Actions Against Non-compliance with Progressive Wage Model for Lift and Escalator Technicians
Ministry of National DevelopmentSpeakers
Summary
This question concerns the enforcement and compliance of the Progressive Wage Model (PWM) for lift and escalator technicians as raised by Mr Gan Thiam Poh. Minister for National Development Desmond Lee stated that firms tendering for Government contracts must adopt the PWM and were notified of its extension to escalator technicians from July 2022. To ensure compliance, BCA monitors annual wage data, performs audits, and accepts reports from technicians who can also seek assistance from the Tripartite Alliance for Dispute Management. Enforcement actions against non-compliant firms include orders for rectification, suspension of eligibility for new Government tenders, and the potential termination of existing maintenance contracts. While over 40 contractors currently adopt the PWM, the Government intends to eventually mandate the model for all lift and escalator contractors.
Transcript
48 Mr Gan Thiam Poh asked the Minister for National Development (a) how will BCA ensure compliance to the Progressive Wage Model (PWM) for lift and escalator technicians; (b) what enforcement actions will be taken against companies that fail to comply with the PWM for these technicians; (c) what recourse is available for these technicians should their company fail to pay their required wages; and (d) whether a circular is issued to inform companies that the PWM for local escalator maintenance technicians has started with effect from 1 July 2022.
Mr Desmond Lee: Since May 2019, lift and escalator (L&E) firms that tender to undertake Government contracts for lift maintenance have been required to adopt the progressive wage model (PWM) for local lift maintenance technicians. These firms have also been required to extend the PWM to local escalator maintenance technicians from 1 July 2022. BCA had issued notices to inform the relevant L&E firms of this.
To ensure that these firms comply with the L&E PWM, BCA requires them to submit information on the wages of local L&E maintenance technicians that they employ to BCA annually. Local technicians in these firms who are offered employment contracts with wages lower than the PWM benchmark can report the non-compliances to BCA. BCA will also conduct audit checks. BCA will require errant firms to rectify non-compliances, and may suspend or revoke their eligibility to be awarded new Government tenders for lift maintenance. Government agencies may also terminate their lift maintenance contracts with errant firms that fail to rectify non-compliances.
L&E technicians who are not remunerated in accordance with their employment contracts can also approach the Tripartite Alliance for Dispute Management (TADM) for assistance.
More than 40 L&E contractors, maintaining more than 90% of the L&E in Singapore, have adopted the L&E PWM. We intend to mandate the L&E PWM for all L&E contractors, and will provide more details when ready.