Singaporeans Offered Lower Grade Jobs to Free Up Quota for Foreign Workers for Higher Level Jobs

Mr Saktiandi Supaat asked the Minister for Manpower (a) whether the Ministry is aware of companies circumventing the employment ratio of local to foreign workers by offering lower grade jobs to locals and using the quota to recruit foreigners for supervisory jobs; (b) how many companies have been found indulging in such practices in the past five years; and (c) what action has been taken against them.

The Minister for Manpower (Mr Lim Swee Say): Mdm Speaker, the number of work permit and S Pass holders that a company may employ is capped based on the number of locals it employs. In a tight labour market, companies will have to compete for local workers to be eligible for foreign workers. To help locals upgrade to better jobs and careers, the Government has put in place various initiatives to improve their skills and help them progress in their job ladders.

Employers who do not treat their local workers fairly will not only be less able to attract and retain them, but also risk violating the Employment of Foreign Manpower Regulations which stipulate that employers are required to provide fair employment opportunities to Singaporeans.

We wish to remind all employers that MOM takes a serious view of all forms of employment discrimination. We partner with TAFEP to look into complaints where Singaporeans are not considered fairly for jobs or promotion, for both the rank-and-file and PMET levels. If the complaints are substantiated, their work pass applications will be subjected to greater scrutiny and their work pass privileges may even be suspended.

Members of the public who are aware of such unfair practices should report them to MOM or TAFEP for investigation.

Mr Desmond Choo (Tampines): I thank the Minister for the reply. TAFEP has been doing important work in ensuring that we address the problem of workplace discrimination, especially when comes to hiring of foreign workers. Will the Ministry consider enhancing the capabilities of TAFEP to go beyond promotional work?

Mr Lim Swee Say: Mdm Speaker, the answer is yes. Please wait for my COS.

Mdm Speaker: Mr Saktiandi, do you want to wait for the Committee of Supply? You still want to ask a question? Yes, please.

Mr Saktiandi Supaat (Bishan-Toa Payoh): I thank the Minister for the answer. I just have a specific question. In your experience in dealing with the incidents over the past decade or years, could you share specific industries, for example, that have been flouting some of these rules?

Mr Lim Swee Say: Mdm Speaker, TAFEP, over the last three years, has received about 1,400 complaints. Among the list of complaints, the majority, about 70%, are nationality-related. Whenever we come across employers that may adopt some practices which treat the local workers unfairly as against the foreign workers, TAFEP would take action. For example, some of them would receive a letter of warning from MOM. Some would have their application for Work Pass come under closer scrutiny. In some cases, we would actually curtail their rights to employ foreign workers including suspension. I would say, on the whole, we do our best as and when we are aware of such unfair practices.

Having said so, I also want to share with the House that we should not jump to the conclusion that simply because the local workers are made to report to foreign workers, the company has done something wrong. We have to be mindful that in our workforce today, we have two-thirds local and one-third foreign workforce. There are industries where the higher level positions are held mainly by locals. For example, if you come to our manufacturing plant, most of the PMET jobs, 70% to 80%, some cases 90%, are all held by local workers. And yet at the production level, a vast majority, 70% to 80% are held by foreign workers.

In other words, there will be cases where we need the foreign workers to enable us to sustain operations at a higher level, and vice versa. There will be areas whereby we do need to create jobs for our rank and file workers as well.

Therefore, as MOM, we do not jump to the conclusion whether it is right or wrong when foreign workers are asked to report to local workers, or local workers are asked to report to foreign workers,. We do not look at it as a problem. But it will become a problem if this happens not because of anything else but because of discrimination. That is where MOM and TAFEP will come in, will take it very seriously, and will take firm action against them.

As I mentioned earlier, if Members of this House, if you come across any unfair practices based on discrimination, please do not hesitate to alert TAFEP and we will take firm action.