectors have been moving out of Singapore to lower costs locations and jobs are lost. Unfortunately, there are just not enough scalable and viable local businesses (SMEs) that can compete internationally and hence not enough jobs are created. So come along the idea of having casinos (IRs) to generate revenue to cover the loss in GDP with the exodus of MNCs. Then came along this financial crisis that thwarted the plans. Then suddenly in the year of unprecedented financial crisis, and record Singapore budget deficit and countless times of lowering GDP forecast, we have many jobs available in the Police and 7500 jobs for teachers?

I wonder….are we digging a bigger hole for ourselves? Maybe it is time for the government to accept that there could be a structural problem in our economy. Be realistic in your GDP contribution analysis. Adjust their own and the citizens’ wealth expectations. Re-group and Re-strategize. Execute with the people’s support and get us to better grounds in the future.

Zefly (aka Joshua Chiang)
Jan 9, 2009 15:10

Tsktsktsk I concur.

Our economy model is still quite like how it was in the 60s. We may not be doing a lot of low-end manufacturing now, but our ‘edge’ still lies also in keeping wages low due to competition from neighbors. We need to rethink.

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