6. Shortage of Manpower – As of October 2014, there were 70,000 SOs holding security licenses issued by the PLRD. However, only 33,000 of these licensed SOs (or less than 60%) are currently actively employed by SAs. In addition, SAs are facing difficulties in attracting new recruits into the industry. This is despite the fact that there has been an increase in the demand for security services with the increase in completed residential, commercial, industrial and private buildings, thus widening the demand-supply gap. Based on industry estimates, there is currently a 25% manpower shortage within the industry (equivalent to around 10,000 headcounts), and this shortage is expected to grow.
7. Overtime Hours – The security and investigation industry currently has the highest level of average weekly OT hours worked per employee across all industries4. To meet market demand, most SOs are required to work up to 12 hours a day for six days a week. On average, SOs clock up to approximately 95 OT hours each month, which exceeds the 72 hours a month limit on OT hours under the Employment Act. The Ministry of Manpower (MOM) requires SAs to come forward and apply for OT exemption (OTE) before their SOs can exceed the stipulated OT limits. SAs are granted OTE subject to meeting certain conditions5.
8. The current heavy reliance on excessive OT hours is deleterious and unsustainable in the following ways:
3 The median nominal basic wage has increased from $700 in 2000 to $800 in 2013, an increase of $100 over the last 13 years. On the other hand, the median nominal gross wage over the same time period has increased by $400, from $1,300 to $1,700. 4 Singapore Yearbook of Manpower Statistics, 2014 5 Companies have to satisfy MOM that they have: (i) obtained the consent of employees, (ii) a good track record for maintaining safety, health and employment standards, (iii) secured agreement of the unions in the company (if it is unionised) and (iv) met a certain basic wage.
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a. Discourages potential job seekers from joining and staying in the security industry, which worsens the manpower shortage situation. b. Compromises the well-being and alertness of the SOs, which erodes the operational effectiveness and productivity of the security services.
9. Public Perception of the Security Industry as a Low-Skilled Job with Limited Career Progression – This perception further deters potential job seekers from entering the industry and can cause service buyers to be reluctant to procure security services at better prices because they are unsure of the value-add provided by higher paid SOs.
10. Concerns over Excessive Liquidated Damages (LD) Raised by SAs – A challenge surfaced by SAs is the imposition of excessive LD clauses in service contracts that are disproportionate to the lapses in service standards. Such clauses can erode the margins and constrain the ability of SAs to improve wages.