Saturday, 24 January 2015

[Today] Minimum wage? Skills upgrading more effective

I refer to the letter “Minimum wage needed for those doing dirty, difficult jobs” (Jan 21).

Instead of a minimum wage, the labour movement advocates the Progressive Wage Model, which aims to increase salaries by enhancing workers’ skills and productivity. We believe this is a more effective and sustainable way of lifting wages compared with a minimum wage, which focuses on setting the lowest wage level for all workers with little emphasis on their skills, productivity and career.

The tripartite partners have already endorsed and implemented a model paying close attention to the skills, productivity, careers and wage ladders for cleaners.

This implementation of the Progressive Wage Model is better than a minimum wage, as seen being implemented in other countries.

Under the model set out by the tripartite partners, from last September, all cleaning companies must pay their cleaners according to the prescribed skills, productivity, career and wage levels. For example, office and commercial cleaners must be paid entry-level basic wages of at least S$1,000, and outdoor cleaners, S$1,200. As they become trained to operate machinery, they can earn starting wages of S$1,400 a month.

Those who take on higher responsibilities as supervisors will receive starting wages of S$1,600. This means there are opportunities for their wages to increase, commensurate with their enhanced skills and productivity.

Similarly, the Progressive Wage Model for the security industry was launched recently. Security agencies must ensure their officers receive the required training and are paid in line with or higher than the specified, progressive wage levels from Sept 1 next year.

With skills upgrading, training and productivity as key components of the Progressive Wage Model, workers who become more skilled and who take on more demanding roles will be able to earn more — areas a minimum wage would not address.

At the same time, we hope the amendments to the Employment of Foreign Manpower Act will address the issue of errant employers making unauthorised deductions from foreign workers’ wages, which depresses wages for these types of jobs.