- Joined
- Jul 24, 2008
- Messages
- 33,627
- Points
- 0
Mar 25, 2010
Why labour mobility may be difficult
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
AT A tripartite dialogue last Friday ('Squeezing wages not the way to cut costs'; Saturday), Minister in the Prime Minister's Office Lim Swee Say noted that workers should be valued as assets, especially given the tighter labour market stemming, in part, from the Government's decision to restrict the previously liberal influx of foreign workers.
The labour chief also cautioned businesses against depressing wages to defray rising business costs posed by higher foreign worker levies among others.
He pointed out that 'workers have two hands to work, but they also have two legs to walk', implying that workers could and would change employers if their wages fall below the market rate.
In reality, however, labour mobility remains a luxury, not a given.
For one thing, unskilled and low-skilled elderly workers do not have the bargaining power to negotiate for wages 'at the market rate'. This group often must accept low wages or lose their jobs. Their condition is reflected in the Ministry of Manpower's 2007 Report on Wages in Singapore, which stated that the median gross wage for workers such as cleaners and labourers has remained stagnant for the past decade.
There is thus little reason to believe that wages of these workers would not be squeezed, let alone improved significantly, despite a tightened labour market.
Foreign workers constitute another group who can ill afford to walk out on their bosses if they experience appalling work conditions, abuse and uncompetitive wages. Employers or employment agents often keep foreign workers' passports, even when illegal to do so. This restricts their mobility.
Also, the current work permit system allows foreign workers to work only for the employer stated on their work permits. This means they must apply for a fresh work permit - incurring additional debt to agents for new job placements - should they wish to change employers.
Labour mobility thus rings hollow in the absence of stronger enforcement measures to keep errant employers and agents in line, and reforms to the work permit system.
Ong Yanchun (Ms)
Why labour mobility may be difficult
<!-- by line --><!-- end by line -->
<!-- end left side bar --><!-- story content : start -->
AT A tripartite dialogue last Friday ('Squeezing wages not the way to cut costs'; Saturday), Minister in the Prime Minister's Office Lim Swee Say noted that workers should be valued as assets, especially given the tighter labour market stemming, in part, from the Government's decision to restrict the previously liberal influx of foreign workers.
The labour chief also cautioned businesses against depressing wages to defray rising business costs posed by higher foreign worker levies among others.
He pointed out that 'workers have two hands to work, but they also have two legs to walk', implying that workers could and would change employers if their wages fall below the market rate.
In reality, however, labour mobility remains a luxury, not a given.
For one thing, unskilled and low-skilled elderly workers do not have the bargaining power to negotiate for wages 'at the market rate'. This group often must accept low wages or lose their jobs. Their condition is reflected in the Ministry of Manpower's 2007 Report on Wages in Singapore, which stated that the median gross wage for workers such as cleaners and labourers has remained stagnant for the past decade.
There is thus little reason to believe that wages of these workers would not be squeezed, let alone improved significantly, despite a tightened labour market.
Foreign workers constitute another group who can ill afford to walk out on their bosses if they experience appalling work conditions, abuse and uncompetitive wages. Employers or employment agents often keep foreign workers' passports, even when illegal to do so. This restricts their mobility.
Also, the current work permit system allows foreign workers to work only for the employer stated on their work permits. This means they must apply for a fresh work permit - incurring additional debt to agents for new job placements - should they wish to change employers.
Labour mobility thus rings hollow in the absence of stronger enforcement measures to keep errant employers and agents in line, and reforms to the work permit system.
Ong Yanchun (Ms)
