MINISTRY OF LABOUR

Review of wages

Our success in industrialisation and rapid economic growth has been paid for by hard work, greater discipline and postponement of less urgent consumption. Much of the visible economic affluence is imported capital and technologies, which will remain in Singapore only so long as the conditions of political stability, reasonable wage levels and disciplined workers, prevail. Until we are in a position to own and be able to manage and operate a far greater share of this wealth in the next decade, the conditions for such rapid influx of investment and technology will have to he maintained.

The Government is conscious of the sacrifices and contributions made by labour towards rapid economic growth. Employers who have been making exceptional profits have been urged to give better bonuses in recognition of the worker's contribution to the present economic prosperity.

Early next year, after the full effects of the rundown of the British bases have been assessed, a review of the present wage policy will be made.

Central Provident Fund

The rate of contribution payable to the Central Provident Fund has been increased from 5 per cent to 6k per cent in 1968, from 6k per cent to 8 per cent in 1970, and with effect from 1st January, 1971, from 8 per cent to 10 per cent so that the total rate payable by employees earning more than $200 per month is now 20 per cent of wages. In addition, contributions are also payable on bonuses without any limit. Thus, whilst the policy of wage restraints still has to be observed in this early stage of industrialisation, the Government, by enhancing C.P.F, contributions payable by employers and employees and allowing such C.P.F, contributions to be used for the purchase of Housing and Development Board or Jurong Town Corporation flats, has ensured more adequate provision for workers in their old age, and made home ownership possible for more and more workers. Today about 35,000 workers own or are paying instalments to own their flats, it is anticipated that, as the Housing and Development Board accelerates its building programmes, thousands of more workers will be able to own their flats for the first time.

Work Permit Policy

Our success in industrialisation has bro Light about an acute shortage of skilled and semi-skilled workers required for the new factories. Unless we are able to train skilled and semi-skilled labour for our factories, the pace of our industrialisation will falter. To solve this urgent problem, the Ministry has issued work permits liberally for the type of skills we require. As on 30th June. 1971, a total of 55,800 work permits have been issued. Also, temporary permits on a month-to-month basis in the form of block permits have been issued to non-citizens who are engaged as construction workers. As on 30th June, 1971, over 10,000 workers are working in Singapore under such an arrangement. In the next two years a review will be made on whether work permit holders should be given permanent residence and later citizenship. It is also proposed to further simplify the issue of block permits for construction workers.

Apprenticeship and in-plant training schemes

This liberal work permit policy, however, is a temporary measure to meet a pressing problem. In the long term, we are restructuring our education system to give technical and vocational education the proper emphasis and recognition demanded by our expanding industrial and servicing sectors. More intensive industrial training schemes, such as apprenticeship training and in-plant training, will be needed. Eventually, Singapore should supply most of the skills required by our industries from our schools.

Protection of growing industrial work force

Greater industrialisation, however, has been accompanied by an increasing number of industrial accidents. Apart from the financial loss to the economy estimated at $23,000,000 for 1969, this is quite unnecessary and often avoidable suffering for the unfortunate victims and their families. The Ministry will be taking the following steps.

(i) Reorganisation and expansion of the Factory Inspectorate

The Factory Inspectorate will be expanded and staffed by suitable officers to supervise and enforce industrial safety regulations. These safety regulations will be strictly enforced and recalcitrant employers wilfully neglecting the safety and health of workers will be punished.

(ii) Amendments to the Factories Act

A Bill to amend the Factories Act will be introduced in Parliament. The main objectives of the Bill are to improve the health and safety measures and the welfare facilities in the interests of persons employed in factories. It will also encourage a more stringent observance of the safety provisions in the Factories Act by giving the Chief Inspector of Factories greater powers and increasing the maximum penalty under the Act. These provisions will undoubtedly help to reduce the rate of industrial accidents.

(iii) Building Operations and Works of Engineering Construction Regulations

The Ministry has also gazetted in March 1971 the Building Operations and Works of Engineering Construction Regulations, 1971, which would provide, among other things, comprehensive measures and requirements designed to safeguard the health and safety of workers in the building and engineering construction worksites, which have accounted for the highest number of industrial accidents in recent times. These Regulations will come into operation after their adoption by a resolution in Parliament in the coming session.

(iv) Amendments to the Workmen's Compensation Act

To reinforce the above measures, the Ministry will also introduce a Bill to amend the Workmen's Compensation Act. The Bill seeks to extend the scope of workmen's compensation to cover non-manual workers who earn up to $750 per month (as against $400 per month at present), to treble the quantum of workmen's compensation payable at present and to provide for a more detailed list of injuries which would result in permanent partial incapacity so that a more accurate assessment of compensation may be made. Also, two new diseases, namely, silicosis and asbestosis, will be included in the schedule of occupational diseases. The Amendment Bill is designed not only to ensure that workmen who sustain injuries in the course of their employment are more adequately compensated, but also, with the increased quantum of compensation, to induce the employers to institute adequate measures to safeguard the interest and welfare of their workers.

Protection of non-unionised workers

By and large, most employers have come to observe the letter and spirit of the Employment Act, and accord to their employees their rights and privileges as stipulated in the Act. However, there is a need to protect the interest of large numbers of the non-unionised workers, mainly Chinese-educated employees, in the smaller establishments, from exploitation by some unscrupulous employers. For this purpose, the Ministry will expand the Labour Inspectorate and also set up regional offices so that the working conditions in these smaller establishments can he inspected more frequently.