Reference no: EM133306160

Assignment: The following is an excerpt from the Straits Times article dated 12 October 2020. More Sectors May Adopt Progressive Wage Model - by Prisca Ang Waste management and food services may be next in line to adopt the progressive wage model (PWM), a wage ladder that spells out compensation and career pathways for workers at each skill level. National Trades Union Congress (NTUC) deputy secretary(1]general Koh Poh Koon told The Straits Times (ST) that the labour movement has submitted its proposal to the Government for the model to be implemented in the waste management sector. "NTUC is looking into other industry sectors with a sizeable resident workforce having a median income below the bottom 20th percentile, and this includes the food services sector," added Or Koh who is also Senior Minister of State for Health. He said that perhaps only certain types of food establishments would be selected so that prices do not rise for consumers. The move must be coupled with job redesign and business model transformation, so food and beverage (F&B) operations become more manpower-lean and efficient through productivity gains and new dining concepts. In Parliament last Monday, Deputy Prime Minister Heng Swee Kest reiterated the Government's commitment to expand the PWM to more sectors while ensuring businesses can absorb the change. Union leaders and experts told ST that the model would work well in sectors that have a larger proportion of lower-wage workers as well as visible career pathways. Singapore Business Federation chief executive Ho Meng Kit said retail, accommodation and food services are examples of this. "For example, in retail, you can start off as a sales assistant, before taking on a more specialised role like a sales administrator, and eventually become a supervisor or shop manager. So, there is possibly a ladder for progressive wages." Some companies such as Decathlon Singapore, already have structures for progressive wages. Its managing director, Nils Swolkien said most managerial positions are filled through internal promotions, and all store managers can expect to progress. 'In the end, the increase in wages is connected with the strategy of internal promotion within the company." Association of Small and Medium Enterprises vice-president Ang Yuit said industries facing tight labour shortages would benefit from the PWM, as better wage and career prospects might help attract local workers. These include areas such as F&B, hospitality and construction. CIMB Private Banking economist Song Seng Wup said:" We have been so dependent on foreigners to fill many of the lower-paying jobs. The higher the remuneration, the more there will be (local workers) interested." Food, Drinks and Allied Workers Union assistant general secretary, Mustafa Lambak said businesses are trying to pivot away from a heavy reliance on foreign manpower, given the challenges and cost of hiring foreign workers in the pandemic. "A PWM can help to alleviate this pressure by improving productivity... The wages and skills can attract locals to join the (food & services) industry. The sector will be uplifted through job redesign, digitalisation and automation.he said.

Question: From the above article, examine the impact of government policy, market forces and unions in their influence to adopt Progressive Wage Model [PWM) in the lower-wage industries. (b) Distinguish the effect that the progressive wage model has both on the policy of internal alignment and external competitiveness. (c) In order to anticipate the possible adoption of a progressive wage model in the food services and retail industry, companies in these sectors need to start planning for visible career pathways. Propose the technique in the internal alignment policy that is necessary for a company to use for building career pathways. Support your answer with rationale and illustrate by describing the technique to be used for the job family in the retail industry quoted in the article.