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On concerns that flexi-work would result in more jobs offshoring, the Minister of State for Manpower said it was more important to make sure Singapore's workers stay globally competitive in skills and productivity. SINGAPORE: Employers with workers on flexible work arrangements have no basis to cut their pay if their productivity is not affected, Minister of State for Manpower Gan Siow Huang said on Tuesday (May 7). She was responding to a question by Nominated Member of Parliament (NMP) Raj Thomas on how the tripartite guidelines on flexible work arrangement requests would interact with the progressive wage model. The new guidelines, which come into effect on Dec 1, require all employers to have a process for their employees to request flexible work arrangements. Employers must give fair consideration to the requests and respond within two months. They can reject a request on "reasonable business grounds", and must give the employee the reason in writing. The progressive wage model provides a structure for wages to rise along with training and productivity improvements. It covers lower-wage local workers in certain sectors, like cleaning and security. Mr Thomas asked whether an employer would have to reject a worker's request for flexible work arrangements if it meant the worker would work fewer days, bringing his or her gross wage below the prescribed floor of the model. Ms Gan questioned the assumption that pay would be reduced in the first place, saying that employers have to pay competitively to attract and retain good workers. "For workers who are on flexible work arrangements, if their work output, productivity is not affected, actually there is no basis for employers to reduce their pay," she said. Manpower Minister Tan See Leng said that "the spirit of the PWM (progressive wage model) should really lead the entire thinking" behind the implementation of any guidelines. He said the guidelines on flexible work arrangements were based on tripartism and collaboration, and represented a "very nuanced approach". "I think we are moving into newer waters, and I would seek an appeal to the understanding, the support and also the patience of all of us together as one united society, to come together to make this work for the betterment of all of our future generations of workers." Dr Wan Rizal (PAP-Jalan Besar) raised concerns from workers who may want flexible work arrangements but fear if their personal issues, like mental health, are aired in the process, that this could hurt their career progression. Ms Gan reiterated that employers must assess employees' performance and pay them fairly based on work done, and not discriminate based on health conditions that do not affect their performance. After the guidelines were announced, some employers told CNA that as managing remote teams becomes more common, they may rethink hiring local staff and look overseas for recruitment, particularly given the difference in costs. Members of the tripartite working group that drafted the guidelines, co-chaired by Ms Gan, have said that ensuring the local workforce stays competitive will be key as Singapore normalises flexible work arrangements. On Tuesday, Ms Gan reiterated that remote work and outsourcing are already global trends regardless of Singapore's guidelines. "Even if foreigners are not working in Singapore ... they will still be competing with us when working in companies overseas," she said. It was more important for local workers to continually upskill and stay productive to compete for jobs not just in Singapore, but globally, she added. MP Cheryl Chan (PAP-East Coast) then asked whether Singapore would see more offshoring of jobs as a result of the flexible work arrangement guidelines. She also asked whether middle-aged professionals, managers, executives and technicians (PMETs) would be disadvantaged by the guidelines and by the redesign of job roles to accommodate flexible work arrangements. Ms Gan replied that flexible work arrangements were not limited to flexi-place arrangements (like working from home), and did not mean workers will be less productive. She added that businesses were driven by their own bottom lines in assessing talent and costs. "I think we should not pretend that without flexible work arrangements, there'll be less offshoring," she said. "I would also point out that elsewhere, in the US, for example, we are also seeing some tech companies putting out statements that remote work does not work for them. "There seems to be some suggestion that actually, for certain sectors and for certain types of work, physical on-site presence, teamwork, all these are still very key." She said that some companies in Singapore have shared similar feedback, adding: "For those, I think offshoring may not be a natural choice, and certainly would not be affected by these guidelines." Ms Gan said that the focus for middle-aged PMETs is on making sure they have the right skills and on their "career health" to make sure they stay employable. Addressing MPs' questions, she also reiterated that the guidelines do not mandate flexible work arrangements or set hard targets. "For flexible work arrangements to be successful, it must make businesses sustainable for the employers," she said. "It does not make sense to require businesses to offer flexible work arrangements, even when it negatively impacts business and affects employment prospects for Singaporeans."

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