Flexibility Allowed
- The Straits Times, 11 March 2009
We thank Mr Bernie Utchenik for his feedback in his letter "Allow more flexibility" (Straits Times, 27 Feb 2009).
2. On 19 Nov 2008, MOM and its tripartite partners, the Singapore National Employers Federation (SNEF) and the National Trades Union Congress (NTUC), issued the Tripartite Guidelines on Managing Excess Manpower in response to the economic downturn. Among the measures recommended were the implementation of a shorter work-week and temporary lay-offs to help companies reduce costs and save jobs.
3. Following the release of the Guidelines, some employers gave feedback that they were unclear as to whether the salaries of S Pass holders could be temporarily reduced below the $1,800 threshold. The Ministry has reviewed this, with inputs from the tripartite partners. In accordance with the Tripartite Guidelines, where a temporary reduction in salary is granted for genuine cases, workers may still be eligible for the S Pass. Employers should ensure that the duration of these cost-cutting measures is in line with the recommendations under the Guidelines.
4. Employers who wish to reduce the salaries of their S Pass holders should write in officially to the Controller of Work Passes at mom_wpd@mom.gov.sg.
5. Allowing this flexibility balances the needs of companies with the interests of workers. If the wages of the S Pass holders need to be adjusted downwards beyond the temporary period, employers should consider downgrading their S Pass holders to Work Permit status, or turn to alternative sources of manpower.
6. We have spoken to Mr Utchenik and clarified the matter.
Allow More Flexibility
- The Straits Times, 27 February 2009
Navigating these troubled times is hard enough for a small business. But trying to be an equal opportunity employer is harder, especially if a business hires Singaporeans, and work-permit and S-Pass holders.
We want to use innovative ways to avoid retrenching staff. So, we, the directors of the company, take a salary cut first.
But as conditions worsen, we appeal to our staff to follow suit, and accept a pay cut. This is where confusion strikes. We seek help from the Ministry of Manpower (MOM) by asking for permission to apply these cuts to S-Pass holders as well. MOM stipulates an S-Pass holder's minimum wage. MOM responds by reading us the current rules, which we already know, understand and follow.
The answer is no, we cannot cut S-Pass holders' pay below the minimum. The result: We end up with a bizarre situation where supervisors earn less than the S-Pass holders they supervise.
I can understand that MOM may want us to repatriate our S-Pass holders and fill the positions with Singaporeans. But Singaporeans do not want these jobs, which was why we resorted to S-Pass employees in the first place.
My appeal to MOM is not to punish Singaporean employees with a rule that does not work in such unusual times.