Productivity then inflation
is given as excuse for the inability to give wage increase to low income
workers. PM Lee said wage increase would
lead to inflation but just a day ago, DPM Tharman said most people would not
feel the inflation.
Anyway, the government has
to think of some reasons to justify no wage increase for low income workers. Perhaps, they are running out of ideas. After
productivity, inflation, they will add economic restructuring (business
closures), jobs lost, and even world economic crisis. All the fear tactics will come out but will
people believe them?
When we celebrate May Day,
it is really not a piece of good news to the workers. Just like a birthday without a cake and in
addition, you receive a warning of inflation, jobs lost, competitions, and even
crisis. Instead of celebration, it is like mourning.
Let see how the government
is raising productivity through their outsourcing activities. How do they perform
more jobs through less manpower used? You can visit the website of Spring
Singapore. There are various assistance schemes for companies to raise their
productivity.
The basic and straight
forward grant, for example the LETAS, is done by Spring Singapore and the
complicated cases, companies seek help through so called EDC (Enterprise Development
Centres). This model creates more jobs
for others but fewer jobs for Spring Singapore.
The end result is Spring Singapore can achieve higher productivity
through outsourcing activities to third parties. But the activities of the third
parties are added to the contributions of Spring Singapore and so they can
claim that with fewer headcounts, they can achieve more. Hence, their productivity increases and can
justify for wage increases.
IDA has a program called
Infocomm@SME, another productivity improvement assistance scheme for
companies. The basic iSprint is done by IDA
and the complicated ones (SIRC), companies have to seek help from Singapore
Poly and Chinese Chamber. Doing the easy
and straight forward cases and leaving the complicated and may be no result
cases to third parties, IDA can claim credit for productivity gains, again with
smaller headcounts.
Same may go for the SAF,
outsourcing catering, vehicle maintenance activities to Singapore Food and ST
Technology and claim the credit of productivity improvement.
The whole exercise is beneficial
for all parties involved. There are also multiplier effects on our economy. The
source parties (Spring, IDA and SAF) claim productivity improvements, and the
third parties gains from having the contracts and businesses.
Powerless workers
Only with monopoly status
or regulated protections, the outsourcing effect will make meaningful gain in
productivity.
This has nothing to do
with low income workers and also will not improve their productivity. As for the third parties, in order to make
money and also to improve their productivity, they will go for cheaper sources,
be it foreign labour or older workers or another third parties.
Consequently, we see the
stress on low income and low educated Singaporeans. In the whole process of outsourcing, the cost
will have to go lower and lower to achieve profits. There is no bargaining power
for low income Singaporean workers as they have to compete with younger and
more productive foreign workers.
When we talk about
economic restructuring, especially in the name of productivity improvement, we
have failed to input local human factors.
Of course in the name of greed, who cares about low income Singaporeans?
Spring, IDA, the SAF and other government bodies, all can claim they have
achieved productivity improvements. But this
is at the expense of whom?
The more outsourcing the more out of touch
But the single and most
critical of the outsourcing activities is THE LOST OF TOUCH with the people. This
is the reflection of the PAP government – by outsourcing activities to PA, then
PA outsources to CCC, CDC or many other Cs.
The end result is the government is not receiving correct feedback and has
no feeling on the ground. This is why the government seems to do all the wrong
things, from housing, transportation to immigration.
When the government announces
they are spending more money to help companies to raise productivity, again
they will use the same outsourcing tactic. Needless to say, we have already
known the answer. It will help some companies but certainly not majority of the
companies as well as their low income workers.
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