I REFER to the Economic Strategies Committee's recommendations in last Saturday's Insight report, 'Balancing social discontent and the bottom line'. The effectiveness of increasing foreign worker levies - as a measure to contain reliance on foreign workers in the long run and increase productivity - is questionable.
Businesses will find ways to pass the cost of the levy increase to foreign workers.
Although there are laws against employers and employment agencies receiving kickbacks from foreign workers, the difficulty of overseeing the recruitment of foreign workers makes the practice prevalent today.
The 'fee' imposed on foreign workers for securing jobs in Singapore has been increasing over the years. This fee not only goes into the pockets of unscrupulous recruiters in the countries of origin of the foreign workers, but is also offered to employers as incentives to employ workers.
As there is often no paper trail for such transactions, punishing offenders remains difficult.
Foreign workers who renew their contracts in Singapore are also charged exorbitant fees by either employment agencies or their employers. These are deducted from workers' salaries and disguised as authorised deductions for food, accommodation and other advances allowed under the Employment Act. These deductions subsidise the business costs incurred in hiring foreign workers such as the foreign worker levy and purchase of medical insurance.
Although the Ministry of Manpower has set up recourse channels for such violations, foreign workers face immense challenges in seeking redress against errant employers and agents.
As prosecution witnesses for offences committed by employers and agents, foreign workers are stuck in Singapore for a protracted period of time with limited access to work. During this period, such workers face difficulties in meeting basic needs such as housing, food and health services.
Employers are also given the unilateral right to terminate a worker's work permit and repatriate him. This power allows employers to threaten workers who attempt to seek recourse to these problems.
Businesses who are given access to easily exploited workers find little motivation to innovate and improve working conditions, causing jobs in these sectors to remain unattractive to citizen workers.
While there are no easy answers to the problems highlighted, it is important to acknowledge the dampening effects of such exploitation on the pursuit of productivity-driven growth.
Dr Noorashikin Abdul Rahman
Ex-Co, Transient Workers
Count Too (TWC2)