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Contracts: 'It's about quality, not cost'
http://4.bp.blogspot.com/_oTICXL0V4bA/TFbFLo9t3EI/AAAAAAAABrw/Jg0qeC53zmI/s1600/say.my.jpg
THE outcry by Tampines North residents over standards of cleanliness in their housing estates has led labour chief Lim Swee Say to take issue with the way town councils award contracts.
He said their complaints proved the labour movement's tenet of emphasising quality over cost.
If town council cleaning contracts are awarded to the lowest bidder rather than the best, 'nobody wins', he argued yesterday at a National Trades Union Congress (NTUC) event on how to help low-wage workers.
Mr Lim brought up the case of the sloppy cleaners to defend the NTUC's approach to improving the lot of low-wage workers, which emphasises cooperation and negotiation with employers.
'In case you have any doubt, the simple truth is this: That particular zone did not award the cleaning contract on the basis of best-sourcing,' he said, referring to the practice of hiring contractors who can provide high-quality - not the cheapest - service.
'This tells us that our message on best-sourcing will be rewarded. Those with the bad habit of cheap-sourcing will be penalised.'
But according to Tampines North MP Ong Kian Min, this is an inaccurate interpretation.
Contacted by The Straits Times, he acknowledged the cleaning contractor had submitted the lowest bid. But he disputed that cost was the reason the firm was awarded the contract.
'It is one factor, but we also look at track record, resources, financial capability and other factors.'
He said that although the contractor had no experience in HDB estate work, 'we chose to give them a chance as they have a strong record in cleaning industrial and commercial buildings'.
However, the lack of experience meant workers took longer to clean the estates, and labour shortage, as the economy rebounded this year, also caused problems, Mr Ong said.
'In hindsight, it's easy to allege that this happened because you gave the contract to the lowest bidder. But even if you do not, it's no guarantee that you will not fail,' he said, adding that Tampines North contracts had been awarded to the lowest bidder in previous instances with no adverse consequences.
Mr Lim argued that 'cheap-sourcing' depresses wages, hence asking employers to avoid going for the low-cost option will help workers in the long run.
He said the labour movement can use strategies like 'best-sourcing' to better the lot of the rank and file, rather than pressing for a minimum wage, because of its close ties with employers and the Government.
Mr Lim made the point in response to a unionist who had asked why NTUC was against minimum wage when unions in other countries typically call for one.
NTUC could not promote skills upgrading if there were no resources such as the Workforce Development Agency to provide a training framework, or if the Government did not commit to giving Workfare Income Supplement for low-wage workers, he said.
'Many labour movements are not in the position to push for minimum skill because they do not have the tripartite partnership,' Mr Lim said, referring to cooperation between the unions, the Government and employers.
'It's important that we recognise our strengths,' he summed up. 'We can tackle this problem of low-wage workers in a uniquely Singapore way.'
RACHEL CHANG
http://4.bp.blogspot.com/_oTICXL0V4bA/TFbFLo9t3EI/AAAAAAAABrw/Jg0qeC53zmI/s1600/say.my.jpg
THE outcry by Tampines North residents over standards of cleanliness in their housing estates has led labour chief Lim Swee Say to take issue with the way town councils award contracts.
He said their complaints proved the labour movement's tenet of emphasising quality over cost.
If town council cleaning contracts are awarded to the lowest bidder rather than the best, 'nobody wins', he argued yesterday at a National Trades Union Congress (NTUC) event on how to help low-wage workers.
Mr Lim brought up the case of the sloppy cleaners to defend the NTUC's approach to improving the lot of low-wage workers, which emphasises cooperation and negotiation with employers.
'In case you have any doubt, the simple truth is this: That particular zone did not award the cleaning contract on the basis of best-sourcing,' he said, referring to the practice of hiring contractors who can provide high-quality - not the cheapest - service.
'This tells us that our message on best-sourcing will be rewarded. Those with the bad habit of cheap-sourcing will be penalised.'
But according to Tampines North MP Ong Kian Min, this is an inaccurate interpretation.
Contacted by The Straits Times, he acknowledged the cleaning contractor had submitted the lowest bid. But he disputed that cost was the reason the firm was awarded the contract.
'It is one factor, but we also look at track record, resources, financial capability and other factors.'
He said that although the contractor had no experience in HDB estate work, 'we chose to give them a chance as they have a strong record in cleaning industrial and commercial buildings'.
However, the lack of experience meant workers took longer to clean the estates, and labour shortage, as the economy rebounded this year, also caused problems, Mr Ong said.
'In hindsight, it's easy to allege that this happened because you gave the contract to the lowest bidder. But even if you do not, it's no guarantee that you will not fail,' he said, adding that Tampines North contracts had been awarded to the lowest bidder in previous instances with no adverse consequences.
Mr Lim argued that 'cheap-sourcing' depresses wages, hence asking employers to avoid going for the low-cost option will help workers in the long run.
He said the labour movement can use strategies like 'best-sourcing' to better the lot of the rank and file, rather than pressing for a minimum wage, because of its close ties with employers and the Government.
Mr Lim made the point in response to a unionist who had asked why NTUC was against minimum wage when unions in other countries typically call for one.
NTUC could not promote skills upgrading if there were no resources such as the Workforce Development Agency to provide a training framework, or if the Government did not commit to giving Workfare Income Supplement for low-wage workers, he said.
'Many labour movements are not in the position to push for minimum skill because they do not have the tripartite partnership,' Mr Lim said, referring to cooperation between the unions, the Government and employers.
'It's important that we recognise our strengths,' he summed up. 'We can tackle this problem of low-wage workers in a uniquely Singapore way.'
RACHEL CHANG
