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.
Tuesday, June 30, 2009
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
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.
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.
Wednesday, June 17, 2009
Singapore’s strategy to help workers cope with downturn works
17 June 2009
SINGAPORE: Singapore’s Manpower Minister, Gan Kim Yong, has said that the US$13.7 billion budgeted to help Singaporeans deal with the economic downturn has been money well spent.
Speaking at an International Labour Conference in Geneva, Mr Gan noted that initiatives like the Skills Programme for Upgrading and Resilience (SPUR) have helped to save jobs.
In the first quarter alone, Singapore’s unemployment stood at 3.3 per cent — one of the lowest in the world, despite Singapore’s economy slowing down by 10.1 per cent year—on—year.
A recent tripartite survey also showed that more than six in 10 employers had deferred or reduced retrenchments, thanks to SPUR and the Jobs Credit Scheme that encourage businesses to save jobs.
Mr Gan added that more workers have also gone for training under SPUR, boosting the quality of Singapore’s workforce.
Moving forward, he said Singapore remains focused on long—term objectives, such as to develop a globally competitive workforce, enhance income security and lifelong learning, and to continue to build globally leading workplaces.
This can be done by improving occupational safety and health, and promoting progressive human capital development and employment practices.
"Although the economic outlook is still uncertain, with strong tripartite cooperation and commitment, we are confident that we will weather the crisis and emerge stronger than before,"
— CNA/yt
SINGAPORE: Singapore’s Manpower Minister, Gan Kim Yong, has said that the US$13.7 billion budgeted to help Singaporeans deal with the economic downturn has been money well spent.
Speaking at an International Labour Conference in Geneva, Mr Gan noted that initiatives like the Skills Programme for Upgrading and Resilience (SPUR) have helped to save jobs.
In the first quarter alone, Singapore’s unemployment stood at 3.3 per cent — one of the lowest in the world, despite Singapore’s economy slowing down by 10.1 per cent year—on—year.
A recent tripartite survey also showed that more than six in 10 employers had deferred or reduced retrenchments, thanks to SPUR and the Jobs Credit Scheme that encourage businesses to save jobs.
Mr Gan added that more workers have also gone for training under SPUR, boosting the quality of Singapore’s workforce.
Moving forward, he said Singapore remains focused on long—term objectives, such as to develop a globally competitive workforce, enhance income security and lifelong learning, and to continue to build globally leading workplaces.
This can be done by improving occupational safety and health, and promoting progressive human capital development and employment practices.
"Although the economic outlook is still uncertain, with strong tripartite cooperation and commitment, we are confident that we will weather the crisis and emerge stronger than before,"
— CNA/yt
Monday, June 15, 2009
Labour Market, First Quarter 2009
15 June 2009
In line with the slowing economy, total employment fell by 6,200 in Q1 2009 – the first quarterly contraction in nearly six years as the number of workers hired was lower than the number of workers who left their jobs. Falling external demand has severely affected the manufacturing sector, where employment declined by 22,100. The cutback in the manufacturing industry, along with employment losses in the external-oriented services industries, more than offset gains in the domestic-oriented services and construction sectors.
2. Construction employment grew by 8,300, less than the gains of 10,700 in Q4 2008 and 14,500 in Q1 2008. Services as a whole added 7,500 workers in Q1 2009, which was substantially lower than the gains in Q4 2008 (17,300) and Q1 2008 (46,500). The gains in this sector came mainly from community, social & personal services (11,500), supported by public sector hirings. Real estate & leasing services (1,300), professional services (1,000) and information & communications (800) also added workers in Q1 2009. In contrast, losses were registered in services industries with external exposure, namely hotels & restaurants (-2,700), financial services (-1,900), transport & storage (-1,600), and wholesale & retail trade (-800). Details are in Table 1 of the Labour Market Report, First Quarter 2009.
3. Amid the sharp deterioration in economic conditions, the seasonally adjusted overall unemployment rate rose to 3.3%1 in March 2009 from 2.5% in December 2008. The resident unemployment rate increased to 4.8% in March 2009 from 3.6% in December 2008. An estimated 87,900 residents were unemployed in March 2009. The seasonally adjusted figure was 95,700, a third more than the level in December 2008 (which was at 71,800) and more than double the low of 45,500 in December 2007.
4. With unemployment on the rise for five consecutive quarters, the number of unemployed residents who had been looking for work for at least 25 weeks more than doubled to 16,600 in March 2009 from 7,500 a year ago. These long-term unemployed formed 0.8% of the resident labour force in March 2009, double the 0.4% a year ago.
5. Redundancies2 rose to a new quarterly high of 12,760 workers in Q1 2009, comprising 10,900 retrenched workers and 1,860 workers whose contracts were terminated prematurely. This is 36% higher than the 9,410 laid off in Q4 2008, but the rate of increase has moderated from the surge of 196% from Q3 2008 to Q4 2008. Manufacturing continued to account for the majority of workers made redundant in Q1 2009, with its proportion increasing from 55% in Q4 2008 to 72% in Q1 2009 as layoffs in the sector rose sharply from 5,170 to 9,250. In contrast, redundancies in services and construction eased from 3,810 to 3,170 and 390 to 330 respectively, quarter-on-quarter. Consequently, the share of redundancies from services (25%) and construction (2.6%) in Q1 2009 were lower than in Q4 2008 (40% and 4.1% respectively).
6. With continued economic contraction and weakness in manpower demand, CPF records show that slightly more than half (51%) of the residents retrenched in Q4 2008 were re-employed by March 2009, compared to 70% in December 2008 and 67% in March 2008. The fall in the re-employment rate over the quarter was broad-based across the demographic groups. The rates for both production & related workers (70% to 47%) and professionals, managers, executives & technicians (PMETs) (69% to 48%) fell sharply, while that for clerical, sales and service workers dipped slightly (70% to 69%).
7. Overall, job vacancies2 fell for the third consecutive quarter to 21,000 in March 2009, down 20% from December 2008 (26,100) and 45% from March 2008 (38,200). Job openings contracted across all broad sectors and occupational groups. Sustained by the demand from community, social & personal services, PMETs formed the largest share of vacancies (55% or 11,500) in March 2009. The remaining openings were for clerical, sales & service workers (28% or 5,800) and production & transport operators, cleaners & labourers (18% or 3,700).
8. Coupled with a significant increase in the number of job seekers, the seasonally adjusted ratio of job vacancies to unemployed persons fell to 31 openings for every 100 job seekers in March 2009. This is still above the trough of 21 openings per 100 unemployed persons in September 2003.
9. Labour productivity declined over the year by 15% in Q1 2009, following a 12% drop in the previous quarter, reflecting the sharp fall in output. In the first three months of 2009, nominal earnings fell by 3.7% over the same period in 2008, compared with the growth of 2.4% in the preceding quarter. This is the first decline in six and a half years. Consequently, real earnings experienced a larger contraction in Q1 2009 (-5.8%) than in the preceding quarter (-2.8%), despite the easing of inflationary pressure (2.1% in Q1 2009 vs. 5.4% in Q4 2008).
10. A net weighted 15% of services firms expect employment to fall in Q2 2009, lower than 20% in the previous quarter. Hiring sentiments in manufacturing were less favourable than in services, with a net weighted 23% of manufacturers expecting to reduce headcount in Q2 2009, lower than 28% in the previous quarter.
For More Information
11. The report is available online on the Ministry of Manpower's website.
In line with the slowing economy, total employment fell by 6,200 in Q1 2009 – the first quarterly contraction in nearly six years as the number of workers hired was lower than the number of workers who left their jobs. Falling external demand has severely affected the manufacturing sector, where employment declined by 22,100. The cutback in the manufacturing industry, along with employment losses in the external-oriented services industries, more than offset gains in the domestic-oriented services and construction sectors.
2. Construction employment grew by 8,300, less than the gains of 10,700 in Q4 2008 and 14,500 in Q1 2008. Services as a whole added 7,500 workers in Q1 2009, which was substantially lower than the gains in Q4 2008 (17,300) and Q1 2008 (46,500). The gains in this sector came mainly from community, social & personal services (11,500), supported by public sector hirings. Real estate & leasing services (1,300), professional services (1,000) and information & communications (800) also added workers in Q1 2009. In contrast, losses were registered in services industries with external exposure, namely hotels & restaurants (-2,700), financial services (-1,900), transport & storage (-1,600), and wholesale & retail trade (-800). Details are in Table 1 of the Labour Market Report, First Quarter 2009.
3. Amid the sharp deterioration in economic conditions, the seasonally adjusted overall unemployment rate rose to 3.3%1 in March 2009 from 2.5% in December 2008. The resident unemployment rate increased to 4.8% in March 2009 from 3.6% in December 2008. An estimated 87,900 residents were unemployed in March 2009. The seasonally adjusted figure was 95,700, a third more than the level in December 2008 (which was at 71,800) and more than double the low of 45,500 in December 2007.
4. With unemployment on the rise for five consecutive quarters, the number of unemployed residents who had been looking for work for at least 25 weeks more than doubled to 16,600 in March 2009 from 7,500 a year ago. These long-term unemployed formed 0.8% of the resident labour force in March 2009, double the 0.4% a year ago.
5. Redundancies2 rose to a new quarterly high of 12,760 workers in Q1 2009, comprising 10,900 retrenched workers and 1,860 workers whose contracts were terminated prematurely. This is 36% higher than the 9,410 laid off in Q4 2008, but the rate of increase has moderated from the surge of 196% from Q3 2008 to Q4 2008. Manufacturing continued to account for the majority of workers made redundant in Q1 2009, with its proportion increasing from 55% in Q4 2008 to 72% in Q1 2009 as layoffs in the sector rose sharply from 5,170 to 9,250. In contrast, redundancies in services and construction eased from 3,810 to 3,170 and 390 to 330 respectively, quarter-on-quarter. Consequently, the share of redundancies from services (25%) and construction (2.6%) in Q1 2009 were lower than in Q4 2008 (40% and 4.1% respectively).
6. With continued economic contraction and weakness in manpower demand, CPF records show that slightly more than half (51%) of the residents retrenched in Q4 2008 were re-employed by March 2009, compared to 70% in December 2008 and 67% in March 2008. The fall in the re-employment rate over the quarter was broad-based across the demographic groups. The rates for both production & related workers (70% to 47%) and professionals, managers, executives & technicians (PMETs) (69% to 48%) fell sharply, while that for clerical, sales and service workers dipped slightly (70% to 69%).
7. Overall, job vacancies2 fell for the third consecutive quarter to 21,000 in March 2009, down 20% from December 2008 (26,100) and 45% from March 2008 (38,200). Job openings contracted across all broad sectors and occupational groups. Sustained by the demand from community, social & personal services, PMETs formed the largest share of vacancies (55% or 11,500) in March 2009. The remaining openings were for clerical, sales & service workers (28% or 5,800) and production & transport operators, cleaners & labourers (18% or 3,700).
8. Coupled with a significant increase in the number of job seekers, the seasonally adjusted ratio of job vacancies to unemployed persons fell to 31 openings for every 100 job seekers in March 2009. This is still above the trough of 21 openings per 100 unemployed persons in September 2003.
9. Labour productivity declined over the year by 15% in Q1 2009, following a 12% drop in the previous quarter, reflecting the sharp fall in output. In the first three months of 2009, nominal earnings fell by 3.7% over the same period in 2008, compared with the growth of 2.4% in the preceding quarter. This is the first decline in six and a half years. Consequently, real earnings experienced a larger contraction in Q1 2009 (-5.8%) than in the preceding quarter (-2.8%), despite the easing of inflationary pressure (2.1% in Q1 2009 vs. 5.4% in Q4 2008).
10. A net weighted 15% of services firms expect employment to fall in Q2 2009, lower than 20% in the previous quarter. Hiring sentiments in manufacturing were less favourable than in services, with a net weighted 23% of manufacturers expecting to reduce headcount in Q2 2009, lower than 28% in the previous quarter.
For More Information
11. The report is available online on the Ministry of Manpower's website.
Friday, June 12, 2009
Tripartite Delegation to Attend International Labour Conference
12 June 2009
Minister for Manpower Mr Gan Kim Yong is leading a tripartite delegation to attend the 98th Session of the International Labour Conference from 12 to 16 June 2009 in Geneva, Switzerland.
2 The delegation comprises Mr John De Payva, President, National Trades Union Congress (NTUC); Mr Lim Swee Say, Secretary-General, NTUC; Mdm Halimah Yacob, Deputy Secretary-General, NTUC; Mr Stephen Lee, President, Singapore National Employers Federation (SNEF); Mr Koh Juan Kiat, Executive Director, SNEF; and officials from the Ministry of Manpower.
3 This year's Conference will focus on the employment and social policy consequences of the global economic and financial crisis. Other topics to be discussed at the Conference include gender equality and other workplace practices.
4 During the Conference, the inaugural Summit on the Global Jobs Crisis will be held, in response to the widespread economic downturn. The summit, to be held from 15 to 17 June 2009, gathers heads of state, labour ministers, top representatives from employers' and workers' groups as well as other global opinion leaders to discuss the impact of the economic downturn on jobs and the employment market.
5 Mr Gan will address the Conference during this Summit on 16 June 2009[1]. He will touch on Singapore's efforts to address the economic downturn, especially in the area of saving jobs, enhancing workers' employability and helping the unemployed. He will also share with participants on the Skills Programme for Upgrading and Resilience (SPUR) and other efforts that Singapore's tripartite partners have undertaken to address the downturn.
6 While in Geneva, Mr Gan will also be holding bilateral meetings with his counterparts from other countries.
--------------------------------------------------------------------------------
[1] Geneva time is GMT +2:00, which means the speech will be delivered late Tuesday night Singapore time.
Minister for Manpower Mr Gan Kim Yong is leading a tripartite delegation to attend the 98th Session of the International Labour Conference from 12 to 16 June 2009 in Geneva, Switzerland.
2 The delegation comprises Mr John De Payva, President, National Trades Union Congress (NTUC); Mr Lim Swee Say, Secretary-General, NTUC; Mdm Halimah Yacob, Deputy Secretary-General, NTUC; Mr Stephen Lee, President, Singapore National Employers Federation (SNEF); Mr Koh Juan Kiat, Executive Director, SNEF; and officials from the Ministry of Manpower.
3 This year's Conference will focus on the employment and social policy consequences of the global economic and financial crisis. Other topics to be discussed at the Conference include gender equality and other workplace practices.
4 During the Conference, the inaugural Summit on the Global Jobs Crisis will be held, in response to the widespread economic downturn. The summit, to be held from 15 to 17 June 2009, gathers heads of state, labour ministers, top representatives from employers' and workers' groups as well as other global opinion leaders to discuss the impact of the economic downturn on jobs and the employment market.
5 Mr Gan will address the Conference during this Summit on 16 June 2009[1]. He will touch on Singapore's efforts to address the economic downturn, especially in the area of saving jobs, enhancing workers' employability and helping the unemployed. He will also share with participants on the Skills Programme for Upgrading and Resilience (SPUR) and other efforts that Singapore's tripartite partners have undertaken to address the downturn.
6 While in Geneva, Mr Gan will also be holding bilateral meetings with his counterparts from other countries.
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[1] Geneva time is GMT +2:00, which means the speech will be delivered late Tuesday night Singapore time.
Thursday, June 11, 2009
Seven Charged for ‘Fall From Height’ Accidents
11 June 2009
The Ministry of Manpower (MOM) has prosecuted a foreman, two company directors, two sub-contractors and two occupiers under the Workplace Safety and Health Act. They failed to ensure the safety of workers who were performing work at height, resulting in the deaths of three workers in three separate worksite accidents.
2. In the first case, a sub-contractor and its director were fined $70,000 and $20,000 respectively on 15 April 2009 for failing to ensure safe use of a gondola by a worker who fell to his death. The occupier was also fined $18,000 on 26 May 2009. In the second case, a foreman was fined $6,000 on 28 May 2009 for permitting the deceased worker to work at a place where he could fall more than 2 metres without any anchorage provided for safety belts. The third case was first mentioned in court today. In this accident, a main contractor, its director and the sole proprietor of a subcontractor were charged for failing to implement measures to allow the deceased worker to work safely on a house roof. If convicted, the contractor may be fined up to $500,000 and the directors may be fined up to $200,000 and/or jailed up to 2 years. More details of the cases are in the Annex.
Falls from height a top killer at workplaces
3. Over the last three years (2006 to 2008), falls from height is the number one cause of workplace fatalities. Such accidents make up 3 in every 10 of all workplace fatalities, with the majority of the cases from the construction and marine sectors. These two sectors accounted for more than 70% of ‘fall from height' accidents. MOM takes a serious view of employers, supervisors and other stakeholders not taking adequate measures to ensure safety of workers in the workplace and will take them to task under the law.
MOM to take firm enforcement action
4. “These cases showed that simple safety measures conscientiously applied could have saved the three workers. The responsibility of preventing such accidents must fall squarely on all stakeholders. Employers and supervisors who fail to put in place safety measures will face stern enforcement actions by MOM. Our officers will continue to conduct surprise inspections on top of our regular checks at worksites islandwide.” said Mr Ho Siong Hin, Commissioner for Workplace Safety and Health, Ministry of Manpower.
Fall Protection Plan to be required at workplaces
5. To help the industry raise their safety standards for work at height,, the Workplace Safety and Health Council has worked with key industry players and MOM on a draft Code of Practice on Safe Working at Height1. The draft Code includes the requirement for workplaces to implement a Fall Protection Plan. This Plan was first announced by Manpower Minister Gan Kim Yong at the launch of the National WSH Campaign on 28 April. The Fall Protection Plan systematically identifies fall hazards in the workplace and puts in place fall prevention measures like barricades and safe access to and from work areas. For more information on the draft Code and useful information on Work at Height, please refer to the WSH Council website. The WSH Council intends to issue this Code within the next three months.
--------------------------------------------------------------------------------
1The draft Code has undergone extensive industry consultation that concluded on 31 May 2009. Feedback from the industry will be taken into consideration for the revised Code.
--------------------------------------------------------------------------------
ANNEX
Case 1
Summary of Investigation Findings
On 20 July 2008, the deceased worker, Pichaimuthu Dhanikodi, fell from an inclined roof to the ground at the rear of a house that was undergoing construction. The worker was tasked to install a lightning conductor on the roof. Investigations showed that the worker climbed wooden scaffolds to access the roof as there was no way provided to gain access to the main roof from inside the house. There were no lifelines or fall preventive barricades installed on the main roof.
Prosecution action
At the first mention of this case on 11 June 2009, MOM charged three parties for their failure to ensure safety in this incident.
The first was the occupier of the construction site, Tat Ho Builder Pte Ltd. It was prosecuted for eight charges of contraventions at the worksite and for not providing a safe work environment for its workers. The charges carry a maximum fine of up to $500,000.
The second was Ng Tze Lik, a director with Tat Ho Builder Pte Ltd. He was charged for failing to exercise diligence in his capacity as a director to ensure that reasonably practicable measures are put in place. Investigations also revealed that a safety and health management system was not implemented for the said worksite. The charges carry a maximum fine of $200,000 and/or a jail term of up to 24 months.
The third was Ng Choong Seng, the sole proprietor of New Sun Electrical Contractor. Ng was charged for failing to take reasonably practicable measures to ensure safety of the deceased. This includes failure to provide proper instructions to the deceased on installing the lightning conductor, failure to conduct risk assessment and implement safe work procedures for working at height as well as failure to provide personal protective equipment. The charges carry a maximum fine of $200,000 and/or a jail term of up to 24 months. Ng was also charged for allegedly modifying the scene of the fatal accident by putting a safety belt on the body of the deceased after the accident. This charge carries a maximum fine of $10,000 and/or a jail term of up to 24 months.
Case 2
Summary of Investigation Findings
On 3 April 2007, the deceased worker, Veesam Venkateshwarlu, was painting a canopy above the 10th storey corridor of a residential block when he slipped and fell to his death. He was employed by Giftbuild Pte Ltd as a painter. Giftbuild was a subcontractor for Jotun (Singapore) Pte Ltd which was engaged to carry out repairs and redecoration of blocks of flats in Bukit Batok East. At the time of the accident, both the deceased and a co-worker had climbed out of a suspended scaffold/gondola and detached the lanyards of their body harnesses from the lifelines. They commenced painting at the opposite end of the canopy, which was approximately 12 metres away. The deceased slipped and fell off the canopy and landed on the ground floor.
Prosecution action
MOM charged three parties in this case under the Workplace Safety and Health Act. The first was the sub-contractor, Giftbuild Pte Ltd, On 15 April 2009, Giftbuild was fined $70,000 for failing to ensure that the gondola was set up in a safe manner. This included ensuring proper access for painters to climb out of the gondola onto the canopy and providing adequate training and supervision for the painters.
The second was Giftbuild director Goh Eng Ban. He was fined $20,000 on 15 April 2009 for failing to exercise diligence in his capacity as a company director to establish and implement effective control measures to prevent painters from using unsafe painting methods at the worksite.
The third was the occupier of the worksite Jotun (Singapore) Pte Ltd. Jotun was fined $8,000 on 26 May 2009 for failing to ensure that the gondola used by the worker had a valid certificate. It was also fined $10,000 for failing to ensure that a notice was displayed prominently stating the safe working load of the gondola and maximum number of persons allowed in the gondola.
Case 3
Summary of Investigation Findings
On 25 Oct 2007, the deceased worker, Yuan Guang Chuan, and a co-worker were assigned to brick laying works at the edge of an open side of a staircase. This was conducted at a site at Saiboo Street where Eng Lim Construction Co Pte Ltd was contracted to build three blocks of 10-storey residential buildings. To facilitate the brick laying work, the barricades at the edge of the open side of the staircase landing were removed. This created an open side at the staircase landing where the deceased was working. He was provided a safety belt but there was no place to safely anchor the belt. When the deceased tried to remove an embedded reinforcement bar at the edge of the staircase landing, he fell through the open side of the landing to the 3rd storey, about 23m below. The deceased died at the scene of the accident.
Prosecution action
MOM charged the foreman of Eng Lim Construction Co Pte Ltd, Sun Yi Kun, on 28 May 2009 under the Workplace Safety and Health Act for permitting a person to work at a place from which he could be liable to fall a distance of more than 2 metres without any anchorage provided for safety belts. The foreman was fined $6,000.
The Ministry of Manpower (MOM) has prosecuted a foreman, two company directors, two sub-contractors and two occupiers under the Workplace Safety and Health Act. They failed to ensure the safety of workers who were performing work at height, resulting in the deaths of three workers in three separate worksite accidents.
2. In the first case, a sub-contractor and its director were fined $70,000 and $20,000 respectively on 15 April 2009 for failing to ensure safe use of a gondola by a worker who fell to his death. The occupier was also fined $18,000 on 26 May 2009. In the second case, a foreman was fined $6,000 on 28 May 2009 for permitting the deceased worker to work at a place where he could fall more than 2 metres without any anchorage provided for safety belts. The third case was first mentioned in court today. In this accident, a main contractor, its director and the sole proprietor of a subcontractor were charged for failing to implement measures to allow the deceased worker to work safely on a house roof. If convicted, the contractor may be fined up to $500,000 and the directors may be fined up to $200,000 and/or jailed up to 2 years. More details of the cases are in the Annex.
Falls from height a top killer at workplaces
3. Over the last three years (2006 to 2008), falls from height is the number one cause of workplace fatalities. Such accidents make up 3 in every 10 of all workplace fatalities, with the majority of the cases from the construction and marine sectors. These two sectors accounted for more than 70% of ‘fall from height' accidents. MOM takes a serious view of employers, supervisors and other stakeholders not taking adequate measures to ensure safety of workers in the workplace and will take them to task under the law.
MOM to take firm enforcement action
4. “These cases showed that simple safety measures conscientiously applied could have saved the three workers. The responsibility of preventing such accidents must fall squarely on all stakeholders. Employers and supervisors who fail to put in place safety measures will face stern enforcement actions by MOM. Our officers will continue to conduct surprise inspections on top of our regular checks at worksites islandwide.” said Mr Ho Siong Hin, Commissioner for Workplace Safety and Health, Ministry of Manpower.
Fall Protection Plan to be required at workplaces
5. To help the industry raise their safety standards for work at height,, the Workplace Safety and Health Council has worked with key industry players and MOM on a draft Code of Practice on Safe Working at Height1. The draft Code includes the requirement for workplaces to implement a Fall Protection Plan. This Plan was first announced by Manpower Minister Gan Kim Yong at the launch of the National WSH Campaign on 28 April. The Fall Protection Plan systematically identifies fall hazards in the workplace and puts in place fall prevention measures like barricades and safe access to and from work areas. For more information on the draft Code and useful information on Work at Height, please refer to the WSH Council website. The WSH Council intends to issue this Code within the next three months.
--------------------------------------------------------------------------------
1The draft Code has undergone extensive industry consultation that concluded on 31 May 2009. Feedback from the industry will be taken into consideration for the revised Code.
--------------------------------------------------------------------------------
ANNEX
Case 1
Summary of Investigation Findings
On 20 July 2008, the deceased worker, Pichaimuthu Dhanikodi, fell from an inclined roof to the ground at the rear of a house that was undergoing construction. The worker was tasked to install a lightning conductor on the roof. Investigations showed that the worker climbed wooden scaffolds to access the roof as there was no way provided to gain access to the main roof from inside the house. There were no lifelines or fall preventive barricades installed on the main roof.
Prosecution action
At the first mention of this case on 11 June 2009, MOM charged three parties for their failure to ensure safety in this incident.
The first was the occupier of the construction site, Tat Ho Builder Pte Ltd. It was prosecuted for eight charges of contraventions at the worksite and for not providing a safe work environment for its workers. The charges carry a maximum fine of up to $500,000.
The second was Ng Tze Lik, a director with Tat Ho Builder Pte Ltd. He was charged for failing to exercise diligence in his capacity as a director to ensure that reasonably practicable measures are put in place. Investigations also revealed that a safety and health management system was not implemented for the said worksite. The charges carry a maximum fine of $200,000 and/or a jail term of up to 24 months.
The third was Ng Choong Seng, the sole proprietor of New Sun Electrical Contractor. Ng was charged for failing to take reasonably practicable measures to ensure safety of the deceased. This includes failure to provide proper instructions to the deceased on installing the lightning conductor, failure to conduct risk assessment and implement safe work procedures for working at height as well as failure to provide personal protective equipment. The charges carry a maximum fine of $200,000 and/or a jail term of up to 24 months. Ng was also charged for allegedly modifying the scene of the fatal accident by putting a safety belt on the body of the deceased after the accident. This charge carries a maximum fine of $10,000 and/or a jail term of up to 24 months.
Case 2
Summary of Investigation Findings
On 3 April 2007, the deceased worker, Veesam Venkateshwarlu, was painting a canopy above the 10th storey corridor of a residential block when he slipped and fell to his death. He was employed by Giftbuild Pte Ltd as a painter. Giftbuild was a subcontractor for Jotun (Singapore) Pte Ltd which was engaged to carry out repairs and redecoration of blocks of flats in Bukit Batok East. At the time of the accident, both the deceased and a co-worker had climbed out of a suspended scaffold/gondola and detached the lanyards of their body harnesses from the lifelines. They commenced painting at the opposite end of the canopy, which was approximately 12 metres away. The deceased slipped and fell off the canopy and landed on the ground floor.
Prosecution action
MOM charged three parties in this case under the Workplace Safety and Health Act. The first was the sub-contractor, Giftbuild Pte Ltd, On 15 April 2009, Giftbuild was fined $70,000 for failing to ensure that the gondola was set up in a safe manner. This included ensuring proper access for painters to climb out of the gondola onto the canopy and providing adequate training and supervision for the painters.
The second was Giftbuild director Goh Eng Ban. He was fined $20,000 on 15 April 2009 for failing to exercise diligence in his capacity as a company director to establish and implement effective control measures to prevent painters from using unsafe painting methods at the worksite.
The third was the occupier of the worksite Jotun (Singapore) Pte Ltd. Jotun was fined $8,000 on 26 May 2009 for failing to ensure that the gondola used by the worker had a valid certificate. It was also fined $10,000 for failing to ensure that a notice was displayed prominently stating the safe working load of the gondola and maximum number of persons allowed in the gondola.
Case 3
Summary of Investigation Findings
On 25 Oct 2007, the deceased worker, Yuan Guang Chuan, and a co-worker were assigned to brick laying works at the edge of an open side of a staircase. This was conducted at a site at Saiboo Street where Eng Lim Construction Co Pte Ltd was contracted to build three blocks of 10-storey residential buildings. To facilitate the brick laying work, the barricades at the edge of the open side of the staircase landing were removed. This created an open side at the staircase landing where the deceased was working. He was provided a safety belt but there was no place to safely anchor the belt. When the deceased tried to remove an embedded reinforcement bar at the edge of the staircase landing, he fell through the open side of the landing to the 3rd storey, about 23m below. The deceased died at the scene of the accident.
Prosecution action
MOM charged the foreman of Eng Lim Construction Co Pte Ltd, Sun Yi Kun, on 28 May 2009 under the Workplace Safety and Health Act for permitting a person to work at a place from which he could be liable to fall a distance of more than 2 metres without any anchorage provided for safety belts. The foreman was fined $6,000.
Monday, June 8, 2009
Singapore Public Holidays For The Year 2010
08 June 2009
The dates for the 11 specified public holidays for 2010 are as follows:
New Year's Day
Friday
1 January 2010
Chinese New Year
Sunday*
Monday
14 February 2010
15 February 2010
Good Friday
Friday
2 April 2010
Labour Day
Saturday
1 May 2010
Vesak Day
Friday
28 May 2010
National Day
Monday
9 August 2010
Hari Raya Puasa
Friday
10 September 2010
Deepavali
Friday
5 November 2010
Hari Raya Haji
Wednesday
17 November 2010
Christmas Day
Saturday
25 December 2010
* As Chinese New Year falls on Sunday 14 February 2010 and Monday 15 February 2010, the next day, Tuesday 16 February 2010, will be a public holiday.
2. The date, 5 November 2010, for Deepavali needs to be checked against the Indian Almanac when it is available. Should there be a change in date, the Ministry of Manpower will issue a press release to announce the change.
3. The list of public holidays for 2010 is available on the Ministry of Manpower's website.
REMINDER ON CHANGE OF DATE FOR DEEPAVALI 2009 TO 17 OCTOBER 2009
4. The Ministry would like to remind the public that Deepavali this year will fall on Saturday 17 October 2009 instead of Sunday 15 November 2009. Since Deepavali is no longer on 15 November 2009 (Sunday), 16 November 2009 (Monday) will not be a public holiday. Instead, 17 October 2009 will be gazetted as a public holiday.
The dates for the 11 specified public holidays for 2010 are as follows:
New Year's Day
Friday
1 January 2010
Chinese New Year
Sunday*
Monday
14 February 2010
15 February 2010
Good Friday
Friday
2 April 2010
Labour Day
Saturday
1 May 2010
Vesak Day
Friday
28 May 2010
National Day
Monday
9 August 2010
Hari Raya Puasa
Friday
10 September 2010
Deepavali
Friday
5 November 2010
Hari Raya Haji
Wednesday
17 November 2010
Christmas Day
Saturday
25 December 2010
* As Chinese New Year falls on Sunday 14 February 2010 and Monday 15 February 2010, the next day, Tuesday 16 February 2010, will be a public holiday.
2. The date, 5 November 2010, for Deepavali needs to be checked against the Indian Almanac when it is available. Should there be a change in date, the Ministry of Manpower will issue a press release to announce the change.
3. The list of public holidays for 2010 is available on the Ministry of Manpower's website.
REMINDER ON CHANGE OF DATE FOR DEEPAVALI 2009 TO 17 OCTOBER 2009
4. The Ministry would like to remind the public that Deepavali this year will fall on Saturday 17 October 2009 instead of Sunday 15 November 2009. Since Deepavali is no longer on 15 November 2009 (Sunday), 16 November 2009 (Monday) will not be a public holiday. Instead, 17 October 2009 will be gazetted as a public holiday.
Sunday, June 7, 2009
Significant Progress for Low Wage Workers since 2006
07 June 2009
• Benefits of Workfare seen with increase in wages
• Reduction in income inequality, Gini coefficient, its first decline in a decade
Since 2006, low wage workers have come a long way, with both wage increases as well as more job opportunities. The wages of the 20th percentile full-time employed resident increased from $1,200 a month in 2006 to $1,310 in 2008. In addition, the number of residents earning $1,200 or less has fallen from 360,000 in 2006 to below 300,000 in 2008. More people were working, especially from households living in smaller flat types. The monthly household income of those living in 3-room HDB flats or smaller also grew by over $300 from $1,910 to $2,220. Even after factoring for inflation, this translated to a 3.5% per annum increase in real terms.
Singapore has similarly seen a reduction in income disparity, reflected by the drop in the Gini coefficient from 0.489 in 2007 to 0.481 in 2008 – the first decline in a decade. The Gini coefficient is even lower at 0.462, after adjusting for government benefits and taxes. These are just some of the areas of progress made by low wage workers since the release of the recommendations by the Ministerial Committee on Low Wage Workers three years ago.
Please refer to Annex A for the Factsheet on the Ministerial Commitee of Low Wage Workers.
Progress Report of Ministerial Committee on Low Wage Workers
2. The Committee worked on various initiatives which were grouped under six broad spokes. The key highlights of the Committee's report are summarised below:
Spoke 1 – Rewarding Work
• Nearly $840 million Workfare Bonus and Workfare Income Supplement (WIS) has been disbursed for work done in 2006 to 2008;
• More than 10,000 lower-income families received $144.3 million worth of Additional CPF Housing Grants (AHG), which served as an additional subsidy for lower-income families to offset the purchase price of a HDB flat;
Spoke 2 – Social Support to Enable Work
• From 2006 to 2008, a total of $33.4 million was given to an average of over 3,600 families annually under the Work Support Programme, which helps low wage workers or jobseekers upgrade their skills and find better-paying jobs, by providing them with temporary financial, medical and educational assistance;
Spoke 3 – Higher Skills for Better Jobs
• About 130,800 low-skilled workers received training under the Singapore Workforce Skills Qualifications (WSQ) framework; while 58,000 workers were trained through the Employability Skills System (ESS) from 2006 to 2008;
Spoke 4 – Expand Job Opportunities
• The Job Re-Creation Programme (JRP) has helped more than 47,000 workers acquire better skills, better jobs and better pay, while gaining inroads in the security, landscape, environment and conservancy industries;
Spoke 5 – Hope for the Future
• Over the three years, MOE's Financial Assistance Scheme has helped an average of 40,730 needy students per year with $25.1 million disbursed; while the Kindergarten Financial Assistance Scheme (KiFAS) and Centre-based Financial Assistance Scheme for Child Care (CFAC) have provided an average of over 11,200 children from low income families, per year, with some $41.6 million in fee subsidies;
• Between 2006 and 2008, an additional 1,200 vulnerable, low income families were approved for assistance under the Home Ownership Plus Education (HOPE) Scheme, bringing the total number of families approved on HOPE to about 1,700 at end-2008.
Spoke 6 – Sharing in the Nation's Progress
• The $2.5 billion Progress Package was disbursed to all Singaporeans in 2006, with more given out to lower-income groups; and
• In 2008, the Government shared the Growth Dividends through a one-off $2 billion package and other household benefits, on top of the $4 billion GST offset package in 2007 that will be spread out over five years.
Please refer to Annex B for the Progress Report of Ministerial Committee on Low Wage Workers.
3. The Government has spent over $1.1 billion from 2006 to 2008 helping low wage Singaporeans . The Government will continue its efforts to help this group and refine schemes to provide them more targeted assistance. This includes a review of the WIS scheme in 2010 to ensure that it remains effective in encouraging work and providing financial assistance.
• Benefits of Workfare seen with increase in wages
• Reduction in income inequality, Gini coefficient, its first decline in a decade
Since 2006, low wage workers have come a long way, with both wage increases as well as more job opportunities. The wages of the 20th percentile full-time employed resident increased from $1,200 a month in 2006 to $1,310 in 2008. In addition, the number of residents earning $1,200 or less has fallen from 360,000 in 2006 to below 300,000 in 2008. More people were working, especially from households living in smaller flat types. The monthly household income of those living in 3-room HDB flats or smaller also grew by over $300 from $1,910 to $2,220. Even after factoring for inflation, this translated to a 3.5% per annum increase in real terms.
Singapore has similarly seen a reduction in income disparity, reflected by the drop in the Gini coefficient from 0.489 in 2007 to 0.481 in 2008 – the first decline in a decade. The Gini coefficient is even lower at 0.462, after adjusting for government benefits and taxes. These are just some of the areas of progress made by low wage workers since the release of the recommendations by the Ministerial Committee on Low Wage Workers three years ago.
Please refer to Annex A for the Factsheet on the Ministerial Commitee of Low Wage Workers.
Progress Report of Ministerial Committee on Low Wage Workers
2. The Committee worked on various initiatives which were grouped under six broad spokes. The key highlights of the Committee's report are summarised below:
Spoke 1 – Rewarding Work
• Nearly $840 million Workfare Bonus and Workfare Income Supplement (WIS) has been disbursed for work done in 2006 to 2008;
• More than 10,000 lower-income families received $144.3 million worth of Additional CPF Housing Grants (AHG), which served as an additional subsidy for lower-income families to offset the purchase price of a HDB flat;
Spoke 2 – Social Support to Enable Work
• From 2006 to 2008, a total of $33.4 million was given to an average of over 3,600 families annually under the Work Support Programme, which helps low wage workers or jobseekers upgrade their skills and find better-paying jobs, by providing them with temporary financial, medical and educational assistance;
Spoke 3 – Higher Skills for Better Jobs
• About 130,800 low-skilled workers received training under the Singapore Workforce Skills Qualifications (WSQ) framework; while 58,000 workers were trained through the Employability Skills System (ESS) from 2006 to 2008;
Spoke 4 – Expand Job Opportunities
• The Job Re-Creation Programme (JRP) has helped more than 47,000 workers acquire better skills, better jobs and better pay, while gaining inroads in the security, landscape, environment and conservancy industries;
Spoke 5 – Hope for the Future
• Over the three years, MOE's Financial Assistance Scheme has helped an average of 40,730 needy students per year with $25.1 million disbursed; while the Kindergarten Financial Assistance Scheme (KiFAS) and Centre-based Financial Assistance Scheme for Child Care (CFAC) have provided an average of over 11,200 children from low income families, per year, with some $41.6 million in fee subsidies;
• Between 2006 and 2008, an additional 1,200 vulnerable, low income families were approved for assistance under the Home Ownership Plus Education (HOPE) Scheme, bringing the total number of families approved on HOPE to about 1,700 at end-2008.
Spoke 6 – Sharing in the Nation's Progress
• The $2.5 billion Progress Package was disbursed to all Singaporeans in 2006, with more given out to lower-income groups; and
• In 2008, the Government shared the Growth Dividends through a one-off $2 billion package and other household benefits, on top of the $4 billion GST offset package in 2007 that will be spread out over five years.
Please refer to Annex B for the Progress Report of Ministerial Committee on Low Wage Workers.
3. The Government has spent over $1.1 billion from 2006 to 2008 helping low wage Singaporeans . The Government will continue its efforts to help this group and refine schemes to provide them more targeted assistance. This includes a review of the WIS scheme in 2010 to ensure that it remains effective in encouraging work and providing financial assistance.
Saturday, June 6, 2009
MOM recovers about S$800,000 in claims for workers
6 June 2009
SINGAPORE: The Manpower Ministry (MOM) recovered about S$800,000 in claims on behalf of 750 workers between January and April this year.
MOM’s Labour Court heard around 490 cases, some of which involved employers not paying salaries in lieu of termination notices and unauthorised salary deductions.
86 per cent of cases were heard and concluded by the Labour Court within two weeks from the first hearing.
MOM advises workers to refer to their obligations and rights in their employment contracts and the Employment Act.
Workers can make an e—appointment through the MOM website or call 6438—5122.
— CNA/ir
SINGAPORE: The Manpower Ministry (MOM) recovered about S$800,000 in claims on behalf of 750 workers between January and April this year.
MOM’s Labour Court heard around 490 cases, some of which involved employers not paying salaries in lieu of termination notices and unauthorised salary deductions.
86 per cent of cases were heard and concluded by the Labour Court within two weeks from the first hearing.
MOM advises workers to refer to their obligations and rights in their employment contracts and the Employment Act.
Workers can make an e—appointment through the MOM website or call 6438—5122.
— CNA/ir
Thursday, June 4, 2009
Employer Charged in Court with 100 Counts of Non-payment of Salary
04 June 2009
An employer was charged in the Subordinate Courts today (4 June 2009) for failure to pay the salaries of his foreign workers. Julian Yip Si Wei faces charges of failing to pay salaries of 100 foreign workers hired by his two companies, M Power Engineering & Iron Works and Zippon Marine & Engineering.
2. Yip allegedly failed to cancel the workers' permits and repatriate his workers even though he did not have work for them. Instead, he retained them in Singapore without paying their salaries.
3. The cases against M Power Engineering & Iron Works and Zippon Marine & Engineering were the result of proactive probes by a MOM taskforce set up earlier this year to detect errant employers, including those who have salary arrears. The MOM taskforce consolidates and analyses information surfaced from inspections as well as intelligence received on possible salary arrears cases in order to investigate those employers that may have breached the Employment of Foreign Manpower Act (EFMA).
4. "More than 60 companies with salary arrears have been identified through the taskforce's efforts since it was set up. Of these, more than 70% have been successfully resolved. Two other employers1 were also charged in March this year for failure to pay salaries of their workers. The Ministry will continue to step up our enforcement operations to take employers who fail to discharge their obligations to task. Errant employers will face the full consequences of the law," said Aw Kum Cheong, Divisional Director, Foreign Manpower Management Division.
5. Employers who no longer have any work for their workers are advised to continue paying their salaries, or to cancel the work permits and send the workers home after all outstanding payments have been made. Failure to pay salaries on time is an offence under the EFMA. Employers who fail to pay their employees could be fined up to $5,000 or imprisoned for a term not exceeding 6 months, or both. They will also be blacklisted from hiring foreign workers in future.
--------------------------------------------------------------------------------
1Loke Siew Fai (Director, Tipper Corp Pte Ltd) and Paul Lee Chiang Theng (Director, Gates Offshore Pte Ltd, Goldrich Venture Pte Ltd and S1 Engineering Pte Ltd) were charged on 19 March for failing to pay the salaries of their foreign workers on time.
An employer was charged in the Subordinate Courts today (4 June 2009) for failure to pay the salaries of his foreign workers. Julian Yip Si Wei faces charges of failing to pay salaries of 100 foreign workers hired by his two companies, M Power Engineering & Iron Works and Zippon Marine & Engineering.
2. Yip allegedly failed to cancel the workers' permits and repatriate his workers even though he did not have work for them. Instead, he retained them in Singapore without paying their salaries.
3. The cases against M Power Engineering & Iron Works and Zippon Marine & Engineering were the result of proactive probes by a MOM taskforce set up earlier this year to detect errant employers, including those who have salary arrears. The MOM taskforce consolidates and analyses information surfaced from inspections as well as intelligence received on possible salary arrears cases in order to investigate those employers that may have breached the Employment of Foreign Manpower Act (EFMA).
4. "More than 60 companies with salary arrears have been identified through the taskforce's efforts since it was set up. Of these, more than 70% have been successfully resolved. Two other employers1 were also charged in March this year for failure to pay salaries of their workers. The Ministry will continue to step up our enforcement operations to take employers who fail to discharge their obligations to task. Errant employers will face the full consequences of the law," said Aw Kum Cheong, Divisional Director, Foreign Manpower Management Division.
5. Employers who no longer have any work for their workers are advised to continue paying their salaries, or to cancel the work permits and send the workers home after all outstanding payments have been made. Failure to pay salaries on time is an offence under the EFMA. Employers who fail to pay their employees could be fined up to $5,000 or imprisoned for a term not exceeding 6 months, or both. They will also be blacklisted from hiring foreign workers in future.
--------------------------------------------------------------------------------
1Loke Siew Fai (Director, Tipper Corp Pte Ltd) and Paul Lee Chiang Theng (Director, Gates Offshore Pte Ltd, Goldrich Venture Pte Ltd and S1 Engineering Pte Ltd) were charged on 19 March for failing to pay the salaries of their foreign workers on time.
Wednesday, June 3, 2009
Government Accepts National Wages Council’s Guidelines for 2009/2010
03 June 2009
1. The Government has accepted the National Wages Council (NWC)'s Guidelines for 2009/2010.
2. Since the NWC released its revised wage guidelines in January 2009, the global outlook has remained weak. The first quarter of 2009 saw GDP contracting by 10.1%, compared to a 4.2% dip in the fourth quarter of 2008. MTI has forecast the GDP growth for 2009 to be between -9.0% and -6.0%. Preliminary estimates show that total employment declined by 1,000 in the first quarter of 2009 as the economy continued to worsen. The seasonally-adjusted unemployment rate rose to 3.2% (overall) and 4.8% (resident) as of March 2009. 12,600 workers were made redundant in the first quarter of 2009, compared to 9,410 in the previous quarter. The labour market is expected to remain weak for some time.
3. In view of continuing risk of a severe and extended downturn, the Government agrees with the NWC's recommendation that companies persist with the focus on cutting costs to save jobs. The Government strongly supports NWC's call for employers to look at ways to manage costs, stay viable and save jobs, including implementing wage freeze/cuts and other cost cutting measures recommended in the revised Tripartite Guidelines on Managing Excess Manpower issued on 17 May 2009. Employers should also be responsible and fair to their workers. At the same time, workers should play their part by being adaptable and flexible, willing to make adjustments, taking on different jobs and having realistic expectations.
4. On its part, the Government has implemented measures to help companies and Singaporeans cope with the downturn, such as the Jobs Credit Scheme, Skills Programme for Resilience and Upgrading (SPUR), enhanced government financing programmes for companies, lower corporate taxes and the Workfare Income Supplement (WIS) Special Payment. The Government has also been expanding the CET system and increasing the reach of SPUR, to help job seekers reskill and upskill, and take up jobs available in new and expanding sectors. These measures have helped to buffer companies and workers from the impact of the downturn. The Government will continue to monitor the situation to see if further measures and assistance are needed.
5. The Government also supports NWC's call to use this downturn to strengthen Singapore's competitiveness and prepare for the upturn. A taskforce led by MOM and MTI is working with industry on sectoral productivity issues. Companies and unions/workers should work together to raise productivity by innovating, streamlining operations and strengthening workforce capabilities.
6. The Government is confident that with close tripartite co-operation and partnership, the NWC wage guidelines will be successfully implemented to help companies ride out the current downturn, preserve jobs for workers and emerge stronger in the upturn.
1. The Government has accepted the National Wages Council (NWC)'s Guidelines for 2009/2010.
2. Since the NWC released its revised wage guidelines in January 2009, the global outlook has remained weak. The first quarter of 2009 saw GDP contracting by 10.1%, compared to a 4.2% dip in the fourth quarter of 2008. MTI has forecast the GDP growth for 2009 to be between -9.0% and -6.0%. Preliminary estimates show that total employment declined by 1,000 in the first quarter of 2009 as the economy continued to worsen. The seasonally-adjusted unemployment rate rose to 3.2% (overall) and 4.8% (resident) as of March 2009. 12,600 workers were made redundant in the first quarter of 2009, compared to 9,410 in the previous quarter. The labour market is expected to remain weak for some time.
3. In view of continuing risk of a severe and extended downturn, the Government agrees with the NWC's recommendation that companies persist with the focus on cutting costs to save jobs. The Government strongly supports NWC's call for employers to look at ways to manage costs, stay viable and save jobs, including implementing wage freeze/cuts and other cost cutting measures recommended in the revised Tripartite Guidelines on Managing Excess Manpower issued on 17 May 2009. Employers should also be responsible and fair to their workers. At the same time, workers should play their part by being adaptable and flexible, willing to make adjustments, taking on different jobs and having realistic expectations.
4. On its part, the Government has implemented measures to help companies and Singaporeans cope with the downturn, such as the Jobs Credit Scheme, Skills Programme for Resilience and Upgrading (SPUR), enhanced government financing programmes for companies, lower corporate taxes and the Workfare Income Supplement (WIS) Special Payment. The Government has also been expanding the CET system and increasing the reach of SPUR, to help job seekers reskill and upskill, and take up jobs available in new and expanding sectors. These measures have helped to buffer companies and workers from the impact of the downturn. The Government will continue to monitor the situation to see if further measures and assistance are needed.
5. The Government also supports NWC's call to use this downturn to strengthen Singapore's competitiveness and prepare for the upturn. A taskforce led by MOM and MTI is working with industry on sectoral productivity issues. Companies and unions/workers should work together to raise productivity by innovating, streamlining operations and strengthening workforce capabilities.
6. The Government is confident that with close tripartite co-operation and partnership, the NWC wage guidelines will be successfully implemented to help companies ride out the current downturn, preserve jobs for workers and emerge stronger in the upturn.
National Wages Council Guidelines 2009/2010
03 June 2009
1. The National Wages Council (NWC) has completed its deliberations on wage and wage-related guidelines for 2009/2010.
2008 Economic, Labour Market, Productivity, Wages and Inflation Trends
2. Singapore's economic growth slowed to 1.1% in 2008, significantly lower than the 7.8% growth in 2007. In particular, the fourth quarter of 2008 contracted by 4.2% on a year-on-year basis.
3. Total employment growth of 221,600 in 2008 was also lower than the growth of 234,900 in 2007. With the economy weakening towards the end of the year, the seasonally adjusted unemployment rate rose to 2.5% (overall) and 3.6% (resident) in Dec 2008, up from 2.3% and 3.4% respectively in Sep 2008. Redundancies also hit a high of 9,410 workers in the fourth quarter of 2008, making up more than half of the 16,880 redundancies in the whole of 2008.
4. Meanwhile, overall labour productivity declined sharply from -0.8% in 2007 to -7.8% in 2008 due to slower GDP growth and strong employment gains in the first half of 2008. This is the second year that labour productivity has contracted.
5. The consumer price index (CPI) rose by 6.5% in 2008, compared to 2.1% in the previous year. This was mainly due to higher growth of global oil and food prices in the first half of the year, but these began to moderate in the second half of the year.
6. With the economic downturn and increased business costs, wage increases granted were more restrained last year. Nominal total wages rose by 4.2% in 2008, lower than 5.9% in 2007. This was the result of a basic wage gain of 4.4% (compared to 4.3% in 2007) and a 2.1% decline in bonus payout of 2.31 months in 2008 (compared to 2.36 months in 2007). After adjusting for the high inflation in 2008, real total and basic wage in 2008 contracted by 2.3% and 2.1% respectively (see Annex ).
7. In 2008, productivity fell sharper than the fall in real basic wages (see Chart 1 at Annex ). To be sustainable and to maintain cost competitiveness, wage increases, especially built-in wage increases, should lag productivity growth. For the first time since 2002, cumulative gains in real basic wages have outstripped cumulative productivity gains (see Chart 2 at Annex ). Nonetheless, taken over a longer period, the growth in productivity still slightly exceeded real total and basic wages (see annualised data at Table 2 in Annex ).
8. Overall Unit Labour Cost (ULC) increased for the fourth straight year, by 9.6% in 2008, higher than the 5.2% increase in 2007, reflecting largely the contraction in productivity in 2008.
Outlook for 2009
9. The GDP in the first quarter of 2009 has contracted by 10.1% on a year-on-year basis, deeper than the 4.2% contraction in the fourth quarter of 2008. Given the sharp deterioration of the economic performance in the first quarter of 2009, and the weak global outlook for the rest of the year, MTI revised downwards in April 2009 its forecast for 2009 GDP growth to -9.0% to -6.0%, which is lower than the -5.0% to -2.0% forecast in January 2009. Notwithstanding recent optimism expressed by some analysts, the economic outlook remains uncertain.
10. Reflecting the sharp deterioration in economic conditions, preliminary estimates show that redundancies rose to 12,600 in the first quarter of 2009, higher than the 9,410 in the fourth quarter of 2008. The seasonally adjusted unemployment rate rose to 3.2% (overall) and 4.8% (resident) in March 2009. With the economy expected to remain weak for the rest of 2009, MOM expects the labour market to soften further, with retrenchments and unemployment to be significantly higher than in 2008.
11. However, CPI inflation has started to moderate. In the first quarter of 2009, CPI went up by 2.1% on a year-on-year basis, lower than the 6.6% in the same period a year ago and the high of 7.5% in the second quarter of 2008. CPI is forecast to be between -1% to 0% in 2009.
NWC Guidelines for 2009/2010
12. Given the deep global recession, the uncertainty in the economic outlook coupled with the impact of a possible Influenza A (H1N1-2009) pandemic, we need to be prepared for the eventuality of a prolonged downturn. The NWC therefore recommends in the 2009/2010 wage guidelines that employers, unions and the government press on with concerted actions recommended in NWC's January 2009 guidelines to cut costs, save jobs and enhance competitiveness. This could be done through management leading by example in the following areas:
• Wage freeze or cut;
• Implementation of other cost cutting measures and initiatives to cope with the downturn;
• Enhancement of wage flexibility; and
• Improvement in productivity
Persist with "Cut Costs to Save Jobs"
13. The NWC strongly recommends that for companies whose business, profitability and/or prospects are affected by the economic downturn, they could, in consultation with their unions/workers, implement a wage freeze or wage cut in line with their performance and prospects, in order to help companies stay competitive and save jobs.
14. Companies which perform well should reward their workers with moderate wage increases, preferably in the form of variable payment, so that their long-term cost competitiveness would not be affected.
Implement other Cost Cutting Measures
15. The NWC notes that the Tripartite Guidelines on Managing Excess Manpower (MEM Guidelines) have recently been updated to ensure they stay relevant to help companies and workers manage any prolonged downturn. The Council endorses the updated Tripartite Guidelines and strongly urges companies with excess manpower to implement the various recommended measures such as shorter work week, temporary layoffs, no pay leave, and other work arrangements as alternatives to retrenchments. Workers should work together with employers to implement these measures so as to cut costs and save jobs.
16. In implementing such measures including wage freeze or cut, management is to lead by example.
Press on with Downturn Initiatives to Enhance Resilience
17. Since the last NWC guidelines were released in January 2009, the government has announced a $20.5 billion Resilience Package to help reduce costs and save jobs. The package includes the Jobs Credit Scheme, Workfare Income Supplement (WIS) Special Payment to help low wage workers, and various tax concessions. The MEM Guidelines have been updated, and the Skills Programme for Upgrading and Resilience (SPUR) has also been enhanced to help more professionals, managers, executives and technicians (PMETs).
18. The Council notes that these measures have been well received by employers and unions/workers, and are making a positive impact in helping companies and workers cope with the downturn, manage costs and minimise job losses. Based on feedback from companies collected by the tripartite partners at end March 2009, some 66% of the 1,900 companies that responded indicated that they had no plans to carry out any retrenchment exercise. Of the remaining 34% which had planned to carry out retrenchments, 4 out of 5 indicated that they had postponed their retrenchment decisions or reduced the number of workers affected as a result of the above measures, with only 1 out of 5 companies reporting that they had proceeded or would be proceeding with their retrenchment plans notwithstanding the downturn measures. The NWC urges employers and unions/workers to continue to tap on the various tripartite measures and initiatives available to manage the impact of the downturn, reduce costs and minimise job losses.
19. The NWC notes that there are still jobs available in some sectors which are doing well, growing or remain resilient to the current downturn. Hence, while unemployment has risen, the economy is also undergoing significant restructuring with new jobs created. In this regard, the NWC recommends that the government continue to expand the Continuing Education & Training (CET) infrastructure. Workers are encouraged to be flexible and be prepared to upgrade current skills and learn new skills. Employers are encouraged to tap on the CET system and the various assistance measures such as SPUR to upskill their manpower and build new capabilities.
20. Those who are seeking employment are advised to adjust their expectations and make career switches, if necessary, to take up available jobs. Employers too, should be open to taking in workers with little or no relevant experience, and set appropriate employment terms reflecting the market realities of their sectors. This would ensure that the growth sectors could recruit the necessary manpower, while enabling job seekers to take up meaningful employment in these sectors. There are many schemes under SPUR to help employers recruit and train new workers, such as SPUR-JOBS and Professional Skills Programme (PSP)-Traineeship. Employers should leverage fully on such schemes.
21. Besides implementing the above measures, the NWC also urges the government and companies to continue to look at ways to reduce non-wage costs so as to lower the overall business costs and enhance Singapore's competitiveness.
Enhance Wage Flexibility
22. Companies are encouraged to make use of components of the flexible wage system, including the Monthly Variable Component (MVC), to manage total wage cost. MOM's 2008 Survey on Annual Wage Changes indicates that companies with MVC in their wage structure are better able to gain employees' acceptance of a wage cut if it has to be implemented, compared to companies without MVC. To encourage more companies to implement MVC, the NWC endorses the recommendation in the MEM guidelines that companies could implement a cut in basic wages by introducing it as a reduction in MVC. This would enable these companies to take the opportunity to introduce MVC and make their wages more flexible. Companies doing so should work with the unions/workers to set guidelines on restoring the MVC from future wage increases or adjustments when businesses recover.
Improve Productivity
23. The NWC notes with concern that labour productivity growth has shown a downward trend over the last four years, and labour productivity has in fact contracted in the last two years. This could affect longer term competitiveness. There is a pressing need to address this issue so that future wage increases can be supported by productivity gains, and be sustainable and competitive over the longer term. In this regard, the Council strongly urges companies to ride on this downturn to enhance their productivity, through innovation, best sourcing, service excellence and developing the workforce to be highly skilled, productive and flexible. Companies can improve the skills of their workforce by tapping on SPUR.
Continue with Longer Term Initiatives
24. Notwithstanding the downturn, the NWC recommends that the tripartite partners continue to push ahead with initiatives such as enhancing the employability and employment of older workers, bringing more women back to the workforce, and enhancing efforts to help low wage, contract and informal workers. We should not lose sight of these important longer term initiatives that would help to maximise the potential of our workforce, as well as improve employability and income of workers.
Prepare for Upturn
25. The Council urges companies to maximize the use of the current slack manpower conditions to improve the skills of their workforce. This is critical to raising their competitiveness when the global economy recovers. Companies and workers must not delay in participating in SPUR to upgrade skills and capabilities so that they would be in a stronger position for the recovery.
Application of NWC's Recommendations
26. The NWC recommendations cover the period from 1 July 2009 to 30 June 2010.
27. These recommendations are applicable to all employees – management, executives and rank-and-file employees, unionised and non-unionised companies in both the public and private sectors.
28. To facilitate wage negotiation, companies should share relevant information on company performance and business prospects with employees and their representatives.
Conclusion – Strong Tripartism To Overcome Adversity
29. Singapore's pragmatic and pro-active response to the recession, supported by our strong tripartite spirit, has brought about significant and positive impact on companies and workers. The various tripartite initiatives implemented over the past few months have resulted in many companies implementing alternative measures to retrenchment, therefore minimising job losses to workers.
30. The outlook remains uncertain. However, the NWC is confident that the solidarity shown by the tripartite partners in working together to address the downturn will continue to prevail and enable the smooth implementation of the NWC guidelines. This high level of co-operation, trust and understanding among the government, employers and unions will give confidence to businesses and investors, and better differentiate Singapore from other economies. More importantly, it will enable Singapore to emerge stronger, more robust and more resilient while helping to minimise job losses, and strengthen our competitiveness and capability for a better future for all.
31. The NWC looks forward to the Government's acceptance of its recommendations.
1. The National Wages Council (NWC) has completed its deliberations on wage and wage-related guidelines for 2009/2010.
2008 Economic, Labour Market, Productivity, Wages and Inflation Trends
2. Singapore's economic growth slowed to 1.1% in 2008, significantly lower than the 7.8% growth in 2007. In particular, the fourth quarter of 2008 contracted by 4.2% on a year-on-year basis.
3. Total employment growth of 221,600 in 2008 was also lower than the growth of 234,900 in 2007. With the economy weakening towards the end of the year, the seasonally adjusted unemployment rate rose to 2.5% (overall) and 3.6% (resident) in Dec 2008, up from 2.3% and 3.4% respectively in Sep 2008. Redundancies also hit a high of 9,410 workers in the fourth quarter of 2008, making up more than half of the 16,880 redundancies in the whole of 2008.
4. Meanwhile, overall labour productivity declined sharply from -0.8% in 2007 to -7.8% in 2008 due to slower GDP growth and strong employment gains in the first half of 2008. This is the second year that labour productivity has contracted.
5. The consumer price index (CPI) rose by 6.5% in 2008, compared to 2.1% in the previous year. This was mainly due to higher growth of global oil and food prices in the first half of the year, but these began to moderate in the second half of the year.
6. With the economic downturn and increased business costs, wage increases granted were more restrained last year. Nominal total wages rose by 4.2% in 2008, lower than 5.9% in 2007. This was the result of a basic wage gain of 4.4% (compared to 4.3% in 2007) and a 2.1% decline in bonus payout of 2.31 months in 2008 (compared to 2.36 months in 2007). After adjusting for the high inflation in 2008, real total and basic wage in 2008 contracted by 2.3% and 2.1% respectively (see Annex ).
7. In 2008, productivity fell sharper than the fall in real basic wages (see Chart 1 at Annex ). To be sustainable and to maintain cost competitiveness, wage increases, especially built-in wage increases, should lag productivity growth. For the first time since 2002, cumulative gains in real basic wages have outstripped cumulative productivity gains (see Chart 2 at Annex ). Nonetheless, taken over a longer period, the growth in productivity still slightly exceeded real total and basic wages (see annualised data at Table 2 in Annex ).
8. Overall Unit Labour Cost (ULC) increased for the fourth straight year, by 9.6% in 2008, higher than the 5.2% increase in 2007, reflecting largely the contraction in productivity in 2008.
Outlook for 2009
9. The GDP in the first quarter of 2009 has contracted by 10.1% on a year-on-year basis, deeper than the 4.2% contraction in the fourth quarter of 2008. Given the sharp deterioration of the economic performance in the first quarter of 2009, and the weak global outlook for the rest of the year, MTI revised downwards in April 2009 its forecast for 2009 GDP growth to -9.0% to -6.0%, which is lower than the -5.0% to -2.0% forecast in January 2009. Notwithstanding recent optimism expressed by some analysts, the economic outlook remains uncertain.
10. Reflecting the sharp deterioration in economic conditions, preliminary estimates show that redundancies rose to 12,600 in the first quarter of 2009, higher than the 9,410 in the fourth quarter of 2008. The seasonally adjusted unemployment rate rose to 3.2% (overall) and 4.8% (resident) in March 2009. With the economy expected to remain weak for the rest of 2009, MOM expects the labour market to soften further, with retrenchments and unemployment to be significantly higher than in 2008.
11. However, CPI inflation has started to moderate. In the first quarter of 2009, CPI went up by 2.1% on a year-on-year basis, lower than the 6.6% in the same period a year ago and the high of 7.5% in the second quarter of 2008. CPI is forecast to be between -1% to 0% in 2009.
NWC Guidelines for 2009/2010
12. Given the deep global recession, the uncertainty in the economic outlook coupled with the impact of a possible Influenza A (H1N1-2009) pandemic, we need to be prepared for the eventuality of a prolonged downturn. The NWC therefore recommends in the 2009/2010 wage guidelines that employers, unions and the government press on with concerted actions recommended in NWC's January 2009 guidelines to cut costs, save jobs and enhance competitiveness. This could be done through management leading by example in the following areas:
• Wage freeze or cut;
• Implementation of other cost cutting measures and initiatives to cope with the downturn;
• Enhancement of wage flexibility; and
• Improvement in productivity
Persist with "Cut Costs to Save Jobs"
13. The NWC strongly recommends that for companies whose business, profitability and/or prospects are affected by the economic downturn, they could, in consultation with their unions/workers, implement a wage freeze or wage cut in line with their performance and prospects, in order to help companies stay competitive and save jobs.
14. Companies which perform well should reward their workers with moderate wage increases, preferably in the form of variable payment, so that their long-term cost competitiveness would not be affected.
Implement other Cost Cutting Measures
15. The NWC notes that the Tripartite Guidelines on Managing Excess Manpower (MEM Guidelines) have recently been updated to ensure they stay relevant to help companies and workers manage any prolonged downturn. The Council endorses the updated Tripartite Guidelines and strongly urges companies with excess manpower to implement the various recommended measures such as shorter work week, temporary layoffs, no pay leave, and other work arrangements as alternatives to retrenchments. Workers should work together with employers to implement these measures so as to cut costs and save jobs.
16. In implementing such measures including wage freeze or cut, management is to lead by example.
Press on with Downturn Initiatives to Enhance Resilience
17. Since the last NWC guidelines were released in January 2009, the government has announced a $20.5 billion Resilience Package to help reduce costs and save jobs. The package includes the Jobs Credit Scheme, Workfare Income Supplement (WIS) Special Payment to help low wage workers, and various tax concessions. The MEM Guidelines have been updated, and the Skills Programme for Upgrading and Resilience (SPUR) has also been enhanced to help more professionals, managers, executives and technicians (PMETs).
18. The Council notes that these measures have been well received by employers and unions/workers, and are making a positive impact in helping companies and workers cope with the downturn, manage costs and minimise job losses. Based on feedback from companies collected by the tripartite partners at end March 2009, some 66% of the 1,900 companies that responded indicated that they had no plans to carry out any retrenchment exercise. Of the remaining 34% which had planned to carry out retrenchments, 4 out of 5 indicated that they had postponed their retrenchment decisions or reduced the number of workers affected as a result of the above measures, with only 1 out of 5 companies reporting that they had proceeded or would be proceeding with their retrenchment plans notwithstanding the downturn measures. The NWC urges employers and unions/workers to continue to tap on the various tripartite measures and initiatives available to manage the impact of the downturn, reduce costs and minimise job losses.
19. The NWC notes that there are still jobs available in some sectors which are doing well, growing or remain resilient to the current downturn. Hence, while unemployment has risen, the economy is also undergoing significant restructuring with new jobs created. In this regard, the NWC recommends that the government continue to expand the Continuing Education & Training (CET) infrastructure. Workers are encouraged to be flexible and be prepared to upgrade current skills and learn new skills. Employers are encouraged to tap on the CET system and the various assistance measures such as SPUR to upskill their manpower and build new capabilities.
20. Those who are seeking employment are advised to adjust their expectations and make career switches, if necessary, to take up available jobs. Employers too, should be open to taking in workers with little or no relevant experience, and set appropriate employment terms reflecting the market realities of their sectors. This would ensure that the growth sectors could recruit the necessary manpower, while enabling job seekers to take up meaningful employment in these sectors. There are many schemes under SPUR to help employers recruit and train new workers, such as SPUR-JOBS and Professional Skills Programme (PSP)-Traineeship. Employers should leverage fully on such schemes.
21. Besides implementing the above measures, the NWC also urges the government and companies to continue to look at ways to reduce non-wage costs so as to lower the overall business costs and enhance Singapore's competitiveness.
Enhance Wage Flexibility
22. Companies are encouraged to make use of components of the flexible wage system, including the Monthly Variable Component (MVC), to manage total wage cost. MOM's 2008 Survey on Annual Wage Changes indicates that companies with MVC in their wage structure are better able to gain employees' acceptance of a wage cut if it has to be implemented, compared to companies without MVC. To encourage more companies to implement MVC, the NWC endorses the recommendation in the MEM guidelines that companies could implement a cut in basic wages by introducing it as a reduction in MVC. This would enable these companies to take the opportunity to introduce MVC and make their wages more flexible. Companies doing so should work with the unions/workers to set guidelines on restoring the MVC from future wage increases or adjustments when businesses recover.
Improve Productivity
23. The NWC notes with concern that labour productivity growth has shown a downward trend over the last four years, and labour productivity has in fact contracted in the last two years. This could affect longer term competitiveness. There is a pressing need to address this issue so that future wage increases can be supported by productivity gains, and be sustainable and competitive over the longer term. In this regard, the Council strongly urges companies to ride on this downturn to enhance their productivity, through innovation, best sourcing, service excellence and developing the workforce to be highly skilled, productive and flexible. Companies can improve the skills of their workforce by tapping on SPUR.
Continue with Longer Term Initiatives
24. Notwithstanding the downturn, the NWC recommends that the tripartite partners continue to push ahead with initiatives such as enhancing the employability and employment of older workers, bringing more women back to the workforce, and enhancing efforts to help low wage, contract and informal workers. We should not lose sight of these important longer term initiatives that would help to maximise the potential of our workforce, as well as improve employability and income of workers.
Prepare for Upturn
25. The Council urges companies to maximize the use of the current slack manpower conditions to improve the skills of their workforce. This is critical to raising their competitiveness when the global economy recovers. Companies and workers must not delay in participating in SPUR to upgrade skills and capabilities so that they would be in a stronger position for the recovery.
Application of NWC's Recommendations
26. The NWC recommendations cover the period from 1 July 2009 to 30 June 2010.
27. These recommendations are applicable to all employees – management, executives and rank-and-file employees, unionised and non-unionised companies in both the public and private sectors.
28. To facilitate wage negotiation, companies should share relevant information on company performance and business prospects with employees and their representatives.
Conclusion – Strong Tripartism To Overcome Adversity
29. Singapore's pragmatic and pro-active response to the recession, supported by our strong tripartite spirit, has brought about significant and positive impact on companies and workers. The various tripartite initiatives implemented over the past few months have resulted in many companies implementing alternative measures to retrenchment, therefore minimising job losses to workers.
30. The outlook remains uncertain. However, the NWC is confident that the solidarity shown by the tripartite partners in working together to address the downturn will continue to prevail and enable the smooth implementation of the NWC guidelines. This high level of co-operation, trust and understanding among the government, employers and unions will give confidence to businesses and investors, and better differentiate Singapore from other economies. More importantly, it will enable Singapore to emerge stronger, more robust and more resilient while helping to minimise job losses, and strengthen our competitiveness and capability for a better future for all.
31. The NWC looks forward to the Government's acceptance of its recommendations.
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