Forum: Service buyers play a part in lifting salaries of low-wage workers

In the next two years, almost all local workers will make at least $1,400 a month. The Progressive Wage Model will be expanded to more sectors (Almost all lower-wage workers to see income gains in coming years, Aug 31), and will benefit low-income earners.

I worked in a condominium management office a few years ago. Many of the essential services, such as security, landscaping, pest control and cleaning, were outsourced.

When it came time to renew the contracts of companies, the council would try hard to convince the service provider to renew the contract at the same, or even a reduced, fee.

Many service providers were forced to accept the terms for fear of losing the contract.

Because these companies could not charge higher prices for services rendered, it was difficult for them to raise their workers' salaries.

This could have led to workers' salaries stagnating, with low-wage workers struggling to make ends meet.

Aside from implementing income increases, the authorities should advise service buyers not to renegotiate fees downwards should they engage the same supplier - provided it did not fall short of performance standards.

Condo management bodies are always quick to punish their suppliers for any bad service rendered, but they should also reward those that perform well by renewing their contract with a reasonable fee increase.

Donny Ho Boon Tiong

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