Ong Pang Boon
Singapore
“At the same time, our shoulders should be broad enough to accept criticism and even admit mistakes if need be, and be prepared to make the necessary changes. This does not mean pandering to the baser instincts of the people.”
“Mr Speaker, Sir, the Ministry will certainly give every assistance to the villagers in clearing the debris, especially if they are left over by the contractors. I will appreciate if the Member can also let the Ministry know who are these contractors and we will prosecute them. CONSTRUCTION BRIGADE (Progress) 2.”
“The Ministry is now monitoring the results of the programme and is happy to note that there are some improvements in the cleanliness of our public toilets. It would prosecute managements of public toilets who fail to provide proper maintenance.”
“A comprehensive programme to monitor the air and sea environment in the vicinity of the Complex has been drawn up. Engineers and technicians from the Ministry and other departments have been sent for overseas training on the surveillance of petrochemical complexes.”
“The professional or other misconduct for the purposes of revocation must be of such a nature as to render, in the opinion of the Attorney-General, the notary public unfit to practise as such. This amendment is dealt with in clause 4 of the Bill.”
“All flats of the Port of Singapore Authority (PSA) including those at Blair Plain are rented out to employees on monthly tenancies and are not provided as part of their terms and conditions of service. These flats are therefore not service quarters.”
The complete record
Every one of 668 lines we hold for Ong Pang Boon, in date order, each linked to its source. Free to read, in full, without an account. Page 5 of 14.
“Member for Potong Pasir has said that very little has been done to retrain our construction and shipyard workers to cope with the new situation. He might like to know that in addition to campaigns and the supervisors' courses, the Factory Inspectorate has been conducting safety orientation courses at construction worksites. In addition, a film on hazards in the construction industry to be shown to workers will be ready shortly. In the case of shipyards, some 13,800 workers have so far attended the safety orientation course organised by my Ministry. The hon. Member has also opined that wooden scaffolding should be replaced by metal scaffolding. This matter has been considered in the past. A committee headed by the Director of Public Works made recommendations in 1 972 for the safe use of wooden scaffolding. Its recommendations were circularised to all contractors. Metal scaffoldings, although more stable and mobile, have disadvantages which militate against their usage. In hot weather, they become heated which render them difficult to handle. When it rains, they are slippery and hazardous. But the most important inhibitive factor is one of economics. Metal scaffolds are almost three times more costly than wooden scaffolds. Until the costs of metal scaffolds can be reduced substantially or when we are prepared to accept a significant increase in cost of construction with the consequent increase in rental or selling price of HDB flats, wooden scaffolds will continue to be used for many more years. The hon. Member has also argued for metal scaffoldings on the grounds that steel girders have to be hauled up to high places. He might wish to know that such girders are usually hoisted up through proper lifting equipment.”
“Consequently, 8,741 notices of noncompliance were served on occupiers in 1976 as compared to 1,689 notices in 1973. As a result of these efforts, positive progress has been made in the industrial safety and health situation in our two most accident-prone industries. Using the American Standards Association criteria, the accident frequency and severity in the construction industry in 1973 were 6.9 accidents per million man-hours worked and 3,860 man-days lost per million man-hours worked as compared to the 1976 statistics of 3.0 and 926 respectively. For the shipbuilding and repairing industry, the 1 973 accident frequency and severity rates were 16.9 and 2,880 as compared with 11.0 and 1,096 for 1976 respectively. These figures show that the accident rates have declined. While this decline is satisfying, nevertheless the Ministry is seeking to further improve the industrial safety and health standards in our industry. In absolute numbers in 1976 there were 698 and 1,095 accidents in construction worksites and shipyards respectively as compared with the 1975 figures of 651 and 1,142 accidents. In terms of fatalities, there were in 1976, 32 deaths in the construction industry and 15 in the shipbuilding and repairing industry The comparative figures for these two industries for 1975 were 36 and 21 fatalities. respectively. There is some improvement but more needs to be done especially by the construction industry. Where the construction industry is concerned, the Housing and Development Board, the largest developer, has agreed to my Ministry's suggestion to set up a safety department and to train its site supervisors in safety. We will concentrate on solving two major types of accidents - falling from heights and being struck by falling objects. The hon.”
“The Factories Act will be further amended shortly to provide for enhanced penalties for contraventions of safety provisions which are likely to result in the death of or bodily injury to workers. A code of practice and a guidebook were issued in 1974 for construction worksites. Guidebooks were issued on various aspects of safety and health. In 1975 a guidebook on safety in shipyards and on fire and explosions was published. Those on power presses and forklift trucks were released in September and October 1976 respectively. In 1973, a guidebook on silicosis was issued. This was followed by others - industrial dermatitis and noise-induced deafness in 1975, and hearing conservation and compressed air illness in November 1976. A van was commissioned in May 1976 to provide audiometric tests to workers. A tripartite study group on accident prevention in shipyards was set up in 1973 and a tripartite advisory committee appointed in 1975 to assist in the implementation of its recommendations. An advisory committee on the construction industry, which included representatives of developers and contractors, was established in 1973. Furthermore, to improve safety administration in factories, the Ministry enacted legislation requiring the setting up of safety committees and the appointment of safety officers. Training programmes were also organised for safety personnel, supervisors and workers, and industrial first aiders and nurses. The Ministry also expanded its Factory Inspectorate from a total establishment of 36 inspectors in 1973 to 55 inspectors in 1976. The Factory Inspectorate stepped up its enforcement by increasing the number of worksite and factory inspections from 9,995 in 1973 to 11,528 inspections in 1976.”
“Personnel mismanagement in the form of adoption of inflexible and insensitive approach to labour-management problems and taking a too rigid stand on managerial prerogatives must be corrected. In many undertakings, systematic procedures for communication will have to be set up and there should be more consultation between employers and employees. Through better communication, company loyalty can be evolved and misunderstandings leading to disputes can be avoided. Mr Speaker, Sir, with our dependence on trained and productive manpower, optimal utilisation of our labour force must always be our goal, Not only is it important for our workers to acquire skills, utmost efforts must be taken to preserve and safeguard our human resources. The problems of safety and health attendant on our rapid industrialisation have been identified by my Ministry and over the last few years, my Ministry has, contrary to the impression created by the statement of the hon. Member for Potong PaSir, devoted considerable effort and time to improving the industrial safety and health of our workers, Activities were organised to promote greater safety and health consciousness on the part of both managements and workers. Three campaigns covering all factories, the construction industry and the shipbuilding and repairing industry respectively and one safety month for the wood-working industry have been held so far, A monthly publication entitled the "New Worker" on the problems relating to safety and health was started in 1973. The Ministry also laid down comprehensive standards of industrial safety and health. The Building Operations and Works of Engineering Construction Regulations was enacted in 1971. A new Factories Act was brought out in 1973.”
“At present, almost all the officers in the Ministry are from the common user grades and, as part of their career development, they are subject to external postings after a short period on the job Officers who have the inclination and flair for such work and the requisite experience are not able to remain long enough to establish close rapport with both management and unions alike, and to pass on their experience to the younger officers. Furthermore, common user officers may not have the necessary aptitude for such work. With a departmental service, the problems associated with an open service will be avoided. Only suitably qualified persons and those who wish to make the Labour Service their career will be recruited and trained. The Ministry of Finance is now working out with my Ministry the details of the Scheme. The Scheme is intended to cover 21 Division I officers, 56 Division II officers and 70 Division Ill officers. There is, therefore, good prospects for advancement within the Labour Service. The trade unions had in the past 17 years made invaluable contributions towards the achievement of the national economic and social objectives. They could be counted upon to take the initiative to work for better mutual communication with management and inject greater professionalism among the second and third echelon union leaders. Through training, they will approach labour-management relationships from a cooperative, not combative, position :and conduct negotiations with moderation and an acute awareness that national interests must not be sacrificed. As regards the third partner in the tripartite partnership, some of them will have to discard the obsolete concept of industrial confrontation vis-a-vis the union.”
“Nevertheless, it is gratifying to note that a number of companies have on their own initiative implemented productivity incentive schemes. Again the National Productivity Board will provide the necessary assistance to firms which may have difficulties in setting up such schemes. The Board has a corps of industrial engineering consultants who are experienced in setting up standards of performances which are basic to productivity incentive schemes. Mr Speaker, Sir, last year the state of industrial relations remained stable and harmonious. There were fewer number of strikes and other forms of industrial actions than the previous year. A total of four strikes and 10 minor work stoppages occurred in 1976 as compared with seven strikes and 19 minor work stoppages in 1975 The conclusion to be drawn from this happy situation is that tripartism is progressing and collective bargaining is working in Singapore. To meet the challenges ahead, it is vital that we improve on the practice of industrial relations so as to achieve greater industrial harmony. This requires the joint efforts of labour, management and the Government. My Ministry will further improve its industrial relations services by adopting a more alert and positive approach to the prevention and settlement of industrial disputes. Priority will be given to the setting up of a departmental Labour Service to build up a corps of experienced labour and industrial relations officers.”
“I have been informed by the National Productivity Board that areas for productivity improvement in our firms are many. Employers should initiate action to make better use of the resources of their firms. If they have difficulties in this regard, the National Productivity Board will provide the necessary assistance. The Board can train managers, supervisors and workers in modern management techniques and systems. It also has a team of experienced consultants who can provide technical advice to companies to improve their methods and quality of production and their marketing and financial systems. Management should also work out productivity incentive schemes. The benefits of higher productivity must be shared between employers and workers This having been said, it should be recognised that schemes to increase productivity will have to be worked out, implemented, and positive results achieved before incentive schemes are drawn up. The demand by union for incentives as a pre-condition to increase productivity is the other reason why employers have adopted a lukewarm attitude towards any productivity scheme. In opening the NTUC Seminar on "Maximising the Benefits of Productivity" at the Trade Union House on 29th October, 1976 of NTUC advised the participants that productivity programmes must precede incentive schemes, not vice versa, and that a more rewarding strategy for trade unions will be to get productivity programmes going, make them yield results, and then proceed to the negotiating table with confidence, and self-respect. I would like to commend the MPs who have spoken on this subject in this House as well as the unionists outside to take note of their leader's advice.”
“They must pursue more aggressive marketing policies. They must seek more determinedly to improve the productivity of their firms. The onus of raising productivity rests with management. Despite much encouragement on the part of the Government, not much progress has been made in this field. Part of the problem seems to be that both employers and unions do not know very much of the subject beyond the desirability of the principle of higher productivity. The hon. Member for Boon Lay himself has said he does not know what is productivity. One can assume that members of the public know even less about the matter. The National Productivity Board will have to do more promotional work in the field of productivity. For the benefit of those who were absent in this House last week when the Member for Whampoa elucidated on the subject, I would like to add that productivity means how well one uses our resources whether it is capital, labour, materials or machinery, to produce goods and services. An increase in productivity can result from using the same amount of resources but getting increased output or value of services provided Alternatively, you may get higher productivity by producing the same amount of goods or value of services with reduced amount of resources. Productivity increases can be obtained through better or more efficient use of either one or more of the resources used for production. Thus, management can be improved, the technology used upgraded or labour induced to give of their best. The National Wages Council has been grappling with this problem during its last few sessions. It has come to the correct conclusion that while it can exhort employers and unions to higher productivity, productivity guidelines should be worked out at the plant level.”
“Unless there are very good reasons, the same fringe benefits should be paid as before unionisation A freeze on fringe benefits is a good first step. The subject needs further deliberation by the NWC. Fringe benefits need to be rationalised and "bizarre" ones or those which are not conducive to our economic growth should be discontinued. Mr Speaker, Sir, our workers will need to be conscientious and disciplined They must strive for higher skills and competence in the years ahead to enable Singapore to achieve a comfortable level of economic growth in the midst of a less promising future of the world economy. The practice of job-hopping among our young workers must be curbed. In most cases, job-hopping among our workers can be attributed to their lack of dedication and professional pride in their job and their impatient pursuit for higher monetary rewards and rapid promotion As a measure to discourage job-hopping for frivolous reasons, the National Wages Council will be considering whether employees who job-hop should enjoy the full wage increase recommended. Several hon. Members have spoken on job-hopping. Their concern and reservations on the matter will be taken fully into account by the Council when it deals with the subject. I have no doubt that in making its recommendations, the Council will be mindful of those workers who change jobs because of a genuine search for opportunity to improve their skills. Monetary disincentive at best will alleviate the problem to some extent. The long term solution lies in employers taking more initiatives in building up a stable workforce through better motivation and concern for their workers. Mr Speaker, Sir, our entrepreneurs and managers must also play their part in preserving and improving our competitiveness.”
“This will be contrary to the objective of the Government's wage policy of reducing disputes over bonuses in the form of Annual Wage Supplement and providing for orderly wage increases largely through the form of NWC wage guidelines It will also not be appropriate given the uncertain and more difficult future ahead of us. According to a survey of 2,016 firms conducted last year by my Ministry, 168 firms, employing 25,192 workers, were found to have been paying AWS in excess of the frozen quantum. Firms which have not been paying additional AWS in the past should continue to pay only the frozen amount of AWS. The problem lies with those who have paid above the frozen levels in the past. In the interest of industrial relations, the Government has allowed these companies to maintain the 1975 level of additional AWS payments if they continue to make profit in the year of application. If, however, in 1976 or subsequent years, such companies incur losses, no additional AWS payment will be allowed and they will therefore pay only the frozen amount of AWS. This is a reasonable solution to the problem of those who have paid additional AWS contrary to the policy laid down in 1972. The other aspect relates to fringe benefits. The last NWC session had recommended a freeze on the range and quantum of fringe benefits for existing companies and the provision of the minimum in the Employment Act for new companies. There had been press reports that some employers had tried to take advantage of the present situation by withdrawing accustomed fringe benefits from their employees after they have joined a trade union. My Ministry considers such actions anti-union and contrary to the spirit of tripartism which has been the foundation of our industrial harmony.”
“For those who had paid bonuses of a month's wages or more before, the Annual Wage Supplement would be calculated on the average of the bonuses of the last three years or the last annual bonus, whichever was higher, subject to a maximum of three months' wages. The only variation allowed was a decrease in the Annual Wage Supplement when trading result or productivity diminishes significantly. For those who had not paid bonuses or paid them at less than one month's wage, the Annual Wage Supplement should not exceed one month's wage. The annual bonus paid under the first option was negotiable subject to a maximum of three months' wages. These NWC recommendations were incorporated in an amendment to Section 46 of the Employment Act which were debated and approved in this House and became operative in July 1972. However, it was subsequently found that firms could still legally pay Annual Wage Supplement in excess of the frozen quantum. On 26.12.75 Section 46 was further amended to make it mandatory for employers and unions to observe the frozen levels of Annual Wage Supplement. At the same time, provision was made for employers to make additional payments subject to a maximum of three months' wages with the written prior consent of the Minister for Finance. The hon. Member for Bukit Ho Swee has suggested that employers be allowed to pay Annual Wage Supplement up to a maximum of three months' wages without having to apply for Government approval and that unions be given the right to request for higher AWS if employers made substantial profits. These proposals will mean a re-opening of negotiations on additional AWS payments in the case of many firms whose frozen quantum of AWS is below three months' wages.”
“Given increased difficulties in getting foreign investments and increased market competition and the need to find jobs for the 26,300 school leavers who will be entering the labour market each year for the next few years, policies to maximise our ability to persuade local and foreign capital to set up factories here and for overseas markets to buy our goods and services are called for. Where labour is concerned, it is in their long term interest that unions help to maintain industrial peace and pursue realistic wage and fringe benefits demands. Across-the-board wage increases and increases in the range and quantum of fringe benefits would not be possible in the immediate period ahead. Wage and other increases have to be tied to higher productivity. It is a tribute to the trade union leadership that it has moved in this direction. In the 1975/76 National Wages Council session, the union leadership has accepted full-offsetting of built-in annual increments and a freeze on fringe benefits. The National Wages Council will look into the question of offsetting of not only annual increments but all forms of increases in remuneration. Two aspects of wage policies attracted considerable publicity recently. One related to the payment of annual wage supplement. Honourable Members will no doubt recall that in April 1972, the National Wages Council, in an effort to end multitudinous disputes over bonuses and to provide for orderly wage increases, recommended that employers be given the option of choosing either an Annual Wage Supplement (AWS( plus Annual Bonus or Annual Wage Increase plus AWS. It also recommended the freezing of the levels of the Annual Wage Supplement.”
“Mr Speaker, Sir, I would like to take this opportunity to elaborate on some of the more important aspects of labour policies which are outlined in the Addendum to the Address. We do not have natural resources or a big enough domestic market. Our continued well being depends on our ability to attract foreign investments and to sell our goods and services abroad. We were able to do this in the late 60's and early 70's aided by a favourable international economic situation. As a result we achieved double digit economic growth rates and enjoyed the benefits of successful development. Jobs were created. Wage increases were announced by the National Wages Council. There were increases and improvement in social services. However, the international economic environment has grown difficult. With the more than quadrupling of oil prices and fear of inflation, the industrial nations of the West have aimed for a modest growth rate of 5% per annum till the end of the 70's. The unemployment rates in these countries are expected to remain high. In 1976, the world economic recovery slowed down. Though the US, Japan and West Germany have announced their intention to stimulate their economies, the international economic situation for 1977 remains uncertain. OECD countries are our main sources of investments. They are also our important trading partners. Given the economic problems in these countries, investments will be difficult to come by. Furthermore, we will have to face competition for investments from our competitors like South Korea and Taiwan. Our competitors will also be marketing products and services in competition with us in these and other countries.”
“Sir, I will certainly circulate the monthly information sheets to Members of this House and to community centres if they have not yet received them.”
“At the height of the retrenchment in 1974 and early last year, although thousands of workers were retrenched there were at the same time thousands of workers on work permits who were imported from across the Causeway. It only demonstrates that there are jobs available but for various reasons the unemployed Singaporeans are not keen.”
“Mr Speaker, Sir, it is precisely because of the identification of the former Employment Exchange with lower educated candidates as mentioned by the Member for Toa Payoh that we decided there should be a reorganisation and a new image given to it, I agree with him that under the old Employment Exchange, in fact. practically all the registrants with the Employment Exchange were unskilled workers, and those who had better educational qualifications would not go to the Employment Exchange for registration. But as I have pointed out just now, after the reorganisation, we are now getting more registrants with better educational, qualifications and we are informing the private employers of the existence of this pool of better qualified unemployed persons available. The extent as to how far the service could be further improved, I think a lot will depend on the staffing position and finance. The Member for Jalan Kayu has pointed out that since the Labour Ministry is not a revenue-generating department, probably the Ministry of Finance is not that keen to provide more money. Nevertheless, within the limited resources available to the Ministry, we are doing our level best and, as I have pointed out just now, in the course of last year the Employment Service has for the first time placed over 8,000 people in suitable jobs. As for the yellow card given to the registrant, as mentioned by the Member for Jalan Kayu, I have pointed out that if the registrants are not too selective there are jobs available for them. Everyone in this House knows in his heart that jobs are available but there are few prepared to accept certain jobs.”
“In view of the smallness and the compactness of Singapore and of the existing two branches strategically located in industrial estates. coupled with a fairly efficient transport system, it is not necessary to decentralise the Employment Service further. However, should the need arise in future. I am sure we will reconsider the matter. In addition to setting up branch offices the Employment Service also makes use of the community centres to communicate with possible job seekers visiting these areas. 3.45 p.m. As mentioned earlier, the Employment Service sends monthly lists of job vacancies to the community centres to be displayed on their notice boards. The Employment Service officers are also invited by the community centres to give talks on the role and functions of the Employment Service, and usually after these talks printed brochures giving particulars of job vacancies and how to apply for them, etc, are left with the community centres.”
“All these serve to demonstrate the improved capacity of the Employment Service in coping with changes in the employment situation. Contrary to what the Member for Moulmein feared, the current economic indicators point towards a gradual but difficult recovery in our economy. However, should the unexpected happen and there be a downturn in the economy accompanied by high unemployment, the Employment Service will, as in the case of retrenchment, take immediate appropriate action to meet the changed situation. As pointed out by the Member for Jalan Kayu, the Employment Service has two branch offices, one in Jurong and the other in Bukit Panjang. These two branch offices are located in industrial estates to facilitate employers in recruiting workers as well as to assist job seekers who live in the vicinity of these industrial estates in seeking employment. The Jurong branch office caters for residents living in postal districts 5, 21 and 22. This includes the entire Jurong industrial estate with more than 2,000 industrial establishments. Members may also wish to know that the Ministry has submitted to the Ministry of Finance a proposal to set up in Jurong a Labour Regional Centre to house branch offices of the various sections of the Ministry, including the Employment Service. The Bukit Panjang branch office also serves an extensive area covering postal districts 23, 24 and 25. The main office located within the city area caters for the rest of Singapore. For the information of the Member for Jalan Kayu, the question of decentralisation of the Employment Service was further considered before and, in fact, a branch office was set up in Kallang. Because the demand for the service of this branch office in Kallang was rather small, the office had to be closed down.”
“This has, therefore, made it possible for the Employment Service to improve its placement service. Prior to the reorganisation in 1972 job orders notified to the former Employment Exchange came primarily from the public sector, including the statutory bodies. Private sector employers used the Exchange sparingly and only as a last resort. Job orders from the private sector were predominantly for unskilled manual labour and often of a temporary or emergency nature. The average annual number of vacancies notified to the Exchange for the period 1969 to 1971 was 7,500, of which less than 20% were from private establishments. With the reorganisation the annual number of notified vacancies increased substantially to an average of 13,000 for the period 1972 tQ 1975, and the proportion of private sector vacancies went up to more than 50%. Successful placement of registrants in private firms in the past was negligible. However, since the reorganisation in 1972 the Employment Service has been able to place an increasing number of registrants in the private sector. The proportion of registrants placed in private establishments has gone up from less than 20% in 1972 to 30% in 1975. Last year the Employment Service found work for a record 8,756 registrants and many more registrants would have been placed had they not been over-selective in the jobs offered. Members will recall that at the height of retrenchment in the last quarter of 1974, the Employment Service set up a special retrenchment unit to help those retrenched workers who could not find alternative employment on their own. In August 1975 the unit extended its services to the locally employed civilians made redundant as a result of the final withdrawal of the UK forces from Singapore.”
“Moreover, senior officers of the Employment Service also give group counselling to schools, community centres and the Youth Leadership Training Institute. Furthermore, a senior employment officer sits on the National Guidance Service Council which coordinates the national efforts on vocational guidance programmes. So, in fact, the Employment Service do carry out a certain amount of career counselling. The labour market information service provided by the Employment Service since 1972 includes sending of monthly information sheet on job opportunities to all Government secondary, academic, technical and tertiary schools, private commercial institutes and community centres. Specific labour market information is also provided to private individuals and individual organisations writing in for such information. Since its reorganisation the Employment Service has been providing an improved service to both employers and job seekers. However, to further improve the efficiency of the Employment Service, we have a Colombo Plan expert attached to the Employment Service since last June. His role is to advise and assist the Employment Service in the training and developing of the staff at all levels, in developing procedural and operational machinery for the efficient operation of the Employment Service and in establishing a progressive evaluation system for the continuing appraisal of the effectiveness of the Employment Service. As a result of more efficient services being extended to employers and registrants, the number of private sector employers notifying their vacancies to the Employment Exchange has increased. Likewise, the number of better quality registrants with higher education has also increased.”
“Sir,I welcome this opportunity to inform Members as to the function of the Employment Service and the purpose of its reorganisation. The present Employment Service was reorganised in July 1972 with a view to facilitating the employment process and improving the efficient utilisation of the labour force. The revamped Employment Service, formerly known as the Employment Exchange, was designed to alleviate the labour shortfall by increasing the effective supply of labour in three ways: firstly, by a faster matching of the unemployed workers with the job vacancy, thereby shortening the period of joblessness and raising the effective supply of labour: secondly, by reducing undesirable labour mobility through the provision of relevant labour market information: and, thirdly, by lowering turnover through better matching of work-aptitude and ability with job requirement, thereby raising job satisfaction. To this end, the reorganised Employment Service in 1 972 introduced vocational guidance and labour market information services. Vocational counselling is given to unemployed job seekers, particularly fresh school leavers, as part of the programme of assisting registrants to secure suitable employment. Whenever possible, young registrants without any specific technical training are encouraged to take on blue collar jobs and to acquire suitable trade skills. However, those with basic minimum academic qualifications and with interest in a blue collar career are referred by the Employment Service to the Vocational Training Board for admission into one of its vocational training colleges. In this connection, the Employment Service works closely with the Ministry of Education Guidance Unit and the Industrial Training Board.”
“Sir, I beg to report that the Committee of Supply has made progress on the Main and Development Estimates for the financial year 1st April, 1976 to 31st March. 1977, and ask leave to sit again tomorrow.”
“If the Member for Jalan Kayu could bring those cases to the attention of the Ministry, we will look into it. In fact, there is an Appeals Committee to consider all these cases. If the Committee thinks that the reasons put forward by the applicants are acceptable, we will consider them.”
“Sir, I thought I have answered the question of the Member for Jalan Kayu. Skilled tailors are not prohibited from coming in. In fact, we do issue work permits to skilled tailors.”
“That is not my point. If they can find the workers, they can go ahead. Nobody is going to stop them from carrying on with their business.”
“Sir, I want to make one point clear. We are not refusing to allow skilled tailors from coming in. In fact, many work permits have been issued to skilled tailors. It is only the unskilled tailors that we have to consider very carefully. In case of doubt we always send the applicant for a skill evaluation test at the Adult Education Board. And in cases of refusal, the employer can appeal on their behalf, and if there are good reasons why approval should be granted, it would be granted. Oven the last few years, with industrialisation, the whole economy has changed. In fact, one has to begin to consider whether the traditional type of business, like the provision shop, is desirable when we are faced with a labour shortage. There has been a mushrooming of supermarkets, shopping complexes, self-service shops and so forth, and this is a response to this kind of situation. I do not think we can go on as before. I think We should progress with time.”
“Sir, I appreciate the difficulty of getting domestic servants. In fact, I myself am without one at the moment. For the information of Members, we have been very liberal in granting work permits to people who wish to become domestic servants for obvious reasons, because we want to encourage women, especially those who are highly qualified, to work. I do not agree that we have been rather restrictive in issuing work permits to domestic servants. As for tailors. I think I have mentioned earlier that we are giving priority for the issuance of work permits to those who want to work in industries, particularly those industries that are engaged in production for export. Tailors, unfortunately, do not come within this category. But if it is a textile factory which is producing goods for exports, then they will be given priority. I think Members have to bear in mind that the interest of our own citizens must come first. In those cases mentioned by the Member for Potong Pasir, if those foreigners are prepared to work in factories on in industrial undertakings. I am sure their applications will be favourably considered. But if they are only interested in soft jobs which do not require much exertion, then I am afraid we have to be rather restrictive.”
“Sir, I think the factories can apply for temporary permission to employ non-citizen workers, pending the final decision on their applications. The Work Permits Office is quite flexible on this matter. If the factories concerned are producing goods and services which are given priority by the EDB, temporary permission of one month is normally given to applicants while their applications are being processed.”
“In the case of barbers, the Ministry has not been unduly restrictive in granting work permits to non-citizens engaged in this occupation. The Ministry is aware that few Singaporeans are interested in taking up such employment. However, non-citizens wishing to secure employment as barbers must at least possess the requisite skill for the job. As such, work permits are only granted to those who have passed a practical test conducted by the Adult Education Board. In respect of female barbers, they must, in addition to passing the trade test, have at least completed six years of primary education. The Member for Sembawang may wish to note that about 28% of the barbers working in Singapore are work permit holders.”
“Mr Deputy Speaker. Sir, I think the Member for Sembawang had raised the question of shop assistants and barbers during last year's Budget sittings. Members may recall that my reply then was that, with Singapore's continued policy of rapid industrialisation, it was of vital importance that the manpower requirements of the industries should first be met. 7.30 p.m. In line with this policy, the Ministry has continued to accord priority to applications for work permits from non-citizens seeking employment in factories and other industrial undertakings. As long as our economic objectives and manpower strategy remain unchanged, non-citizens wishing to pursue soft or relatively unproductive jobs, like shop assistants or other white collar jobs like salesman, etc., cannot be given priority. The prospect immediately ahead for our economy is not expected to be one of high growth rate. In 1975, there was only a real growth rate of 4.1%. At the same time, it has been estimated that the number of students leaving schools each year, without completing their secondary education. would remain around 22.000. Many of these premature school leavens would not be in a position to find meaningful employment on account of their age, low educational qualifications and lack of any marketable skills. Although the Government is looking into various schemes to encourage these youths to take up careers in industries, not all of them will or can be successfully absorbed. Other job opportunities such as shop assistants or restaurant workers and so forth must be found for them. Under these circumstances, it is unlikely that the Ministry would consider relaxing its work permit policy in regard to non-citizens employed in such occupations.”
“Sir, I beg to move, In page 4, line 30, to leave out "younger" and insert "young". This is to correct a printing error. Amendment agreed to. Clause 8, as amended, ordered to stand part of the Bill. Clauses 9 to 13 inclusive ordered to stand part of the Bill. Bill reported with amendments; read a Third time and passed. PROBATION OF OFFENDERS (AMENDMENT) BILL Order for Second Reading read. 4.05 p.m.”
“The Ministry has, through the National Productivity Board, already begun work with employers and unions on this objective. However, it is necessary that some incentives should be provided for increased productivity. The proposed amendment to clause 2 will therefore meet the concern of the Chinese Chamber of Commerce as well as of the NTUC. Bonus payments made by Chinese firms under the traditional wage system will be deemed to be payments made under a productivity incentive scheme. In regard to the usual productivity incentive schemes in unionised establishments, they will follow the usual process of direct negotiation between employers and unions, conciliation by the Ministry, if necessary, and upon agreement delivered within seven days to the Industrial Arbitration Court for certification under section 24 (1) of the Industrial Relations Act. Amendment agreed to.”
“Sir, I beg to move, In page 3, line 40, at end, to add -"(15) Nothing in paragraph (c) of subsection (10), or in subsection (13), of this section shall he construed as applying to any payments made by an employer to an employee under a productivity incentive scheme."; and ". Since the introduction of the Bill in this House on 19th August, 1975, 1 have received a number of representations on matters covered therein. The Chinese Chamber of Commerce expressed concern that, under the proposed amendments to section 46 of the Employment Act, the Chinese business community would not be able to continue with its traditional wage system, which is characterised by relatively low wages and high bonuses. The National Trades Union Congress has also made several proposals with regard to the Bill. One of these is that the amendments proposed to section 46 of the Employment Act should not be extended to payments made under any productivity incentive scheme. It was of the view that unless this was done employers would be prohibited from operating an incentive or productivity scheme. This would frustrate Government's policy on productivity of labour and deprive employees of accrued benefits relating to existing incentive payments. Mr Speaker, Sir, it has never been the intention of the Ministry to bring the traditional Chinese wage system or productivity incentive schemes within the proposed amendments to section 46 of the Employment Act. The continued operation of the traditional Chinese wage system, especially in business based on family or kinship ties, would in my view not disrupt orderly wage developments. As regards productivity incentive schemes, the Government has consistently urged that firms and factories must seek to increase their productivity.”
“Instead of labouring on the question of bonuses or additional payments or ex gratia payments, it would be more helpful if the unions would dwell more on the question of a decent wage for an honest day's work rather than expecting extra payments without putting in extra efforts. If, as it is claimed, there are generous employers who are willing and can afford to pay a more generous wage supplement or ex gratia payment to their employees, the initiative for such payments should come from the employers themselves. Concerning the interests and welfare of young persons, I can assure the Member for Boon Teck that the Government is as interested as he is to see that there is no exploitation of young persons in employment. In a small compact country like Singapore, with a highly literate and well informed population and a vigilant Government, it is doubtful that any employer can get away with exploitation of young persons without being discovered and punished. However, this does not mean that the trade unions cannot play a useful role in keeping a check on possible abuses by unscrupulous employers. I shall, therefore, take the suggestion of the Member for Boon Teck into consideration when amending the Trade Unions Act. Question put, and agreed to. Bill accordingly read a Second time and committed to a Committee of the whole House. The House immediately resolved itself into a Committee on the Bill-[Mr Ong Pang Boon]. Bill considered in Committee. [Mr Speaker in the Chair] 4.00 p.m. Clause 1 ordered to stand part of the Bill. Clause 2 -”
“Mr Speaker, Sir, the various points raised by the Member for Boon Teck have, in fact, been covered in my speech earlier on. I think he is unduly concerned over the fact that some employers may seek refuge behind the proposed amendments for their unwillingness or inability to pay a higher annual wage supplement to members of a union. Any employer who is foolish enough to resort to such a tactic will find that he will have a lot of questions to answer and an unsympathetic Government to contend with. The Member has also expressed concern that some unscrupulous employers may offer their workers a more generous annual wage supplement in return for not joining a trade union. I am afraid this is a problem that all unions have to face up to at all times. This is not a problem peculiar to Singapore. Unions must expect such divisive tactics from anti-union employers. It is up to union officials to expose the true intentions of such employers and to convince the workers that their long-term interest lies in joining the union. I wish to reiterate once again that the question of bonuses has been disposed of in 1972 when amendments were made to the Employment Act based on the recommendations of the National Wages Council. The quantum of bonuses then prevailing was converted into annual wage supplements and frozen at various levels as prescribed in section 46. The Government has no intention to reopen the whole question of bonuses again as it would, in the words of the Secretary-General, NTUC, mean "the resurgence of the previous bonus chaos in Singapore's wage structure by providing a recipe for an industrial free-for-all".”
“In many cases it has also made the parties involved less amenable to conciliation and amicable settlement of claims. It must be emphasised that, in the majority of cases before the Commissioner, the dispute is purely one of facts. Points of law are not usually at issue and therefore the presence of legal counsel at such inquiries is not necessary. There are also similar provisions prohibiting legal representation under sections 27 and 63 of the Industrial Relations Act which include representation in negotiations at conciliation meetings chaired by conciliation officers of the Labour Ministry. Clause 13 of the Bill therefore seeks to achieve this but allows an employee to be represented by an officer of the trade union of which the employee is a member and an employer to be represented by one of his employees who will usually be the Personnel Manager. The Singapore Employers' Federation has requested that if an employer chooses instead to be represented by an officer of the trade union of which he is a member in the proceedings before the Commissioner, he should be allowed such representation. The Ministry sees no objection to this proposal and will administratively allow an employer this option. Sir, I beg to move. Question proposed. 3.20 p.m.”
“While measures are proposed to provide for the training and gainful employment of the young, it is necessary to continue to protect the health, safety and welfare of the young in the 12-16 age group who will be working in industrial undertakings. Clause 6 empowers the Minister for Labour to make provisions to that effect in the form of regulations to be gazetted after this Bill has been passed. It is therefore proposed to repeal all sections relating to conditions of employment of children and young persons in the Act and incorporate them in the regulations. The National Trades Union Congress has written to the Ministry pointing out that with these amendments the number of workers between the ages of 12 and 18 will become greater and suggesting that an amendment be made to the Trade Unions Act to allow such workers trade union membership but without the right to hold office or to vote at general meetings of members. My Ministry is presently looking into the question of amending the Trade Unions Act and will take this suggestion into consideration. Under Part XVI of the Employment Act, the Commissioner is empowered to conduct inquiries into claims lodged by employees in respect of matters relating to terms and conditions of their employment. Such inquiries are informal. Legal technicalities and forms are avoided as far as possible. This is in order to achieve speedy settlement in the interests of the parties concerned. In the experience of the Ministry, employers are usually represented by lawyers whereas the employees are not. We have found that the presence of lawyers at these informal inquiries has tended to formalise the character of the proceedings leading to unnecessary procedural complications, thereby delaying the completion of the hearings.”
“The Report of the Committee on Crime and Delinquency reveals that juvenile crime and delinquency has increased in the Republic during the period 1968 to 1972. The Report also discloses that the majority of youths who flout the law are school leavers and that the tendency towards criminal or delinquent behaviour is negligible until the age of 13 and strongest at the ages of 15-16, 17-19 and 20-21. The Committee is of the view that one of the solutions to this problem is the adoption of measures to enable our school leavers to be trained and be gainfully employed. This will not only benefit the youths concerned but also provide a source of supply of trained workers for the economy. The Government has since taken note of this recommendation of the Committee, and the proposed amendments to the Employment Act is to allow youthful school leavers to be trained and be gainfully employed. Under clause 8, children who are 12 and below 14 years old will in future be allowed to be gainfully employed in industrial undertakings as apprentices under any apprentice schemes approved and supervised by the Industrial Training Board. Under the existing provisions of the Employment Act, young persons between the ages of 14 and 16 are required to obtain certificates of registration from the Commissioner for Labour before they may be allowed to work in industrial undertakings. Clause 9 of the Bill seeks to repeal Part IX of the Employment Act dealing with such registration so as to facilitate the speedy employment of young persons in the 12-16 age group.”
“Lastly, employers may only, with the prior written permission of the Minister for Finance, pay any additional annual wage supplement in excess of the frozen quantum. Since the introduction of the Bill in the House on 19th August, 1975, 1 have received a number of representations from organisations like the Chinese Chamber of Commerce, the National Trades Union Congress and the Singapore Employers' Federation. As a result of some of these representations I have decided to introduce an amendment to clause 2 of the Bill. The amendment will be dealt with later at the Committee stage. At the moment I shall only deal with the other representations. The National Trades Union Congress has requested that amendments be made to the Bill to allow for the continued payment of signatory bonuses and ex gratia payments which are made upon the signing of a collective agreement. The NTUC has argued that such payments are not really intended to evade the provisions of the Employment Act relating to the payment of the annual wage supplement or bonus. My Ministry is of the view that such onetime lump sum payments are not an annual wage supplement or bonus payments and are, therefore, outside the ambit of section 46 of the Act. I see no objection to such payments being made if they are for good reasons, such as compensation for change of annual incremental date, or payment in lieu of actual amount of arrears of wage adjustments, or payment in lieu of arrears of overtime arising from backdating of new salary scales. However, such payments should not be made for the purposes of inducement for signing the collective agreement. Mr Speaker, Sir, I shall now deal with clause 8 of the Bill.”
“' He went on to tell the Conference that "this must not be allowed to happen, least of all in the current climate of the economy". Mr Speaker, Sir, it is essential for us to develop a sound national wage system based on the one recommended to us by the National Wages Council in 1972. A system of orderly wage increases will contribute greatly to a right investment climate in our Republic. Members are all too well aware of the need for us to make greater efforts to attract investment into Singapore. The years ahead are going to he different from the last five years. We are unlikely to be able to repeat our years of double digit economic growth. We simply cannot afford undisciplined and chaotic wage increase demands to hamper our efforts to achieve maximum development in a period of comparatively reduced growth. Mr Speaker, Sir, clause 2 of the Bill is, therefore, aimed at preventing the situation of the type I have just described. There are three important aspects of clause 2 of the Bill. Firstly, it is now mandatory for employers and trade unions of employees to observe the levels of annual wage supplement which have been frozen on 1st July, 1972. Secondly, employers may choose to pay either both an annual wage supplement and an annual bonus or both an annual wage supplement and annual wage increase. It will be an offence if the annual wage supplement, annual bonus and annual wage increase are all paid or asked to be paid at the same time. The employer alone shall decide which of the two combinations he shall opt for. It is an offence for a trade union or anyone to ask for payments in variance of the option which the employer has chosen.”
“The level of annual wage supplement payable by the employer who has paid annual bonuses to his employees prior to 1972 is to be the equivalent of the average of the bonuses paid in respect of the three years preceding the commencement of the Act, that is, 1972, or to the last annual bonus paid, whichever is the greater, subject to a maximum amount equivalent to three months' wages of his employees, except that where such bonuses were based on exceptional trading results or increased productivity which the employer finds have diminished to a significant degree, the employer may negotiate for a lower quantum of the annual wage supplement to be paid. If an employer has not paid any bonus to his employees or has paid a bonus of less than one month's wages before the commencement of this Act, the annual wage supplement payable by him shall not exceed one month's wages of his employees. However, contrary to the provisions of section 46, a number of employers have at the request of unions attempted or in some cases even paid annual wage supplements in excess of the levels prescribed under section 46. In a number of cases the additional annual wage supplements paid took the form of ang pows and ex gratia payments. This is an undesirable situation which, if unchecked, can lead us back to the pre-1972 situation of disputes over bonuses and ex gratia payments and disorderly wage increases. In fact, the Secretary-General of the National Trades Union Congress, in a speech to the NTUC Ordinary Delegates Conference in December 1974 said that, and I quote: `To take the lid off on bonus payments once again, would only be to provide a recipe for an industrial free-for-all.”
“Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." Sir, the Bill seeks to introduce a number of amendments to the Employment Act, details of which are summarised in the explanatory statement. I now propose to elaborate on some of the more important clauses in the amendment Bill. Hon. Members will no doubt recall that in April 1972 the National Wages Council recommended that the existing bonus system in the private sector be converted into a system of an annual wage supplement supplemented by either a negotiable bonus or annual wage increases and that the maximum in regard to bonuses be raised from one to three months' wages. These recommendations were accepted by the Government in the interest of rational and orderly wage increases. Section 46 of the Employment Act was then amended in July 1972 incorporating these recommendations. Under the present section 46 of the Act, a trade union of employees is entitled to negotiate for the payment of either both an annual wage supplement and an annual bonus or both an annual wage supplement and annual wage increases. An employer is given the right to make an option between negotiating for the payment of both an annual wage supplement and a bonus or both an annual wage supplement and annual wage increase. He will, however, be bound by his choice of option for the duration of any award of collective agreement which may be made regarding these payments. An employer who cannot afford to pay any of the aforesaid combinations may offer to negotiate to pay an annual wage supplement or bonus or annual wage increase.”
“For the remaining areas census survey has yet to be carried out and, therefore, no details of the resettlement cases are available.”
“For this purpose:- 599 hectares in Punggol/Serangoon 253 hectares in Jalan Kayu and 184 hectares in Tampines have been acquired. The Punggol/Serangoon area has been designated for intensive pig farming. It is the intention to resettle 640 large pig farms from Kranji to this area. They keep a total of 180,000 pigs or 84% of the total pig population in Kranji. So far, 214 of them have applied for land at Punggol and 67 have been allocated land there. Development of 254 hectares for pig farming in the Lorong Buang Kok area is almost completed and resettlement of farmers from Kranji has begun. Sixty-live hectares have been earmarked for large commercial pig farms. This will offset any short fall in pig production that may result from the resettlement exercise. Twenty-five investors have applied for commercial lots, nine of whom have been approved. Construction of farm holdings has begun and the pig farms are expected to be operational by mid-1976. Further allocations of resettlement lands will be made as and when the newly developed areas are ready to take in farmers. Ninety-one poultry farms in Punggol are affected by the development of the area for intensive pig farming. Sixty-two of them, keeping a total of 406,594 poultry, are allowed to remain subject to their maximising the use of the land for farming activities. They will not be given more land to expand poultry keeping, as the priority for land use there is for pig rearing. They will be allowed, however, to keep pigs in addition to rearing poultry. Two hundred and ninety-one families including 45 farmers have to move from the area under development. The total amount of ex gratia compensation paid out so far is $1.8 million.”
“Mr Speaker, Sir, I am not in charge of the allocation of land to the Jurong Town Corporation. The Member for Jurong should direct his question to the appropriate authority. The same point has been raised by the Member for Jurong at the time of the last Budget debate and I think the Finance Minister had already answered his point. The position has not changed very much. In fact, I would say the position has improved with the HUDC scheme. So I do not think the Government is prepared to deviate further from the objectives of the Central Provident Fund. LIVESTOCK FARMING INDUSTRY IN PUNGGOL (Particulars) 4. Mr Ng Kah Ting asked the Minister for National Development and Communications (a) if he will elaborate on the proposed livestock farming industry on the lands acquired in Punggol; (b) if he will indicate the number of applications from both farmers and other enterprises to set up such industry; (c) when such industry will be set up and become both operational and productive; (d) how many poultry farmers in the area have been affected by the scheme; how many of them have been allowed to remain and continue such farming activity and under what terms; and whether he will consider making available bigger land areas to those poultry farmers to expand their poultry farming; and (e) how many families are to be resettled and what is the total sum of ex gratia payments paid out so far. The Minister of State for National Development (Dr Tan Eng Liang) (for the Minister for National Development and Communications): Mr Speaker, Sir, in order to reduce pollution from pig waste, it was decided to resettle pig farms from the Kranji/Pandan catchment to non-catchment areas.”
“Mr Speaker, Sir, this is not the first time that the Member for Jurong has raised this question, and I am afraid I have to disappoint him again. The Central Provident Fund is established to provide compulsory savings for workers for their old age or when they become permanently disabled. The Government has, however, allowed members of the Fund to use their CPF savings and contributions to buy publicly built flats. Under the Central Provident Fund (Approved Housing Scheme) Regulations, 1968, members of the Fund are allowed to use their CPF contributions to buy flats built by the Housing and Development Board and the Jurong Town Corporation for the lower income group. Members of the Fund in the middle income group on the other hand are allowed under the Central Provident Fund (Approved Middle Income Housing Scheme) Regulations, 1975, to use their share of the CPF contributions to buy flats built by the Housing and Urban Development Co. (Pte) Ltd. These two housing schemes go a long way to assist a great majority of citizens in purchasing a flat. In view of this, it has been decided not to extend the use of CPF contributions for the purchase of other properties. I therefore regret to inform the Member for Jurong that CPF contributions will not be allowed to be used for the purchase of executive flats built by the Jurong Town Corporation.”
“Insurers can no longer dispute liability to pay workmen's compensation purely on ground of alleged breach of insurance policies as under clause 35 (1) (k) regulations will be made for the prohibition of conditions and exceptions in policies of insurance issued or renewed for the purpose of workmen's compensation. Sir, I beg to move. Question proposed. 6.55 p.m.”
“The percentages of loss of earnings used to calculate compensation in permanent incapacity cases involving traumatic injuries have also been revised upwards. The most important feature of the Bill is the elimination of time-consuming procedures and the introduction of a new system of administration and enforcement providing for expeditious payment of workmen's compensation. This is achieved by clause 24 of the Bill. Under this clause, the employer, unless he has grounds for objection, is required to deposit the assessed sum of compensation with the Commissioner for Labour within 21 days of the service of the notice of assessment. If the employer fails to do so, an interest of 1�% per month will be levied on the late payment. If he disputes the assessment, in accordance with clause 25 he must state in writing the grounds of his objection to the Commissioner within 14 days of the service of the notice. Where the employer disputes liability, under clause 25 of the Bill, the Commissioner is vested with the powers of the Arbitrator to hold a hearing and make the final decision on the case. There can be no appeal to the High Court under clause 28 unless a substantial question of law is involved and where the amount of dispute is not less than $1,000. Clause 32 makes payment of compensation even more expeditious in that it enables proceedings to be brought directly against an insurer who has issued a policy of insurance covering an employer against liability for workmen's compensation.”
“As there are extensive amendments and in view of the Bill's importance, it is proposed to commit the Bill to a Select Committee of Parliament so that views of all interested parties can be considered. Sir, the main provisions of this Amendment Bill are detailed in the explanatory statement to this Bill. Let me now elaborate on some of the salient features of the Bill. A new provision establishes the Workers' Fund in clause 6 and pro- vides that where a deceased workman has no dependant, compensation is nevertheless payable to the Workers' Fund. Clause 7, which is to be read with the Third Schedule, provides for increased compensation to an injured workman. The maximum compensation payable in fatal cases has been raised from $21,600 to $35,000 and in permanent incapacity cases from $28,800 to $45,000. In temporary incapacity cases, from one-third wages paid half-monthly to full wages for 14 days if there is no hospitalisation and 60 days where hospitalisation is involved. To ensure that the injured worker and his dependants will in fact obtain the increased quantum of compensation, the multiplying factors for computing compensation have also been increased. For fatal cases, it is 108 months' earnings in the ease of a workman below 40 years of age; 84 months' earnings in the case of a workman who is 40 years of age and above but below 50 years of age; 72 months' earnings in the case of a workman who is 50 years of age and above. For permanent incapacity cases, it is 144 months' earnings in the case of a workman who is below 40 years of age; 120 months' earnings in the case of a workman who is 40 years of age and above but below 50 years of age; 96 months' earnings in the case of a workman who is 50 years of age and above.”
“As human resources constitute our only natural resources, a special responsibility rests on employers to maintain a safe and healthy working environment and to ensure that their workforce observe all the safety regulations. Sir, this is not a legislation intended to prevent accidents or to offer remedy to the problems of safety and health regulations. Separate legislation, principally the Factories Act and its subsidiary regulations, will cover this particular aspect. There should be no doubt now in the minds of everyone that nobody gains in an industrial or occupational accident. The employer loses manhours and productivity, throwing production line off-gear and upsetting production schedule; the insurance company loses in compensation, but most important of all, the worker loses his life and his family loses a breadwinner. Sir, the increase in the quantum of compensation under this new Bill should not be looked upon as a punitive measure but rather an attempt to strike a reasonable balance between the needs of the victims and their families and what the industry can bear. The House may be interested to know that the contractors' organisations and the General Insurance Association, under the guidance of my Ministry's Building Construction Safety and Health Committee, are now exploring the possibility of working out a new incentive-orientated insurance rebates scheme. I hope that this will be extended to all other employers as there is more reason now to have this incentive scheme in view of the increase in the quantum of compensation. The net result can only be savings all round.”