Increasing Levies Will Not Reduce Dependency On Foreign Workers

This letter was published in TODAY on 5 February 2010.

I refer to the articles 'Flexible approach to check foreign worker influx' and 'How to move up the ladder together'. The Economic Strategies Committee has suggested that foreign worker levies be raised to manage the dependence of employers on foreign workers and to reduce the influx of such workers coming into Singapore.
 
Raising levies may not necessarily lead to employers reducing their dependence on foreign workers. Many employers prefer foreign workers because they are willing to work longer hours and during weekends. They are also willing to accept lower salaries than the average local low wage worker. When levies are raised, it is possible that the employer will pass the burden of this increased cost onto the foreign worker by decreasing wages and demanding kickbacks. There is also a likelihood that the agent fees that workers pay may increase to manage this additional cost. This problem is compounded by the reality that low wage foreign workers have little bargaining power to demand better working conditions. In such a situation, neither the employer nor the worker will benefit.
 
While we welcome the call by the Committee to focus on enhancing the skills of all low wage workers, due consideration has to be given to the fact that the long hours they put in on weekdays and weekends make it difficult for them to upgrade and learn new skills when they barely have the time and energy to do so after a gruelling day at work. If workers are to increase their productivity by acquiring new knowledge, employers have to take the lead by encouraging them to do so. Emphasis has to be placed on providing incentives to employers for giving workers time off to invest in new skills and knowledge which increase productivity. Many companies choose instead to squeeze workers dry by insisting on working hours that exceed statutory limits. Workers have to be viewed as individuals with potential to contribute, rather than as 'cheap labour' that helps in cost cutting. Such an approach will ultimately benefit companies in the long run.