<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>Jan 18, 2009
For building firms, it's...
</TR><!-- headline one : start --><TR>So little work, so many workers
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Nur Dianah Suhaimi
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Many private-sector projects have been delayed or cancelled due to the downturn, leaving construction companies that brought in foreign workers when prospects were markedly brighter last year in a fix with no work for their workers. -- ST PHOTOS: ALPHONSUS CHERN, SAMUEL HE
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->It is building up to be a problem of mismatch.
Construction companies are staring at little or no work, but have too many foreign workers on their hands.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>In a jam
'It's very difficult for employers right now. We don't want to send our foreign workers home before their contracts end. We know they took up huge debts to come here. But we cannot afford to keep them here either.'
Founder of one construction company
</TD></TR></TBODY></TABLE>The workers were brought in when prospects were markedly brighter. At the moment, at least, the industry is seeing a drop in activity given the global economic slowdown.
The Building and Construction Authority (BCA) recently projected that the value of contracts awarded by the private industry will drop from $20.1 billion last year to between $5 billion and $9 billion this year.
The bleaker times are reflected by the fact that all 10 construction firms that The Sunday Times spoke to admitted that projects now are scarce.
Most did not want to be named for fear they will be blacklisted by the Ministry of Manpower (MOM) and barred from employing foreign workers in future.
This is because companies are supposed to have work for their workers when they apply for work permits. They are also not allowed to deploy their workers to another occupation or employer.
The firms said that many private-sector projects have been delayed or cancelled due to the downturn. For example, developers have put residential projects on the back-burner since the fourth quarter last year when home prices fell.
While they are hoping to secure some of the government projects expected to come on stream in the middle or end of this year, some may not have any work in the interim.
For those with ongoing private-sector projects, the flip side is that these will be completed in the next few months.
The companies said having excess workers is a huge problem because they cannot afford to pay idle workers but the latter may also get the firms into trouble if they try to find work elsewhere.
Said the founder of one construction outfit: 'It's very difficult for employers right now. We don't want to send our foreign workers home before their contracts end. We know they took up huge debts to come here. But we cannot afford to keep them here either.'
At least one firm, Tunnel & Shaft, has sent 55 of its 200-plus foreign workers home on a 'two-month holiday' without terminating their contracts. It gave them $1,000 compensation each.
They were recruited last year in anticipation of two major projects, estimated to be worth $20 million, but these have been delayed.
Said director Ben Sim: 'They are good and hard-working workers. But we really have no choice.'
It hopes to bring them back when there is work. One of its directors has flown to the Middle East to look for projects.
Another firm is putting two to three people on tasks usually done by one person because 'at least there is work for everyone', said its director.
Having work is so crucial that one construction firm - with three projects - is worried they are ahead of schedule.
'We're usually happy if we are ahead of schedule but now, we are not. Our workers still have four or five months left on their contracts and there will be no more work for them after these projects are done,' said the manager.
MOM said that as long as companies keep their workers here, they will have to pay salaries and be responsible for their welfare, regardless of whether there is work.
Said a spokesman: 'MOM will take to task companies which knowingly recruit foreign workers when there is no work for them, including taking prosecution action. MOM will also debar such errant employers from hiring new foreign workers, as well as revoke all existing work permits applied for by the company.'
In the past few months, there have been several cases of foreign workers turning to the authorities for help.
Their complaints include being unpaid, unfed, having little hope of finding work and in some cases, being poorly housed, if at all. At least five companies are facing charges for offences ranging from pay delay to illegally deploying foreign workers.
For building firms, it's...
</TR><!-- headline one : start --><TR>So little work, so many workers
</TR><!-- headline one : end --><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Nur Dianah Suhaimi
</TD></TR><!-- show image if available --><TR vAlign=bottom><TD width=330>
</TD><TD width=10>
Many private-sector projects have been delayed or cancelled due to the downturn, leaving construction companies that brought in foreign workers when prospects were markedly brighter last year in a fix with no work for their workers. -- ST PHOTOS: ALPHONSUS CHERN, SAMUEL HE
</TD></TR></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->It is building up to be a problem of mismatch.
Construction companies are staring at little or no work, but have too many foreign workers on their hands.
<TABLE width=200 align=left valign="top"><TBODY><TR><TD class=padr8><!-- Vodcast --><!-- Background Story --><STYLE type=text/css> #related .quote {background-color:#E7F7FF; padding:8px;margin:0px 0px 5px 0px;} #related .quote .headline {font-family: Verdana, Arial, Helvetica, sans-serif; font-size:10px;font-weight:bold; border-bottom:3px double #007BFF; color:#036; text-transform:uppercase; padding-bottom:5px;} #related .quote .text {font-size:11px;color:#036;padding:5px 0px;} </STYLE>In a jam
'It's very difficult for employers right now. We don't want to send our foreign workers home before their contracts end. We know they took up huge debts to come here. But we cannot afford to keep them here either.'
Founder of one construction company
</TD></TR></TBODY></TABLE>The workers were brought in when prospects were markedly brighter. At the moment, at least, the industry is seeing a drop in activity given the global economic slowdown.
The Building and Construction Authority (BCA) recently projected that the value of contracts awarded by the private industry will drop from $20.1 billion last year to between $5 billion and $9 billion this year.
The bleaker times are reflected by the fact that all 10 construction firms that The Sunday Times spoke to admitted that projects now are scarce.
Most did not want to be named for fear they will be blacklisted by the Ministry of Manpower (MOM) and barred from employing foreign workers in future.
This is because companies are supposed to have work for their workers when they apply for work permits. They are also not allowed to deploy their workers to another occupation or employer.
The firms said that many private-sector projects have been delayed or cancelled due to the downturn. For example, developers have put residential projects on the back-burner since the fourth quarter last year when home prices fell.
While they are hoping to secure some of the government projects expected to come on stream in the middle or end of this year, some may not have any work in the interim.
For those with ongoing private-sector projects, the flip side is that these will be completed in the next few months.
The companies said having excess workers is a huge problem because they cannot afford to pay idle workers but the latter may also get the firms into trouble if they try to find work elsewhere.
Said the founder of one construction outfit: 'It's very difficult for employers right now. We don't want to send our foreign workers home before their contracts end. We know they took up huge debts to come here. But we cannot afford to keep them here either.'
At least one firm, Tunnel & Shaft, has sent 55 of its 200-plus foreign workers home on a 'two-month holiday' without terminating their contracts. It gave them $1,000 compensation each.
They were recruited last year in anticipation of two major projects, estimated to be worth $20 million, but these have been delayed.
Said director Ben Sim: 'They are good and hard-working workers. But we really have no choice.'
It hopes to bring them back when there is work. One of its directors has flown to the Middle East to look for projects.
Another firm is putting two to three people on tasks usually done by one person because 'at least there is work for everyone', said its director.
Having work is so crucial that one construction firm - with three projects - is worried they are ahead of schedule.
'We're usually happy if we are ahead of schedule but now, we are not. Our workers still have four or five months left on their contracts and there will be no more work for them after these projects are done,' said the manager.
MOM said that as long as companies keep their workers here, they will have to pay salaries and be responsible for their welfare, regardless of whether there is work.
Said a spokesman: 'MOM will take to task companies which knowingly recruit foreign workers when there is no work for them, including taking prosecution action. MOM will also debar such errant employers from hiring new foreign workers, as well as revoke all existing work permits applied for by the company.'
In the past few months, there have been several cases of foreign workers turning to the authorities for help.
Their complaints include being unpaid, unfed, having little hope of finding work and in some cases, being poorly housed, if at all. At least five companies are facing charges for offences ranging from pay delay to illegally deploying foreign workers.
