Caught in the pay squeeze

In the last six months, Madam Mala Swamy has cut down on weekend outings with her two children. She saves on transport costs by taking them to parks or malls that are within walking distance.

Since December, her boss has stopped paying her $50 every month in Central Provident Fund (CPF) contributions, claiming it is not in her contract. The 39-year- old, who has only three O-level passes, earns $750 a month as a carpark attendant in a commercial building in Bukit Merah. She works an eight-hour day from Mondays to Fridays and half-days on Saturdays.

By day, she badgers her boss for the CPF money, such that he has taken to avoiding her. At night, she lies awake, worrying how she will meet the payments for the four-room HDB flat she lives in with her odd-job worker husband.

But she does not dare to complain officially, for fear of losing her hard-won job. She secured it only after over 60 job applications and after 10 years as a housewife. At countless interviews, she was told that her previous work experience as an administrative assistant was 'not relevant'.

Hers is the typical plight of the underpaid - and often unfairly treated - contract worker in Singapore.

Each month, the Unit for Contract and Casual Workers (UCCW), set up by the National Trades Union Congress (NTUC) in May last year, handles about 10 cases, mostly complaints about withheld wages, CPF payments, medical benefits and annual leave.

The complainants may be a disgruntled individual, or as many as 50 workers contracted to a single company.

Mr Mah Cheong Fatt, head of UCCW, said a survey conducted between January and March this year of 2,000 contract workers, mainly school cleaners, reflected similar alleged mistreatment. But many, he noted, often do not complain officially, for fear of losing their jobs.

'Contract workers' typically refer to those who work on fixed-term employment contracts, usually lasting a year, or until their service contract with a company ends, whichever is sooner. They usually work as cleaners, landscape workers, dispatch riders, carpark attendants, security guards or valets here.

Their numbers are rising, according to the Ministry of Manpower (MOM), which defines contract workers as those who work part-time, full-time and on ad-hoc projects that last a few months.

From 80,000 workers, forming 4 per cent of the workforce in 2002, their numbers rose to 172,000, or 12 per cent of the workforce in 2006. Last year, this group inched up to 183,600.

Of these, UCCW's statistics show that 20 per cent are cleaners and labourers, 19 per cent in professional and administrative services, 15 per cent technicians, 15 per cent in sales, 15 per cent clerks and 16 per cent machine operators, craftsmen and others.

Most contract workers tend to be aged 40 and above, and are primary or lower secondary school dropouts. Most get into casual work as a last resort - after difficulty in landing full-time employment, prolonged illness or time away from the workforce - thinking it is a temporary measure to make ends meet, but they end up as serial contract workers, often for life.

Out of eight contract workers - two cleaners, two gardeners, two airport trolley handlers and two carpark attendants - interviewed by The Sunday Times, the lowest monthly wage earned was $550 and the highest, $1,200.

All said that upgrading their skills to remain relevant, as the Government constantly exhorts, was near impossible as they work shifts, have irregular days off, or pull 12- to 18-hour workdays, holding two jobs to make ends meet.

Six work at least six days a week. Six receive no CPF. Five have no medical benefits. Four had their salaries docked when on medical leave. In one case, a cleaner who declined to be named even had $50 deducted from her salary when her supervisor found water droplets on the toilet floor.

Most said they have seen their pay packets shrink progressively through the years. Whenever their contracting company loses out during the tender process to a cheaper bid, they are either shed with little notice or absorbed into a 'new company'.

But the 'new company' was often new in name only: The workers remained in exactly the same job, cleaning or guarding the same premises, but at reduced rates.

NTUC's deputy secretary-general Halimah Yacob, who has raised the plight of contract workers in Parliament, has noted that contractors often offer 'cut-throat prices' to secure contracts, then 'cut corners with workers'.

A 66-year-old cleaner, who lives in a one-room flat in Ang Mo Kio, told The Sunday Times he was paid less each time he 'changed uniform'. He has had three such changes in the last six years. He now earns $650, down from $700 in 2001.

This corresponds with the latest Report on Wages in Singapore 2006, which showed that low- wage earners' salaries had fallen by 30 per cent. For example, cleaners and labourers who earned $860 in 1996 took home just $600 monthly 10 years later in 2006.

National University of Singapore sociology lecturer Vedi Hadiz, who researches labour issues, said: 'This is because of the spillover effect on the local labour market with the existing reliance on foreign workers - wages get depressed and local workers can be displaced.

'Serial contract workers are a trend worldwide. But the difference between Singapore and other countries is the level of protection that the workers enjoy under the law.'

In Singapore, the Employment Act does not stipulate, for example, minimum wages or if there should be a written employment contract.

But there are other official channels to seek redress here. The MOM has received around 800 complaints in the past two years from contract and casual workers. The bulk of these involved non-payment of wages. Seven in 10 cases were successfully mediated. To date, all of UCCW's complaint cases have been resolved without the ministry having to step in.

Parliamentarians have also been calling for a better deal for the growing pool of contract workers here. Acting Manpower Minister Gan Kim Yong, in March this year, and Prime Minister Lee Hsien Loong, in last month's May Day address, also voiced their concerns for contract workers.

The Tripartite Committee on CPF and Work-related Benefits for Low-wage Workers issued six guidelines earlier this year for companies that outsource services. These include awarding bids to contractors that comply with employment laws and ensuring that contract workers have written employment contracts which clearly state working hours, pay and benefits.

In March, the MOM issued an advisory to all companies and contractors on responsible outsourcing practices. It put on its website a sample employment contract spelling out terms such as basic salaries, allowances, CPF contributions, overtime rates and leave that contract workers should be entitled to. It also published an employee booklet in four languages to educate contract workers on their entitlements.

The UCCW has also held workshops for about 100 companies and contractors. UCCW's director, MP Zainudin Nordin, is working towards inculcating 'best sourcing' practices. That means companies should assess contract bids not on price alone, but also on contract workers' benefits, salaries and leave.

'It is a moral responsibility on their part. They cannot just not see when the cleaner in their office is not well treated,' he said.

The UCCW is also encouraging companies to include outsourcing practices as part of their corporate social responsibility ethos, said Mr Mah.

'Corporate social responsibility is about treating all workers - including workers in the contracted company's payroll - with decent salaries and benefits,' he said.

But the trouble is companies outsource services like cleaning that require a lot of manpower, precisely because they want to take it off their payroll, to concentrate on their core business. By extension, they see it as the contracting company's responsibility, not theirs, to look into workers' welfare.

Organisations like SingHealth and the Civil Aviation Authority of Singapore which outsource services such as cleaning, pest control, housekeeping and landscaping, said in replies to The Sunday Times that they 'leave' management of contracted staff to the contractor.

Businesses, being businesses, also face constant bottom-line pressures to pick the lowest bid when choosing contractors, partly because it is the most logical and easiest to justify to management.

A purchasing officer with a company that outsources its cleaning, lift maintenance and landscaping services said frankly: 'Most companies here don't have an attitude of paying for services. We want it cheap and good.'

Nevertheless, some companies are conscientiously bucking the trend by weighing in the welfare of contract workers. One local hospital, which declined to be named, does a detailed assessment of the deal the contracting company offers its workers. It looks closely at their salaries, benefits and leave terms.

Some contracting companies, such as Danish-owned ISS Facilities Services, also refuse to play the 'bargain basement' bidding game.

The 13-year-old Singapore- based company which provides cleaning, waste disposal and landscaping services and hires over 3,000 Singaporean employees, makes it a point to bow out of bidding for a contract if its homework shows that the company awarding the tender is focused on the lowest price.

Its chief executive officer, Mr Woon Hiap Chuan, said: 'I am happy too as I cannot bring myself to bid lower and then bully the 'little people' by cutting their salaries or benefits.

'Serial contract workers are a trend worldwide. But the difference between Singapore and other countries is the level of protection that the workers enjoy under the law.'

NUS SOCIOLOGY LECTURER VEDI HADIZ, on how the Employment Act here does not stipulate minimum wages or if there should be a written employment contract

'Most companies here don't have an attitude of paying for services. We want it cheap and good.'

A purchasing officer with a company that outsources its cleaning, lift maintenance and landscaping services

Benefits for all

'Corporate social responsibility is about treating all workers - including workers in the contracted company's payroll - with decent salaries and benefits.'

MR MAH CHEONG FATT, head of the Unit for Contract and Casual Workers, on companies with outsourcing practices

Town councils push for fair deals

Mr Abdul Karim has been a serial contract worker for the past 18 years. The Secondary 1 school dropout started doing odd jobs at 14 to support his parents and 12 siblings.

He has worked as a cleaner for five companies, earning between $750 and $950 a month. For the past two months, he has been with Cleaning Solutions, a 20-year-old home-grown company with 1,000 staff.

And, for the first time in his life, he is paid more - $1,200 a month - and is offered training. He also receives Central Provident Fund (CPF) contributions, 14 days of annual leave, one day off a week and overtime pay.

The father of two lives with his homemaker wife - who is expecting their third child - in a rented one-room flat in Commonwealth. a

He now manages to save $10 each month. 'This is the best deal for me. At all the other companies, I earned much less although I have many years of experience.

'My new boss has promised to send me for training, which has never happened before. I hope to upgrade my skills and earn a promotion for the future of my family,' he said.

The better deal he got came as a result of a new initiative spearheaded by Holland-Bukit Panjang Town Council for the 14 town councils run by the People Action Party's MPs.In total, they employ about 4,000 part-time and full-time contract workers.

Led by North West district mayor Teo Ho Pin, the co-ordinating chairman for PAP-run town councils, this new initiative carefully evaluates tenders for outsourced services according to a new set of criteria, such as whether staff are paid fair wages and given training, and not just price alone.

Since April, companies bidding for contracts need to comply with minimum wage guidelines of $1,000 for full-time contract workers and $500 for part-timers. They also need to comply with the employment laws, which means making CPF contributions and providing rest days and mandated leave.

And, they need to institute training opportunities and show that any liquidated damages on errors made in the course of work are not passed on to workers.

Other guidelines include sifting out 'outliers' or firms quoting bids so low that services and staff welfare could be compromised.

On their part, town councils have to conduct a six-monthly performance review of the contracted company's services. Two other town councils - Hong Kah and Marine Parade - have also embarked on this evaluation process.

Dr Teo, who did his building and estate management PhD thesis on the tender process, said: 'This system will help us build up a database, across the town councils, on the companies that offer services. We will be able to monitor them on performance, price and workers' welfare.

'It is not right for companies that need services to also be responsible for the workers of another company. But as the company that needs the services of another company, we must set up a system to ensure that their workers get a fair deal, have a decent package and have opportunities.

'We are happy to share this evaluation scheme with other companies to improve the industry.'

Of course, improved conditions for contract workers mean consumers must be willing to pay more. Since April, the Holland-Bukit Panjang Town Council has been paying between $6.50 and $7 per dwelling unit for services that include cleaning, clearing rubbish and carpark maintenance. The previous sum was $5 per unit. There are around 120 units in each block of flats.

Ms Candy Sim, 33, a marketing executive living in Ghim Moh, said: 'Everything has gone up. I don't mind if I have to pay more for a clean estate, and for workers' conditions to improve.'

Ethical employers like Cleaning Solutions' boss Lim Chin Boon are happy with the improved tender evaluation system that makes it easier to do right by employees.

'My profit is still the same. We are getting more money from the town council, making it easier to pay more for workers and machines. Everyone needs to chari makan ('look for a livelihood' in Malay) and this is a better system,' he said.

Safety concerns over rushed work

At first, it was a struggle for pint-size Madam Jenny Khng to learn to drive prime movers - massive trucks that haul trailers stacked with containers.

But the determined 46-year-old was soon able to manoeuvre tight corners without the behemoth tipping over.

Three months later in 2006, she earned her 'licence' - a newly minted Institute of Technical Education certificate.

For the past two years, she has been working as a daily rated contract worker, earning $55 for each 12-hour shift she pulls.

She also receives a $2.50 meal allowance and Central Provident Fund contributions. Each month, she takes home about $1,500, including incentive payouts.

Over the last 24 years, Madam Khng, who dropped out of school at Primary 6, has worked as a hairdresser, cleaner, supervisor, cook and driver, earning between $900 and $1,500 a month.

Her husband is an odd-job worker. They have three children - aged 16, 20 and 24 - who are still full-time students.

But much as she loves her job, she risked it all last month by complaining to NTUC's Unit for Contract and Casual Workers (UCCW) and her union about the poor contract terms of her company, which supplies drivers of prime movers.

Up to half of what she and her colleagues take home - typically $1,300 to $1,800 a month - depends on the work available and how many containers they upload or offload.

After fulfilling the minimum daily quota of moving 20 containers, they get an incentive payment of $1 to $1.50 for every additional container moved.

'It becomes quite dangerous as we are always driving faster to pick up more containers. There is an accident almost every day. Some are light injuries and others, serious,' she says.

On good days, she moves up to 40 containers. On slow days, she moves only 10, for which she is not penalised.

Three fellow workers - all male - that The Sunday Times spoke to echoed her concerns about the short lunch break and liberal docking of wages for 'errors'.

Although the lunch break is 30 minutes, much of the time goes into queueing up to park the prime movers first. Most drivers end up eating packed lunches in their truck cabins.

'Infringements' earn a host of penalties and demerit points. For instance, if workers are late for work, or take 'extra' minutes for lunch or toilet breaks, or leave engines running unsupervised, wages get docked by up to $100 in some cases.

A driver also gets scolded when he makes a mistake or is 'slow'.

'What is terrible is the constant pressure and scolding,' says a driver who has worked for three years as a contract worker.

Under the same company, drivers were once paid $60 to move the same basic load of 20 containers. Today, they are paid $55 for the same job.

'Things have changed. We know that we are doing more work now. But safety is important and we also want a fair deal,' says Madam Khng.

Fairness, she says, is the reason she is willing to go public.

'I'm dyslexic. This job has really boosted my self-esteem. I want to progress with this company rather than leave because of these terms.'

Her employers did not respond to questions from The Sunday Times.

The company that outsources its prime-moving services says that all tenders are assessed to ensure that workers receive the basic employment terms and conditions under the labour laws. It also places a premium on safety and workers are sent regularly for safety-related training courses.

The UCCW is investigating the allegations made by Madam Khng.