EMPLOYABILITY OF OLDER EMPLOYEES (Update on programmes)

EMPLOYABILITY OF OLDER EMPLOYEES:

(Update on programmes): 1.

Mdm Ho Geok Choo asked the Minister for Manpower to provide an update on the various programmes that have been launched or are being planned to better secure the employability of older employees.

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The Minister of State for Manpower (Mr Gan Kim Yong) (for the Minister for Manpower): Mr Speaker, Sir, the Government has introduced a number of programmes to help improve the employability of older workers. WDA currently provides job placement services, such as job preparation briefings and training, to job seekers through its Distributed CareerLink Centres. From January to August this year, the job centres have helped place more than 16,000 job seekers, of which more than half or around 54% are aged 40 and above.

In addition, WDA offers preferential training subsidies to encourage employers to send their older and less-skilled workers for training. It also provides various Place and Train programmes to help train the unemployed for the available jobs. From January to September this year, around 38% or 113,000 of the training places supported by the Skills Development Fund were taken up by workers aged 40 and above.

To improve the cost competitiveness of older workers, CPF contribution rates for workers aged above 50 are currently lower than that for workers aged 50 and below. From 1st January 2006, the CPF contribution rate for older workers aged 50 to 55 will be further reduced from 30% to 27%.

While we have made some progress in helping our older workers stay employed, the challenge of an ageing workforce will remain with us for some time. This is why the Government has set up a Tripartite Committee on Employability of Older Workers to examine the issue holistically and forge a tripartite consensus on how the employability and cost competitiveness of older workers can be enhanced. The Committee has identified five key thrusts.

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First, to enhance the cost competitiveness of older workers, the Committee is studying employment practices and the wage and benefits structures. Together with our tripartite partners, we are pressing on with wage restructuring efforts to promote flexible and performance-based wage systems, and to move away from seniority-based wage structure which works against older workers.

Second, to expand job opportunities for older workers, the Committee, together with the Singapore Workforce Development Agency (WDA) and NTUC, will continue to expand the Job Re-Creation Programme (JRP) to identify jobs which can be re-designed to suit older workers. The Committee is also exploring providing assistance to encourage companies to hire older workers, such as financial assistance to help companies adapt their workplace and work processes to better cater to the needs of older workers. Examples of this effort include efforts by SBS Transit and SMRT to recruit older workers as bus drivers as well as initiatives to redesign and avail jobs such as customer service officers and taxi hirers to those aged 40 and above.

Third, to positively shape public perceptions about older workers, the Committee is actively working on outreach programmes to employers, workers and the general public to address misperceptions, encourage older workers to stay employed longer and promote enlightened HR practices amongst employers. For a start, in August this year, the Committee profiled best practices with regard to the employment of older workers in a ChannelNewsAsia programme called the "Winning Edge".

Fourth, to enhance the skills of older workers, WDA will continue to work with employers and unions to upgrade the skills of older workers and keep their skills relevant to industries' needs.

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Finally, to effect and showcase concrete changes at the sectoral level, the Committee has set up eight sectoral workgroups to engage the industry on the older workers' employability. The workgroups have been tasked to identify best employment practices, expand job opportunities for older workers and pilot sector specific changes. The eight workgroups come from the public sector, banking, insurance, healthcare, hotels, transport and logistics, food industry and manufacturing sectors.

The Committee is expected to wrap up its work by the end of the year and more details will be announced then.

Mdm Ho Geok Choo (West Coast): Sir, I would like to ask the Minister of State three sets of supplementary questions. The first set actually pertains to the training invested on older employees. I would like to know, to date, what is the dollar spent per older employee and what is the drop-out rate amongst these older employees who were sent for training. What is the number of so-called untrainable older employees and what assistance programmes are there to help these untrainable older employees? How many older employees have actually shifted from the manufacturing sector to the service sector and how does the Ministry rate the effectiveness of training for these older employees to date?

The second set of questions pertains to the jobs for older employees. Of the newly created jobs, how many of such jobs have gone to these older employees? We know that the unemployment rate for the older employees has actually gone down from 5.4% in 2003 to 3.3% in 2004. What are these types of jobs that these older employees are engaged in?

The third set of questions pertains to the multi-generation workforce that will come about as a result of our promoting the employment of these older employees.

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In what ways can the Ministry help to expedite and facilitate such co-existence in the workforce granted the fact that much has already been done by way of trying to promote the employment of the elderly employees?

Mr Gan Kim Yong: Mr Speaker, Sir, I thank the Member for raising these questions. Firstly, I do not have the specific dollars spent on the older workers but I would like to share with Members some of the indicators of our effort in the training of older workers.

As part of our ongoing effort to help them secure new employment we have identified several new opportunities in very specific sectors. These include the child-care, transport, financial, retail, food and beverage and healthcare sectors. These are, as Members can see, not specifically the manufacturing sector. This also answers the Member's second question whether they have moved from the manufacturing sector.

With regard to the Member's last question on what we can do to help forge co-existence between the older and younger workers, I think this is a mindset change that will take some time to happen and this is one of the areas that the Tripartite Committee will be focusing on how to encourage the employers to reach out to older workers and to give opportunities for older workers to be employed. At the same time, we also want to encourage a mindset change among the older employees to be more adaptable and flexible. We also look at the work processes within the company and to make sure that these work processes are suitable and adaptable to the older workers. At times, we might have to make some changes to the work processes and we may even need to install equipment to allow the older workers to work in these companies. All these are the areas where the Tripartite

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Committee will be looking at and they will make an announcement on the recommendations in time to come.

Mr Speaker: Can I remind Members that we have a lot of Questions to go through today. So, please be more parsimonious with your supplementary questions.