CONSTRUCTION INDUSTRY (Review of amount of compensation)

CONSTRUCTION INDUSTRY:

(Review of amount of compensation): 1.

Ms Irene Ng Phek Hoong asked the Acting Minister for Manpower given the high risks involved in construction work as was shown in the Nicoll Highway tragedy, (a) whether the amount of compensation paid under the Workmen's Compensation Act should be reviewed for the construction industry; (b) how quickly is compensation under the Act given to the families of deceased workers, especially foreign workers; and (c) if his Ministry encourages the employers in the construction industry to also cover their workers under other appropriate insurance policies for work injuries.

The Parliamentary Secretary to the Acting Minister for Manpower (Mr Hawazi Daipi) (for the Acting Minister for Manpower): Mr Speaker, Sir, payments under the Workmen's Compensation Act are not given based on type of industry or sector. Instead, the quantum is determined by the severity of the incapacity suffered as a result of the accident as well as the age and monthly earnings of the workman and subject to a maximum and a minimum compensation. For example, for fatal cases, the minimum compensation payable is $37,000 and the maximum is $111,000. For permanent total incapacity, the minimum compensation payable is $49,000 and the maximum is $147,000. (The rationale for higher awards given for permanent total incapacity vis-Ã-vis fatal cases is to provide for the injured worker's subsequent livelihood and medical needs. In fact, for cases where the injured worker who suffered permanent total incapacity needs the constant help of another person during his lifetime, an additional compensation of one quarter of

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the amount awarded for permanent total incapacity could be claimed). The current ceilings were last revised in 1996. Since then, there was no significant factor which necessitates a revision. Nevertheless, the ceilings will be continually reviewed by the Ministry to ensure that compensation is adequate.

For deceased workers, compensation is usually paid out, on average, in about 6 months for the majority of 80% of cases. Delays for the remaining cases are due to difficulties related to the identification of the employer and insurer, the cause of death, and disagreement among dependants on the apportionment of compensation to each individual dependant. For some cases involving foreign workers, the tracing of dependants and exchange of documents with them could be more difficult and the cases could hence take longer to complete. The average period of settlement for foreign workers is about 10 months.

Unless specifically exempted, all employers are required under the Workmen's Compensation Act to purchase workmen's compensation insurance for their workmen. Beyond workmen's compensation coverage, it is up to the employers what other policies they wish to take up for their workers.

Ms Irene Ng Phek Hoong (Tampines): Sir, I would like to ask the Ministry whether the compensation that is given in Singapore is comparable to that given overseas.

Mr Hawazi Daipi: Sir, generally, I would say that it is comparable and quite adequate. The amount depends very much on the level of development of different countries. To give you an example, in California, USA, the permanent total disability payment is up to US$728 (S$1,238) per week for life. In Canada, payments are calculated by

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expressing impairment as a percentage and adjusted for age. The maximum is Canadian dollars 75,336 (S$93,400). In Hong Kong, payments of 48 to 96 months' earnings, subject to a maximum monthly earning of HK$21,000 (S$4,620) depending on the age of the worker. In South Korea, permanent total incapacity is classified from Grade 1 to 14 and paid a minimum of 50 up to a maximum of 1,000 days' wages.

For death benefits, in California, USA, the payment is US$160,000 (S$272,000) maximum. In Canada, it ranges from Canadian dollars 20,000 (S$24,800) to 60,000 depending on the age of the spouse. In South Korea, it is a lump sum payment of 1,300 days' wages and pension at 47% to 67% of annual basic wages depending on the number of beneficiaries.

Sir, the amount of compensation given out in different countries varies.

Ms Irene Ng Phek Hoong: The Parliamentary Secretary has said that the Ministry will continue to review the compensation paid for workers who die in Singapore. Can I ask the Parliamentary Secretary, given that in the US they pay up to $272,000, I think there is a case for us to relook at our figures to see whether we are paying adequate compensation and also given that many of those who have died at construction sites are foreign workers, they should expedite the process, especially since the families are in dire need of the cash.

Mr Hawazi Daipi: Sir, on the amount of compensation, we have to consider whether it is comparable to the cost of living of the different countries. We are willing to take a close look at the amount of compensation and make adjustment, whenever necessary. But at the moment,

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we think the compensation ceilings and minimum amounts are quite adequate. But we are willing to take a look in future.

On the speed at which we clear the claims for compensation, I mentioned earlier that it depends very much on a number of factors: whether we can trace the dependants and whether there are contests between the insurance company and the dependants. But, wherever possible, we want to speed up. Even though I said that, on average, it takes about six months to clear the claims there are cases which took about two to three months only.

Ms Irene Ng Phek Hoong: Sir, in the specific case of the Nicoll Highway tragedy, can the Parliamentary Secretary inform us how much is paid out to the families of the workers who have died?

Mr Hawazi Daipi: There were four fatalities. For both Singaporean workers who died, they are eligible for compensation of $111,000 maximum. So is the case for the two foreign workers.

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CONSTRUCTION SITES:

(Safety of workers): 2.

Mr Heng Chee How asked the Acting Minister for Manpower in the light of the tragedy at the Circle Line Nicoll Highway worksite, what measures is his Ministry taking to improve the safety of workers at construction sites.

Mr Hawazi Daipi (for the Acting Minister for Manpower): Sir, as Dr Teo Ho Pin and Ms Irene Ng will raise a motion on safety at workplaces later in the sitting, my Minister will answer the question when he responds to the motion.

Mr Speaker: So be it.

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CONSTRUCTION SITES:

(Review of safety standards): 3.

Dr Amy Khor Lean Suan asked the Minister for National Development (a) if his Ministry will be reviewing the whole issue of safety at construction sites; (b) how this is monitored; and (c) whether the current cut-throat competition that exists in the construction industry together with the current tender system used for Government projects may lead to safety standards being compromised.

4.

Dr Teo Ho Pin asked the Minister for National Development (a) how many on-going construction contracts entail deep underground works (exceeding 15 metres in depth); (b) whether there is any Government agency co-ordinating and monitoring the impact of all these underground works on their surroundings; and (c) whether there will be a review of safety standards for deep excavation works.

5.

Dr Amy Khor Lean Suan asked the Minister for National Development following upon the two buildings along the Circle Line that were recently found to be unsafe (a) whether there is a designated radius within which buildings and all permanent structures along MRT constructions are identified for regular checks for structural integrity and safety; (b) how often are these buildings and permanent structures checked for safety; (c) which authorities and officers are in charge of such checks; and (d) what procedures and processes are involved in these checks.

6.

Mr Steve Chia Kiah Hong asked the Minister for National Development why had the Building and Construction Authority not checked out the safety of buildings along the Circle Line earlier, but had to wait until after a major disaster, like the Nicoll Highway collapse, to prompt them into action.

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The Minister for National Development (Mr Mah Bow Tan): Mr Speaker, Sir, as I will be speaking in response to the same motion, may I have your permission to take Question Nos. 3, 4, 5 and 6 in my speech.

Mr Speaker: So be it.