| Introduction
- Pundits are talking about the possibility of a lost decade that is a result of a long drawn-out financial crisis, out of which a “Grave New World” could emerge. Today the collective sense is that we are only at the beginning of a long road we all need to undertake as a nation.
- The President’s key message is [pause] this is not a time to panic or resort to short term protectionist measures, but rather to focus our energies on what has allowed Singapore to succeed globally, and let’s better our competitive advantages.
- I could not agree more. During the Budget Debate earlier this year, I had said that we should use this financial crisis as an opportunity to review and re-look at the way we do things. After the excesses of the global financial industry over the past 10 years, that feeling of invincibility that proved fatal, let us refocus on the basics and strengthen our fundamentals.
Workers: Jobs and Upgrading
- The crux of our strong foundations as a nation has always been, and will always be, the strength of our people – the strength of their skills, of their mentality, and their will to combat challenges.
- On top of that we are fortunate to have strong leadership and institutions like NTUC and the CDC at the forefront in helping our workers to re-skill and upgrade them to ensure continued employability, and put retrenched workers back into employment.
- Since the beginning of this year, the CDC has seen the number of people seeking jobs doubled compared to last year: from an average of 400 per month last year to about 800 per month this year. The good news is that despite the downturn, there are jobs. But we all have to be prepared to work harder, because for every 51 positions, there are some 100 job seekers.
- Ironically, the only way to combat a “Grave New World” situation is to be even more optimistic and positive. Mindset will determine whether one lands that job or not. Stay positive. Be willing to take work beyond your scope and be proactive in searching.
- Mr. Sng Kok Tong, 40 had worked as a futures trader for 16 years, and was previously earning $5,000. He even brushed shoulders with famed rogue trader Nick Leeson, who brought down the Barings Bank. At a job fair held by the CDC in March for precision and transport engineering, Mr. Sng was looking for a job as a welder or crane-driver. The father of two said: “I started from zero. There is nothing wrong with starting from zero again. I’m prepared to retrain and work shifts and weekends for my family.”
Employers
- While workers must continue upgrading and re-skilling, companies must improve productivity by investing in capital and technology to leverage on the higher skills of our workers.
- In the last decade or so, we have seen the outsourcing practice becoming a common mode of operation for companies. Most gave cutting costs as their reason others claimed those activities are not their core business. Whatever it may, as a result many workers now end up working for contractors who are providing services that ranges from manufacturing, cleaning, landscaping, security etc.
- The numbers of contract and casual workers in Singapore have grown to more than 180,000 workers and it is still growing. Unfortunately, Mr. Speaker sir, all is not well for this group of workers.
Issues of Casual and Contract Workers
- On behalf of contract and casual workers, I would like to call upon the service buyers to be more vigilant and involved when they outsource their contracts. Recently, it was reported on 14th May that 7 employers were charged for employment violations which included unauthorised salary deductions, excessive working hours and failure to provide statutory employment benefits. Besides this 7, another 17 were also charged for similar offences earlier and are waiting for court mentions. Some of them will only pay up after multiple interventions by the authorities.
- During our interactions with workers, we do come across bad practices of employer. Often, the workers earned low wage and are lowly educated. They do not know their rights and are afraid to come forward for fear of losing their jobs. In this economic climate, contract workers are also hit. We are aware that companies may not see the need to renew their contracts due to low business volume. Companies are also impacted by the downturn and some had resorted to “cheap” sourcing as part of their cost cutting measures.
- There are many reasons why workers are short-changed. Allow me to list some of these reasons for your benefits:
- Service providers could be in financially difficulties and may lack operating funds. Some of them had too many contracts on hand and cannot deliver quality service. They get penalised for poor performance regularly and are unable to pay up those liquidated damages.
- Contracts are awarded based on the cheapest quote, and the easiest to cut cost is from salaries and benefits of workers or requesting workers to work excessive hours.
- Many contract specifications do not include requirements such as requiring service providers to provide written employment contract to workers, stating working hours, salary and benefits besides the normal performance standards. Workers also do not know their terms of employment. We have seen workers salary remaining stagnant for many years.
- This is exacerbated by the complete lack of audit or assessment on the performance of the service providers once contract is awarded e.g. check on whether there is a written employment contract for their workers and their working hours. Basic questions that could be asked by service buyers are: Why a particular worker is working 7 days per week without rest? Or why workers are not given annual leave or sick leave?
- Though these are still happening, moving forward, we believe that all is not lost. There are ways that the situation can be improved. All relevant parties that are involved in the outsourcing phenomena must play their part and not use legalistic position to excuse themselves of responsibilities.
- We feel that service buyer can help to put a stop and weed out the service providers and contractors who have been recalcitrant. Work with those with established track records because this is more sustainable and beneficial for the company in the long term.
- Check their background thoroughly as some of them can set up a new company under a different name. It is easy to register as a sole-proprietor and run a labour supplier business with low capital outlay.
- We must support genuine companies who invest in improving their operations and productivity through mechanisation to raise the productivity of workers; training their workers to increase efficiency and most importantly adhere to the employment legislation and treat the workers well.
- We have also worked with companies who are good employers and who embrace and practise the Tripartite Advisory on Responsible Outsourcing. We could tell that their workers are general happier and they can see career progression with their employers. The company is able to provide value added services to their service providers who are willing to pay for good service. Their relationship with the service buyer is win-win and both can see long term mutual benefits in their partnership.
- Though we know that such problems will continue to exist, as they say there will always be some rotten eggs, we do hope that for the rest of us, we can do our part and be more involved when it comes to helping our fellow workers to earn a decent living for themselves and for their families.
Helping the Needy: Not Descending into a Welfare State
- In the grave scenario of a lost decade, resources are tight and the social safety net will become ever more strained. But more than ever, greater numbers of people will need help.
- It will become tempting to walk down the path of welfare state. Historically, key social welfare systems that defined welfare states were created in the aftermath of difficult times. The British welfare state, embodied by the National Healthcare System (NHS) was created after World War II. The US Social Security Act was part of Franklin Roosevelt’s New Deal in response to the Great Depression.
- At the CDC, we have begun to see the signs of need– numbers seeking financial help have increased by about 40%, from 800 on the average per month in 2008 to about 1,100 per month average in 2009.
- Help is available. Last year Central Singapore CDC spent $17.6 million through national and local schemes helping some 12,000 low-income households. Together working with our 23 grassroots divisions and their ComCare Funds, and all our VWOs and social services organizations, we will tighten the network of help.
- But continuing welfare cannot be the only answer. It is only a short term solution. Again, we must revisit the fundamentals:
- Education: I applaud the move by Ministry of Education (MOE) to increase the amount of Edusave per child. I believe that given the tightest squeeze on national resources, spending on education remains sacrosanct.
- Sustainability: we have seen from other countries’ examples that a cradle-to-the-grave welfare system, of which the state is the main provider, is unsustainable. But how to balance with the growing need for assistance to low-income families, stuck in a poverty cycle?
- Community self-help as cornerstone. Back in colonial days when there are none or minimal help from government; clans, associations, religious groups filled the gap for help. Today, hope that privileged individuals, successful businesses, foundations continue to come forward to lend a helping hand.
- Coordination of resources. Need to co-opt community self-help into the larger national network of social assistance. The CDC’s ComCare Local Networks (CLN) have been doing so since 2007. Today while there are Many Helping Hands, we hope they come forward to be coordinated with the CDC, so we minimize duplication and maximize use of resources.
- Social Innovation. Fusing commercial goals with social mission, so that serving social needs becomes self-sustaining over the long run. US is leading the way. There are some social entrepreneurs here, but Singapore is still in very fledgling phase. More could be done to help social entrepreneurs fulfill their mission.
- Though I am elated by the recent announcement of more tertiary institutions for Singaporeans. I am hoping for more to be done in the pre-school sector.
Recent Developments in the Pre-school Sector
- The early childhood sector had seen many new developments in the recent months. These initiatives introduced by MCYS or MOE seek to raise the standards of the early childhood sector and enhance the accessibility and affordability of early childhood education.
- I would like to declare my position as the Executive Secretary of the Education Services Union (ESU), an NTUC affiliated union that represents private education industry employees. This also includes the preschool sector. We welcome the new initiatives rolled out by the Government which would upgrade the quality of preschool education and enhance professional status of our members in the sector.
Key Concerns of Stakeholders
- However, industry stakeholders have also raised concerns which might not be addressed in a holistic manner with roll out of these new initiatives. Over the past few months, I had the opportunity to engage extensively with two groups of key stakeholders – preschool teachers and operators.
- Teachers were concerned with the rising minimum qualifications for teachers set by MCYS and MOE. Experienced teachers without the necessary paper qualifications might be forced to leave. Others are genuinely concerned that the term “Childcare Centres” could undermine their role as teachers. Teachers were also concerned that the public, including parents, still perceived them as “nannies” and parents still might not view pre-school as being essential to a child’s educational development. They hoped for more to be done to raise awareness of the sector’s work and the professional status of the pre-school teachers.
- Operators on the other hand were very concerned with the shortage in supply of qualified teachers. Despite increasing student intake in early childhood diploma courses, the sector still sees higher attrition rate… many cited low recognition and low pay being the main reason for leaving. In addition, existing teachers without the new minimum qualifications would drop out if bridging courses are not introduced quickly. With 200 new centres targeted and estimated 2,000 job openings in childcare sector over the next five years, the sector can expect to see a potential shortage of qualified teachers in the short run.
- Operators also shared the same concern as teachers with respect to lack of public awareness of the importance of preschool education although a child would transit from preschool to primary school. Preschool teachers are as important, if not more, compared to primary school teachers. In fact, one operator related that based on the recent Influenza A experience, difference in standards adopted for childcare and primary schools was observed. For instance, in a situation whereby the primary school could still remain open but with temperature-taking measure adopted, the childcare centre had to close.
New Initiatives to improve improve image
- To this extent, we have endeavoured to work with industry partners to look into areas such as raising professionalism; improving image and pay issues; and gaining greater public recognition of preschool teachers’ work. This would complement the nation’s effort in raising standards and help attract and retain entrants into the sector.
- A workgroup comprising representatives from ESU, MCYS, MOE, WDA, e2i and other industry players was formed a few months ago to address the above issues. The workgroup’s immediate priority is to raise the profile of the sector to encourage new entrants such as PMETs who were out-placed to enter the sector.
- ESU is also working closely with e2i, WDA and operators in career briefings and recruitment talks to attract new entrants. We welcome the introduction of the accelerated diploma programmes to complement the effort of the training.
- ESU is also working closely with MCYS, MOE and WDA on an alternative to the minimum B4 ‘O’ level English requirement.
- We believe, sir that with better qualifications, the teachers’ value adds to the sector increases. In turn, parents do not feel short-changed when centres raise fees to cover the increase in teachers’ salaries.
- The sector hopes for greater support from the Government to raise the profile of the preschool sector and for more recognition of the contribution of preschool teachers and that all stakeholders viewed and treasured them as Pre-school Professional.
Appreciating One Another (Social Fabric)
- Competition amongst different interests for limited resources will be brought more starkly into relief during difficult times. We must prevent stresses on our social fabric by appreciating one another more during these times:
- Accept, even embrace, our differences – be they national, race, religious, upbringing etc – as they make Singapore a unique multi-cultural society. By all means, hold on to your beliefs and views, but respect the fact that not everybody will share them. Agree to disagree.
- Be welcoming of foreign friends, PRs and new citizens. They are not here to steal your jobs, but to make an honest living and contribute back to Singapore.
- Smile more. Be gracious. We could all use some uplifting during these difficult times.
- Those mandatory unpaid leave could be a blessing in disguise to spend more time with your family and friends to reconnect.
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