LABOUR SUPPLY AGENCIES

Mr Steve Chia Kiah Hong asked the Acting Minister for Manpower (a) whether there is an increase in the number of manufacturing firms turning to labour supply agencies to fulfill their manpower requirement; (b) if there is, what is the breakdown figures over the last five years; and (c) whether there is any statutory protection given to these workers employed by the labour supply agencies for these firms.

Mr Hawazi Daipi (for the Acting Minister for Manpower): Mr Speaker, Sir, while the Ministry does not have the historical data over the last five years on the number of manufacturing firms turning to labour suppliers or employment agencies, we have information for 2002. Findings of our survey on private sector establishments with at least 25 employees, showed that some 12% of manufacturing firms had made use of workers who were employed and supplied by labour suppliers or employment agencies in 2002. The number of workers involved was about 16,000, which constituted nearly two-thirds of the total of about 25,000 workers who were employed and supplied by the agencies to all the firms surveyed.

On the question of whether there is any statutory protection given to workers employed by labour suppliers or employment agencies, the labour laws protect such workers as they are employees of labour suppliers or employment agencies. If workers employed by labour suppliers or employment agencies are not given the benefits as stipulated in the labour laws, such as statutory benefits in the Employment Act or CPF contribution, the person should approach the Ministry of Manpower for advice and assistance.

Mr Steve Chia Kiah Hong (Non-Constituency Member): Mr Speaker, Sir , if a worker is employed through the labour supply agency and is injured while working at the premises of the contracting manufacturing firm, what course of action can the worker take to claim damage against that manufacturing firm?

Mr Hawazi Daipi: Sir, it depends very much on whether the worker is employed by the company or whose service is used by the company, and not as an employee of the company.

Mr Steve Chia Kiah Hong: If he is employed by the labour supply agency to work for the company and, in the process, he is injured, can he proceed to sue the company for the injury?

Mr Hawazi Daipi: He can claim for workmen's compensation because he is insured under it.