I refer to the article “The case of the vanishing mid-level skilled worker” (Straits Times, Mar 29).
Production craftsmen’s real pay dropped -11%?
It states that “The median monthly gross salary of “production craftsmen” and related workers – such as electricians, mechanics and carpenters – grew by 17 per cent from $2,051 in 2001 to $2,400 in 2012, before adjusting for inflation.”
However, it just stops short here, without doing the adjustment for inflation.
As I estimate that inflation from 2001 (CPI 88.4) to 2012 (CPI 113.1) was about 28%
- does it mean that the above real median salary growth was about -11%?
All workers’ pay increased 1.5% p.a.?
As to “This is much slower than the 46 per cent increase for all workers – from $2,387 to $3,480 over the same period”
- does it mean that after adjusting for inflation – the real increase was about 18%?
This works out to a real increase per annum of about 1.5%.
However, this is based on the median salary including employer CPF contribution.
Pay increase (excluding employer CPF) was 1.0%?
In contrast, if we look at the median salary excluding employer CPF contribution -
- The real median income change from 2008 to 2013 was only about 1.0 per cent per annum.
- For the 20th percentile – the real change per annum for the last 10 years was only about 0.3 per cent.
According to the Ministry of Manpower’s (MOM) web site, the real annual total wage change (excluding employer CPF) from 2008 to 2012, was -2.4, -1.0, 2.7, 0.1 and -0.8, respectively.
This works out to a cumulative real decrease in wage change of about -1.5% or -0.29 per annum, from 2008 to 2012. A negative real total wage change for last 5 years.
Managers’ pay dropped -7%
With regard to “In contrast, professionals, executives and managers are doing nicely. The median median gross monthly pay of managers grew from $5,807 in 2001 to $$7,000 in 2012″
- this means that the increase was about 21%.
However, after adjusting for inflation – it is about -7%.
So, how can say that managers “are doing nicely”, when real salary growth was negative for the 11 years?
Cleaners’ pay dropped -40%?
In respect of “Cleaners and low-wage workers saw their salaries dive. Their median monthly gross pay was $1,282 in 2001. It plummeted to $1,000 in 2012″
- does this mean that their real salary dropped by a whopping -40%?
Basic salaries?
Moreover, since Singaporeans have the longest work week hours in the world – if we look at basic instead of just gross salaries – the real decline in salaries may have been even worse.
Middle-skilled jobs disappearing?
As to “middle-skilled jobs are disappearing, while demand for high- and low-skilled workers grows.
Mr Norizal’s former job as a marine mechanic falls within a classification known as production craftsmen, and those jobs are shrinking. They fell from 101,500 in 2001 to 90,600 in 2012, even as the labour force grew. It was a similar story with semi-skilled factory workers”
- in my opinion – we may be forgetting to mention the obvious.
Conveniently forget about foreign workers?
To what extent could this have been due to our liberal foreign labour policies and the huge influx of foreign workers?
After reading the above – is it any wonder that our Press Freedom ranking has dropped another notch to 149th?
Leong Sze Hian
*Leong is the Past President of the Society of Financial Service Professionals, an alumnus of Harvard University, has authored 4 books, quoted over 1500 times in the media , has been host of a money radio show, a daily newspaper column, Wharton Fellow, SEACeM Fellow, columnist for Malaysiakini, executive producer of the movie Ilo Ilo (24 international awards). He has served as Honorary Consul of Jamaica and founding advisor to the Financial Planning Associations of Brunei and Indonesia. He has 3 Masters, 2 Bachelors and 13 professional qualifications.