On foreign workers...
TODAY July 13, 2009
SERVICE JOBS: READY FOR A QUOTA CUT?
------------------------------------
SIX years ago, companies in the service sector could hire up to three
foreigners for every seven local employees. Effective last month, the
ratio now stands at five-for-five.
With services primed as the long-term driver of the Singapore
economy, and more job opportunities opening up in this sector
relative to others - is this the perfect time to consider trimming
back on the foreign-worker quota?
As the new Economic Strategies Committee takes advantage of the
downturn to reconsider the country's gameplan, this is one question
it could consider. Certainly, some Members of Parliament (MPs) think
the ratio for the services sector needs to shift back in favour of
local jobs.
Madam Halimah Yacob, who heads the Government Parliamentary Committee
for Manpower, argues that the quota was the result of years of
economic growth, and hence should be reviewed given the latest
overall job losses. Also, if more locals get replaced by foreigners,
she worries this could "deplete the skills base of Singaporeans in
the service sector". It could prove a painful loss.
Unlike manufacturing or construction - sectors with a high foreigner
ratio - the service sector cuts across a wide spectrum of the economy
- from finance, transport and communications services to hotels,
restaurants, food courts and social services.
It accounts for 65 per cent of the gross domestic product and 68 per
cent of total employment. Last year, foreigners snatched a larger
share of this pie - they filled 73,400 service positions, compared to
the 63,100 that went to locals.
Foreign labour serves to fill current shortfalls in this growing
sector where local manpower is lacking, but over-reliance in the long
run isn't healthy by any measure. "The easy way will be to raise our
dependency on foreign workers. But for how long can we do this?"
wondered MP Charles Chong.
And as he points out, it is not as if these are jobs Singaporeans
lack the skill to do. Quite the contrary.
Take the revolving door syndrome - foreigners tend to leave for
greener pastures after working a few years here. In a sector where
knowledge of local language, customs and geography are often key to
the job, standards will suffer if there is a dearth of workers
familiar with the local milieu, not to mention experience.
But are there willing S'poreans?
Ask employers, and they will put up a strong case for raising the
foreign worker quota.
Ms Joyce Ng, who runs The Whiskey Store, tried to hire a local worker
last month. After running six classified advertisements, only two
responded - and both bolted after trying out the job.
Food and beverage chain Coffee Club's training manager Mazlan Zain
puts the difficulty this way: "A foreigner asks if he can work
overtime. A Singaporean asks if he has Sundays off."
The chain has tried to get local labour. Coffee Club partners
education institutions and pays $500 to hospitality students for
working part-time for three days; more than half the students dropped
out of this scheme, said Mr Mazlan.
So, while there are some 16,000 vacancies in the service sector this
year according to the Employment and Employability Institute, one
wonders how many Singaporeans are actually rushing to grab at these -
and if they will stay on if hired.
Ultimately, if the move is made to lower the foreign-worker ratio,
steps must be taken to ensure employers can fill those positions with
locals. To ease the transition for employers, the Government could do
the reduction gradually.
Even so, as club operator Timbre's co-managing director Edward Chia
says: "The issue we face now is that there are less and less
Singaporeans willing to join. The fundamental issue is that there is
no stable staff base to train."
Perhaps the root of the problem - even as the Government is spending
millions to improve the professionalism and standards of the service
sector through its Go the Extra Mile for Service scheme - is the
stubborn perception that a job in services goes nowhere and is often
unappreciated.
Companies can tackle the view of services positions as "transient"
and lacking in long-term career prospects, by offering clear career
plans and better human resource practices.
As for the unpopular shifts and hours, this requires flexibility and
innovation in firms' operations. Could they find ways to harness
technology so that staff can be more productive or split the shift
hours on Sundays?
An oft-heard complaint is how customers here fail to recognise good
service with a smile or compliment. So if Singaporeans would like to
be served by a local, maybe they can play a part - starting with a
simple "thank you".
SERVICE JOBS: READY FOR A QUOTA CUT?
------------------------------------
SIX years ago, companies in the service sector could hire up to three
foreigners for every seven local employees. Effective last month, the
ratio now stands at five-for-five.
With services primed as the long-term driver of the Singapore
economy, and more job opportunities opening up in this sector
relative to others - is this the perfect time to consider trimming
back on the foreign-worker quota?
As the new Economic Strategies Committee takes advantage of the
downturn to reconsider the country's gameplan, this is one question
it could consider. Certainly, some Members of Parliament (MPs) think
the ratio for the services sector needs to shift back in favour of
local jobs.
Madam Halimah Yacob, who heads the Government Parliamentary Committee
for Manpower, argues that the quota was the result of years of
economic growth, and hence should be reviewed given the latest
overall job losses. Also, if more locals get replaced by foreigners,
she worries this could "deplete the skills base of Singaporeans in
the service sector". It could prove a painful loss.
Unlike manufacturing or construction - sectors with a high foreigner
ratio - the service sector cuts across a wide spectrum of the economy
- from finance, transport and communications services to hotels,
restaurants, food courts and social services.
It accounts for 65 per cent of the gross domestic product and 68 per
cent of total employment. Last year, foreigners snatched a larger
share of this pie - they filled 73,400 service positions, compared to
the 63,100 that went to locals.
Foreign labour serves to fill current shortfalls in this growing
sector where local manpower is lacking, but over-reliance in the long
run isn't healthy by any measure. "The easy way will be to raise our
dependency on foreign workers. But for how long can we do this?"
wondered MP Charles Chong.
And as he points out, it is not as if these are jobs Singaporeans
lack the skill to do. Quite the contrary.
Take the revolving door syndrome - foreigners tend to leave for
greener pastures after working a few years here. In a sector where
knowledge of local language, customs and geography are often key to
the job, standards will suffer if there is a dearth of workers
familiar with the local milieu, not to mention experience.
But are there willing S'poreans?
Ask employers, and they will put up a strong case for raising the
foreign worker quota.
Ms Joyce Ng, who runs The Whiskey Store, tried to hire a local worker
last month. After running six classified advertisements, only two
responded - and both bolted after trying out the job.
Food and beverage chain Coffee Club's training manager Mazlan Zain
puts the difficulty this way: "A foreigner asks if he can work
overtime. A Singaporean asks if he has Sundays off."
The chain has tried to get local labour. Coffee Club partners
education institutions and pays $500 to hospitality students for
working part-time for three days; more than half the students dropped
out of this scheme, said Mr Mazlan.
So, while there are some 16,000 vacancies in the service sector this
year according to the Employment and Employability Institute, one
wonders how many Singaporeans are actually rushing to grab at these -
and if they will stay on if hired.
Ultimately, if the move is made to lower the foreign-worker ratio,
steps must be taken to ensure employers can fill those positions with
locals. To ease the transition for employers, the Government could do
the reduction gradually.
Even so, as club operator Timbre's co-managing director Edward Chia
says: "The issue we face now is that there are less and less
Singaporeans willing to join. The fundamental issue is that there is
no stable staff base to train."
Perhaps the root of the problem - even as the Government is spending
millions to improve the professionalism and standards of the service
sector through its Go the Extra Mile for Service scheme - is the
stubborn perception that a job in services goes nowhere and is often
unappreciated.
Companies can tackle the view of services positions as "transient"
and lacking in long-term career prospects, by offering clear career
plans and better human resource practices.
As for the unpopular shifts and hours, this requires flexibility and
innovation in firms' operations. Could they find ways to harness
technology so that staff can be more productive or split the shift
hours on Sundays?
An oft-heard complaint is how customers here fail to recognise good
service with a smile or compliment. So if Singaporeans would like to
be served by a local, maybe they can play a part - starting with a
simple "thank you".
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