Flawed job credit scheme helps employers more than workers

[Avantas]

The much vaunted Job Credit Scheme which costs taxpayers $4.5 billion dollars to save jobs will help employers more than workers.

Speaking in Parliament today during the Budget debate, Workers’ Party MP Low Thia Kiang criticised the Jobs Credit scheme, saying it will indirectly favour big companies which may still be profitable and have no intention of retrenching workers.

“Are we using our reserves to increase the profits of profitable companies in this downturn?” he asked, citing the $6.8 million annual cash grant Sheng Siong supermarket will get under the scheme, which pays employers a cash grant of 12 per cent of the first $2,500 of a worker’s wage to keep him on the payroll. (read full report here)

The Job Credit Scheme provides a blanket grant to all companies without assessing their financial situation on the ground and could end up helping big government-linked companies like NTUC instead of smaller SMEs where help is more acutely needed.

Larger companies with more workers on their payroll will use up more cash grants from the Job Credit Scheme which may be used to finance other aspects of their operations instead of benefitting the workers directly.

Read rest of article here:

http://wayangparty.com/?p=4819

 

[ksgd0717]

<<Speaking in Parliament today during the Budget debate, Workers’ Party MP Low Thia Kiang criticised the Jobs Credit scheme, saying it will indirectly favour big companies which may still be profitable and have no intention of retrenching workers.>>

LTK educating voters what is nominated & domestic sub-contractors. since he is sar 2 orang only, i should be fair to him. any voters just have take a walk at grassroot heng community park will understand why the Jobs Credit Scheme is Flawed.

 

[newyorker88]

The much vaunted Job Credit Scheme which costs taxpayers $4.5 billion dollars to save jobs will help employers more than workers.


Larger companies with more workers on their payroll will use up more cash grants from the Job Credit Scheme which may be used to finance other aspects of their operations instead of benefitting the workers directly.

Read rest of article here:

http://wayangparty.com/?p=4819

The idea is to ask companies not to let go workers. Unfortunately, it will not help since there is no demand for goods, and what is the best way to cut cost? Get rid of unnecessary workers and items.

So PAP better pray for a faster recovery.