Serious John Tan Points Out Problems In Progressive Wage Model And How Towkay Handle

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An honorable member of the Coffee Shop Has Just Posted the Following:

According to NTUC, 473 companies had adopted the PWM by last September, whether because it was mandatory they do so, or whether it was a voluntary move by them.

That is over 200 more than in November the year before, which was just two months after the model was introduced for cleaners.

But much more could be done.

Indeed, only 18 per cent of companies followed NWC recommendations in giving their low-wage workers a pay rise of at least $60 last year.

Company bosses in cleaning, security and landscaping say they welcome the PWM in principle, but repeat gripes that they are being squeezed by those who hire their services.

They also lament that even as they try to adjust to the higher wages and training requirements, they do not see a concomitant increase in productivity.

Mr Dennis Tan, general manager of cleaning firm LS 2 Services, says that his attempt to follow the wage model has cost him "so many contracts, I lost count".

Of rival firms which undercut him in tender bids, he says: "I don't know how they arrive at the price while still under the PWM. Maybe they lose money, or miscalculate."

Mr John Tan, who runs landscape firm Esmond, says clients are reluctant to recognise they need to fork out more to invest in better quality.

"If you look at the tender price from 10 years ago, it hasn't gone up," he says. "We keep paying our workers higher and higher, yet you never change."

For LS 2, investing in technology such as in two scrubbing machines it spent $15,000 on last month, has helped meet faster turnaround times demanded by clients.

But Mr Tan is unsure he can say the same for training his workers.

"Most of my cleaners are senior citizens aged 60 and above," he says. "They are not keen on training, so they just go through the motions."

Staff must do their part to stay on top of the productivity drive, says NTUC. It tells The Sunday Times: "Workers must embrace lifelong learning to be future-proof. They must go for continuing training to remain relevant."

Employers are not short of help when it comes to funding to step up training and technology, with a slew of schemes they can tap, such as the Inclusive Growth Programme.

The $100 million fund, started by the labour movement in 2010, is meant to help industries redesign and improve productivity, while gains are shared with workers through higher wages.

But for some firms, especially in security, it is often hard to convince clients that technology, not warm bodies, is the way to go.

Says Security Association (Singapore) president T. Mogan: "Buyers want a more hands-on effect, they want to see three people guarding day in, day out.

"If somebody breaks in, they will say, 'Look what happened because you asked us to depend on systems.'"

Mr Mogan has in the past disagreed with the labour movement over the PWM, although he now insists his comments were misconstrued. It was not that he did not want the wage hikes, he says, only that he thought firms needed more time to make them happen.

Has the Sept 1 deadline for the security industry given them that breathing space?

"No," he says. "We need at least another year and a half."



THE ISSUE OF CHEAP SOURCING

One thing the PWM has failed to solve is "cheap sourcing", a phenomenon prevalent in all three sectors.

Companies bidding for service contracts often suppress workers' wages so they can keep prices low and win tenders.

Some workers thus find their wages being "reset" whenever contracts are renewed every three years.

The wage increments they received in those years, along with additional days of leave or benefits such as annual wage supplements, are cut back to what they were originally.

Mr Zainal points out that those purchasing these firms' services hold the upper hand in determining how much the latter can afford to pay their workers.

He has repeatedly called for the Government to lead the way and show "concrete proof" that when the Government itself outsources services, it takes into consideration not just price, but how responsibly the service provider treats workers.

In the latest NWC guidelines last month, the Government said it will lead by example and "strongly encourages suppliers to the public sector to adopt NWC recommendations on wage increments for their workers".

Mr Zainal calls this a positive step. "There is still the challenge of the private sector, but we hope they can take their cue from the public sector," he says.

Mr Milton Ng, president of the Environmental Management Association of Singapore, suggests service buyers build a "cost-escalation clause" into their contracts, one which takes into account yearly wage increments.

Buyers could also consider longer-term contracts so that companies and their workers would be in less of a state of flux, he says.

http://www.straitstimes.com/singapor...t-a-magic-wand


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