Who’s the boss?

In Money, News Reports, Society on August 4, 2014 at 11:35 am

There is a security guard in my condominium who has changed into four different sets of uniforms over the past nine years. We insisted that he be kept on even as we switched security companies. I always wondered if he got a pay jump each time this happened. I hope so since residents viewed him as such a part of the environment. Then again, I have no real idea of how much we pay each company. I figure it’s probably less and less over time.

So I read in ST today that the labour movement was going to give a second shot at getting the security industry to sign up on the progressive wage model with some interest. Seems the industry rejected it the first time because of cost pressures. Yes, wages will have to go up. But it won’t be the security companies who will be doing the paying. It will be the managements of malls, condominiums and office blocks. So what’s the problem? The rest of us? We won’t pay a higher contract price for security service? We always go for the lowest bid by some fly-by-night operators?

Then I got to thinking that maybe the progressive wage model might not be well understood in the first place.

Here’s what I understand about it:

It looks much like a minimum wage structure, except that it isn’t. There’s a base, such as $1,000 a month for cleaners and a proposed $1,100 a month for security guards. But there’s also an increasing scale of higher pay for higher level skills and higher productivity. Also, for certain kinds of work, you need certain skills and those on the progressive wage model will be armed with certificates which say what they are capable of doing. And this would correspond with the pay grades that have been set.

This is really intervention in the free market, with the G playing enforcer. Cleaning companies who won’t or can’t sign up to this new “industry standard’’ can’t get a licence from the National Environment Agency. They must have this by Sept 1 if they want to continue to be in business. This is a legal thing with penalties, not a guideline or a code of ethics. It seems that as many as four in 10 aren’t ready. Which means they will fold. Which means what for their workers? Move to another company which is on the model? Good for them because they will be assured of higher pay? Especially if they have something to show for skill level?

That doesn’t seem bad at all

The whole industry gets an immediate lift and there will be no more under-cutting of contract fees because there will be no more fly-by-night cleaning companies. And companies will think harder about kicking out people whose pay got too high by dint of years of work and replacing them with fresh blood at the minimum wage. At least, I gather that’s what will happen. Except that everybody who uses cleaners, including town councils, will have to figure out how to pay them more – since a higher baseline will have been set.

I’ve always wondered about the productivity measurements though. Just because you are sent on a course to use certain machines, does this mean you will actually be more productive than before? What if you are employed in a role which doesn’t need more sophisticated handling? Or you are more likely to damage the machine than make use of it well? Still get paid more because you have the requisite qualifications? It will be interesting to see what happens to the cleaning industry after Sept 1.

And now the security companies seem more amenable to the idea, probably because there are so many shady outfits able to put in much lower bids – which their clients are willing to pay for. A third sector in the NTUC’s sight is landscaping. All in, that’s about 200,000 of our lowest paid workers who make a median salary of $800 or so a month.

Sometimes I wonder if we realise that it is we, the people, who put them in that position by keeping their salaries stagnant for years. Those of you who live in condos, do you think you will agree to pay more to the cleaner, gardener and security guard? What will HDB residents say about having to pay more for service and conservancy fees? The money has come to somewhere. The phrase often used is “cost will be passed to the consumer’’ but that’s not accurate.

Because most of us are really the paymaster – not consumer. It’s good to remember that some time.

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