Singapore Government Press Release
Media Relations Division, Ministry of
Information, Communications and the Arts,
MICA Building, 140 Hill Street, 2nd
Storey, Singapore 179369
Tel: 6837-9666
SPEECH BY MR HAWAZI DAIPI, SENIOR PARLIAMENTARY
SECRETARY (MANPOWER), AT THE COMMITTEE OF SUPPLY DEBATE 2005 – 10 MARCH 2005
WORKERS’ WELFARE
1. Even as we improve the flexibility and
responsiveness of our labour market, we must look
after the interests and well-being of our workers.
Workmen’s Compensation
2. Workers’ safety and workmen’s compensation are integral
components of basic well-being. So, I am
pleased to inform Members that MOM has reviewed the existing workmen’s
compensation system. We agree that it can be further enhanced to expedite the
assessment of compensation for injured workmen. Specifically, we will be setting up a Medical
Board to assist in the settlement of disputes over medical assessments.
3. There was a query on how workmen’s compensation is computed
and whether it is adequate. Workmen’s compensation is calculated based on the
average monthly earnings of the injured worker and takes into account factors
such as the injured worker’s age, his potential loss of earnings and the
percentage of permanent incapacity he sustained. The definition used is in line
with international standards. Where the
injured worker is unable to perform the essential actions of life, it would
also take into account the cost he would incur for constant care.
4. MOM periodically reviews the Workmen’s
Compensation Act to ensure adequacy of coverage of our workforce. The Act which
applies to manual workers and non-manual workers with monthly earnings not
exceeding $1,600 covers about 47% of the workforce. On average only 2% of the
cases reported to MOM were rejected yearly over the past 4 years on the ground
of income exceeding $1600. But even for
workers who are not currently covered under the Act, many of those who are in
industries with higher risk exposure, such as marine and petrochemical, already
enjoy various forms of insurance coverage provided by their employers.
5. Apart from safety, salary payment by
employers is another integral part of the basic well-being of our workforce. There is no excuse for employers not to pay
salaries to their workers punctually. One
Member asked about the non-payment of salaries, where there have been a few
high profile cases last year involving large construction companies defaulting
on the salaries of both foreign and local workers. In particular, the case of Wan Soon
Construction, which involved some 440 workers, mainly from India, Bangladesh,
China and Thailand, attracted much media attention. Fortunately, that case was resolved amicably
with the aid of the Indian High Commission.
The Wan Soon case illustrates the importance of early reporting of
salary arrears. Early reporting prevents salary arrears from accumulating and
enables MOM to resolve disputes more expeditiously.
6. The total number of cases involving
salary arrears in the non-unionised sector last year fell
by 4% as compared with 2003 – from 6,690 in 2003 to 6,422 in 2004 -- and by 34%
as compared with 2002. The number of
companies who have defaulted on employee CPF payments has likewise come down
since 2002. So, the situation has
improved over the last 3 years.
8. To ensure the payment of salaries in sectors
with higher default rates, one measure which is being studied is to require employers
to pay their workers through GIRO. Errant employers who default on salaries can
be flagged out. This is preferable to
the suggestion raised by a Member. Requiring every employer to set aside large
sums in the event of salary defaults would unnecessarily tie up capital and
unduly penalise employers who have been dutiful in
salary payments.
Other Benefits – Extended Maternity
Leave, Childcare Leave, Eldercare Benefits and Paid Leave for Volunteer Work
9. Another Member has asked for an update
on the implementation of the Extended Maternity Leave and Childcare Leave,
which were launched last year. I am
pleased to inform Members that both have been well accepted by employers. Following a series of briefings for HR
practitioners and union leaders to explain the policy rationale and provide
practical guidelines for implementation, most companies are now able to
implement these benefits without any difficulties.
10. My Ministry is also administering the Work-Life Works!, or WoW!, Fund that provides
funding to companies to implement work-life strategies. Since the launch of the
fund in August last year, we have approved 15 applications at a total cost of
$343,000.
11. There was a suggestion that more could be
done to enhance the eldercare benefits for employees, including requiring
companies to provide eldercare leave. The Employment Act
already provides for various minimum leave benefits including annual leave,
sick leave, maternity leave and childcare leave. Employers are free to grant more beyond these
minimum benefits.
12. The Government strongly encourages
volunteerism and for employers to support their employees who contribute their
time to charitable causes. Most volunteers willingly take their own leave to do
this. There is no necessity to legislate
paid leave for volunteer work as proposed, as this might dilute the sacrifice
of their efforts.
13. One Member also suggested a
revamp of the existing employer-provided medical benefit scheme to enable
employees to enjoy medical coverage not only during employment, but also
in-between employment and post-retirement.
Following the
recommendation by the Economic Restructuring Committee to implement either the Portable Medical Benefits Scheme, or
PMBS, or the Transferable Medical Insurance Scheme, or TMIS, a set of
tripartite implementation guidelines was issued on 1 October 2003. However, the progress of both the PMBS and
TMIS has been slow, with only about 400 companies having implemented either
scheme. Under the PMBS, employers make additional monthly contributions to
their employees’ Medisave accounts to pay for the
premiums of Medishield or Medishield
equivalent products. As the PMBS rides on the Medishield
scheme, many employers have been waiting for the result of the Medishield review by the Ministry of Health.
14. MOH has recently
announced changes to the Medishield Scheme. In this
regard, I agree that employers, trade unions and related government agencies,
including MOM, MOH, MOF and MAS, could work together to examine how the PMBS or
other employer-provided medical benefits schemes could be refined and
integrated into the revamped Medishield framework.
Foreign Domestic Workers
15. Let me now move on to the remaining
questions that were raised by Members.
In the area of foreign domestic workers or FDWs,
it has been asked if the Ministry is prepared to approve new source countries
such as Cambodia and Vietnam. There are currently many approved source
countries from which employers can recruit FDWs. The
list includes Bangladesh, India, Indonesia, Malaysia,
Myanmar, Pakistan, the Philippines, Sri Lanka and Thailand. The existing list of approved source
countries is able to supply sufficient FDWs who can
meet the new entry requirements. The $50
levy reduction which will take effect from 1 April will further ensure that
employers can afford to pay more for better quality FDWs
from the existing source countries. Nevertheless,
my Ministry will continue to monitor the situation and review this as and when
necessary.
16. One Member expressed concern that the
number of FDWs may increase significantly in response
to the levy reduction. Employers who need FDWs can
employ them but they must also ensure that their FDWs
are being well-taken care off. Those who have not done so have been banned from
hiring FDWs.
International Labour Organisation
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