RETRENCHED WORKERS (Retraining for alternative jobs)

[Mr Speaker in the Chair]

The following Question stood in the name of Mr Chiam See Tong -

Mr Chiam See Tong: To ask the Minister for Labour whether, in the light of the economic down turn and the possibility of more workers being retrenched, the Government has taken any steps to retrain workers, who are retrenched, for alternative jobs.

Mr Bernard Chen (West Coast): Question No. 1.

The Minister for Labour (Dr Lee Boon Yang): There are presently several Government-supported schemes to assist retrenched workers in enhancing their employability.

Under the Skills Redevelopment Programme (SRP) funded by Government and managed by the National Trades Union Congress, employers who recruit retrenched workers could apply for training grant to upgrade the skills of the workers so that they could meet the needs of the new jobs. The SRP is targetted at less educated workers in their 30s and 40s, who may face greater difficulty seeking re-employment. Government's support is up to 80% of course fees to be paid by the Productivity and Standards Board (PSB) from the Skills Development Fund (SDF) and up to 70% of absentee payroll subject to a maximum of $4.20 per trainee-hour, paid by EDB.

Sir, I have been informed that to date, 1,230 workers have gone through or are undergoing certifiable training under the Skills Redevelopment Programme. Of these workers, more than 50% are above the age of 40 and approximately 70% have below Secondary 2 education.

Assistance is also granted to the retrenched workers under the tripartite "Back to Work" Programme launched in September 1996 by my Ministry together with the Productivity and Standards Board, the National Trades Union Congress and the Singapore National Employers Federation. The assistance includes helping the retrenched workers find suitable jobs and encouraging employers to employ retrenched workers through a training grant which enables the workers to undergo Core Skills and Job Skills Training.

Core Skills Training includes confidence building, personal effectiveness and basic computer literacy. The training is fully supported by the SDF which provides a flat grant of $350 per trainee including an allowance of $100 to each trainee to help defray his meals and transport expenses. Job Skills Training is for the purpose of helping the workers to acquire specific skills required for the jobs. For such training, SDF will provide enhanced funding up to 80% of the course fees for external training programme or $4 per trainee hour for on-the-job training.

Sir, in anticipation of more retrenchments in the coming months as a result of the regional financial crisis and slowdown in the economy, my Ministry has recently set up a Tripartite Panel on Retrenched Workers comprising representatives from the EDB, NTUC, SNEF, PSB and my Ministry itself to assist retrenched workers seek re-employment. The Panel will also encourage employers to take advantage of available training incentives to improve the skills of their workers during the lull period. Workers, on the other hand, are urged to take training and skill upgrading seriously so that they can remain employable especially during an economic slowdown.

Mr J. B. Jeyaretnam (Non-Constituency Member): As I understand from the Minister, 80% of the cost will be funded from the Government. Is it the intention that the retrenched workers should bear the 20%?

Dr Lee Boon Yang: Mr Speaker, Sir, under the SRP which is targetted at the older and less educated workers, we have identified workers who may be retrenched and who need alternative jobs. The programme is available to them while they are still being employed by the existing employer and, as a result, with Government's support, 80% of the cost of retraining them for some other jobs would be borne by Government, while the other 20% would be borne by the existing employers. If they are already recruited by a new employer, the new employer can take up the other 20% of the cost.

Mr Jeyaretnam: May I ask how much of this has been brought to the notice of the workers?

Dr Lee Boon Yang: Mr Speaker, Sir, I think the SRP is a very well publicised programme. Since December 1996, when it was first launched by the National Trades Union Congress, they have done a lot to publicise the programme, ie, the benefits and advantages of participating in the programme. In fact, if the Member had taken the trouble to read the NTUC News dated 6th March ---

Mr Jeyaretnam: I do not read it!

Dr Lee Boon Yang: I think the Member should from time to time read it to keep himself apprised of the good work that is being done by the NTUC and the massive effort that the NTUC has been involved in in trying to help the workers. There are a lot of details in the report and they are all publicised. It is also duly reported in the media what NTUC has been doing to help workers to upgrade their skills. In fact, I would like to mention that in this report of 6th March, it was stated that they have signed up quite a large number of employers under the new phase to launch further Skills Redevelopment Programme for their workers and currently, a total of 76 companies are participating and 5,000 workers are involved in the scheme.