Deputy Prime Minister and Finance Minister Heng Swee Keat announced more measures to help workers, households and businesses tide through Covid-19 period in Parliament on April 6.
Prior to this, two Budgets have been passed in Parliament — Unity Budget and Resilience Budget.
The Solidarity Budget 2020 was announced after the country decides to adopt circuit breaker measures from today (Apr 7), causing a significant number of businesses to close until May 4, 2020.
Speaking in parliament, Workers' Party's (WP) Chairperson and Member of the Parliament, Sylvia Lim, asked the Government to clarify how the Jobs Support Scheme will help workers.
She also sought further clarifications on the measures implemented to help affected workers to get jobs and supplementary payouts.
Lim noted that most businesses in Singapore closing their premises under the government directives is unprecedented.
Lim said that the WP voted in favour of the third budget which will bring the total support package to about 12 per cent of the nation's GDP.
Review wage support given to various sectors
Lim urged the government to review how some businesses and workers receive much lesser wage support as compared to others in the same industry.
Citing the industry for MICE (meetings, incentives, conventions and exhibitions) as an example, Lim said that operators of purpose-built MICE venues qualified for up to 75 per cent of enhanced wage support but contractors who provide MICE-specific products and services would only get the minimal 25 per cent wage support.
Lim hoped that the scheme can be reviewed as each industry functions like an ecosystem and has a supply chain involved.
She noted that the disruptions caused by Covid-19 will have a trickle-down effect on businesses involved at different stages of this supply chain and will be similarly impacted eventually.
How wage offsets to employers benefits workers?
Under the JSS, employers will receive wage offsets from the government instead of the employees.
While Heng has urged employers to "hold on" to their workers with this support, Lim noted that many employers have already implemented their cost cutting measures such as introducing pay-cuts on their employees or asking them to go for no-pay leaves.
Citing the airline industry which receives 75 per cent wage offsets from the taxpayers, Lim asked if these cost-cutting measures should be reviewed.
"With airlines now getting 75 per cent wage offset from the taxpayer, is there any obligation on employers to review these No-Pay leave arrangements reached earlier, to see if they are still justified after the wage offsets?"
Even with the wage offsets, employers in "non-essential services" still cannot guarantee their workers some job security, Lim added.
While Lim empathises with the employers on the "tough choices" they have to make during this period, Lim asked what constitutes an abuse of public resources in such situation.
Clarification on Temporary Relief Fund and Covid-19 Support Grant
Lastly, Lim sought clarifications on how one could qualify for the Temporary Relief Fund (TRF) and the Covid-19 Support Grant.
The TRF provides a one-off S$500 financial aid for lower- to middle-income Singaporeans and permanent residents facing difficulties during the Covid-19 crisis due to job or income loss.
Lim used an example to show that those who have been retrenched during this period might not be entirely due to Covid-19 even though Covid-19 can be a contributing factor. Regardless, it will also be tough for this retrenched person to find a job during this period and will be in need of support as well.
"For instance, take an employee of a company which had been incurring losses even before Covid-19 broke. If he is terminated by the company now, will his application for assistance be rejected because it is arguable that his job loss was not caused by the virus outbreak? If that is the case, it would seem very harsh, as it is going to be very difficult for him to find a new job in the current environment."
Lim concluded by sharing her encounter with a middle-aged Grabfood delivery worker who has been changing jobs since January. This was after the restaurant that he was working at closed down.
The worker is now the sole breadwinner for the family of four as his wife also lost her job because of Covid-19.
Lim highlighted that more people in Singapore are in the same plight as this man.
Hence, this is the reason why Lim supports the proposed measures but raised some clarifications on behalf of these workers.
Top photo via screenshot of CNA video