Saturday 27 February 2016

NTUC submits Budget 2016 recommendations

'Tighten rules for firms not intent on hiring Singaporeans'
NTUC's Budget proposals also call for review of Workfare and Employment Pass criteria
By Joanna Seow, The Straits Times, 26 Feb 2016

The labour movement has called on the Government to review the criteria for Employment Passes, and to distinguish between companies committed to hiring Singaporeans and those that are not.

"This is to ensure our workers have fair opportunities at their workplaces. At the same time, the Government should tighten enforcement on companies that show no intent to develop a Singaporean core of workers," the National Trades Union Congress (NTUC) said yesterday.

The Labour Movement has submitted our recommendations for this year’s Budget to the Ministry of Finance. Our...
Posted by Chan Chun Sing on Thursday, February 25, 2016


This review should meet the varied needs of industries while giving them the incentive to build a strong Singaporean core of workers, NTUC added in its recommendations for Budget 2016, which it submitted to the Finance Ministry yesterday.

Finance Minister Heng Swee Keat will deliver the Budget statement in Parliament on March 24.

NTUC also called for better protection of contract and low-wage workers in its recommendations based on four themes: Strengthening the Singaporean core, improving productivity, enhancing training and skills upgrading, and improving retirement adequacy.

On retirement, it suggested that the Government explore changing the single retirement age to a "more variegated" one beyond 62 for different industries, to allow workers who can stay in employment to do so.

To help local contract workers, it proposed a mandatory limit on the short-term contract extensions a worker is given, so that employers are obliged to permanently hire workers after a certain number of extensions.

It also urged the Government to make it illegal for employers to require a one-day break in between contracts. This practice allows bosses to avoid giving long-service benefits to contract workers.

For low-wage workers, NTUC recommended reviewing the Workfare Income Supplement criteria to ensure it continues to target all workers at the bottom 20 per cent of the wage ladder, so as to account for incomes growing over time. It also proposed that the criteria be based on basic wages rather than gross wages, which are inflated by overtime pay.

Workers too ill to use their SkillsFuture credits or cannot use them for other reasons should be allowed to move them to their Medisave accounts instead, suggested NTUC.

It also offered to provide career guidance counsellors to help match workers to courses as well as relevant job opportunities.

"This is to help ameliorate possible structural unemployment through mismatched skills and jobs," it said.

NTUC assistant secretary-general Patrick Tay said one way to implement the differentiation for Employment Passes is to impose stricter criteria and conditions before these are granted to recalcitrant companies not committed to hiring Singaporean workers.

The other would be to impose a professionals, managers and executives dependency ratio on specific industries or firms, as is the case for S Passes and Work Permits.

"We are aware (the problem) is not widespread but sector specific," he said, adding that the information and communications technology and financial sectors are two that the measures could target.

But Singapore International Chamber of Commerce chief executive Victor Mills said it should not be assumed that there are Singaporeans who want to work in every sector. "It is a great idea to develop a strong Singaporean core, but we may not be able to have that in every sector," he said.




KEY RECOMMENDATIONS

• Review the criteria for Employment Passes to distinguish between companies committed to hiring Singaporeans and those that are not.

• Explore changing the single retirement age to a "more variegated" one beyond 62 for different industries.

• Limit the short-term contract extensions a worker is given, so that employers are obliged to permanently hire workers after a certain number of extensions.

• Review the Workfare Income Supplement criteria to target all workers at the bottom 20 per cent of the wage ladder.

• Allow SkillsFuture credits of workers who are too ill to use them, or cannot use them for other reasons, to be moved to their Medisave accounts.






In addition to helping small and medium enterprises (SMEs) cope with immediate challenges, Finance Minister Heng Swee...
Posted by Ministry of Finance (Singapore) on Monday, March 7, 2016







Budget will need to 'balance present and future needs': Heng Swee Keat
Heng Swee Keat says broad shape of Budget has emerged after input
By Kor Kian Beng, China Bureau Chief In Shanghai, The Sunday Times, 28 Feb 2016

Singapore's upcoming Budget will need to strike a balance between addressing short-term needs and looking at the medium term and structural policies, Finance Minister Heng Swee Keat said, citing a key takeaway from the Group of 20 (G-20) meeting in Shanghai.

"What came across very strongly was how everybody was talking about the need for good structural policies and how you need to focus on the medium term. But at the same time, even as we do that, we also need to think about the short-term needs. So it's that balance that we need to calibrate very carefully," he added.

Speaking to Singapore media as the G-20 meeting of finance ministers and central bankers wrapped up yesterday, Mr Heng said the broad shape of the Budget - which he will deliver for the first time on March 24 - has emerged, thanks to input from the business associations, unions, the public and focus group discussions.

"So I have a much better feel of what's happening. At the same time, we have also been looking at some of the things we need to do not just in the next one or two years, but also things we need to do when we consider our future economy," he said.

"So it will be a set of things we have to think through quite thoroughly - how do we sequence these sets of measures?"

Asked if there would be any "hongbao" to look forward to, Mr Heng said he would provide the full details on Budget Day.

He was also coy when asked if the Goods and Services Tax (GST) threshold might be lowered to boost tax revenue, saying he has received wide-ranging and contrasting feedback on such a move.

"So we have to make a judgment as to what's appropriate for the Singapore economy and in particular for employment," Mr Heng added.

Tax experts and economists have proposed a tweak to the GST threshold to help offset the projected increase in social spending. In Singapore, only companies with annual turnover of $1 million and above are required to register for the GST.

Being prudent and appropriate has served Singapore well and gives the country room to make changes when necessary, Mr Heng said in response to a question that the Republic, despite its slowing growth, is seen to be relatively stable amid the global uncertainty, and is held up as an example.

Also, Singapore has been restructuring its economy every few years, he said, citing the 30-member Committee on the Future Economy, which he chairs, as another important aspect to "work on the changes needed in the coming years".

"This particular set of G-20 meetings has been very helpful in understanding the global environment and the changes others are taking and how in turn these would affect us and how we can make use of the opportunities," he added.

"So these are medium-term changes that we must keep an eye on."


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