Number of and Actions against Licensed Cleaning Companies that Have Failed to Comply with Progressive Wage Model

Dr Wan Rizal asked the Minister for Sustainability and the Environment (a) what is the number of licensed cleaning businesses that have failed to comply with the Progressive Wage Model since its implementation in 2014; (b) what actions have been taken against these companies; and (c) what efforts are taken to professional the cleaning industry and promote good practices to transform the industry.

The Minister for Sustainability and the Environment (Ms Grace Fu Hai Yien): Mdm Deputy Speaker, since the introduction of the Progressive Wage Model until 31 May 2021, NEA has imposed financial penalties against 57 licensed cleaning businesses and issued warning letters to 52 cleaning businesses for failing to comply with requirements under the Progressive Wage Model, such as failure to pay eligible cleaners bonuses or progressive wages.

Under the Environmental Services Industry Transformation Map, strategies and initiatives have been developed to professionalise the cleaning workforce through the adoption of technology, upskilling of cleaners and improving procurement practices. These will help to build a professional, skilled and manpower-lean cleaning workforce and drive the adoption of good practices within the industry.

Mdm Deputy Speaker: Dr Wan Rizal.

Dr Wan Rizal (Jalan Besar): Thank you, Mdm Deputy Speaker. I thank the Minister for the reply. I must say that I am heartened to know that companies were caught for breaching this and I am happy to know that the workers are given such strong support.

Based on industry feedback, some companies may try to circumvent the latest Progressive Wage Model (PWM) requirement. They do this by cutting corners at the expense of service delivery of service buyers, engaging in non-licensed cleaning businesses. Will NEA consider a whistle-blower system that will help in ensuring both buyers of cleaning services and cleaning companies comply with the intricacies of the PWM, such as fair contracts to achieve the desired social outcomes?

Ms Grace Fu Hai Yien: I would like to thank the Member for his interest in protecting our cleaners. The short answer to his question is yes, we will consider anyone who informs us about non-compliance. NEA and MSE, together with MOM, will conduct enforcement checks.