big companies : why u only offer contract ?

last SG · 2008-02-19T14:55:15+00:00

I guess i should go too. I'm looking for a better paying job with less work, less responsibilities, shorter hours and more benefits. Since everyone is sayin...

Reddressman. SG

Hi,

I am talking about LARGE WORLD CLASS MNCs.

why they only offer contract positions and keep saying headcount freeze?

My cousin got a job offer today but he wanted permanent position and even willing to lower salary for that kind of position. The pay for contract is good but somehow, large MNCs are not offering permanent ones. At least very rare.

I could not explain the why.

need some insights from you, the esteemed forummers.

Is it that some idoits have spoilt the market or encouraged or enabled the large MNCs to protect their turnover rate by not offering permanent whereby contracting offers large mnc's to hire-and-sack at will without worry to answer for it?

thanks!

BangHong SG

they want to have the rights to employ anyone they like. they can dont re-contract u if you are old, need more benefit etc.. that simple

HyperFocal SG

... it's Employers' Market currently, and they want to have the ability to replace employees with cheaper ones from the ever growing pool of applicants in the market...

... why this is happening and continues to, is basically continuously rising Operating Costs...

... look at the rediculous Rental Hikes Harvey Norman and all the other electrical appliance retailers has to face annually!

... government saturates the market with cheap Foreign Labour so that they can keep raising these operating costs...

eagle SG

You generalise just from the case of your cousin alone? And your cousin how old? Education background? And which MNC is that? What is the job scope?

There are just too many factors for a decision to be made by HR personnels.

curryman SG

i got offered perm position for my lst job....

not yet grad also... depends on company lah..but mine MNC also.

im FT from msia. dun be angry..thats life..if i dun take the offer..PRCs or other FT will take.

sgdiehard SG

... it's Employers' Market currently, and they want to have the ability to replace employees with cheaper ones from the ever growing pool of applicants in the market...

... why this is happening and continues to, is basically continuously rising Operating Costs...

... look at the rediculous Rental Hikes Harvey Norman and all the other electrical appliance retailers has to face annually!

... government saturates the market with cheap Foreign Labour so that they can keep raising these operating costs...

Your first para is absolutely right. MNC always want to replace employees with cheaper cost workers .

But, salaries of permanent staff under employment are fixed costs, not operating costs! MNCs wants to keep wage costs low, salaried staff need increment everyear, plus bonus. contract wages are fixed for the period of the contract unless otherwise stated; salaried staff when retrenched, retrenchment payment has to be paid while contract staff can be terminated and all payments are stated in the contract.

If MNC cannot find cheaper salaried staff, they will move!! to indonesia, vietnam, china, india...you can't force MNC to stay.

you can blame the government, the FT, but ultimately it is the MNCs who decide if they want to pay a slightly higher costs for singaporeans, or keep the costs low on local staff and save the money to pay for the expat's housing, children, country club, home leave..... blame the MNCs, no, cannot, because they are angmoh!

Rentals are operating costs. Have retailers been paying rental hikes annually, or only recently?

Your last paragraph is contradicting, cheap foreign labours are working on contracts, actually contributing to low operating costs. How can cheap labour increase operating costs?

HyperFocal SG

Your last paragraph is contradicting, cheap foreign labours are working on contracts, actually contributing to low operating costs. How can cheap labour increase operating costs?

... well, it's simple; since operating costs are directly & indirectly influenced by government, and since these opreating costs can never go down, the government ensures there is ample supply of cheap labour available to offset running costs - constant down trimming labour costs to accomodate other rising operating costs...

phil30k SG

Redress, MNCs pay you what you're worth and put you on contract so that you don't get complacent and keep working so that your contract gets renewed.

Bang Hong is also right. That's why you ask for more pay as insurance against those times.

I didn't understand Hyper's post.

Curryman, an FT from malaysia working in a singapore company isn't exactly relevant to MNC discussion.

Sgdiehard, I agree with many of the points you made. Including not being able to understand Hyper ;)

Hyper, while I agree with the point you make, I think it's not complete and a little misleading.

Doubletalk SG

I don't know... maybe it has something to do with... contract of service and contract for service...

sgdiehard SG

Not all operating costs are influenced by government.

Operating costs goes up and down according to market forces.

Sounds like you need to thank the government for the supplies of cheap labour costs to accommodate other rising op costs.

Reddressman. SG

You generalise just from the case of your cousin alone? And your cousin how old? Education background? And which MNC is that? What is the job scope?

There are just too many factors for a decision to be made by HR personnels.

And as always this is your excuse, reason or what not you use to justify whatever is happening? as always. u basically always give excuses to cover white sss's.

Reddressman. SG

Not all operating costs are influenced by government.

Operating costs goes up and down according to market forces.

Sounds like you need to thank the government for the supplies of cheap labour costs to accommodate other rising op costs.

its due to pro-business ideology in my personal opine.

whatever u say never surprise me.

eagle SG

And as always this is your excuse, reason or what not you use to justify whatever is happening? as always. u basically always give excuses to cover white sss's.

This is not an excuse. Do you or do you not understand the simple meaning of generalisation? Do you mean to say that if you see a motorcyclist driving dangerously, you can claim that ALL motorcyclists drive dangerously? Obviously, you do not know what is meant by justifying your statements. If you cannot answer questions on your friend background, I see no point in us discussing. As pointed out in another thread, age does play a role, and so do experience and education. You are making it sound like even fresh university graduates cannot get a perm job, but instead, only a contract job, something which I can safely claim that it is not true.

eagle SG

Reddressman, just like I have questioned and provided you contacts to the MPs for asking your questions, I can give you the location of the next job fair for these so called "Big Companies". Yes, IBM, Intel, Makino etc.

You can come to the job fair in NUS MPSH on 21~22 Feburary to question the big companies. I can wait for you at Clementi Station to bring you there if you do not know how to go.

But I guess you rather sit at home in front of your computer and bark like a little dog without knowing what is going on at all.

extrinsic SG

i dunno abt most, but tink it from the company perspective.

u r viewing them as "contract companies" also. dare you say you will work till you retire in that company? If no, it means u r giving the company a contract also.

As such, fair that the company give u a contract too.

and if u say no choice, u will leave the com when other com offers you higher pay, then from the com perspective, is equal to they can hire your calibre at lower pay.

curryman SG

the way i see it.

companies offer contracts so that it is easier to predict costs.

eagle SG

i dunno abt most, but tink it from the company perspective.

u r viewing them as "contract companies" also. dare you say you will work till you retire in that company? If no, it means u r giving the company a contract also.

As such, fair that the company give u a contract too.

and if u say no choice, u will leave the com when other com offers you higher pay, then from the com perspective, is equal to they can hire your calibre at lower pay.

Viewpoint of companies nowadays: We don't expect your undying loyalty, and we are not sure if we want it.

Chin Eng SG

it all has to do with how budget is done.

headcount freeze - common thing, it is to please the accounting folks, the top bosses and the shareholders. a company has to be seen doing the right thing during tough times. however work still has to be done. by offering temp positions, the money that is to paid may not come from the budget for full time staff.

temp/contract staff - this is a quick fix for tough times. allow the company to keep going but not to be seen as expanding headcount. also many projects are time sensitive, by offering contract, once the job is done, the company is under no obligation to employ the individual

however, it must be noted that in many cases, good temp staff get to be offered full time job.

Genie99a SG

Not all operating costs are influenced by government.

Operating costs goes up and down according to market forces.

Sounds like you need to thank the government for the supplies of cheap labour costs to accommodate other rising op costs.

I'll agree with this one

Singaporean wages should be kept low to accomodate inflation ..... so that we can have cheap food when we come back to Singapore

sgdiehard SG

I'll agree with this one

Singaporean wages should be kept low to accomodate inflation ..... so that we can have cheap food when we come back to Singapore

Huhh...you need to come to Singapore to have cheap food? you must be pretty desperate. Anywhere in Asia, the food is cheaper, and better than in Singapore, except may be chicken rice and hokkien mee. Like that you better do your own cooking, there is no labour cost.