November 7, 2009 Saturday
Updated

Nov 7, 2009
More to gain from best sourcing
By Goh Chin Lian, Senior Political Correspondent
The trend of cheap sourcing is what a three-month-old government scheme hopes to tackle, by subsidising those firms that award contracts based on performance and quality, or best sourcing, instead of the lowest price. -- ST PHOTO

AN OFFICE cleaner quit last month after she had enough of pay cuts, longer working hours and loss of benefits in four of the five times a new cleaning firm took over the contract.

The 58-year-old's monthly pay did increase over her more than 10 years of service - but only from $370 to $400.

Her sorry state, mentioned by labour chief Lim Swee Say at a seminar last Thursday, is common among cleaners, security guards and other low-wage workers.

As contractors undercut one another when making bids, and clients go for the cheapest deal, such low-educated and low-skilled workers often accept worse terms to keep their jobs, said unionists and employers.

Many are also ignorant of their rights to benefits such as annual leave, and may not appreciate the benefits of having an employment contract, said Mr Zainudin Nordin, director of the labour movement's Unit for Contract and Casual Workers.

The trend of cheap sourcing is what a three-month-old government scheme hopes to tackle, by subsidising those firms that award contracts based on performance and quality, or best sourcing, instead of the lowest price.

Read the full story in tomorrow's edition of The Sunday Times.

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