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Oral Answer by Mr Tan Chuan-Jin, Acting Minister for Manpower, to Parliamentary Question on Fair Hiring Practices

Notice Paper No. 53 Of 2014 For The Sitting On 17 February 2014 Question No. 1761 For Oral Answer

MP: Er Dr Lee Bee Wah

To ask the Acting Minister for Manpower with the tightening of our foreign workforce policies (a) how is the Ministry monitoring companies to ensure that PMET job vacancies are filled by Singaporeans and permanent residents instead of foreigners; and (b) in the past 3 years, whether the Ministry has encountered cases where companies, particularly those in the IT industry, retrench their local staff and subsequently fill the vacancies by employing work permit holders and, if so, what action is taken against these companies.

Answer:

  1. Unemployment rate among locals remained low in 2013 – the non-seasonally adjusted figure is 3.9% in June while the preliminary annual average is 2.8%. This is in part due to the fact that we are generating many jobs and opportunities, more than there are Singaporean job seekers. Among local PMETs, the non-seasonally adjusted unemployment rate was even lower at 2.6% in June 2013. Foreign manpower will continue to complement and augment our local workers because our economy plays a regional and global role. The Government aims to help Singaporeans become job ready and competitive so that they are able to take on the jobs that our economy creates. We also expect firms to consider Singaporean citizens fairly and objectively for PMET jobs. But it is ultimately the decision of employers to determine the best candidate for the job based on their evaluation of the applicants’ credentials and experience. It is neither practical nor desirable for MOM to monitor or intervene in companies’ hiring decisions, unless there have been discriminatory practices.
  2. Instead, we have measures to help foster a level playing field, equip Singaporeans with the skills to be job ready and competitive and also support those who are unfairly dismissed. First, we have to discourage firms from systematically favouring foreign PMETs based on cost reasons. We have therefore adjusted the qualifying thresholds for S Pass last year and Employment Pass (EP) this January to keep pace with rising local PMET salaries.
  3. Second, we are sending a strong signal that we expect all firms to consider Singaporeans fairly for jobs, and create a more transparent labour market to match job-seekers with vacancies. These are done through the Fair Consideration Framework (FCF). With effect from August 2014, employers who submit new EP applications will be required to first advertise the job vacancy on the new jobs bank administered by the Singapore Workforce Development Agency (WDA) for at least 14 days. In addition, we are monitoring companies’ proportion of PMEs that are Singaporean. Outliers will be identified for additional scrutiny in their work pass applications.
  4. Third, we will continue to help our local PMETs be job ready through our education system and Continuing Education and Training (CET) programmes. We also have in place efforts to match PMETs with job opportunities through WDA’s CaliberLink. PMETs can approach CaliberLink for career consultancy services and to meet potential employers. Programmes with industry partners, such as professional conversion programmes (PCP) and the Max Talent programme, also help PMETs to move into growth sectors by equipping them with the requisite skills.
  5. Lastly, we will also look into complaints of unfair dismissal, though not all cases are valid or substantiated. Some employers may have legitimate reasons to terminate the employment of workers due to performance-related reasons. Or it may be an internal restructuring where functions the locals are in are moved offshore leading to retrenchment, and new functions are added where there are not enough experienced locals. For cases that are valid or substantiated, there are the existing legislative measures such as the Employment Act which has provisions to help employees seek recourse under the Act against unfair dismissal.