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Thursday, July 16, 2009

Four Prosecuted for Kickback Offences in Relation to 22 Workers

16 July 2009

Three employers and an employment agent have been prosecuted for kickback offences. In the first prosecution for kickback offences, three employers were charged for recovering employment-related costs1 from their foreign workers. The employment agent was charged for paying inducements to employers to hire foreign workers through her agency. The four cases involved 22 workers.

2. The prosecutions follow new regulations introduced by the Ministry of Manpower in July 2008. Under the regulations, Work Permit and S Pass conditions prohibit employers from receiving payment as consideration for employing foreign workers, and recovering employment-related costs from foreign workers. Similarly, the Employment Agency Licence Condition also prohibits employment agencies from offering payment (whether monetary or in kind) to employers, in exchange for hiring foreign workers through them.

3. Ong Gim Chua, manager of Meeting Point Pub & Lounge was charged today (16 July) and faces 10 charges for abetting the employer to recover levy and security deposit costs from 10 foreign workers. Ke Koon Seng, director of Seng System Engineering Pte Ltd, was charged for making salary deductions from his foreign worker as a consideration for employment.

4. The third employer and the employment agent were earlier charged on 25 June 2009. Wong Seng Kiong of Guo Tai Mei Trading, faces seven counts of recovering levy from foreign workers. Sun Bao Hua of Starseas Consulting Services Pte Ltd faces four counts of abetting representatives of four bus companies to receive benefits by paying them to hire foreign workers through her agency.

Engaging in such malpractices is an offence

5. Aw Kum Cheong, Divisional Director, Foreign Manpower Management Division, MOM, said, "Kickbacks undermine the integrity of the employment agency industry, and distorts the market for foreign labour. Our foreign worker policies are intended to help companies to meet their legitimate need for foreign workers. Foreign workers should not be brought into Singapore in order to collect fees from them. Such exploitative behaviour will not be tolerated."

6. Under the Employment of Foreign Manpower Act, employers who breach Work Permit conditions can be fined up to $5,000 and/or imprisoned for up to six months. They will also be barred from employing foreign workers in the future. Employment agencies that breach the Employment Agency licence conditions will have their licenses revoked and security deposit of $20,000 forfeited.

7. Anyone with specific information on kickback offences should contact MOM at (65) 6438 5122 or email at mom_fmmd@mom.gov.sg.

Friday, July 3, 2009

124,500 Workers Sign Up for SPUR in Just Six Months

03 July 2009

The Ministry of Manpower (MOM) and Singapore Workforce Development Agency (WDA) announced that in just six months since its launch, 124,500 workers have signed up for the Skills Programme for Upgrading and Resilience (SPUR). This includes 83,500 (67%) workers sent by 1,800 companies, many of which are using SPUR to manage their excess manpower. Another 40,600 (33%) individuals have signed up to upgrade their skills, with 36,200 at the Continuing Education and Training (CET) Centres and 4,400 in courses at our polytechnics and Institutes for Technical Education (ITE). More than 19,000 job seekers have also found jobs through SPUR.

2. Two-thirds of SPUR trainees are rank-and-file workers, while about one-third are Professionals, Managers, Executives and Technicians (PMETs). Many are taking up Workforce Skills Qualifications (WSQ) or Employability Skills System (ESS1) courses. Close to 60% of the workers (or 67,000) have already commenced or completed their training. About $210 million has been committed thus far.

SAVING JOBS WITH SPUR

3. Companies have responded positively to SPUR, particularly those from sectors more affected by the downturn.

4. Small- and Medium-Sized Enterprises (SMEs) too are tapping on the programme. Of the 1,800 companies participating in SPUR, almost two-thirds are smaller companies with less than 200 employees.

FINDNG JOBS WITH SPUR

5. During the six-month period from 1 December 2008 to 31 May 2009, more than 19,000 job seekers have found jobs through the effort of WDA, NTUC's Employment and Employability Institute (e2i), the Community Development Councils (CDCs) and CET Centres. This is a significant increase, compared to the 13,000 job seekers placed2 for the whole of 2008.

6. About 60% of the job seekers placed into employment were aged 40 years and above. 75% of the job seekers placed were lower-skilled workers with secondary or less education. Some of the successful job seekers had undergone SPUR training before their re-employment. In a survey conducted by WDA, six in ten of these jobseekers indicated that the training was useful in helping them secure the jobs. Nine in ten agreed that the training helped improve their skills for better job performance.

BUILDING CAPABILITIES WITH SPUR

7. SPUR courses are selected to ensure relevance to industries after the downturn. Active effort is also being made to build capabilities for the future through SPUR. For example, relevant SPUR courses are being promoted and used as part of a larger effort to improve service levels in Singapore. This includes the introduction of "on-site-bite-size" service and retail courses for tenants at shopping malls. New skills standards and courses are developed and included for emerging sectors. Conversion programmes and traineeships are also carefully selected to ensure that we build manpower capabilities in growth sectors and occupations.

RECENT REFINEMENTS

8. As more PMETs have been affected in this downturn compared to past recessions, the absentee payroll cap has been recently raised from $6.00/$6.80 per hour to $10.00 per hour to encourage more employers to send their PMET employees for SPUR training. Targeted programmes have also been introduced under SPUR to assist PMETs. These include skills conversion programmes which have been doubled to more than 40.

9. In May 2009, the Professional Skills Programme Traineeship (PSPT) was launched under SPUR. The scheme has met with significant interest from employers and potential trainees. There are some 1,200 traineeships now available from more than 100 companies across sectors such as electronics, finance and infocomm. The number of PSP Traineeship positions has since been increased from 2,500 to 3,000 over two years.

10. The SPUR-JOBS scheme, also launched in May, further encourages the recruitment and retention of trainees of SPUR and other CET programmes. To date, 50 companies have sent in their applications to recruit 1,200 local workers. Both programmes are expected to benefit many more companies and jobseekers, including PMETs, in the months ahead.

LOOKING AHEAD

11. Launched as part of the national response to the economic downturn, SPUR helps companies to save jobs, workers to find jobs and industries to build capabilities for the future. The investments made in recent years in building up the CET System and the strong partnership among the tripartite partners has been instrumental in the quick and timely implementation of SPUR.

12. By tapping on these assets and making refinements in response to feedback, SPUR has shown significant impact in its first six months. The tripartite partners will continue to focus on making SPUR more effective in helping companies and workers tackle the downturn while enhancing the long- term employability and competitiveness of our workforce.


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1 The ESS comprises 10 essential foundation skills portable across all industries and especially relevant to low-skilled workers. The skills include workplace literacy, workplace numeracy, infocomm skills, communications, workplace safety and health, etc.


2 Figure refers to those placed by the CDCs

Wednesday, July 1, 2009

800 seek internships

01 July 2009

PRODDED by desperate times, 800 jobseekers flocked to the South West CDC Internship Fair on Friday, eager to land stints in industries which have been shunned by many Singaporeans.
The Internship Programme is the first of its kind and allows successful applicants to try out jobs in real working environments for three to five days, before deciding to commit to them.

During the internship, employers will provide on-the-go training. Employees will get a chance to wait on customers, pitch sales, or even learn a thing or two about installing air-conditioners. For their efforts, job seekers will receive an allowance of $4 an hour from the South West CDC.

By Rachel Au-Yong

Tuesday, June 30, 2009

Report On Wages In Singapore, 2008 and Singapore Yearbook of Manpower Statistics, 2009

30 June 2009

1. In December 2008 when Singapore's Gross Domestic Product (GDP) for the quarter contracted over the year by 4.2%, two in five private establishments reported that they foresaw a need to cut wages in 2009, if business conditions worsened. Establishments with a Monthly Variable Component (MVC) in their wage structure were more confident of gaining their employees' acceptance of a wage cut, if it has to be implemented compared with establishments without MVC.

2. These are some of the findings of the `Report on Wages in Singapore, 2008' published by the Ministry of Manpower's Research and Statistics Department. The 320-page Report presents information on wages of over 400 occupations as well as wage changes and bonuses paid in various industries. It also includes information on the extent to which employers have restructured their wage systems. The key findings are summarised in the Annex.

3. Besides the `Report on Wages in Singapore, 2008', the department has also published the ‘Singapore Yearbook of Manpower Statistics, 2009' which provides a wide range of statistics on the labour market situation. These include key data on the labour force, job vacancies, wages, redundancies, labour turnover, hours worked, conditions of employment, labour relations, workplace injuries, higher education and skills training. The information provided in the two publications can help job seekers, employers and employees make better informed decisions on career and human resource matters. It also enables analysts to gain a better understanding of the Singapore labour market.

4. The two annual statistical publications can be downloaded from the Ministry of Manpower's website.






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Annex

Key Findings of Report On Wages In Singapore, 2008

Wage Restructuring

• Only a small minority (1.7%) of private establishments with MVC in their wage structure cut the component in 2008, given that the economic conditions deteriorated sharply only from the last quarter of 2008 when GDP contracted over the year by 4.2%.

• In December 2008, two in five establishments (40%) employing 44% of the private workforce reported that they foresee a need to cut wages in 2009, if business conditions worsen. Another 32% of establishments employing 29% of the workforce had not thought about this issue. The top two common measures of wage cut are cutting the annual variable component (74% of establishments) and basic wage (47%), followed by MVC (15%) as the latter was weighed down by establishments without MVC. Nevertheless, the majority of the firms with MVC intend to cut annual variable bonus (76%) and/or MVC (69%) when reducing wages. Establishments with MVC were more confident of gaining their employees' acceptance of a wage cut, if it has to be implemented in 2009 compared with establishments without MVC; only 24% of MVC establishments foresaw difficulty compared with 29% for establishments without MVC.

• As at December 2008, 84% of the workforce in the private sector was under some form of flexible wage system, same as a year ago. Large establishments (employing 200 or more employees) continued to lead in the implementation, with the vast majority (90%) of their workforce having at least one key wage recommendation in their wage system, compared with 75% in small and medium enterprises. These were comparable to the corresponding figures of 89% and 77% in 2007.

• Narrowing the maximum-minimum salary ratio (involving 58% of workforce) remained the most common recommendation adopted by the private sector. This was followed by linking variable bonus to KPI (54%) and having MVC (34%) in the wage structure. The share of workforce with variable bonus linked to KPI rose over the year from 52%, while the share working in establishments that had narrowed/were narrowing the wage ratio declined from 62%. The coverage of workforce with MVC also dipped slightly from the preceding year (35%). Both the larger and unionised establishments continued to lead in adopting each of the three recommendations.

Wage Change

• With the economic downturn and increased business costs in 2008, employers were more restrained in granting salary increases. Total wages comprising basic wages and bonuses in the private sector rose by 4.2% in 2008, down from the growth of 5.9% in 2007. The moderation in total wage increase in 2008 stemmed from the drop in bonus payout from 2.36 months in 2007 to 2.31 months in 2008 (-2.1% as opposed to an increase of 8.3% in 2007). The basic wage increase (4.4%) was broadly unchanged from 2007 (4.3%).

• Reflecting slower GDP growth and strong employment gains in the first half of 2008, labour productivity declined by 7.8%, deeper than the drop of 0.8% in 2007. While real wages also declined in 2008, the drop (total: -2.3%; basic -2.1%) was less than the contraction in productivity (-7.8%). Consequently, real wages outpaced productivity growth for the fourth straight year. To minimize cyclical effects, productivity trends are often analyzed over a longer period, preferably over the course of a business cycle. Over the seven years from 2001 to 2008, growth in productivity (1.9% p.a.) had kept pace with gains in total (1.7%) and basic (1.3%) wages.

Occupational Wages

• Occupations requiring higher skills and knowledge continued to command higher wages. In June 2008, the median monthly gross wages was the highest for managers ($6,400), followed by professionals ($4,405) and associate professionals & technicians ($3,000). Clerical ($1,960) and sales & service workers ($1,849) were paid close to $2,000. Among blue-collar occupations, the production craftsmen ($2,137) and plant & machine operators ($2,009) were paid much more than the group of cleaners, labourers & related workers ($975).

• Wages are generally observed to rise with age as workers gain experience and skills and become more productive over the years. The pace of wage increase with age is more pronounced among managers and professionals as their work is generally more knowledge intensive. This was especially true among professionals where wages rose with advancing age groups, peaking for those aged 60-64 in 2008. In lower-skilled and blue-collar occupations, wages generally rose more gradually and peaked earlier for those in the late thirties or early forties.

Friday, June 26, 2009

Tripartite Advisory on Workplace Measures to Tackle Influenza A (H1N1-2009)

26 June 2009

BACKGROUND

The Tripartite Advisory on Workplace Measures to Tackle Influenza A (H1N1-2009) was issued on 30 April 09 to slow down the spread of the Influenza A (H1N1-2009), and minimise the impact on businesses and workers. Following the recent announcement by the Ministry of Health (MOH) on the gradual transition from containment to mitigation approach, the tripartite partners, the Ministry of Manpower (MOM), the Singapore National Employers Federation (SNEF) / Singapore Business Federation (SBF) and the National Trades Union Congress (NTUC), in consultation with MOH, have revised and expanded the Tripartite Advisory on Workplace Measures to Tackle Influenza A (H1N1-2009).

MINIMISING WORKPLACE DISRUPTIONS

2. Employers should closely monitor Influenza A (H1N1-2009)-related developments, and follow travel and health advisories provided by the Government. These may be accessed at www.moh.gov.sg or www.flu.gov.sg. The information should be communicated regularly to employees.

3. Employers should start planning early to ensure that disruptions are minimised and that their businesses remain viable during this period, and prepare themselves to implement their business continuity plans. They could also consult the Singapore Business Federation (contact details below) when developing and implementing such plans. Employers are encouraged to brief employees on the business continuity plans.

INFECTION CONTROL MEASURES

4. Employers are strongly encouraged to implement infection control measures at the workplace, including:

a. Maintaining environmental cleanliness to minimise transmission of the Influenza A (H1N1-2009) virus, including frequent disinfection of common areas.

b. Advising employees to maintain high standards of personal hygiene, such as washing hands frequently with soap and water, and covering their noses and mouths with a piece of tissue paper when they cough or sneeze. Those who have flu-like symptoms should be asked to seek medical help, in accordance with the latest MOH advisories.

c. Checking the MOH website for the latest update on countries affected by Influenza A (H1N1-2009) so that a considered decision can be made on whether to proceed with business travel plans. They should similarly advise their employees to check the list of countries before making any non-work related travel plans. In the event that travel to countries with sustained community transmission of the Influenza A (H1N1-2009) is unavoidable, employees should take precautionary measures, such as avoiding crowded areas and contact with anyone who appears unwell, and maintaining high standards of personal hygiene at all times.


LEAVE OF ABSENCE

Absence from work under Home Quarantine Order

5. If Home Quarantine Orders (HQOs) are served on persons by the MOH, the period of absence from work necessitated by HQOs should be treated as paid hospitalisation leave, as part of the employee's hospitalisation leave eligibility under their employment contracts, collective agreements or under the Employment Act.

6. For employees who have used up their hospitalisation leave, employers are urged to exercise compassion and flexibility by granting additional paid hospitalisation leave, as the employees concerned may face financial hardship during this time.

Absence from work without Home Quarantine Order

(i) Absence from work due to work-related reasons

7. For employees who are required by employers to stay at home for reasons that are attributable to work (e.g. if they need to stay at home for a period and check for symptoms of flu-like illness after returning from a business trip), the employers should continue to pay them their salaries during their period of absence. To minimise work disruptions, employers could arrange for telecommuting and remote communications access systems (e.g. teleconferencing) to allow the employees to work from home.

(ii) Absence from work due to non work-related reasons

8. If the employee has returned from non-work related travel (e.g. for leisure or other personal reasons), the employer may, as a precautionary measure, require the employee to consult a doctor. The employer may also request that the employee stay away from the workplace (e.g. to practise social distancing). In such a situation, the following arrangements could be considered:


a. The employer may implement alternative work arrangements such as tele-commuting to minimise work disruptions. Employers are encouraged to be flexible when implementing such arrangements.

b. For employees who have chosen to travel to known affected countries on their own accord (e.g. for leisure or other personal reasons) and are requested by the employer to stay away from the workplace upon return, the employer could grant them special leave of absence, with or without pay, based on the circumstances of the individual company and workers. The employer could also request the employees to take annual leave, treat the leave of absence as sick leave, grant time-off or no pay leave if annual leave has been used up. By mutual agreement, employers and employees/unions could also agree on other arrangements for employees' leave of absence relating to Influenza A (H1N1-2009) to share the costs incurred by the leave of absence. Employers are encouraged to be flexible and compassionate when implementing such arrangements.


9. For employees who need to stay away from the workplace, such as taking leave to take care of family or childcare commitments, employers are also encouraged to adopt a flexible and enlightened approach in implementing flexible work arrangements as well as allowing employees to take their leave (e.g. annual leave, childcare leave and unpaid infant care leave). For employees who have used up their leave entitlements, employers could consider granting them no-pay leave during the period of absence.

10. In situations where large numbers of workers are affected, and where companies' operations are seriously disrupted or if the companies face potential closure and need to manage costs, employers could implement measures e.g. to redeploy workers or temporarily layoff workers who are requested to stay away from the workplace. The implementation of such measures, including how leave of absence should be treated, should be carried out in consultation with employees / unions (if the company is unionised).

CONCLUSION - STAYING UNITED IN TACKLING THE FLU PANDEMIC

11. The tripartite partners would like to encourage employers and employees to work closely to prevent and slow down the spread of the Influenza A (H1N1-2009) and minimise the impact to businesses and employees. Employers should take precautionary steps by putting in place infection control measures and business continuity plans, and be considerate towards the needs of their employees. On their part, employees should also cooperate with the company so as to minimise disruption to businesses. Both employers and employees should also exercise social responsibility by practicing social distancing, maintaining high standards of hygiene and adhering to the advisories issued by Government on the Influenza A (H1N1-2009).

12. For queries on the above advisory or advice on employment issues related to the Influenza A (H1N1-2009), please contact the following:


a. Ministry of Manpower
MOM Contact Centre, Tel: (65) 6438 5122
Email: mom_lrd@mom.gov.sg
Website: http://www.mom.gov.sg/flu

b. Singapore National Employers Federation
Duty Consultant, Tel: (65) 6327 9297 (Weekdays, 9 am to 5.30 pm)
Email: flu@snef.org.sg

c. Singapore Business Federation
Member Relations and Services Group, Tel: (65) 6827 6844
Email: enquiry@sbf.org.sg

Capacity Building Group (For enquiries on Business Continuity Management)
Tel: (65) 6827 6867
Email: bcm@sbf.org.sg
Website: www.sbf.org.sg

d. National Trades Union Congress
Industrial Relations Department, Tel: (65) 6213 8233
Email: ntucird@ntuc.org.sg

Friday, June 19, 2009

New Employment Pass Services Centre to Start Operations From 1 July

19 June 2009

The Ministry of Manpower (MOM) will open a new Employment Pass Services Centre (EPSC) to register and issue new long term pass (LTP) cards to the following groups of long term pass holders on 1 July 2009:


a) Employment Pass holders
b) EntrePass holders
c) Personalised Employment Pass holders
d) Training Employment Pass holders
e) Work Holiday Pass holders
f) Dependant Pass and Long Term Visit Pass holders


2. Existing Pass holders (those listed in 1a to 1f) will be issued with new long term pass cards when their passes are renewed.

3. In July 2008, the Government announced plans to capture fingerprint biometrics and photo-images of all foreigners residing in Singapore on a long term basis. The new LTP cards, with secure biometric features, will be issued to Employment Pass and other LTP holders. Currently Work Permit and S Pass holders are already issued with such cards. Please see Annex A for details of the new long term pass card.

Employment Pass Services Centre (EPSC)

4. The new EPSC will begin operations from 1 July 2009. Details of the EPSC are as follows:


Location: 20 Upper Circular Road, #04-01/02,
The Riverwalk, Singapore 058416.
Please see Annex B for the location map of EPSC.

Operating hours: 8 a.m. to 5.30 p.m. (weekdays)
8 a.m. to 1 p.m. (Saturdays)
* The EPSC is closed on Sundays and public holidays


Registration Procedures

5. Successful Employment Pass and other LTP applicants will be given detailed instructions on the new registration and card issuance process via the In-Principle Approval and Notification letters issued by MOM. New e-services via Employment Pass Online System (EPOL), including an e-appointment system, will be introduced to facilitate the card issuance process.

Closure of MOM Havelock Road counters on Saturdays

6. With the enhancement to MOM's e-services, almost all Work Pass-related transactions can now be done on-line via EPOL and Work Permit Online (WPOL). The vast majority of these transactions are today performed electronically. Most customers will therefore no longer need to come physically to MOM to perform Work Pass related transactions. Issuance of Work Pass cards will be done either at the EPSC or the existing Work Pass Services Centre at Tanjong Pagar Complex. These two centres are open on Saturdays. Hence, from 1 July 2009, MOM counters at its Havelock Road premises will be closed on Saturdays. The Havelock Road counters will remain open on Mondays to Fridays, 8.00 a.m. to 5.30 p.m. To find out about the types of MOM Work Pass services available online, customers can access our website.

Further details

7. More information on the new LTP cards and the EPSC is also available at MOM's website.