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MPs raise low-wage workers' plight
Time needed to assess impact as help schemes are new, says minister
By Andrea Ong
MPs yesterday said Budget goodies for low-wage workers should not be one-off, and that courses on upgrading should be fully subsidised. -- ST PHOTO: ALPHONSUS CHERN
MEMBERS of Parliament yesterday expressed worries about schemes targeted at helping low-wage workers.
They said that Budget goodies meant for low-wage workers should not be one-off, and that these workers should not have to pay for training to upgrade themselves.
Speaking during the debate on the Ministry of Manpower's budget, three MPs, including Mr Low Thia Khiang (Hougang), asked for the Special Employment Credit announced in the Budget to be extended beyond three years.
The scheme rewards employers for hiring low-income, older workers. Employers are paid up to 80 per cent of what they contribute to the Central Provident Fund for those among their workers aged 55 and above.
If the scheme is temporary, said Madam Halimah Yacob (Jurong GRC), the Government 'could be giving the wrong signal that older workers should be treated as a temporary resource not worthy of long-term investment and retention'.
Responding, Senior Parliamentary Secretary for Manpower Hawazi Daipi said the ministry would review the scheme after its implementation to assess whether it should be extended.
Another scheme for low-wage workers announced during the Budget was the Workfare Special Bonus, which will also be paid out over three years.
Manpower Minister Gan Kim Yong later clarified that as the two schemes have just been put in place, his ministry will need time to assess their impact and whether they should be fine-tuned.
'It is important for us to make sure that we don't change the scheme too often because employers and workers will be very confused if there are too many changes,' he said.
Madam Halimah and Mr Zainudin Nordin (Bishan-Toa Payoh GRC) also asked for Workfare Training Support (WTS) to be fully subsidised for low-income workers. The scheme, launched last year, encourages older, low-wage workers to go for training by giving them cash grants and course-fee subsidies. Workers still have to pay 5 per cent to 10 per cent of course fees.
Mr Zainudin said the scheme put workers in a dilemma as they faced a short- term loss of income. They may also have problems paying their share of the course fees.
The Government requires co-payment from trainees to instil the principle that 'each individual is responsible for his own upgrading', said Mr Hawazi, adding that they could approach community organisations for help if they could not pay.
More than 34,000 workers have benefited from WTS as of last month, he said.
Madam Halimah later asked if the ministry was satisfied that only 34,000 out of 400,000 low-wage workers - or 8.5 per cent - had benefited.
'Isn't that a very low number compared to the large number of low-wage workers that we have?'
Mr Hawazi replied: 'Of course, we need to improve.
'But it cannot be just the job of the Government,' he said, citing the responsibilities of individuals, unions, employers and the community.
[email protected]
LESS CONFUSION
'It is also important for us to make sure that we don't change the scheme too often because employers and workers will be very confused if there are too many changes.'
Manpower Minister Gan Kim Yong
Time needed to assess impact as help schemes are new, says minister
By Andrea Ong
MPs yesterday said Budget goodies for low-wage workers should not be one-off, and that courses on upgrading should be fully subsidised. -- ST PHOTO: ALPHONSUS CHERN
MEMBERS of Parliament yesterday expressed worries about schemes targeted at helping low-wage workers.
They said that Budget goodies meant for low-wage workers should not be one-off, and that these workers should not have to pay for training to upgrade themselves.
Speaking during the debate on the Ministry of Manpower's budget, three MPs, including Mr Low Thia Khiang (Hougang), asked for the Special Employment Credit announced in the Budget to be extended beyond three years.
The scheme rewards employers for hiring low-income, older workers. Employers are paid up to 80 per cent of what they contribute to the Central Provident Fund for those among their workers aged 55 and above.
If the scheme is temporary, said Madam Halimah Yacob (Jurong GRC), the Government 'could be giving the wrong signal that older workers should be treated as a temporary resource not worthy of long-term investment and retention'.
Responding, Senior Parliamentary Secretary for Manpower Hawazi Daipi said the ministry would review the scheme after its implementation to assess whether it should be extended.
Another scheme for low-wage workers announced during the Budget was the Workfare Special Bonus, which will also be paid out over three years.
Manpower Minister Gan Kim Yong later clarified that as the two schemes have just been put in place, his ministry will need time to assess their impact and whether they should be fine-tuned.
'It is important for us to make sure that we don't change the scheme too often because employers and workers will be very confused if there are too many changes,' he said.
Madam Halimah and Mr Zainudin Nordin (Bishan-Toa Payoh GRC) also asked for Workfare Training Support (WTS) to be fully subsidised for low-income workers. The scheme, launched last year, encourages older, low-wage workers to go for training by giving them cash grants and course-fee subsidies. Workers still have to pay 5 per cent to 10 per cent of course fees.
Mr Zainudin said the scheme put workers in a dilemma as they faced a short- term loss of income. They may also have problems paying their share of the course fees.
The Government requires co-payment from trainees to instil the principle that 'each individual is responsible for his own upgrading', said Mr Hawazi, adding that they could approach community organisations for help if they could not pay.
More than 34,000 workers have benefited from WTS as of last month, he said.
Madam Halimah later asked if the ministry was satisfied that only 34,000 out of 400,000 low-wage workers - or 8.5 per cent - had benefited.
'Isn't that a very low number compared to the large number of low-wage workers that we have?'
Mr Hawazi replied: 'Of course, we need to improve.
'But it cannot be just the job of the Government,' he said, citing the responsibilities of individuals, unions, employers and the community.
[email protected]
LESS CONFUSION
'It is also important for us to make sure that we don't change the scheme too often because employers and workers will be very confused if there are too many changes.'
Manpower Minister Gan Kim Yong
