Tan Kin Lian's Blog: Trend towards contract work

Thursday, June 03, 2010

Trend towards contract work

Dear Mr. Tan
Without good paying jobs, consumption will suffer, which will cause even fewer jobs and less consumption:

http://money.cnn.com/2010/06/01/news/economy/contract_jobs/index.htm

JLN

My comment
I have observed this trend for some time. I agree with the findings. If workers do not have security of employment, things will continue to get worse.

How can top CEOs and bankers continue to make so much money, when other people in the economy suffer a drop in income? This is a consequence of our free market system. The solution is to get back to a more regulated economy - i.e. more regulation on terms of employments, hours of work, security of jobs, fair compensation and other factors.

14 comments:

Anonymous said...: Yes, even in Singapore much of 2009 job growth is due to contract jobs with defined end-dates and may be renewable at employer discretion. Mainstream media used to mention this fact a few months ago, but now keeping quiet about it.

Even for so-called "permanent tenure" positions, don't forget that most of the jobs created are in services sectors. Mostly these type of jobs are easy come easy go, with no worker protection, no dismissal protection, and no retrenchment protection nor benefits. Unless you're in the senior high-paying positions in legal services, financial services and medical services.; June 03, 2010 9:42 AM
Anonymous said...: Very interesting Findings and Facts!
What's the point of having Productivity when good paying jobs today will be extinct or revert to contracts?

When on contracts?
Consumption will suffer in terms of housing mortgage/Insurance/Savings etc?..........chain reaction!

Permanent Jobs, means career advancement and sense of security in a way!; June 03, 2010 9:45 AM
Anonymous said...: Things change.
People change.
Politics change.
Countries change.

Promises made more than 40 years ago have to be refreshed.

It looks like "Marriage vows" are like our National Pledge. Just an aspiration. It's time for all of us to "move on".

Reference Straits Times. 3rd June. Page A8.
"It's over for Al Gore and wife after 40 years"

Maybe contract work is best. It makes the transient nature of the relationship between employer and employee very clear.

Reminds me of the very old song "To everything, turn, turn, turn"

Band: The Byrds
Words-adapted from The Bible, book of Ecclesiastes
Music-Pete Seeger

To Everything (Turn, Turn, Turn)
There is a season (Turn, Turn, Turn)
And a time to every purpose, under Heaven

A time to be born, a time to die
A time to plant, a time to reap
A time to kill, a time to heal
A time to laugh, a time to weep

To Everything (Turn, Turn, Turn)
There is a season (Turn, Turn, Turn)
And a time to every purpose, under Heaven

A time to build up,a time to break down
A time to dance, a time to mourn
A time to cast away stones, a time to gather stones together

To Everything (Turn, Turn, Turn)
There is a season (Turn, Turn, Turn)
And a time to every purpose, under Heaven

A time of love, a time of hate
A time of war, a time of peace
A time you may embrace, a time to refrain from embracing

To Everything (Turn, Turn, Turn)
There is a season (Turn, Turn, Turn)
And a time to every purpose, under Heaven

A time to gain, a time to lose
A time to rend, a time to sew
A time for love, a time for hate
A time for peace, I swear it's not too late

Source:
http://www.lyricsmode.com/lyrics/b/byrds/turn_turn_turn.html; June 03, 2010 9:51 AM
Anonymous said...: "Dear Mr. Tan
Without good paying jobs, consumption will suffer, which will cause even fewer jobs and less consumption:"

- You really should be asking your Member of Parliament this question

- And if your MP is truly your voice in parliament, he/she will raise this question to the government when parliament is in session

- And pigs will fly
- And I will strike the lottery
(sorry for the cynicism. Just could not resist); June 03, 2010 10:29 AM
Anonymous said...: Agree to all comments.

But China & India are huge countries with the world's largest share of human beings. They are the ones earning incomes from working overseas in US, Europe and even here in Singapore.

They are the "new" consumers, and their sheer size is enough to gobble up all the products produced.

We are but a small fraction.. therefore, with higher incomes here, it makes no difference.

The Gov here knows what the majority want: hawker food and prices, lift landings on all floors,air-con buses, easy e-commerce and public services.
We provide servants to turn over beds in luxurious housing, high fashion stores and big brand names.
All this for the rich and famous to enjoy.. you get enough to afford kopitiam food.

Some here think they can be in the same class by buying 6 million dollar homes.

No arm twisting of employers to give you higher pay.

We are easily satisfied even though we may grumble noisily..
The Gov knows that we are basically, genetically village folks. Grumble all we want.. we are afraid of change ourselves.; June 03, 2010 10:53 AM
Anonymous said...: It seems to be a form of exploitation. In the past we used to see how oppressed peasants revolted and overthrew the govt, the monarchy and the system when they could no longer tolerate the exploitation.

So with the current system of exploitation and rich poor gap, when will it reach breaking levels, if at all?; June 03, 2010 11:32 AM
Linda said...: I heard that even Singnet gets contractors to send technicians to check on disconnection problems. It is only when they can't fix the problem that one of the few experienced Singnet staff will attend to the case when the customer writes in.

I would like to know if anyone has personally experienced the frustration of having many visits from contractors with no solution to their broadband connection problem.; June 03, 2010 12:45 PM
Anonymous said...: Linda 12:45 PM

The contractors may not just got contracts from Singnet but also from its competitors. These contractors thus have the volume to sustain as a business. Just like those call centres.

So even if you switch to other broadband service providers, you may still face the same problem.

Outsourcing is one way companies cut staffing costs and increase profits even at the expense of quality and service to customers, if they know customers have no better and cheaper choices.

What to do?; June 03, 2010 1:42 PM
Anonymous said...: Do not expect violent revolution, riots and assasinations.We are too comfortable still... very long way to go for that trigger to happen.

A very small number of people are affected by these global events.
The Gov are worried only because they know what will befall them should they allow things to go the natural way: which is let the business fail.

But would we allow Singapore Airlines, Singtel or UOB to fail?
Would we demand that the Gov do all they can to keep them afloat?
Even if it means huge salaries be paid to all the top level managers?

What would happen to you and I if these home grown companies fail?

You may not own any shares or none of your relatives work for them.. but believe me, if they collapse, you will definately feel it.
and you will not like what you feel.

Talking about sub-contracting and out sourcing.. these were already praticed in the Universities long ago, when undergraduates paid others to do work for them and yet get their degrees.

Nothing new.; June 03, 2010 6:34 PM
Anonymous said...: Hi Linda,
Singpost also outsource or contract postmen/women if I'm not wrong.

Looks like most companies are following some MNCs footsteps to engage Contracts or Outsourcing.
Bottomline ?.........enhance shareholders value if any!

Queen Bee Syndrome.
with worker bees working tirelessly!; June 03, 2010 6:41 PM
Anonymous said...: If interest rates go up, then shareholders will not expect companies to pay large dividends.
and companies will not need to ensure high profit margins

Shareholders will park their money in banks and companies will have to crack their numbskulls on better ways to get funding to avoid paying higher interests.

This in turn will get companies to relook at their employees and suddenly will notice that this particular resource is so much better in terms of use, loyalty, and can be very flexible.

Over time, we will notice better human service and ethics will return in favour.

Increasing the interest rates is key to have macro effects.; June 03, 2010 8:11 PM
Anonymous said...: Reference the comment:
"Over time, we will notice better human service and ethics will return in favour."

The key word here is "over time"

As John Maynard Keynes (arguably one of the greatest economist of all time) once commented: "In the long run, we are all dead".

I don't think we will live long enough to see this. And I have no intention of crawling out of my grave to make it happen.

Live fast. Live well. Die young.; June 03, 2010 8:59 PM
younger said...: I agree with anon 8:59pm!

No point keeping all the cash etc..
enjoy it now while there is still time and value!

The next generation will have to solve these problems.. my parents, uncles and aunts did not know of internet etc.. could they 'help' me?

We worry too much about many things that we as individuals cannot do anything about.
If big organistaions and gov cannot move to change things, what can I do?..

Live fats. Live well. Die young!!; June 04, 2010 9:29 AM
Anonymous said...: i rather live on 3 simple meal a day and live in government shelter/ park/ beach than let all the big corp and fat cats gobble profit endlessly using our future generation money!; June 04, 2010 10:13 AM