As you can probably tell by now, no matter how good a system there is, there will be someone out there willing to abuse it.
Just take a look at the COVID-19 Temporary Relief Fund and you’ll see what I mean.
This is probably why, even though the Progressive Wage Model (PWM) is good for lower-wage workers, Mr Pritam Singh said that safeguards must be in place.
Safeguards for PWM Must be Put in Place to Ensure That Vendors Cannot Profit Under Pretense of Increased Wages
The PWM will be made mandatory in the lift and escalator sector in 2022.
Mr Singh pointed out that there might be unethical vendors out there who might use the PWM as an excuse to charge sky-high prices.
Pointing to his own experience overseeing Hougang-Aljunied Town Council, Mr Singh claims that a major firm had once thrown in lift maintenance fees that were 40% higher.
When asked about the increase and where the extra money would go, representatives from the company said it was an “opening position”, and that the final amount can be negotiated.
A Targeted, Horizontal Approach
Mr Edward Chia, the MP for Holland-Bukit Timah GRC, pointed out another issue that the government has to look at when implementing PWM in other sectors.
The “vertical approach” way that PWM is being implemented so far, Mr Chia says, might not be suitable.
For example, in the F&B sector, hawkers are not able to offer the same salary and benefits as their restaurant counterparts.
He calls for a horizontal approach to include small enterprises, given how they need a runway to plan and prepare to scale up their workers without going out of business.
He also cautioned about the broad implementation of PWM and emphasised a targeted approach, citing how an increase in cost for one industry could affect another.
As an example, while cleaning companies have to pay their employees higher (PWM implemented), it’ll increase the cost of cleaning services to the hawkers.
In turn, these hawkers will find their operating expenditure increased, and costs might be trickled down to the customers.
“Hence, a targeted approach for smaller enterprises is necessary to keep their businesses sustainable for themselves and workers and cost affordable for consumers.”
Other Questions Raised About The PWM
Meanwhile, Mr Louis Ng from Nee Soon GRC asks whether PWM can be implemented faster so that more low-wage workers can be helped.
Questions are also raised about how MOM will help workers form a clear progression path in the pest and strata management sector, and whether PWM will be rolled out to other sectors.
On a separate note, if you’ll like to know more about the Progressive Wage Model, you can check out this comprehensive article we have here.
Feature Image: AhXiong / Shutterstock.com
Here’s a simplified summary of the South Korea martial law that even a 5-year-old would understand:
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