Leave wage rises to market forces once PWM has corrected pay: NMP

Wage model could backfire if schedule is set out for longer than needed, he says

- Tay Hong Yi

Even as the Progressive Wage Model (PWM) continues to make inroads towards closing the wage gap, pay increases must be left to market forces again once the PWM succeeds in correcting wages that are wrongly valued, a Nominated MP said in Parliament on Oct 14.

The PWM is a wage ladder tied to skill and productivity improvements currently in place for lower-wage workers in seven sectors and two occupations, with wage floors at each rung that are increased according to a pre-determined schedule.

Mr Raj Joshua Thomas cautioned in an adjournment motion speech lasting nearly 20 minutes that the PWM could backfire if the wage schedule is set out for longer than needed.

“This is critical because otherwise the PWMs may become a crutch to workers – who will only be able to achieve wage growth due to interventions by the tripartite partners and not through themselves showing the value of their work, nor negotiating for it,” said Mr Thomas, who is president of the Security Association Singapore industry body.

“If we fail to do so, then these vulnerable workers will remain vulnerable forever,” he added.

Mr Thomas noted that each company will also have to reconcile the PWM job roles and wages with its own internal pay scale and advancement route for all the staff it hires.

Hence, employers may need to increase wages for non-PWM roles as well to maintain pay equity, compounding the impact of scheduled PWM wage increases, he noted.