Rise in wages must be matched by enhanced skills and services

While waste management workers welcomed the news of increased pay under the new Progressive Wage Model (PWM) for the sector unveiled yesterday, employers and service providers acknowledge that it will drive up costs.

Yet, this increased cost is expected to be commensurate with higher service standards delivered by more skilled workers, as well as higher productivity as firms in the sector transform using technology, the employers and service providers added.

Under the PWM introduced by the tripartite cluster for the waste management industry, the monthly baseline wage for an entry-level waste collection crew worker is expected to jump by almost 50 per cent over a six-year period, starting from July 1 next year.

Waste management workers will also get a mandatory annual bonus from January 2024, which aims to help the sector retain and attract local workers.

Ms Melissa Tan, chairman of the Waste Management and Recycling Association of Singapore, said the start date of July 2023 gives firms lead time to factor in the increased labour costs when preparing new contracts or bidding for them.

"But it is also important for service buyers to plan their budgets and consider adopting best practices, such as stipulating service delivery outcomes instead of the fixed frequency of waste collection," she said.

"For existing contracts that will expire after July 1, 2023, the tripartite committee encourages service buyers and providers to engage in open discussion and be very transparent with one another to reach an amicable agreement on contracts."

Mr Felix Loh, Singapore National Employers Federation deputy honorary secretary, added that cost is definitely a top consideration for employers. He urged the Government to provide transitional support for firms as they adjust the wages for workers.

But he added that the higher wages should be tied to better skills among the workers who can now do higher value work, as well as technological improvements in the firms and better service standards.

"The focus of the recommendations is on the workers. We hope this (wage increase) will be paid for through the use of better technology that will increase the sector's productivity. The key (aspect) of PWM is that it is linked to skill sets and hopefully higher productivity," he said.

"Consumers have a part to play. When we demand better services, it is fair to pay fair wages."

Ms Lim Lijuan, director of waste management service provider Boon Poh, said the firm has about 100 workers, of which 10 to 20 will be covered by the new PWM.

"We hope service buyers will help us defray these extra costs as they benefit the workers," she said, adding that most service buyers should be supportive.

She also hoped the labour union could provide firms with subsidies for training courses, as attaining more training such as Workforce Skills Qualifications modules will be part of the skills road map for workers under the PWM.

Higher pay and training prospects will help waste management workers stay in the sector and upgrade themselves, firms said.

Mr Leong Siew Nam, 50, a hooklift driver, said: "I will continue in this career. It is good to go for more training so I can improve myself."

He said he earns over $2,000 now. A hooklift driver should be earning $2,710 from July 1 next year, and $3,760 from July 1, 2028.

Mr Yeo Hock Lye, 61, a sorter at Boon Poh, looks forward to skills upgrading. "I can learn new types of things to do," he said, adding that the higher pay will attract more workers to join the sector.

The pay of a sorter should hit $2,110 next year, and reach $3,160 in 2028.