- Joined
- Jul 24, 2008
- Messages
- 33,627
- Points
- 0
[h=2]Bus drivers: Trying to make sense out of the numbers?[/h]
October 15th, 2012 |
Author: Contributions
I refer to the article “SMRT
bus drivers can return to five-day week – without pay rise” (ST, Sep 29).
Wage increase: Back to square one?
Giving bus drivers the option to return to a five-day week without a pay
rise, may be making a mockery of the wage re-structuring exercise.
After all, wasn’t the whole purpose of the exercise to increase the wages of
low-wage bus drivers in Singapore?
Negative real wage increase?
Using data from SMRT’s website, I computed SMRT’s Staff and Related Costs per
employee (total staff costs divided by number of employees) to be $42,283 in
FY2003 and $47,768 in FY2011.
This is an increase of only 13 per cent over the last eight years, or an
increase of only 1.5 per cent per annum.
After adjusting for inflation, the annualised real wage increase may have
been negative.
Has real basic wage increased?
What is the basic wage per hour of a bus driver now, and in FY2003?
So far, giving the gross wage of bus drivers may not be truly addressing the
issue of low wages, as we should focus on the basic wage per hour.
As the current impasse has shown, higher gross pay can always be achieved by
getting workers to work longer hours.
More pay because of longer work hours?
In this connection, the trend of low wage workers like security guards,
traffic wardens, cleaners and dishwashers, etc, having to work typically 12
hours a day for six days a week, in order to earn a decent wage which is
typically less than $1,800, still puts such workers at some of the lowest per
hour basic wage in Singapore.
It’s all about profits?
SMRT’s profits after tax increased by 163 per cent, from $13.9 million in
4Q2012 to $36.5 million in 1Q2013.
Despite all its problems like the breakdowns last year, it’s FY2012 profits
were $119.9 million, and its FY2011 profits of $161.1 million was close to its
historical record profits of $162.9 million in FY2010.
Surely, paying bus drivers a bit more may not put a big dent in its
profits.
I hope that the union representing bus drivers will try to do more for
them.
.
Leong Sze Hian
Leong Sze Hian is the Past President of the Society of Financial Service
Professionals, an alumnus of Harvard University, Wharton Fellow, SEACeM Fellow
and an author of 4 books. He is frequently quoted in the media. He has also been
invited to speak more than 100 times in 25 countries on 5 continents. He has
served as Honorary Consul of Jamaica, Chairman of the Institute of
Administrative Management, and founding advisor to the Financial Planning
Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and
13 professional qualifications. He blogs at http://www.leongszehian.com.
bus drivers can return to five-day week – without pay rise” (ST, Sep 29).
Wage increase: Back to square one?
Giving bus drivers the option to return to a five-day week without a pay
rise, may be making a mockery of the wage re-structuring exercise.
After all, wasn’t the whole purpose of the exercise to increase the wages of
low-wage bus drivers in Singapore?
Negative real wage increase?
Using data from SMRT’s website, I computed SMRT’s Staff and Related Costs per
employee (total staff costs divided by number of employees) to be $42,283 in
FY2003 and $47,768 in FY2011.
This is an increase of only 13 per cent over the last eight years, or an
increase of only 1.5 per cent per annum.
After adjusting for inflation, the annualised real wage increase may have
been negative.
Has real basic wage increased?
What is the basic wage per hour of a bus driver now, and in FY2003?
So far, giving the gross wage of bus drivers may not be truly addressing the
issue of low wages, as we should focus on the basic wage per hour.
As the current impasse has shown, higher gross pay can always be achieved by
getting workers to work longer hours.
More pay because of longer work hours?
In this connection, the trend of low wage workers like security guards,
traffic wardens, cleaners and dishwashers, etc, having to work typically 12
hours a day for six days a week, in order to earn a decent wage which is
typically less than $1,800, still puts such workers at some of the lowest per
hour basic wage in Singapore.
It’s all about profits?
SMRT’s profits after tax increased by 163 per cent, from $13.9 million in
4Q2012 to $36.5 million in 1Q2013.
Despite all its problems like the breakdowns last year, it’s FY2012 profits
were $119.9 million, and its FY2011 profits of $161.1 million was close to its
historical record profits of $162.9 million in FY2010.
Surely, paying bus drivers a bit more may not put a big dent in its
profits.
I hope that the union representing bus drivers will try to do more for
them.
.
Leong Sze Hian
Leong Sze Hian is the Past President of the Society of Financial Service
Professionals, an alumnus of Harvard University, Wharton Fellow, SEACeM Fellow
and an author of 4 books. He is frequently quoted in the media. He has also been
invited to speak more than 100 times in 25 countries on 5 continents. He has
served as Honorary Consul of Jamaica, Chairman of the Institute of
Administrative Management, and founding advisor to the Financial Planning
Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors degrees and
13 professional qualifications. He blogs at http://www.leongszehian.com.
