Manpower Ministry to assessment firms whose ‘Singaporean core has been weakening’: Josephine Teo

SINGAPORE: The Ministry of Manpower (MOM) intends to assessment the hiring practices of firms whose “Singaporean core has been weakening”, in addition to these whose Employment Move (EP) and S Move workforce are “overly concentrated” from a single overseas nationality supply, mentioned Manpower Minister Josephine Teo.

The transfer comes amid a heightened sense of insecurity about jobs, in an financial system battered by the COVID-19 pandemic.

Asserting the transfer in Parliament on Tuesday (Sep 1), Mrs Teo mentioned MOM will work with different companies to actively intervene and assist such firms reshape their workforce profiles.

The ministry will even interact the human assets neighborhood to “do extra”, she added.

READ: Minimal qualifying wage to rise by S$600 for Employment Passes and S$100 for S Passes, greater requirement for monetary providers

Mrs Teo was responding to a number of Members of Parliament (MPs), who had posed the problem of job competitors between Singaporeans and work cross holders. 

She identified that work cross insurance policies have been commonly adjusted, slowing down the expansion of Employment Move and S Move holders.

Between 2014 and 2019, the variety of Employment Move and S Move holders grew on common by fewer than 9,000 yearly, in contrast with the typical annual development of 30,400 in between 2009 and 2014.

Compared, the variety of locals in professionals, managers, executives and technicians (PMETs) jobs rose by a median of about 35,000 yearly between 2014 and 2019, mentioned Mrs Teo.

With COVID-19, the variety of Employment Move and S Move holders have additionally come down sharply, she mentioned, including that this body of workers dropped by 22,000 between January and July this yr.

RETRENCHMENTS

Singapore’s general unemployment price has risen to its highest stage in additional than a decade, with retrenchments greater than doubling due to the COVID-19 pandemic.

Within the second quarter, retrenchments greater than doubled to six,700, from 3,220 within the earlier quarter.

Mrs Teo mentioned that MOM actively displays retrenchment workouts, and that the overwhelming majority have thus far been carried out pretty and responsibly.

“By and enormous, there has additionally not been a weakening of the Singaporean core,” she mentioned.

However these “reassuring observations”, mentioned Mrs Teo, MOM will work with companies and unions to “advance sound practices” – resembling by updating the Tripartite Advisory on Managing Extra Manpower and Accountable Retrenchment, or via the Honest Retrenchment Framework proposed by the Nationwide Trades Union Congress (NTUC).

READ: MPs name for companies to be extra clear on overseas hiring, make push to prioritise Singaporeans

FAIR TREATMENT FOR LOCAL JOBSEEKERS

The ministry will even intensify different efforts to make sure honest remedy of locals making use of for jobs, Mrs Teo mentioned.

For instance, in evaluating Employment Move and S Move purposes, MOM will place further emphasis on whether or not a enterprise has saved up its help of native PMETs in its employment. 

“Amongst different issues, an employer’s report in the way it handles retrenchment workouts will definitely have a bearing,” she mentioned. 

“For instance, is an EP or S Move applicant a substitute for an area who was solely lately retrenched? If that’s the case, MOM will ask why and switch down the applying except there are excellent causes.”

MOM will even have a look at whether or not companies have been aware of authorities efforts to assist them recruit and practice native PMETs, she mentioned. 

“Due to this fact, in particular areas of abilities shortages and the place there’s robust curiosity from locals, we will even assess if companies like WSG (Workforce Singapore), MAS (Financial Authority of Singapore) and IMDA (Infocomm Media Improvement Authority) have been capable of get an employer on board their many programmes to strengthen the event of native PMETs,” mentioned Mrs Teo.  

This can have a bearing on their Employment Move and S Move purposes, she added.

READ: Union chief urges harder measures to deal with hiring bias, together with EP quotas and ending tax breaks

MOM will even think about whether or not an employer has discriminated in opposition to certified native PMETs, she famous.  

“Of all doable infringements, that is what offends Singaporeans most – that they’ve the {qualifications} however misplaced out to a overseas candidate who didn’t look like higher,” she mentioned. 

MOM commonly takes firms to process for practices resembling pre-selecting a overseas candidate and disregarding certified native candidates, Mrs Teo mentioned. 

She famous that this yr alone, 90 employers have had their work cross privileges suspended due to infringements below the Honest Consideration Framework.

Mrs Teo gave the instance of a multinational firm within the healthcare sector that didn’t shortlist or interview any of the 26 native candidates who had utilized for a place marketed on MyCareersFuture.gov.sg.

“This firm was clearly not severe in contemplating native candidates. As a penalty, it will be unable to rent or renew EP holders for 12 months,” she mentioned. “To remain in enterprise, they should recruit extra locals, one thing they need to have completed all alongside.”

READ: Foreigners maintain Singapore ‘economically related’, however take note of the Singapore employee: Pritam Singh

Mrs Teo famous that since 2016, greater than 1,200 employers have been scrutinised below the Honest Consideration Framework (FCF), which requires companies to evaluate Singaporeans pretty for all job openings.

Whereas these companies didn’t flout any guidelines, they had been singled out for his or her “unusually excessive reliance” on foreigners of their PMET headcount, in comparison with others in the identical trade. 

“Till they enhance, we are going to reject or maintain again their work cross purposes,” she mentioned. “On the similar time, TAFEP engages them to know their issues and assist them strengthen their hiring practices.”

“In all, 3,200 EP purposes have been rejected or withheld by MOM, or withdrawn by employers whereas they had been being scrutinised,” mentioned Mrs Teo. 

“However these employers have employed greater than 4,800 Singaporean PMETs because of this,” she famous.

“In different phrases, this focused strategy has helped to maintain and develop native PMET employment in these companies.”

NTUC assistant secretary-general Patrick Tay, who’s the MP for Pioneer SMC, had final month referred to as for such errant firms to be named, in order to discourage unfair hiring practices. 

Nonetheless, Mrs Teo mentioned on Tuesday {that a} “name-and-shame” strategy can be counterproductive and frustrate the businesses’ efforts to develop native hiring.

“Our different strategy of scrutinising and interesting employers is very resource-intensive however in truth, a more practical strategy to get companies to reshape their HR practices.”

READ: 47 employers added to watchlist for suspected discriminatory hiring practices: MOM

NEW PROGRESSIVE WAGE MODEL MARK 

Whereas Singapore has not legislated a single minimal wage throughout the board, options of a “minimal wage plus” have been carried out via a Progressive Wage Mannequin, mentioned Mrs Teo, noting that the mannequin  presently advantages about 80,000 employees within the cleansing, safety, and landscaping sectors.

Staff in Progressive Wage Mannequin sectors have seen cumulative wage development of round 30 per cent in contrast within the final 5 years, she famous. 

Nonetheless – with companies nonetheless looking for firmer footing and nice uncertainty within the labour market – any try and develop the Progressive Wage Mannequin into new sectors “carries greater danger”, Mrs Teo mentioned. 

“Whereas it might be too dangerous to mandate PWM in additional sectors instantly, we are able to nonetheless promote its voluntary adoption by progressive employers which can be in a position to take action,” she mentioned, including the Authorities would work with its tripartite companions to introduce a brand new Progressive Wage Mannequin Mark.

This Progressive Wage Mannequin Mark would recognise firms that voluntarily pay progressive wages and supply job development pathways to their lower-income employees, she mentioned, noting that sectors resembling meals providers and retail commerce had the potential to return on board.

“For the PWM Mark to work, there should nevertheless, be a broader motion involving society at giant. As shoppers, we have to be ready to pay barely extra, and deliberately help such progressive firms by buying their services or products,” mentioned Mrs Teo. 

“This can spur extra firms to be progressive and undertake the PWM Mark, which in flip will profit our lower-income employees.”

“I hope MPs will agree with me, that we should have it in our hearts to think about this a small value to pay for higher jobs and earnings safety for these amongst us who want it most.”

Tearing as she concluded her speech, Mrs Teo mentioned that simply as employees care for his or her households and family members, the manpower ministry additionally has one of the best pursuits of employees in thoughts. 

“Please know that you just too are all the time in our hearts. Nonetheless lengthy this storm lasts, MOM will stroll the journey along with you. Nonetheless powerful it might be, we are going to provide help to bounce again,” she mentioned. 

“Our mission is to assist every considered one of you emerge stronger, by by no means giving up hope and by working with employers in Singapore to deal with you pretty, to make your laborious work bear fruit,” she mentioned. 

“Our work shouldn’t be but completed. Now we have taken agency steps ahead, and we are going to press on regardless of the challenges – with you, for you, for Singapore.”