Higher wages and clear career pathways for 3,000 waste management workers
By Sue-Ann Tan, Business Correspondent, The Straits Times, 24 Jan 2022
Come 2028, an entry-level waste management worker can expect his salary to double to $3,260, under a new Progressive Wage Model (PWM) for the sector that is set to start from July next year, the tripartite cluster for waste management announced on Monday (Jan 24).
Such a worker earns about $1,600 to $1,800 now, said Ms Melissa Tan, chairman of the Waste Management and Recycling Association of Singapore. She is part of the tripartite cluster, which comprises the National Trades Union Congress, employers and other stakeholders.
A total of 3,000 waste management workers here will see annual wage increments, mandatory annual bonus and a career and skills progression ladder.
The workers will also get a stipulated minimum hourly overtime pay.
From Jan 2024, they will also receive an annual bonus of at least a month's pay if they have been with their employer for at least a year. This bonus does not depend on their work performance.
These recommendations were accepted by the Ministry of Manpower on Monday.
The ministry said these improvements are consistent with the guidance by the Tripartite Workgroup on Lower-Wage Workers to ensure that such workers have meaningful and sustained wage growth to gain ground with the median worker.
Senior Minister of State for Manpower Zaqy Mohamad said: "You will see about 50 per cent wage increase growth in the coming years... I think this is a good outcome between unions and employers.
"But at the same time, we want to see the sector transform in a meaningful and sustainable way."
When asked if this move will raise costs for consumers, he said that not every change in business cost translates to higher prices for consumers.
He added that transitional support for companies will be announced during the upcoming Budget.
The PWM provides a clear career progression pathway for workers to improve their wages. To do so, they must undergo structured training to upgrade their skills.
The model currently covers the security, cleaning, landscaping, and escalator and lift maintenance industries.
Under the PWM for the waste management industry, workers will get a clear career progression pathway from crew to supervisor in the waste collection sub-sector, for instance, and from sorter to waste sorting plant supervisor in materials recovery.
There will also be a minimum number of Workforce Skills Qualifications modules that workers have to take at each level.
With upgraded skills, the PWM will ensure that workers see increased pay over six years, to 2029. For instance, a waste collection crew member earning $2,210 next year when the PWM kicks off, will earn $2,420 from July 1, 2024, and $3,260 in 2028. This marks a compound annual growth rate of 8.1 per cent.
By 2028, a waste collection senior driver will be earning $3,960 - from $2,910 next year - while a supervisor will be earning $3,910, from $2,860.
Mr Fahmi Aliman, chairman of the Tripartite Cluster for Waste Management, said the workers in the sector deserve due recognition for their hard work.
"The committee has been working hard for the past year to come up with a PWM that will boost the wages and skills, as well as improve career progression opportunities of our waste management workers, and in time, attract more workers to the industry," he added.
Ms Tan said the sector is facing a manpower crunch, especially amid the Covid-19 pandemic, as it relies heavily on foreign workers.
“Singaporeans are not coming forward to join this industry because it is not deemed to provide glamorous jobs,” she said.
Meanwhile, demand has risen for waste management services, especially with more packaging waste generated from e-commerce and food delivery.
“I hope that the PWM will attract more Singaporeans to come on board to carry out such jobs with pride,” she added.
Better pay for waste management workers will drive up costs for firms
By Sue-Ann Tan, Business Correspondent, The Straits Times, 24 Jan 2022
While waste management workers welcomed the news of increased pay under the new Progressive Wage Model (PWM) for the sector unveiled on Monday (Jan 24), employers and service providers acknowledge that it will drive up costs.
Yet, this increased cost is expected to be commensurate with higher service standards delivered by more skilled workers, as well as higher productivity as firms in the sector transform using technology, the employers and service providers added.
Under the PWM introduced by the tripartite cluster for the waste management industry, the monthly baseline wage for an entry-level waste collection crew worker is expected to jump by almost 50 per cent over a six-year period, starting from July 1, 2023.
Waste management workers will also get a mandatory annual bonus from January 2024, which aims to help the sector retain and attract local workers.
Ms Melissa Tan, chairman of the Waste Management and Recycling Association of Singapore, said that the start date of July 2023 gives firms in the sector lead time to factor in the increased labour costs when preparing new contracts or bidding for them.
"But it is also important for service buyers to plan their budgets and consider adopting best practices, such as stipulating service delivery outcomes instead of the fixed frequency of waste collection," she said.
"For existing contracts that will expire after July 1, 2023, the tripartite committee encourages both service buyers and providers to engage in open discussion and be very transparent with one another to reach an amicable agreement on contracts."
Mr Felix Loh, Singapore National Employers Federation deputy honorary secretary, added that cost is definitely a top consideration for the employers.
He urged the Government to provide transitional support for companies as they adjust the wages for workers.
But he added that the higher wages should be tied to better skills among the workers who can now do higher value work, as well as technological improvements in the firms and better service standards.
"The focus of the recommendations is on the workers. We hope this (wage increase) will be paid for through the use of better technology that will increase the sector's productivity. The key (aspect) of PWM is that it is linked to skill sets and hopefully higher productivity," he said.
"Consumers also have a part to play. When we demand better services, it is also fair to pay fair wages to the workers."
Ms Lim Lijuan, director of waste management service provider Boon Poh, said the firm has about 100 workers, of which 10 to 20 will be covered by the new PWM.
“We hope service buyers will help us defray these extra costs since, at the end of the day, they benefit the workers,” she said, adding that most service buyers should be supportive.
"We will have to look at cost sharing. In the end, costs will rise, not just in our industry but also across the board," she added.
She also said she hoped the labour union could provide firms with subsidies for training courses, as attaining more training such as Workforce Skills Qualifications modules will be part of the skills roadmap for workers under the PWM.
Higher pay and training prospects will also help waste management workers to stay in the sector and upgrade themselves, employees said.
Mr Leong Siew Nam, 50, a hooklift driver, said: "I will continue in this career. It is good to go for more training so I can improve myself."
He said he earns over $2,000 now. A hooklift driver should be earning $2,710 from July 1 next year and $3,760 from July 1, 2028.
"I am definitely happy to earn more money," he added.
Mr Yeo Hock Lye, 61, who works as a sorter at Boon Poh, is looking forward to skills upgrading so he can handle different types of materials.
"I am happy to go for more training in the future so I can learn new types of things to do," he said, adding that the higher pay will also attract more workers to join the sector.
The pay of a sorter in the materials recovery sub-sector should hit $2,110 next year and reach $3,160 come 2028.
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