SINGAPORE - About 3,000 Singaporeans and permanent residents (PRs) working in the waste management sector will see pay rises over six years as the Progressive Wage Model (PWM) is extended to the sector from July 1, under a new Bill tabled in Parliament.

The Bill also calls for a new licensing regime for cleaning businesses to be implemented on Jan 1, 2024.

It proposes that only businesses committed to investing in productivity measures, keeping up with upcoming wage climbs and ensuring workplace safety can qualify and renew their licences every two years.

These are among amendments to the Environmental Public Health Act proposed in a Bill tabled on Monday by Dr Amy Khor, Senior Minister of State for Sustainability and the Environment, to ensure a cleaner environment for all.

To implement the PWM, which charts a clear pathway for wages to rise along with training and improvements in productivity, the Bill proposes that the licensing framework be revamped for waste collection and waste disposal licensees.

This follows the Government’s acceptance of recommendations by the Tripartite Cluster for Waste Management (TCWM) in January 2022 to introduce the wage model for the waste management sector.

The PWM will apply to two sub-sectors – waste collection and materials recovery.

Singaporeans and PRs working in waste collection can expect their monthly gross wages to rise from at least $2,210 in July 2023 to $3,260 by 2028, with regular increases over six years.

Meanwhile, those working in materials recovery, such as sorters in recycling plants, could earn a monthly gross wage of at least $3,160 come 2028, up from at least $2,110 in July 2023.

“Licensees must adhere to prescribed conditions, including paying workers a baseline wage, overtime wages and an annual bonus, in accordance with TCWM’s recommended wage schedule,” said the Ministry of Sustainability and the Environment and the National Environment Agency (NEA) in a joint statement on Monday.

Separately, the cleaning business licensing framework will introduce three classes of licences, all valid for two years at a time.

Currently, there is only one type of licence for cleaning businesses, and it is valid for one year and is renewable.

Under the proposed framework, the Class 3 licence, which has requirements similar to the current licence’s, is a non-renewable one available only once to new businesses and those still licensed under the current regime from Dec 31, 2023.

It is meant to give new entrants leeway to ramp up their operations and ultimately commit themselves to the industry, as well as give existing players two more years to grow to what two higher classes of licences require.

In the long run, cleaning businesses are expected to at least hold the renewable Class 2 licence, which requires licensees to hold a paid-up capital of $25,000.

This paid-up capital requirement was introduced to ensure that operators can keep up with wage climbs under the cleaning sector’s existing PWM for the long haul and adopt more technology, NEA said.

Firms with higher capabilities may apply for the Class 1 licence, an enhanced tier with a higher skills bar requiring staff to complete at least three Workforce Skills Qualifications training modules, compared with two modules for Class 2 and 3 licensees.

Class 1 licence holders also must have more paid-up capital – $250,000 – and be free of convictions in the 24 months preceding its application. This licence replaces the voluntary accreditation that firms currently apply for separately from the existing licensing regime under the Enhanced Clean Mark Accreditation Scheme.

Said NEA: “Class 1 licensees can signal their commitment to invest in training of the workforce to attain more cleaning competencies, and to provide more assurance to service buyers that they are equipped with further resources to undertake larger cleaning projects.”

Both Class 1 and Class 2 licensees need to attain Level 3 on the bizSafe workplace safety and health programme too.

Mr Chew Ming Fai, NEA deputy chief executive of public health and director-general of public health, told reporters at a briefing that the agency is looking into revising an existing requirement for government agencies to procure cleaning services only from accredited businesses.

“We are looking into whether this requirement can be revised such that government procurement agencies procure cleaning services from Class 1 licensees in the long run.”

About one-third of the 1,550 licensed cleaning businesses currently qualify for at least a Class 2 licence, said NEA.

The criteria for a Class 2 licence are reasonably attainable, said Mr Tony Chooi, president of the Environmental Management Association of Singapore.

The association has 114 member firms, which together hire about 70 per cent of cleaners at NEA-registered firms, with almost half of its members hiring 100 cleaners or fewer.

“We feel that the paid-up capital reflects the company’s commitment to the cleaning business. This commitment would translate into investment in improving professionalism, which is necessary to uplift overall cleaning standards and contribute to building a more resilient and competent workforce,” Mr Chooi said.

Consolidation of market players could occur, he said, noting that the number of NEA-licensed cleaning businesses is high, considering Singapore’s size and population.