SINGAPORE: Foreign worker levies were raised in last
year's Budget. All the changes would have been implemented next
July.
Depending on the sector companies are in and how
reliant they are on foreign workers, companies will pay between 250
and 750 dollars more in levies per worker.
To reduce dependency on foreign workers, companies
are being urged to raise productivity.
In addition, they are encouraged to tap on older workers,
back-to-work women, part timers and the disabled.
The Employment Act is also being reviewed in response to the needs
of a changing workforce.
Phase one of the review is expected to be completed in 2013, and
the second phase will likely commence in the last quarter of next
year.
The labour movement wants the Act to be extended to cover the
growing numbers of professionals, managers and executives
(PMEs).
Some have urged the government to be more flexible and adjust
foreign worker numbers according to business conditions.
Analysts warn there could be more companies that will shift
elsewhere, downsize or even close down with the tightening
measures.
Mech-Power is one of many local companies that has endured the
labour crunch. It moved a large part of it operations to Johor to
cope.
Cliff Loke, managing director of Mech-Power said: "Whenever we have
an overload of work, we just put out a (recruitment) banner outside
the factory and we get a lot of workers coming after us for the
job. Also, the labour cost is much cheaper than in
Singapore."
Acting Manpower Minister Tan Chuan-Jin indicated the pace of labour
restructuring will also be a factor in tightening measures.
"We will work with companies to transit and we will look at the
various measures in place and to see whether we will continue to
tighten (foreign labour). So, a lot depends on demand," said Mr
Tan.
"Will demand ease off? Will restructuring take place? So this is
something we will continue to track and we will continue to effect
these levers (in tightening labour) over time."
Policies are also being changed to improve the welfare and
well-being of foreign workers.
Starting 1 January 2013, foreign domestic workers will get a
mandatory day off.
Employment agencies said this can attract more foreign maids to
work in Singapore.
"Singapore employers are very fearful of what the domestic workers
are going to be doing on their (rest days). I think there's a fear
factor they seem to have, but we need to trust the person who's
working in our homes," said K Jayaprema, president of Association
of Employment Agencies Singapore.
"What an employer can do is to guide these domestic workers. They
can also look at skills upgrading. There're so many courses
available for these domestic workers."
In November, 171 bus drivers from China went on strike. It was the
first strike in 26 years in Singapore.
The drivers were unhappy about pay and living conditions.
The government considered the strike as an illegal one as public
transport is an essential service and sufficient notice of the
intent to go on strike is needed.
Observers believe Singapore's international reputation has not been
dented.
"I think the long-term repercussion (of the strike) is quite
minimum but should another episode happen, then I'm not very sure,"
said Assoc Prof Tan Khee Giap, co-director at Asia Competitiveness
Institute.
To prevent such an episode from happening again, employers have
been urged to review their grievance-handling procedures.
- CNA/xq
