EMPLOYMENT OF FOREIGN WORKERS

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EMPLOYMENT OF FOREIGN WORKERS: 4.

Er Lee Bee Wah:

Er Lee Bee Wah asked the Acting Minister for Manpower (a) what number of foreign workers were not paid their wages during the past six months; (b) what steps are being taken to check on employers to prevent the situation of unpaid labour from getting out of hand; (c) at what stage will the Ministry step in

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to protect the workers from being abandoned by their employers.

Er Lee Bee Wah asked the Acting Minister for Manpower if the Ministry will impose stricter conditions on employers who intend to bring foreign workers to Singapore.

The Acting Minister for Manpower (Mr Gan Kim Yong): Sir, with your permission, can I take Question Nos. 4 and 5 together?

Mr Speaker: Yes.

Mr Gan Kim Yong: Sir, as the economy slows down, the number of foreign workers who have approached the Ministry for assistance on salary arrears has increased. The number of foreign work permit-holders who are involved in salary disputes increased from about 0.2% of the total work permit population in 2007, to about 0.4% in 2008.

My Ministry has stepped up enforcement and mediation efforts to ensure that employers fulfil their obligations to their workers. In addition to the regular audits that MOM conducts on companies to check for infringements of the Employment Act – such as failure to pay salary, overtime, or provide leave benefits – we are also stepping up inspections at foreign workers' dormitories to check, among other things, if they face salary arrears problems.

If they do, MOM will step in to help them recover their outstanding salaries. Through MOM's intervention, most of these complaints have been resolved quickly and amicably. Over the past six months, 85% of the cases involving foreign workers were dealt with within three weeks. Complex cases could take longer and could involve adjudication by the Labour Court. The foreign workers involved are allowed to stay in Singapore under a Special Pass for a short period to

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enforce their claims. Even if they return home, MOM will continue to help them with their claims.

We have also put in place a number of early intervention measures to detect non-payment of salaries. We monitor employers who default on levy payments, and work with housing operators to gather information about employers who default on their rental payments. Such employers are likely to be facing cash-flow problems and may have salary disputes.

While we can understand that some employers may be facing business difficulties under the current economic environment, this does not absolve them from their basic responsibilities towards their foreign workers. These include paying salaries and providing workers with proper accommodation, food and medical care. MOM will not hesitate to take action under the Employment Act (EA) or the Employment of Foreign Manpower Act (EFMA) against errant employers who fail to pay salaries on time. The penalty for non-payment of salaries under the Employment Act has been increased to $5,000 per charge for first-time offenders since January this year.

MOM may also prosecute employers, as well as debar them from hiring foreign workers. Employees who are not paid their salaries are advised to approach the Ministry for assistance.

Further upstream, MOM has also implemented measures in the work pass approval process to minimise the possibility of workers being brought in without jobs. For example, construction and marine companies need to show documentary proof that they have ongoing projects before work permits are issued. For subcontractors, an endorsement of work is also required from their principal contractor. MOM has stepped

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up scrutiny in processing work permit applications by companies specially in the marine sector. However, we have to do this in a calibrated way so that we do not create rigidity and inconvenience for the vast majority of lawful and responsible employers.

We must also recognise that in a volatile business environment, some employers may find that the projects they had earlier planned for are delayed or even cancelled. In such situations, companies may not have work for some of their foreign workers. If so, the work permit conditions require the employer to terminate the contracts and facilitate the repatriation of their workers to their home country after ensuring that all outstanding employment issues have been resolved. MOM will continue to monitor the situation closely, and we will step up enforcement and tighten checks, if necessary.

Er Lee Bee Wah (Ang Mo Kio): Sir, I have four supplementary questions.

First, during the past two years, how many employers have been charged by MOM? Second, will there be a stricter requirement imposed on those employers who were found to be irresponsible on future hiring of workers? Third, are there any signs of syndicates, who are bringing in foreign workers to Singapore without any jobs available? Fourth, in view of the challenging economic situation, is the Ministry going to reduce the number of foreign workers, so that there are sufficient jobs for Singaporeans?

Mr Gan Kim Yong: Sir, let me give the Member some numbers. In 2008, we had a total of 26 employers who were prosecuted for Employment Act violations, 14 of whom involved salary disputes.

With regard to stricter control on employers who have violated our

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Employment Act and other legislations, I have explained in my answer that some of them, when found guilty, will be debarred from employing foreign workers in the future. So there are quite stringent controls on their ability to have access to foreign workers.

With regard to syndicates or employers who bring in foreign workers without work, we are currently investigating a number of employers who have brought in foreign workers without proper work for them. Some of them had contracts with their principals, but some of these contracts did not materialise. Some of them had brought in too many foreign workers, and these are the cases that the Ministry is currently investigating. Because the investigations are still under way, I would rather not discuss the details of these cases.

Ms Lee's fourth question is whether we are going to tighten the supply of foreign workers. As I explained at the last sitting, foreign workers will continue to be needed especially in some of the sectors, including the construction and marine sectors. These foreign workers are here sometimes to do jobs which Singaporeans do not want to do or are unable to do. I think it is important for us to ensure that these foreign workers will continue to help us in our economy.

I also mentioned in my previous answer that for companies which are facing difficulties and which have insufficient work, these companies should release their foreign workers so that they can return home. To keep these foreign workers here without adequate work will not be beneficial for them. So, in short, I think we will calibrate our framework for foreign workers to ensure that we respond to changes in the economy's outlook, but it is important for us to

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ensure that we have sufficient flexibility in the labour market.

This recession will come, we do not know how long it will last. But what is important for us during this recession is to ensure that our long-term economic fundamentals are not compromised. And one key strength that we have is our flexible labour market, that we are able to expand when the economy grows, and we are able to then respond to the economy when the economy slows down. So I think it is important for us to ensure that our labour market remains flexible. What we want to focus on now is really to help Singaporeans to improve their employability, and SPUR is one key strategy for us to help Singaporeans improve their employability, through training as well as through upgrading. We also use SPUR to help companies cope with the downturn by helping their workers upgrade and, at the same time, to share the cost through absentee payroll. I think, through SPUR, we want to ensure our Singaporeans are more productive, more employable, and they will be attractive to the companies. And when the companies employ them, their skills will also benefit our local companies. This way, we will ensure the businesses in Singapore will remain competitive and will be able to survive, and we will be able to save more jobs.