But all companies hiring foreign workers will have to pay higher salaries for full-time Singaporean workers TODAY File Photo SINGAPORE â The services sector will get some much-needed relief from the manpower crunch: Work permit holders in the sector will be allowed job flexibility from July, and more will be considered skilled workers, incurring lower levies for their employers, Acting Manpower Minister Tan Chuan-Jin announced yesterday during his ministryâs Committee of Supply debate. However, a third measure will raise requirements for employers wanting to hire foreign workers. From July, such firmsâ Singaporean employees will need to earn at least S$1,000 a month â up from S$850 currently â to be deemed full-time employees. The number of Singaporean workers hired determines the number of foreign workers which companies are allowed to hire, subject to dependency ratio ceilings. This is to ensure Singaporean workers are âemployed meaningfully rather than being employed on token salaries just to allow the employer access to foreign workersâ, said Mr Tan. It will also have a positive effect on raising wages at the low end, said Senior Parliamentary Secretary (Manpower) Hawazi Daipi. The measures come as Mr Tan sought to provide some clarity to businesses that have been asking when Singaporeâs âGreat Foreign Workforce Tighteningâ â in the Acting Ministerâs words â would end. Three factors will be monitored as the Government manages the pace of this tightening: The growth rate of the foreign workforce, the productivity growth of the overall economy and sectors lagging behind international standards, and real wage growth of Singaporeans. The Government wants to ensure the proportion of the foreign workforce does not increase âsignificantly beyond the one-third ratio we adopted in 2010â, said Mr Tan. The number of foreign workers â excluding foreign domestic workers â grew by 67,000 last year. âThis is still too large, and we have tightened our policies further to bring it down. We will be watching the numbers closely this year, sector by sector,â he said. "To achieve the aim of growing annual productivity by 2 to 3 per cent on average this decade, Singapore needs to âwean ourselves off this heavy reliance on manpower-driven growth and raise the quality profile of the foreign workforceâ, he said. On wage growth for Singaporeans, Mr Tan said foreign labour is meant to âcomplement, not substituteâ Singaporean workers. Keeping the labour market tight and raising the cost of hiring foreign workers are two of several approaches to improve wage growth of Singaporeans over time, he said. âIf we are not able to meet these targets, we are likely to continue the tightening and restructuring approach,â Mr Tan said, reiterating that the Governmentâs approach is targeted, and the process is âadaptiveâ. From July, unskilled work permit holders in the services industry who have worked at least four years in Singapore and earn fixed monthly salary of at least S$1,600 will also be considered skilled work permit holders. About 7,800 such workers will be upgraded through this move, which will mean lower levies for their employers. Companies in the services sector also welcomed the greater flexibility for their work permit holders. Initially piloted in the hotel industry, it will apply to the entire sector from July. At Chinese restaurant group Peach Garden, servers will be able to perform other roles such as cashiering, bartending and being stationed at the reception area, said Mr TC Ho, its Assistant Director of Sales and Marketing. Staff have been generally receptive to the idea of an enlarged job scope and with one of its restaurants, at OCBC Centre, undergoing renovation next month, the company will take the opportunity to train staff in other job functions. The Manpower Ministry is working with the Singapore National Employers Federation and National Trades Union Congress on tripartite guidelines on how companies can implement job flexibility responsibly. Nominated MP Teo Siong Seng suggested allowing the services sectorâs Job Flexibility Scheme to apply across different companies and subsidiaries within the same group. This would further boost efficiency, he said. Mr Tan said suggestions would be considered during regular reviews of MOMâs schemes. He pledged to help firms adapt to a manpower-lean environment. âIn this restructuring process, we know that it will be painful and extremely challenging. But make no mistake, we want our employers, especially our small and medium enterprises, to succeed,â he said. On the new salary threshold requirement, construction firm Starlight Building Maintenance Servicesâ managing director Chris Selvam said that he would raise the salaries of his Singaporean employees earning less than S$1,000 a month in order to maintain his foreign workforce. The higher salary threshold is a lesser challenge than higher foreign worker levies in recent years, he said. Over at Don Thaker Cleaning Services, 40 to 50 per cent of its Singaporean staff earn less than S$1,000 per month â such as retirees taking up jobs to pass time â and the company will look into increasing their salaries to keep its foreign workers, who make up one-fifth of the 1,000-strong team, said assistant sales manager Wu Boon Fei. The company hopes to tap the Wage Credit Scheme to help offset costs, but Mr Wu added that wage increases also depend on clientsâ ability to pay more. By Neo Chai Chin TODAY "Like/Follow" us on Facebook or Twitter to get all the latest posts! For original article, go here To find out how we can assist you to Create Your Organization's World Class Culture Of Service Excellence, go here
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