NTUC pushes for adoption of Progressive Wage Model in the cleaning, landscape and security sectors

The National Trades Union Congress’ (NTUC) e2i (Employment and Employability Institute) kicks off 2014 with the Best Sourcing Symposium, a platform targeted at both Service Buyers and Service Providers from the Cleaning, Landscape and Security sectors to embark on best sourcing and adopt the Progressive Wage Model (PWM) to help Singaporean low wage workers achieve progressive and sustainable wages.

The PWM introduced by the Labour Movement in June 2012 aims to help workers earn better wages through skills upgrading and productivity improvements. It helps workers through 4 distinct ladders namely Wages, Skills, Productivity and Career Progression. With the PWM, companies will be able to better make use of their manpower, and ensure workers receive competitive wages that commensurate with enhanced job scopes and higher productivity levels.

The Labour Movement has been engaging Service Buyers on best sourcing since 2006. In 2009, a Best Sourcing Initiative (BSI) scheme for early adopters was introduced to help Service Buyers defray costs incurred in the adoption of best sourcing practices, as they pay more for quality service. Since then, a total of $6.8 million has been committed to fund 120 best sourcing projects, and close to 4,000 workers are set to be impacted.

From January 2014, a new Progressive Wage Incentive (PWI) scheme will replace the previous BSI scheme. The PWI will provide funding to support $50 million worth of contract value for Service Buyers who best source Cleaning, Landscape and Security contracts to Service Providers who adopt the PWM or the proposed working models which are being finalised by the Tripartite Cluster Committees. Service Buyers may receive up to 10% funding of contract value, capped at $150,000 per project. The new PWI is an alignment in criteria of the previous BSI scheme, and targets to impact approximately 1,500 local low wage workers in the three sectors over the next 11/2 years.

Mr Gilbert Tan, Chief Executive Officer of e2i said, “NTUC has come a long way in our efforts to champion best sourcing. e2i would like to see a breakthrough in the Cleaning, Landscape and Security sectors for 2014. We would need the support of our tripartite partners, including Service Buyers and Service Providers, to see the importance of the Progressive Wage Model and how it will benefit both companies and workers. e2i will work closely with Service Buyers and Service Providers in these three sectors to level up the industries.”

The Best Sourcing Symposium’s aim is for partners to come together to understand how best sourcing can benefit Service Buyers, Service Providers and their workers. The symposium featured successful adopters of best sourcing, such as Changi Airport Group (S) Pte Ltd and SMRT Trains Pte Ltd, who shared how they implemented and benefited from best sourcing practices in their organisations. The Guest of Honour was Mr Tharman Shanmugaratnam, Deputy Prime Minister & Minister for Finance. Special Guest, Mr Lim Swee Say, Secretary-General of NTUC, attended today’s event with about 300 representatives from unions, companies and government agencies. There was also an exhibition showcase by training and solutions providers and one-to-one consultation clinics for participants.