IMPROVING WORK CONDITIONS IN THE SERVICES SECTOR

IMPROVING WORK CONDITIONS IN THE SERVICES SECTOR

8.

Mdm Ho Geok Choo asked the Minister Manpower in a bid to attract more Singaporeans into the services sector (a) how the Government plans to address the following issues associated with the service industry such as lack of health and safety safeguards, poor pay, poor working conditions and long working hours; and (b) whether there is room for Singapore to follow countries such as Australia and the US in terms of their per-hour pay scheme in the service industries.

Mr Gan Kim Yong: The services sector covers a wide range of industries and workplace practices vary across industries, even across companies in the same industry. Each industry faces different challenges and requires different strategies to address. Nevertheless, our laws – such as the Employment Act and the Workplace Safety and Health (WSH) Act – ensure

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that workers enjoy the basic workplace environment and statutory employment benefits. In 2010, 23 employers in the services sector were convicted of Employment Act offences.

Besides enforcing minimum employment standards, MOM engages companies to create greater awareness of our employment laws and good employment practices. MOM also works closely with relevant agencies to put in place initiatives to professionalise certain industries and improve working conditions. For example, the Singapore Police Force (SPF) subjects security guard agencies to mandatory grading, while the National Environment Agency (NEA) introduced a voluntary accreditation framework in 2010 for cleaning companies. Through the inclusion of employment practices and training efforts into the grading and accreditation criteria, we have helped to improve the wages and employment conditions of workers in these industries.

Skills upgrading, complemented with job and process redesign, can bring about productivity improvements to support higher wages and set workers on a sustainable path to income growth. The Workfare Training Support (WTS) Scheme was launched in 2010 to provide higher training grants to employers and older low-wage workers, and rewards workers for sustaining their training efforts. In addition, WDA has developed Workforce Skills Qualifications (WSQ) training pathways to allow workers to upgrade and progress. The Government has also extended $40 million to fund NTUC's Inclusive Growth Programme (IGP). Initiatives under the IGP include job redesign, promotion of best-sourcing practices as well as support for the adoption of productivity-related initiatives.

In terms of workplace safety and health, the WSH Act currently covers certain services-related industries including healthcare activities, hotels and restaurants, landscape care and maintenance service activities, among others. We will be seeking the support of this House to amend the WSH Act to cover all workplaces(1) later this year.

MOM and the Workplace Safety and Health Council have been engaging stakeholders to share on their responsibilities under WSH Act and what they need to do to meet these obligations. Key initiatives include the provision of WSH advisory to companies through the WSH Clinics, dedicated informational packages to employers, and innovative promotional activities such as skits at public places.

The per-hour pay scheme suggested by the member is allowed under the Employment Act and has been adopted by companies in certain service industries. Companies that adopt more regularised salary payments such as on a monthly basis to provide greater stability and security for their workers may also pay over-time on hourly basis. The Ministry does not dictate the wage systems of companies, but leaves it to employers to choose the structure that is most appropriate for the nature of their industry.

(1) (i) Any member of the Singapore Police Force (including the Special Constabulary), Singapore Prisons Service, Internal Security Department, Central Narcotics Bureau, Singapore Armed Forces, Singapore Civil Defence Force and the Immigration & Checkpoints Authority while on duty, and (ii) any crew member at work on board any ship, aircraft or any other international mode of transport will continue to be excluded from WSHA coverage.