Gerald Giam / Senior Writer
On 4 December at a National Trades Union Congress (NTUC) forum for employers and unions, NTUC chief Lim Swee Say and Acting Manpower Minister Gan Kim Yong were both reduced to imploring employers to retrench foreign workers before Singaporean workers, in order to minimise job losses for the latter, who make up a sizeable bloc of voters in every general election. This is a truly sorry state of affairs in Singapore‘s employment landscape.
Firstly, it appears the government has taken a cold, utilitarian attitude towards foreign workers. It is as if these workers are soulless machines, who should be simply discarded when they are no longer needed. In fact, each of these workers is probably the sole breadwinner whose remittances support a large extended family back home.
Secondly and more importantly for Singaporeans is the fact that if the government has to beg employers to retrench foreigners first, it implies that their policies so steeply favour foreigners, such that if left to market forces, employers would naturally want to shed Singaporeans first.
Mr Lim said it “makes business sense” to release foreigners first during a downturn if a Singaporean could do the same job equally well. His reasoning is that when the economy recovers, it will be easier to source for foreign labour than compete for local talents with business rivals.
The Minister evidently has never been a business owner himself. If both can do the job equally well, it will make better business sense to axe the Singaporeans first, since they carry the extra loaded costs of reservist duty (for men), maternity leave (for women), employer CPF contributions and paid childcare leave (for both). In addition, family responsibilities and higher costs of living compel Singaporeans to ask for higher wages to meet their living expenses. They will also be less willing to work overtime or commute to far flung factory locations as this will take away time from their families (or their second jobs, in many cases). Foreign workers, who are here without their families, have less reason to make such demands. It should therefore be the government’s duty to its citizens to ensure that the total cost of hiring a foreign worker is not lower than the cost of hiring a Singaporean.
The government’s argument is that foreigner workers — referring to blue collar workers, not “foreign talent — provide low cost labour for our companies in good times, preventing these companies from uprooting and moving to lower cost countries like China and Vietnam, which will result in even more Singaporean job losses.
While this argument sounds good to the ears on the surface, it obscures the fact that no matter how lowly we pay our workers, the cost base of Singapore is still much higher than in China and Vietnam, or even Malaysia. Human resources firm ECA International Asia recently reported that Singapore has leapt 27 places up the global rankings of the world’s most expensive places to live in.
For most companies with operations here, the highest business expense after wages is office rentals. High rentals are caused in part by the government allowing “market forces” to run amok in the 1990s and property prices to rise so steeply that it has rendered our economy uncompetitive. Of course, the government will not admit that rentals make us uncompetitive — they will insist that our wages are the culprit. Nevertheless, even wages, while kept low for blue collar workers, have risen significantly over the past few years for senior managers and “foreign talent”, and this undoubtedly accounts for a large portion of companies’ wage bill.
The pittance paid to foreign workers has effectively suppressed the wages of Singaporean blue collar workers. At the end of the day, not only do Singaporeans lose out in wages and jobs, but so do foreign workers, whose living conditions and low salaries (after deducting the government levy) leave much to be desired for a developed country like Singapore which claims to uphold migrant worker rights.
The only ones who benefit are the corporations and their shareholders — and of course the people whose bonuses are tied to the country’s GDP growth rate, not the unemployment rate.
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Note: You can click on the writer’s name to access all previous articles by the same writer.
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I dare our Ministers open out their assets and show us that they are suffering with us together?
i dare singpapore pools to take pictures of people to have win toto first prize and show to the public.
like other country people who win big prizes will be shown live to other people.
Free competition in the labour market, without safeguards, will continue to push down wages. With outsourcing of many types of work, the wages of the contract workers have now fallen below the subsidence level. Many family now needs two or three jobs to earn enough to survive.
Many countries solve this problem by introducing a “minimum wage”. I suggest that the minimum wage in Singapore should be SGD 10 an hour. If this wage is applied to cleaners, shop attendants and other low income jobs, there will be sufficient Singaporeans who are keen to accept these jobs – rather than remain unemployed.
We should continue to control the number of foreign workers who are allowed to take these jobs. The employer should be required to provide acceptable standard of accommodation and medical benefits to these worker. This will increase the cost of these foreign workers, and reduce the attraction of their “lower cost”, as compared to local workers. The foreign worker’s levy can continue to be levied.
If we need foreign workers to increase the pool of manpower, let us welcome them as long term immigrants. If they bring their family here, they will have to face the same high cost of living and cannot depress the wages fo local workers. This will be the subject of a separate discussion.
A minimum wage policy may mean that the customers have to pay more for these services. But, the increase may not be as large as feared. The wages of the workers is only one component of total cost. The other components are rental, profit and management salaries. I expect that, in a competitive market, these other components will fall to more reasonable levels, before the charges to the customers are raised.
Some people argued that higher wages will fo force businesses to locate to other countires. This argument does not hold water for the domestic service sector, which will be an important source of employment for the local people.
Anyway, we do not need many businesses in Singapore to create employment for foriegn and local workers who earn below the minimum wage. The large number of foriegn workers working in Singpaore at the depressed wages will create social problems that are not fully realised at this time.
I like to ask for support for a minimum wage policy in Singapore. This is social justice and fairness. It is for the long term good of our society.
The economy is well maitained not for us, don’t you people get it?
If it isn’t for the approaching GE, the song currently sung would be different…
Agree with TKL. Min wage balanced by control of foreign workers.
i went to nokia service centre at Century Sq yesterday to have my handphone repaired. Around 3 of the 5-6 counter service staff were filipinos. I thought to myself, these people should not even be sitting there! They represent 3 locals who could have been gainfully employed.
For LOCALISED jobs, the quota for foreign workers/talents should be ZERO. Govt authorities should consciously identify industries or businesses real manpower needs and segregate localised jobs from non-localised ones.
For non localised jobs – i.e. jobs with a real danger of being uprooted if employers dont get to hire foreign workers/talents, the quota can even be set higher, say 50% or higher. Presently the blanket system of applying the same quota level for ALL businesses and industries results in companies which really need these foreign workers not having them and businesses who should really be hiring locals hiring foregin workers instead. When the imbalance is rectified, there is really no need for a minimum wage as foreign workers will not compete with locals for LOCALISED jobs while few locals will choose to work in factories which pay low wages.
Back to my Nokia eg. I would rather see a 55 yr old retired uncle/aunty who had min O levels performing the job probably on a part time basis.
I have no qualms about having foreigners working here as long as the company genuinely could not find a suitable local for the job. I am sure these customer service jobs could be handed to locals instead. It’s depressing. What’s the use of Singapore nationality if you got no social security? Besides, it feels like Bangladesh or China in some neighborhoods & town. Without social & job security, we are still expected to pro-create babies for the gahment. Well, pro-create this! *Flashes Stone Cold Steve Austin’s trademark gesture*
Yeah, let’s get real, times are bad & companies would rather hire cheaper foreigners than locals to prevent themselves from closing down. However, the truth is, locals still have to live. & gahment’s not appreciating locals enough to lend a helping hand. Are the reserve funds solely reserved for the possibility of the country’s revival after World War 3? Locals losing jobs due to open-door policies is just the tip of the iceberg. Gi-normous influx of foreigners could lead demophobia (fear of crowds) & xenophobia.
Has anyone read about “yellow peril”? It’s America’s fear of large influx of Chinese immigrants stealing their jobs & bringing in a world of different, unfamiliar culture in the late 1800s.
“The Burlingame Treaty of 1869 encouraged the Chinese to emigrate to the United States in greater numbers. Reacting to the America’s fear of the “yellow peril,” in 1877 Denis Kearney organized the Workingman’s Party with the rallying cry, “The Chinese Must Go!” which led to the looting and burning of many Chinese businesses.”
We could see a repeat right here in Singapore.
Well…55) Raymond, i know some managers of cust svc centre, and i ask them why are they employing more filipinos, and the reason they gave for employing filipinos is because Singaporeans who work in this line tend to job-hop quite often, while the filipinos will stay for a really long term….
and 53) C J , i agree with what you have said…furthermore, if the next election, i don’t think the opposition will be able to win much from the gahmen during the next ge, but if there is a significant drop in vote for the MIW, i think that will be a nice little message….but at this rate we are going…will we ever see changes here during our prime.
#55) Raymond,
This year alone, I see many HDB neighbourhood convenient stores employed Foreigners like Indians, Filipinos or Sri Lankans or Bangalans.
I HAVE NEVER SEEN THIS SITUATION BEFORE!
It started with Factory line workers: Many were from Malaysia in the 90′s to around 2001. The Financial crisis and decline of manufacturing led to less of such employment although many factory workers are still foreigners. Many singaporean housewives used to work as factory workers. The foreigners competed and affected their wages.
Then, China ladies began to be employed as beer or coffee ladies. Many uncles and aunties also lose out.
These working in coffee shops, 24hr stores and neigbourhood convenient stores are generally foreigners without much , if any, skills . Why are they allowed to come here? The no-brainer answer is lower cost. But the real question still remains : These are not difficult jobs. Locals can do these jobs. There are still many locals who are renting HDBs and lowly educated that could not compete in corporates due to also many foreigners employed there. The real problem is jobs are being taken away and SOLUTION is lacking or have not taken effect. The unemployment situation is prove that the problem still remains.
Singapore only has so small population to provide jobs for unlike USA where millions of jobs are still being created in this crisis. How many jobs have singapore created?
55) Raymond on December 10th, 2008 9.02 am
i went to nokia service centre at Century Sq yesterday to have my handphone repaired. Around 3 of the 5-6 counter service staff were filipinos. I thought to myself, these people should not even be sitting there! They represent 3 locals who could have been gainfully employed.
This is nothing, I went for my tooth extraction in Alexandra Hospital, goodness the entire dental clinic alone are filled with filippinos except for 1 lady dentist (doctor) who could be a local or even malaysian. see how cheap our garment can be when comes to employing cheap labours, and when comes to billing, they charge their world class service fee.
Hopefully, the majority of apathetic Singaporeans wake up from their slumber of trusting the PAP to deliver on their past “caveat emptor” promises of more good and golden years. The on-going financial crisis is heaven’s revelation of the real workings of the people in power and authority.
If this does not translate into much stronger opposition in future, Singaporeans’ horizon is as good as sold – remaining as herded sheep, stripped naked of their wool and waiting to be processed into mutton.
All for the economic value only, nothing more and nothing less.
57) SZ on December 10th, 2008 10.17 am Well…55) Raymond, i know some managers of cust svc centre, and i ask them why are they employing more filipinos, and the reason they gave for employing filipinos is because Singaporeans who work in this line tend to job-hop quite often, while the filipinos will stay for a really long term….
SZ..please also ask your friend how much they are paying these customer service people and you will start to get some idea why job hopping among locals is prevalent. These companies pay them peanuts, work them long hours and expect them to be loyal. And please also find out why foreigners dont mind this kind of shit….i think i can shed some light in addition to those highlighted in the original article.
For the foreign workers,
1. they are alone without families…so what is family time to them?
2. they share rooms or flats with others…accomodation cost is affordable
3. they have only to remit 50% of their low pay in Singapore back home and it is equivalent to 1 to 2 months of their pay back home.
4. they are generally younger and have a lot of energy.
can the locals do the same thing?.
Yes. if such jobs are restricted to locals, service costs is expected to go up as wages are expected to increase,..but if corporations, govt as well as consumers can come in to share some of the increased cost, i think LOCALS for LOCALS is not too far fetched an idea.
Although our leaders of NTUC & Government had strongly advocated and urged all the employers in Singapore not to axe jobs, but it seems a common scene that quite a number of big employers do not listen and act accordingly to the Government’s advocacy.
They do not firstly think of any possible way to cut costs, they still pt for the easy and simple way of cutting jobs-retrench workers without deeper thought and searching for alternative solutions.
Why elites never say this to DBS? Now want to act garang and question these 2 MNCs?
http://sg.news.yahoo.com/cna/20081209/tap-197-parent-companies-mncs-cut-jobs-231650b.html
Singapore’s labour movement urged Sony and Nomura to justify the headcount cut.
Halimah Yacob, Deputy Secretary—General, NTUC, said: “What these two companies will have to do is to explain the circumstances under which these retrenchments are being carried out, that they have exhausted all other possibilities and not just merely say this is the headquarters’ instruction to them.”
Its a joke to tell big corporations how to run their business. These are big corporations spanning the globe with thousands on their payroll. Iif they insist on cutting, really there is nothing the govt can do..such remarks in my opinion is more of a PR thing.
As a matter of fact, I would rather not blame the big corporations for shedding jobs but blame ourselves for not having enough jobs for locals.
#5 Andrew Loh
And we haven’t even scrutinised the so-called “re-training” during bad times, as the NTUC has been urging people to do.
It depends if you believe getting a job is more sustainable than getting subsidy handouts. If do you, re-training is probably the best way for people to get a new job or demand higher pay.
A large part of the current economic cause is that international exports, which drastically shrunk, account for about 200% the GDP [1].
It’s easy to get flare up with the ruling government in bad economy. In the USA, people blame the Bush administration. In Canada, the conservative party. In Taiwan, the pro-China policies. In Thailand, whoever comes to power. Let’s not get too emotional. Anger doesn’t solve problems.
Anyway, it will be good to hear what the PAP has to say about the economic and implementation aspects of minimum wage. For example, are we also going to raise the minimum wages for foreign construction workers and hence raise construction costs? There is no question about the social benefits.
[1] http://earthtrends.wri.org/pdf_library/country_profiles/eco_cou_702.pdf
Sorry to hear all the injustice everyone share here. ):But main problem the group of highest paid ministers in the world faced now is how to get their full pay reinstalled by next fall. If I am right, dual citizen membership will be implement during budget 2009 in order to boast value all the bank they owned in singapore, GDP from 0 to 3.3 with so many billions coming in, more good years.
57) SZ. Singaporeans job hop because they don’t like being treated as slaves. The foreign worker stays because he CANNOT LEAVE.
It is like saying an SAF regular is not as good as an NSF because the NSF don’t job hop, willing to work OT without pay and is ten times cheaper.
2. Employer’s unrealistic expectations.
Singapore employers’ expectations of a good worker is close to that of a slave. Cheap, can work 14 hours, 7 days a week. Need no rights, benefits, no off days, no MC, say yes to every instruction, can be scolded, treated like garbage anytime. It is not that the foreign workers don’t have feelings. They bear with this nonsense because they borrowed a lot of money to come here and their lives will be destroyed if they quit and return empty handed. It is just like us during NS. We bear with all the nonsense so that we can ORD safely.
When companies complain to government that Singaporean workers are fussy, they simply mean that Singaporeans are not willing to be treated like slaves.
Even if a Singaporean worker is willing to work for the same low wages as the foreign worker, I doubt that the employer would hire the Singaporean because of the above reason.
THE SOLUTION is not to turn a blind eye to foreign worker abuses. I know it is tempting to feel that they deserve it because they stole our jobs, create social problems, etc. However, if you turn a blind eye to employers abusing foreign workers, it will only encourage employers to continue favouring foreigners, who they can easily abuse, over Singaporeans!
Not only that, you become a very bad person full of hatred, turning away from injustices, for reasons you cannot control. You didn’t ask for foreign workers to come, so why should you be the one who become a bad person while the government and employers reap the benefits?
68) JohnnyKid
Not all service centre treat their staff as slaves…and if it is because of this mentality, then we can’t blame some companies from employing those foreign workers. if it is because of unfair practices, then something can be done to rectify it. but singaporeans lost out jobs to foreigner because of their inability to take a little of hardship, then what can we do? I do admit cust svc and retail offers miserable pay for long working hours and some don’t even have much benefit, with lots of shit to boot…and yet the company expect you to put in 2x of work for the same amount of money, thus alot of people can’t take it…and if alot of singaporeans don’t want to work in this line…then they can only look for the foreigners.
Now you can say that things can be improved to entice locals to work in those sectors….do you think a company will want to increase their pay for retail and cust svc staff? or shorten the working hours….and since they can employ others who can bear with the shit, why will they want locals then…
i mean if there is a job that both locals and foreigner wants to do, then if they employ foreigner over local, it is wrong…but for jobs that singapore doesn’t realli want to work in, then as a company, of course they will choose the cheaper one that will be more “committed” ask yourself this…if you are the boss,what will do?
70) SZ
Singaporean workers expect a decent working conditions with a decent pay. This is not an unreasonable request.
From an employer’s point of view, who would say no to lowly paid workers who can work for long hours? Best is FOC a.k.a slaves. There must be a limit to this.
The root causes are is liberal foreign import policy and government closing a blind eye to worker abuses.
71) JohnnyKid
“The root causes are is liberal foreign import policy and government closing a blind eye to worker abuses.”
i concede with this… i mean, it is hard to balance out…everyone sought their own benefits.
aiyoyo
is it next time taxi drivers also belong to foreign talents???
aiyoyo
My company has several foreign workers. One’s a PRC who is currently in the admin / technical side. When she first came, she was pretty happy and her work was exemplary. So much so that the boss wanted to give her a chance at a better paying position.
But as time went on, she found out things such as she’s getting far lower pay than the locals for the same job, and there is no automatic pay adjustment after probation like in her previous company. Then more random ad-hoc duties got added which resulted in OT. She didn’t like all the OT she was doing, but didn’t object too much since she was still getting paid and she needed the money. Then the boss added work that she has to bring home to do FOC with her own equipment.
Most people seem to think that foreign workers are okay with long hours and low pay. By this reasoning, you’d think she’s happy even with all these. Odds are, we can all see when our coworkers are unhappy and doing their work only grudgingly, and I can tell you that she isn’t happy.
In fact, she told me once when I asked her how Singapore compared, that she was actually getting a higher pay and more respect back in China, even if it’s not in actual cash, but in kind such as food and accommodation provided by the company that she has to pay for herself here.
If you’re a boss and reading this, wake up. Even foreign workers are humans and have the same feelings as Singaporeans. Does anyone honestly think unhappy workers are very productive and willing give their best to the company? Or will their unhappiness rub off on the quality of their work and cause mistake after mistake that end up costing the company more money than if they’d provided good working conditions in the first place?
52) Tan Kin Lian – I am beginning to agree with having a minimum wage. Previously, I was of the view that it would push up business costs too much, and will be too inflexible to adjust to changing market conditions. I think both of these can be managed. As you mentioned, there are many components to business costs, and wages are just one of them. The minimum wage could be an amount that is reviewed every year, subject to Parliamentary approval. I also support quotas for locals, regardless of level.
76) Gerald
Yesh, minimum wages helps, but the reply will be the same…singapore needs to be competitive….so sacrifice yourself and accept what you are having so that there will be more investment in singapore,resulting in growth and a big bonus for we know who.
Hi Gerald (#76)
I carried out a poll at my blog. 150 people replied. 73% support a minimum wage policy. 20% disagree. 7% are undecided.
I presented the same reasoning set out in #52. Someone said that $10 per hour may be too high. On reflection, I agree. Maybe $8 per hour ($8X8X20 = $1260 per month) may be a good starting point.
Previously, most people argued as a minimum wage policy. They repeated the arguments put forward by our government leaders. Now, many people are convinced on the need for this safeguard. They are now aware about how bad things can get under the free market policy, where the weak and the less educated are exploited.
from my personal work experience, many foreigners actually work for few years and try to migrate to Europe or USA. No matter how much they are unhappy with the work etc, they bear it cos back home, the population is so large, they cannot compete and hence they come to Sg. to work. I would not said that all of them are incompetent but then the policies we have are at the expense of the local thou. Nevertheless, foreigners are indeed important to our small economy.
I would like to raise my concern about the 1st world we are in now.
1. Singapore – 1st world.
Also, pro Business. Not sure is there any country more pro business than it is.
1st world – 1st world cost of living and this cost is rising or will surely rise further. By how much more? Not sure.
Pro Business – in a sense it means as competitively low employee salary as possible. Also, it allows employers like MNCs and local SMEs to hire many many foreigners. Excellent policies that foreign workers must be enjoying and grateful for. Employers happy about these policies. Not sure how employers think of cpf, however.
It is then quite obvious that this will drive down salaries on average for the lower to middle class workers.
Retrenchments and Poor Job Market and Competition among talents – there are locals who have rare or excellent skills or high market value that makes them less affected by these factors and command high 1st world salaries. But these are in small numbers. The top few percent. The rest, unfortunately, are
affected by foreign workers directly or indirectly.
In other words, I find that there is something not so right. While we have progressed to 1st world status, on paper, I do not see that the majority salaries have or will go up to 1st world, in tadem with the cost of living.
While people need to work hard, study hard and upgrade, and be more
capable than foreign workers to command more, the FACT remains, many
are not in the top few percent. These people can be replaced by Foreigners. Generally, what skills does foreigners not have? Why should MNCs and even
local companies hire a citizen, in terms of skills? Ok, there may be some jobs but generally, foreigners can replace locals, skills wise.
Agree? How many foreigners can be hired? How long does it take to
convert from foreigner to PR (also foreigner with long term visa)?
See what I am talking about?
While it is an achievement to have reached 1st world status, I am
concerned that the majority MAY NOT BE READY for it in terms of
skills, exposure, mentality. Also , I am concerned about the engines
of growth – rely on Gambling and Resorts? F1 ? That is the way to
go? Any Assurance it will work? The Fact remains, majority are not
born with silver spoon or can inherit a business from their parents
or have rich relatives to help them get cushy jobs or have career
paths planned decades in advance for them. They have to compete with mostly talents from 3rd worlds and yet need more salary in order to have a family here.
Regardless of all the Contraints or Excuses, SOLUTION need to be
provided to Bring the Majority to 1st world level in terms of (and
not limited to):
1. Job Opportunities (what kinds of 1st world jobs are created?), Skills (education system plays a big role), Salary, Competency, Productivity
2. QUALITY of LIFE <- especially important
3. Cost of Living
4. Safety – are there more crimes now than before? more secured?
5. Accountability – Charities
6. Freedom of Speech and Expression
7. etc. you name it
Hi Mr Tan Kin Lian,
I do not agree that one can simply conjure a number and consider that as the minimum subsistence wage, I am sure you have your justification, would you like to elaborate this figure in your blog?
I think a sound methodology is to adopt the median income of Singapore residents a reference, using a measurement of based on disposable income to decide this figure.
Also understand the stance of those who disagree. Some of which are valid consideration.
By imposing min. wage, it might raise the cost of labour, would it bring about more unemployment in this category?
Young people without qualification or experience. Will they have a harder time getting traction on the job market?
If labour cost is to increase, will we have to accept this cost being passed on to consumer?
Not all foreign workers will be retrench as some of their pay packages are lower than locals, hence the preference to retain some foreign workers. Moreever, there are alot of contract & temp workers in bigger companies. Once their contract expires, the company can choose not to renew their contracts thus letting them go & protecting the jobs of permanent staff. Minimum wage, if to impose, should apply to both local & foreign workers, so foreign workers will not be view as a cheaper alternatives to locals.
the truth is always cruel, the root of the problem is not just confine to our low wage citizens. It is now spreading to the midle income citizens like myself.
I have it near impossible for one to get a so call “long term career” as the phase job security seem to be a taboo! No one seem to be able to hold a job for long – thanks to term such as restructuring, contract employment etc . (to me, all these words = expliotation. It is hard to believe that corporate just treat employees as numbers which can be manipulated when the tile is not on their side!
How can one plan for his future such as having a home (HDB) which is a committment for 20 to 30 years when he cannot even be sure he will be able keep his job for 5 years? Not to mention if you intent to have kid(s)!
Unless u r one of the top wage earner, the issue of high inflation, ever increasing public transport, ERP, means testing for medical are always there to test you skill of adaptation.
Next you will hv to compete with FT, FW who are here so that “we can keep our jobs” , they also keep wages low – All in the name of keeeping ourselve “competitive”
Suddenly , we realised that what we used to believe in are all wrong, No one talk about growing with company, loyalty etc etc.
Retirement? u can forget about it as most of my CPF would be used to maintain the mandatory minimum sum to be set aside.
So SAD!
#73 aiyoyo
Bus companies are also employing PRC as bus drivers ! (oop, sorry, now they are know as bus captain. Ata sikit. ) .
81) alphaville on December 11th, 2008 3.29 am
Do you mean :
1. That min wage may raise the labor cost and thus lower employment rate and may lead to higher consumer prices and so you CONCLUDE that min wage cannot work and should not be implemented?
I have news for you:
1. Consumer price : It will rise regardless of min wage.
2. Labor cost : why you don’t focus on Rental cost 1st ? Why you don’t focus on greed 1st ? Why CEOs getting so much?
3. Unemployment rate : that depends on the world economy, not labor cost. Successful companies will thrive even in economic slowdown. They continue to pay employees good salaries. So, Unsuccessful companies incompetent to survive will still Retrench and Cut salaries and Cut staff due to its incompetencies or failures or boo boo in investments that are not their core competencies.
In conclusion, I like to let you know that there is yet a min wage figure set. How do you know that will cause more problems than bring good effects? How would you protect the lowest income earners are not exploited by businesses who can only resort to cutting salaries to survive and in order for their CEO or boss to satisfy his hunger for more luxuries even when these bosses are incompetent of capturing the market or producing top notch products and services?
Without min wage, social problems can result. Desperate, people can commit crimes to get more money. You think for the corporations. Have you thought from a national perspective?
There is a need for min wage, not max wage. To derive Min wage I would think the cost of living will be considered and this wage must allow a typical lowest wage earner to live a life with some decency. This also relates to human rights – the right to live in dignity.
I do believe there is a need for maximum wages limit… For ministers! They insist on gettin’ “market rates” for their wages, ‘cos they think they’re delivering worldclass leadership to the country. Well, we peasants ain’t well taken care of enough. Not to mention poorer peasants. Bring on the next contestant!
Market economy always driven by supply and demand and Or by WRONG government policy.
Freeflow (almost) of CHEAP unskilled foreign labour; repeat not foreign talent…… depressed the unskilled labour market in Singapore.
There is not incentive for company to upgrade the skill or quality of work since CHEAP unskilled foreign labours is available. This WRONG policy also threaten the local low skilled workers to fight for low salary job i.e. less than $600/mth for cleaner etc
COE bidding system for company wanted to employ foreign labours similar to COE system for car.
Labour Cert of entitlement (In company’s name not individual foreign worker’s name) bid price start at $250/mth valid for 2 -3 yrs. Same as COE of the car there is limited quota each month. The highest bidders get the COE to import foreign labour to work in Singapore. If demand is high and quota is limited, perhaps a cleaner’s COE can be as high as $10,000. If company desperately need to hire foreigners and can’t find local to wash his dish. Company have to pay $10,000/mth for dish washer. I am sure many local will want to wash dish for $10,000 instead of $600 per month now.
We have problem solved – WHY go through the NONSENSE of retraining programme to wash dish???? In Western country due to high labour cost; all the expensive dish washer machine is doing the job except Singapore.
I am not talented local that have make such reccommendation to MOM year ago but throw out as stupid idea. That’s the attitude of our TOP civil servant with a fat pay check!!!!!!!
85) Do You Mean ?
you are wrong about unemployment rate relation with labor cost
Unemployment rate depends on the global economy, and is related to labor cost…if labour cost increase, a company with that fix amount of money can only hire lesser staff, although they can opt pay more to hire the same amount of workers as before labour cost increase, but how many of those company will do that? this type of scenario is known as classical unemployment and in short, it is link to the marginal product of labour (micheal palmer)
current rise in prices of product is caused by the depreciation of SGD vis-a-vis USD. the price of import has been increasing due to a weakening SGD…however that is unavoidable in order to boost export – linking to GDP, to boost growth, weakening of currency is needed. however, the one taking the blunt will be the consumer as price of import increase with weaken SGD.
Indeed there should be a Maximun and Minimun salary in place at the range from S$1,500 lowest to highest at S$300,000. Why are we paying someones world higher saLARY about 3millions plus not to mention the allowances, bounus, profit sharings. A world smallest national with local citizens around 3millions populations excluded PRs & foreigners. It is ready a huge burden for their peoples to paid. All the MPs monthly miting session allowances (approx. $13k) should be removed. Look US Presidens only taking US$500K ++, for their county side and populations, it must be a big joke!
Just a bloody wayang. If the PAP is serious about protecting local workers from dismissal, all they need to do is implement minimum wage, or even a levy on foreign workers. Once they cost as much as locals, let’s see who is asked to go first!
angry_one
Just ask yourself this question. If even the government agencies are offering jobs DIRECTLY to foreigners, what else can we expect from them ?
Go to Jobstreet Singapore portal, click on JOBS IN SINGAPORE FOR FOREIGNERS.
Vote out the PAP
talk all they can(govt)! they’re to me,are running out of ideas and planning. we’re not digits,but we can decide our own fate and future.i’ve already decided who to cast my vote.
“The Minister evidently has never been a business owner himself.” Dont you think that says it all?
Marucs says he’s in love with Tan Kin Lian!