Wednesday, February 29, 2012

MP urges more help for low-wage workers

SINGAPORE: Member of Parliament (MP) for Tanjong Pagar Group Representation Constituency (GRC) Lily Neo has called for the Workforce Income Supplement Scheme to be tweaked to help low-wage workers.

Dr Neo said those who earn about S$1,200 per month will need at least twice the present average WIS allocation despite GST vouchers.

She said the scheme should be reviewed yearly, based on Average Monthly Household Expenditure (AMHE) of the lowest 20 per cent of households.

Dr Neo suggested setting up a permanent-system approach to tailor assistance for individual families based on their needs.

"This is set up for the purpose of good take-up rate and to improve the long-term outcome of such families through hands-on intervention and follow-up," Dr Neo said.

"This will help these parents plan a better life for themselves and for their children and to increase their children's educational attainment."

Meanwhile, MP for Ang Mo Kio GRC Yeo Guat Kwang raised the issue of encouraging employment among low-income earners.

Mr Yeo stressed one area that needs to be looked at is the social responsibility of government service buyers.

"I urge all government agencies to set a good example as service buyers and support the Best Sourcing Initiatives advocated by the Labour Movement," Mr Yeo said.

"When outsourcing work, they should adhere to best sourcing practices. Commonly, when tendering for a contract, to get ahead of the competition, vendors are likely to offer a lower price -- at the expense of their workers. The lowest quote often suppresses the wages of contract workers.

"For example, at MOE's (Ministry of Education) schools, many of the cleaners' salaries remain around S$700, unchanged from many years ago.

"This is not fair to the workers. Public agencies should walk the talk and take the lead. I am pleased to learn that PAP (People's Action Party) Town Councils are taking the lead and now, thanks to skills upgrading and an overhaul of the tender system, their cleaner have seen a 30 per cent pay increase since 2008."

Mr Yeo also urged the government to consider increasing personal tax reliefs and reliefs for spouses and dependents.

He said he hopes the government will continue to ensure sufficient medical insurance coverage for all.

He said: "The top-ups and GST vouchers for Medisave are good moves, but by no means sufficient.

"I believe MOH (Ministry of Health) should continue to restructure MediShield coverage so as to protect more and ensure it does indeed help shield Singaporeans in times of crisis and illness.

"We should also look into how we could help the eight per cent who do not even have Medisave."

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