We refer to the article “Productivity dismal but set to get better: Report” (Straits Times, Aug 13).
Productivity only 0.2% per year?
It states that “Labour productivity fell 1.3 per cent in the second quarter over the same period last year, and rose just 0.7 per cent in the first three months of this year.
It has inched up 0.2 per cent per year from 2010 to last year.”
Why poor productivity growth?
– As laymen, we would like to offer our “common sense” observations as follows:
With real basic and gross wages hardly growing in the last 15 years or so, Singapore becoming the number one in the world for the longest work week, the continuing influx of cheap foreign labour (95% of the employment change in the second quarter is estimated to have gone to non-Singaporeans), unemployed Singaporeans rising from by 20,900, from 52,300 in March to 73,200 in June (“95% of jobs growth went to foreigners?“, Aug 1)
– How can workers be motivated to be more productive?
Workfare may not help older lower-income workers much?
In the same day’s newspaper (“Workfare scheme ‘has lifted employment‘”, Aug 13) – it said that “Their gross wages – excluding WIS payments – did not rise as fast as those of younger workers who were not on the scheme.
Those aged 55 to 59 were the most affected, with their pay growing 3.8 per cent slower.
One reason could be that those on the WIS may have opted to work fewer hours as they were getting more money for the same amount of work.
Bosses may also be reaping some of the benefits. Wage supplement schemes like the WIS attract people into the workforce so bosses do not need to pay as much to get workers”
– As the bulk of Workfare goes to CPF, with very little increase in cash disposable income – it may be like a double whammy particularly for older lower-income workers as their pay grew 3.8% slower than younger workers – bosses not needing to pay as much to get workers because WIS attracted more into the workforce – such that any cash income from WIS may be offset by the lower pay growth, shorter working hours and bosses paying less.
Rising cost of living?
The above issues may also be compounded by the relentless rising cost of living as highlighted in 2 articles in the same day’s newspaper – “Ridership rise, fare hike drive up SBS Transit profit (by 57%)” and “SingTel’s new mobile plans to cost more” (Straits Times, Aug 13).
S Y Lee and Leong Sze Hian
P.S. Come with your family and friends to the 3rd Return Our CPF protest on 23 August 4 pm at Speakers’ Corner https://www.facebook.com/events/648543138548193/?ref=2&ref_dashboard_filter=upcoming
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