11 May, 2015
1. On 24 April 2015, the Ministry of Manpower (MOM) accepted the recommendations of the Tripartite Cluster for the Landscape Industry (TCL) on the Progressive Wage Model (PWM) for the landscape industry. The PWM stipulates a basic minimum wage of SGD 1,300 for full-time landscape workers who are Singaporeans or permanent residents. The minimum basic pay will increase as a worker becomes better skilled, more productive and takes on higher responsibilities. The PWM has four stages, as workers progress from landscape worker to supervisor. Landscape supervisors will take home at least SGD 2,100.
2. From June 2016, all companies registered on the National Parks Board’s (NParks) Landscape Company Register (LCR) will be required to apply the PWM to their landscape maintenance workers who are Singaporeans or Permanent Residents. Companies registered on the LCR have been determined by NParks to be credible landscape companies with quality practices in place.
3. As of April 2015, over 90% of companies in the landscape industry are registered on the LCR. The MOM expects the PWM to benefit an estimated 3,000 resident landscape maintenance workers by providing for higher wages, improvements in skills training, and a clearer career progression pathway.
4. The MOM has advised landscape service providers to factor in any anticipated cost increases when tendering for new contracts well before the PWM requirement takes effect. When the PWM is implemented, the Government will require all tenderers for new landscape tenders to be registered on the LCR. The MOM has also stated that service buyers in the private sector are encouraged to follow suit, to benefit from better service standards.
5. For reference, the recommendations of the TCL may be accessed here: http://www.ntuc.org.sg/wps/wcm/connect/b804d69b-2fda-46c9-8554-435b39237a40/Recommendations+of+the+TCL+on+the+PWM+for+Landscape+industry_final.pdf?MOD=AJPERES
6. This is the third sector for which the MOM has implemented a PWM. In 2014, MOM accepted similar recommendations for implementing PWMs in the security and cleaning sectors. Notably, the PWMs for all three sectors apply only to Singaporeans and Permanent Residents.
7. The MOM had indicated in 2014 that beyond cleaning, security and landscaping, there was no plan to legislate the PWM in other sectors.
8. The National Trades Union Congress (NTUC) has also launched PWMs for Professionals, Managers and Executives (PMEs) in sectors including hospitality, healthcare and petroleum, but it is up to companies to decide whether to implement them. In his first media interview, Chan Chun Sing, who took over as Secretary-General of NTUC on 4 May 2015, emphasised the importance of skills ladders for PMEs, which will include tie ups with professional accreditation bodies.
For further information, please contact:
Chong Kin Lim, Director, Drew & Napier
chongkin.lim@drewnapier.com
