I refer to the article “Automation helps F&B firms dish out wage hikes” (Straits Times, Apr 8).
It states that “The IGP (Inclusive Growth Programme started by NTUC) has helped 270 productivity projets in the hotels and F&B sector, benefiting more than 25,000 workers, whose wages have improved by an average of 11 per cent.
The F&B industry here has more than 6,600 establishments, employing more than 190,000 workers.”
Only 13% of workers had good wage increase?
- Do the above statements mean that only 25,000 out of 190,000 workers had good wage increases?
To put this into context – I began my search for statistics on wages in the F&B sector, as I have been told time and again that wages are generally low with long working hours, as well as declining real wages in recent years.
In this connection, according to the Ministry of Manpower’s (MOM) Labour Force in Singapore 2013 report – the Accomodation and Food Services industry had a total of 135,100 resident workers in June 2013.
55% earn below $1,500?
Of this – 10,600, 32,800 and 31,000 workers – had gross monthly wages of less than $500, $1,000 and $1,500, respectively.
In other words, about 74,400 out of 135,100 workers, or about 55% earned less than $1,500.
If we add the 19,600 who earned less than $2,000 – the percentage who earned less than $2,000 is about 70%.
With so many arguably, earning such low pay – are the schemes to raise the wages of workers in this sector working?
To what extent has the huge influx of foreign workers in this sector contributed to the low and declining real wages
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.