Sunday, July 29, 2007

Dirty Little Secret in Our Golden Period....

In other countries, the top leaders are subjected to a high level competition and low income workers are protected with safety nets. In Singapore elite leaders are protected from competition and our low income workers exposed to intense competition. We end up with leaders with the highest salaries in the world and low income workers with barely enough to eat!

Well I guess we have a system that is fair, since there is no MINIMUM WAGE for our low income workers, there shouldn't be a MAXIMUM WAGE for our elite leaders. I wonder what will happen if we import the best leaders from around the world to run Singapore Inc and give them the single goal of making life as good as possible for as many Singaporeans as possible. How would they run our system? Will they run it the same way the PAP runs it?

Suppose we stop the import of low skill foreign labor from competing with the bottom 30% of our workforce what will happen? ....Will we see the income of our cleaners rise? I guess the bosses of cleaning companies will be screaming that their profits are affected if they have to pay higher to attract Singaporeans. Since we don't have welfare, minimum wages and independent unions, one would think that stopping foreign labor from competing with the bottom 30% of our workforce thereby restoring wages to their natural levels from artificially depressed levels would be something sensible. I use the word artificial because a cleaner imported from Bangladesh is happy to take up a low paying job in Singapore because his family back home enjoy a cost of living less than one tenth that of a Singaporean family. To make a Singapore cleaner compete with one from Bangladesh is to increase his misery by 10 times!

In the beginning. the Foreign Talent Scheme was sold to Singaporeans as a scheme to attract the best talents from around the world to help create the best jobs for Singaporeans. Today a foreigner willing to clean tables for $500 is also a top talent because he & his family can live comfortably on that income while Singaporeans can't. Our Golden Period simply cannot do without the low income workers because the spectacular profits of our GLCs depend on them.... thats our dirty little secret....

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S'pore's dirty secret .....
Straits Times 28 Jul 2007.
They keep offices, shopping centres and the roads clean. But their wages look shabby compared to the rest of boomtown Singapore. SUE-ANN CHIA finds out why the pay of cleaners and labourers declined over the past decade
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Madam Aishah Mohamed Yunos, 30, toils at four blocks in a Bukit Panjang housing estate, wiping walls and lifts and sweeping and mopping floors.
The neighbourhood is spick and span. But the job pays crumbs.
At least that is what Madam Aishah feels when she pockets her monthly wages of $400. If that's not lousy enough, she has not had a pay rise in two years on the job.
'There's nothing else I can do,' she says with a careless shrug. She left school at Primary 6.
Her story, if she sticks to cleaning work, could soon mirror that of another cleaner's, Madam P. Devi, 60.

Nine years ago, she earned $500 a month cleaning offices. Today, she earns $440 cleaning at a mall in Holland Village.

'I have enough to eat,' she says, by way of prefacing how she has no right to be unhappy because she is illiterate. She and her retiree security guard husband, 69, who gets a pension, are supporting two children still in school.
The two women, across two generations, are in the beleaguered brigade of Singapore workers whose pay packets have slackened even as other workers have marched ahead in an expanding economy.
.
In the last 10 years, the starting salaries of all occupational groups rose - except one.
That group: cleaners and labourers. Their median monthly starting pay fell 30 per cent between 1996 and 2006 - from $860 to $600.
The Government's latest wage report says the group's median pay was being dragged down by a sizeable number of this category of workers languishing in extremely low-paying jobs.
At the bottom of the heap: office cleaners and aircraft loaders. They start with a monthly pay of $500 and $550 respectively.

In 1996, newbie cleaners made $550 while newbie aircraft loaders made $650.
While aircraft loaders' pay went up with experience, office cleaners had no such gains. Their median monthly salary fell from $708 in 1996 to $657 last year.
.
Twin forces thwarting rise in wages
WHAT accounts for their shrinking wages?
Labour economists blame two forces: competition from low-skilled foreign workers and the growing trend of outsourcing.
'Salaries are unlikely to rise as long as low-skilled local workers compete with low-skilled foreign labour who are often paid less,' says Associate Professor Hui Weng Tat, vice-dean of the Lee Kuan Yew School of Public Policy.
.
His view that foreign workers depress the wages of local workers has been aired before by others, including Mr Lim Swee Say when he was deputy labour chief.
In an interview last year, Mr Lim, who is now the labour chief, said he suspected the easy entry of cheap foreign workers in some sectors has reduced the incentive for employers to improve work processes and raise productivity. It is easier and cheaper to hire cheap, than to invest in better work processes.
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But he made clear he was not opposed to foreign workers, saying that they contributed to the economy. Economist Lim Chong Yah, who headed the National Wages Council for 29 years until 2001, also last year warned policymakers to be careful about allowing 'too free a flow' of 'very low value-added labour, very low-wage labour'. The other issue to contend with is outsourcing. As firms cut costs and headcount, many outsource non-core functions like cleaning.
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Instead of being on the more stable payroll of these companies, cleaners are now hired at a much lower pay by cleaning agencies which then assign them to different workplaces.
Cleaning agencies, in their fierce battle to win contracts, slash the price of their bids. The losers: the cleaners who end up with even lower pay.
.
Prof Hui notes that outsourcing also encourages service buyers such as building owners to switch to cheaper cleaning contracts. This means some cleaners may continue in the same job under a different employer - often wearing just differently coloured uniforms - while others are forced to seek new employment.
'This perpetuates the low pay of such workers who do not benefit from any seniority-based component in their pay but are constantly treated as new employees,' he says.
Part-timers, retirees depress wage figures
FIGURES from five cleaning companies surveyed by Insight indicate that cleaners' pay may be creeping up.

Five to 10 years ago, a cleaner would be offered around $580 to $600 a month. Today, he would get about $100 more, says Mr Kevin Loh, the boss of Campaign Cleaning Services.
Mr Joey Yeung, executive manager of cleaning company SQ1 Development, addsthat those who work in far-flung places like Tuas can get even more, about $900.
If so, why do the national figures show them making so little?
Labour economist Shandre Thangavelu suspects the wages are depressed by part-time workers like retirees agreeing to work for a lot less.
Madam Wang Xiu Qin, 67, is among them. She retired five years ago as a waitress but went back to work two years later to beat boredom at home.
She has since been cleaning office toilets four hours, six days a week. She is pleased with her pay of $350 a month.
But there are many others who struggle to survive.
Madam Sharon Kong, 50, earns $300 a month keeping an office clean. She works three hours a day, six days a week.
'I earn just enough to buy food from the market to cook and feed the family,' says the mother of two sons, aged 22 and 25.
Her factory worker husband earns about $1,000 a month and one of her sons help with other family expenses.
Can she get a better job?
Not a chance, as 'I only have primary education,' she says.
Tackling issue through productivity boost
THE plight of low-wage workers - with stagnant or shrinking pay packets - is an issue the Government and labour movement have been grappling with for some time.
Three years ago, the Job Recreation Programme (JRP) was set up to boost the productivity and pay of low-skilled jobs in several sectors, from cleaning to construction.
Last year, Workfare, an income supplement for low-wage workers, was introduced and is now a permanent feature for workers aged above 35 and whose income is $1,500 and below.
Labour chief Lim Swee Say tells Insight: 'The downward pressure on the wages of low-wage workers will continue to be there for some time as there is no shortage of low-cost, low-skilled workers in the world.'
...
The cause may be global, but the effect is truly local. The biggest worry is the widening income gap between high- and low-end workers.
Different countries look for different solutions - from a minimum wage policy and closing the door on low-skilled foreign workers to paying foreign local workers the same wages.
But Mr Lim calls these 'easy solutions' that do not necessarily work.
He wants Singapore to focus on raising productivity.'When their productivity goes up, their pay will also go up without eroding business competitiveness.'
Some success has been achieved through JRP, which has boosted the salaries of security guards, landscape technicians and bus captains.
Mr Lim concedes that 'there is still a long way to go' in improving the pay of every low-skilled worker.
One major criticism of the programme is that it spreads itself too thin in trying to reach too many sectors.
Still, Mr Ang Hin Kee, director of NTUC's Employability Enhancement Department, believes it has made a difference to the cleaning sector.
'JRP pilot projects have demonstrated that workers in the cleaning industry can earn higher wages through re-skilling and job re-design,' he says.
...
He notes how 75 conservancy cleaners who went for the programme found their wages going up from $750 a month to about $1,000. They got a new title to boot: building custodians.
The new perks come with added responsibilities of weeding, checking and rectifying defects in drains and replacing light bulbs in HDB blocks.
Another recent success was at three major hospitals which revised their cleaning contracts.
Previously, their housekeepers just cleaned the wards. Now, 15 of them act as team leaders to inspect ward cleanliness and prepare simple reports.
Their monthly pay rose from $800 to $1,050. Their job title was also spruced up. The housekeeper is now the facility services specialist.
But these are small-scale efforts. The JRP has yet to cover the large army of cleaners who clean commercial properties such as offices, shopping centres and condominiums. There are about 22,000 of them.
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It will do so by year's end, says Mr Ang.
The biggest hurdle in pushing the cleaners' brigade is posed by sceptical companies. They want to see a cleaner environment first before they will pay cleaning companies more for better-trained workers. This causes a vicious cycle as cleaning companies do not pay more and the lowly paid worker sees no incentive to do more. There seems to be no way out.
,.
Mr Lim advocates staying the course with JRP, as skills re-development is the only way for 'more low-wage workers to be part of the race to the top'.
But the brigade may also have thinning ranks of Singaporeans in time, as the workforce becomes better educated and move on to better work while cleaning jobs are revamped to attract better pay.
For now, though, the problem cannot be wiped clean.

30 comments:

Anonymous said...

The other dirty secret about raising productivity means that one person is going to do more than what he or she used to do, or in other words doing work done by 2 people previously for slightly higher wages. And of course they give you a new grand-sounding job title.

Anonymous said...

What's the big deal? S'pore is a boomtown. Read the Sunday Times today and the ST over the last few days which have been painting S'pore as booming. One guy splurged $870,000 on a Lamborgini car, another spent $1,200 on a face serum and yet another an auspicious $888 for mooncakes. S'pore is booming, mah; ministers get million dollar salaries, top execs also get millions per year. So, who cares about what the people in the bottom rungs get as long as S'pore booms? Only people like Lucky Tan and others with a heart maybe........ The rich get richer in Uniquely S'pore while the poor get poorer. Sad fact of life?

Anonymous said...

you call this dirt? you are rehashing old stories. break down the walls of jericho and the smell will really rise to high heaven lah.

but we re lucky, we hv good and upright leaders.

Anonymous said...

Lucky Tan,
thank you for constantly remind us that Singapore is just a piece of junk run by crappy and exploitative ediot !

We know that this is place for rich people who want to exploit poor people, and which based on principle of capitalism.

Anonymous said...

funny. overheard a conversation about a big shot talking about neibourliness and... fences. he said, i particularly like this rule of non interferance because, they have more land to grow smelly durians and we dun. but my neighbor also dun like the smell of my new mercedes in my porch lah. they very jealous you see.

i was thinking...huh? fence can keep durian smell away meh? lol.

then it dawn on me. there are things both sides know and should never say lah.lol

Anonymous said...

talking abt the walls. didt it say the PEOPLE SHOUTED? hmmm...they have been shouting for so many days and finally, i day, kaboom. what was in the city that need to be destroyed hah?

people ought to live and lets live and show more tolerance.

christmas coming lah.peace and good will towards all men amen amen.

Anonymous said...

DUH. It was an Orgasmic Orderliness!

Anonymous said...

why be maid overseas when we can be maid in singapore :) Aren't we lucky living in singapore. They provide us with all sorts of opportunies. A land of possibilities!!! Must realy thank you lucky tan for enlightening me.

Anonymous said...

wtf? you mean the ex-deputy labour chief "suspected" that entry of cheap labour had a hand in artificially depressing poor sg cleaners' wages???

just how small can a PAP minitoot's brain get???

vote for pap, you die your biz

Kin said...

What to do? Cleaners and janitors are low paid jobs. Better hope that they kids to support them. Our govt is hopeless. What workfare? I won't be surprised if it's just another scam. So pls be nice to the uncles and aunties cleaners. :)

Respect my wish said...

They know their place in life:

QUOTE
'There's nothing else I can do,' she says with a careless shrug. She left school at Primary 6.

'I have enough to eat,' she says, by way of prefacing how she has no right to be unhappy because she is illiterate.
UNQUOTE


That's the genius of our education system, which lets everyone know, at the tender age of 9 years old, what their places, roles and status in life are. And that's reinforced repeatedly via national exams at various level so that it is drilled into our brains.

The end result is that nobody blames the government, but themselves, as quoted above. These people will still vote for PAP, because they will blame themselves for their laziness during school days.

Lucky should not try to agitate the status quo by implying that educational achievement at 9 years old should not be used to determine a citizen's vocation in Singapore Inc.

It should be.

66.6% of citizens, the majority of which are not graduates, accepted that. Lucky, a graduate, should respect their wish.

blueheeler said...

S'pore has so many dirty little secrets that we make Paris Hilton look like Mother Superior.

Anonymous said...

Mr Tan, may I request that you do a post on the this year's theme of the NDP; Celebrate Singapore: A City of Possibilities". I'm embarassed that this one was one that I didn't quite understand. Thanks!

Anonymous said...

I have just been reading about the more dirty secrets based on the British archive. It certainly gives a more realistic picture og how Singapore as claimed was created. Talk abot betrayal.

Anonymous said...

Celebrate Singapore: A City of Possibilities:

Of course, Singapore is indeed a country of many 'POSSIBLILITIES' !

1: A possiblilities of being replace by FT

2. A possibilities of GST increment of 10% in next election

3. A possibilities of becoming marginalised.

4. A possibilities of your daughter becoming a maid (Because LCY say so !)

5. A possibilities of you force to Batam because you no longer can retire in Singapore.

6. A possibilities of unable to retire because money not enough in CPF !

7. A possiblities or rather reality becoming PAP's puppet because of no choice

8. A possibilities or rather fact that Transportation hike increment in coming October.

9. A possibilities of more price increment after National DAy (Who gonna pay for firework ? Of course, need to top up the lost budget used in National Day !)

etc

Anonymous said...

Don't be cynical, it is indeed a Land of Possibilities! Who is to say that the Fate of the Tiny Land may not change overnight. It is possible You know. Just live, forget about tomorrow.

Anonymous said...

someone said in the daily: what the king and pauper have in common is that both live off the offerings of the people.

what the person didn't add is that it was the king who decided how the offerings were shared.

kin said...

Till the day when 0% singaporeans attend NDP, we will not be heard. Till that day, let's all pray for the better. Our true city of possibilities becoming.

Anonymous said...

the jury was swayed by a snake so it legitimised the killing of the jury. that paved the way for the snake ascension and the rest, as they say, is history.

but has the 'swaying' stopped?

has the snake begotten snakes?

what can possibly come out of a snake pit?

In service of the snake

Anonymous said...

Evidently, no discerning folks will believe, let alone live in the snake pit?

Anonymous said...

We may not be heard by the snake, but God will give us justice.

Anonymous said...

let' be real here. you think this time round he ll get past an enlightened body?? the possibility of a misjudgement is no less worse than a runaway robber or tap dancer.

no thank you, i rather stick with strength in number.

Anonymous said...

The main problem is Singaporeans are too muted, without opinions of their own. Even though the consequences of open criticisms are foreseeable, Singaporeans can still turn to passive resistance, such as not voting for PAP or not supporting the plans PAP engineered. So far, there has been very little of these. So to an extent, Singaporeans are responsible for their own fate.

Anonymous said...

singaporeans are too busy shopping to bother. fed like mudfeeder for easy slaughter.
i seriously doubt their foundation is solid to withstand the storm let alone be a cohesive society.

Anonymous said...

They know,

that you know they know,

that you cannot do anything.

kin said...

Re: 7.15 PM
So should we all stop shopping at NTUC? Stop taking SBS? Shift out of HDB? Refuse to pay COE? Discontinue contract with Singtel? Boycott MRT? Worst still stop using our currency?

Anonymous said...

kin

sporns can vote for any oppo when they had the chance in 2006.

sporns can NOW flood shitty times / stomp with complaint letters everyday.

sporns can see mps every single session to highlight all their concerns.

sporns can visit ALL their neighbours and discuss if they can do something together.

sporns can join oppo activities ie accompany Chee in his freedom walk.

there are many things sporns can do to indicate their displeasure and galvanise others into joint action.

but sporns, being sporns, are APATHETIC. that is why we are squeezed and squeezed....

kin said...

Re: 3.33pm

Those are some good suggestions too. We must have a strong voice as sporns to do those things. It does put us to shame when I found out about the Queen's harbour incident over in HK recently.

Advice heeded. Thx.

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