My ST Online forum letter:
Take proactive steps to improve hiring of older workers
I REFER to yesterday’s article, “Labour chief: Let’s end practice of pay cut at 60″.
The initiative by the Government to abolish this widespread labour practice is to be lauded. With Singaporeans enjoying world-class health care and longer lifespans, many will be able to continue working effectively beyond the retirement age of 62.
As it is, older workers already command lower pay when they are rehired in their 50s. They would feel the pinch even more when legislative policy allows employers to reduce their pay at age 60.
However, the more urgent need is for new legislation to force employers to hire older workers who have been made jobless by the recent recession. Many have failed to gain employment even after lowering their expectations and upgrading their skills. Moreover, the influx of cheaper and younger foreign workers has made competition even tougher for older workers here.
It seems like the advantage lies solely with employers. Given a large population of jobless workers to choose from and a lack of proper policing of human resource practices, many employers offer ridiculously low salaries to potential candidates.
To get by, many people have no choice but to accept the unfair employment terms. Such employers run the risk of workers switching to better jobs when the economy improves. This would surely disrupt the smooth operation of their businesses.
Moreover, many human resource consultants have no choice but to accede to the request of employers to interview candidates aged below 40 – even though some may have found more suitable, older candidates.
Unless the Government takes proactive measures to improve the hiring practices for older workers in Singapore, we will continue to have a higher unemployment rate among the 40 to 50 age group. An unusually high unemployment rate among this group would surely be a social problem for the country.
Gilbert Goh
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