MAIN AND DEVELOPMENT ESTIMATES - OF SINGAPORE FOR THE FINANCIAL - YEAR 1ST APRIL, 1982 TO 31ST MARCH, 1983
Mr Speaker, Sir, may I answer on behalf of the Minister? I would like to thank the hon. Members for Kebun Baru, West Coast and Pasir Panjang for the various points they have raised regarding workmen's compensation and their concern for the workers' health. May I just deal with the points raised by the Member for Kebun Baru first? The hon. Member is concerned with the short period of 36 months after leaving employment after which a worker who has developed certain industrial diseases, such as, asbestosis, cannot claim compensation. The Second Schedule to the Workmen's Compensation Act gives a list of occupaional diseases which are compensable. Section 4 of the Act provides for a workman to claim compensation for any one of these diseases if he is employed in any occupation which is prescribed in the Second Schedule in relation to such diseases or if he has been in such occupation within 12 months prior to his making the claim. However, in the case of silicosis and asbestosis, this period was extended from 12 months to 36 months in 1976. This was because both these diseases may be developed over a period of years and in the early stages may be asymptomatic. Thus, the longer period allows for a workman with silicosis or asbestosis to make a claim of up to three years after he has left the employment which gave rise to his disease. However, an important point to note here is that workers who are exposed to silica hazard in granite quarries and those exposed to asbestos are required by law under the Sand and Granite Quarries Act and the Factories (Asbestos) Regulations to undergo yearly chest X-rays to be paid for by the employer. With such yearly chest X-rays, it is less likely for a workman to contract the diseases and not be detected. Thus a vast majority of the cases would be detected during their employment and not after. I hope that the hon. Member would agree with me that this move to have an early detection programme in order to prevent further complications is better than to allow the disease to develop and only be detected later on. By then it would also be rather difficult to assist the worker in his disease and cure him. Another important point here also is that a worker must have had a number of years working in the asbestos industry in order to run the risk. But during the number of years that he was in employment, he would have had his annual chest X-rays and, therefore, the chances of detecting the disease at its early stages are that much greater. The 36 months' period for making a claim after a worker has left the employment is just an additional precaution. This is to enable workers with the disease to make the claim. To extend this period may have some technical difficulties, especially as factories are privately insured and may even change their insurers from year to year. However, as all workers exposed to silica or asbestos hazard are required to undergo yearly chest X-rays, it may not be really necessary to extend this period forever. I will, however, assure the hon. Member that the Ministry will look further into his suggestion. 2.45 p.m. The Member for West Coast wants to know the rationale as to how the Ministry arrived at the ceiling of $1,250 per month for non-manual workers. In the derivation of this quantum, the Ministry took into account rising wages and inflation. However, even if we do not make a distinction between manual and non-manual workers, hon. Members of this House may like to know from the 1980 Labour Force Survey results that this quantum of $1,250 per month covers 994,696 manual as well as non-manual workers. This constitutes 93.05% of the total workforce. Those earning above $1,250 per month constitutes only 6.95% of the total workforce. Many in this income bracket are holding managerial, executive and confidential positions, Our work accident statistics show that non-manual workers are less subject to work accidents when compared to manual workers. It is likely that nonmanual workers in the income bracket of above $1,250 per month are even less likely to suffer from work accidents. Such workers in this bracket who are likely to meet with work injuries are those in the technical field holding professional qualifications, for example, technicians and engineers. These are the people usually covered by personal accident insurance schemes under their contracts of employment. As for the quantum of compensation, the present rates were revised at the end of 1980 as a result of repeated representations by hon. Members of this House. They represented an increase of 30% when compared to the pre-1980 rates. The increase took into account changes in the cost of living and median monthly incomes during the period 1975 to 1979. Today, the maximum compensation of $45,000 for death is equivalent to 108 months of the present median monthly income of workers. For injury resulting in permanent total incapacity, the maximum compensation of $60,000 is equivalent to 12 years' loss of earnings of the injured workman. Therefore, the present quantum of compensation is considered sufficient. However, the maximum compensation will be reviewed from time to time and adjusted every few years to take into account the effects of rising wages and inflation. With regard to the Member's query regarding how our workmen's compensation quantum compares with those of the more advanced countries, I would like to say that it compares very favourably. However, bearing in mind that the cost of living is higher in these countries, it is not correct to make a straight comparison of quantum of compensation. One has therefore to look at the various schemes and make the comparison in terms of the following: (1) the rates of payment against workers' earnings; (2) when payments are made, for example, in Singapore, they are made during the period the worker is receiving treatment and is incapacitated from work. In developed countries such as Germany, the payment commences only from the seventh week of incapacity. This is for temporary incapacity. In the case of a fatal accident in Singapore, compensation for death is computed as a lump sum payment and paid to the dependants of the deceased immediately. However, in the case of some advanced countries like Canada, Germany and Sweden, if the surviving spouse happens to be a man, then he is only entitled to a pension if he is an invalid and depended on his late wife for support at the time of her death. Mr Speaker, Sir, I do not propose to go through the list of comparisons between our workmen's compensation and those of the advanced countries. But if the Member for West Coast would like it, we would be too pleased to send him the complete set of our research study for his perusal. The Member for Pasir Panjang raised the question of disbursement of compensation in instalments. I would like to assure the hon. Member that this is designed to protect the interest of the injured worker or the dependants in the case of a deceased worker. The hon. Member must be referring to the POSB workmen's compensation savings scheme for injured workers and their families. This was started in June 1977. Under this scheme, the beneficiaries who are in receipt of a substantial sum of compensation usually above $10,000 are not given the full lump sum. They are paid an initial lump sum of $5,000 and the balance deposited with the POSB savings account and it is opened in their name. The POSB workmen's compensation savings account operates like any other ordinary POSB savings account except that the account holder is only allowed once a month withdrawal, the sum being determined by the Commissioner for Labour. For dependants of a deceased workman, the monthly sum that can be withdrawn is equivalent to the last monthly earnings of the deceased workman at the time of the accident. For account holders who are injured they are allowed to withdraw a monthly sum equivalent to twice their monthly earnings as at the time of the accident during the first year and then a sum equivalent to their monthly earnings for subsequent years. The purpose of this scheme is to ensure that beneficiaries do not squander their compensation money and thus possibly end up seeking public assistance within a few months after receiving compensation. Another reason is to avoid the possibility that beneficiaries could be victimized or the payments dissipated if they were paid a single lump sum. Finally, the continuing needs of the disabled workman and his dependants or his surviving dependants would be better met if the benefits were of periodic payments which was based on the workman's earnings instead of a lump sum. The hon. Member also raised the question of slowness in the disbursement of compensation to an injured worker or to the dependants of a deceased worker. The complete process of securing compensation for an injured worker starts with registration, followed by assessing the quantum of compensation, filing the claim and concluded by securing payment of compensation to the injured worker or to the dependants of a deceased worker. The Ministry has done all it can to facilitate and to hasten payment of compensation to workers. For instance, the Workmen's Compensation Act of 1975 again was passed as a result of representation by hon. Members of this House to eradicate certain time-consuming procedures. Dependency is no longer a bone of contention under this Act. Unlike the 1971 Act under which full compensation was payable only if there had been full dependency, the 1975 Act assumes the full amount of assessed compensation will be paid regardless of whether dependency is full or partial. Under the 1975 amendment, the Commissioner is also empowered to hear disputes and hand down an order accordingly. Previously, such cases were referred to the arbitrator for a decision which took a long time. Insurance coverage for employers liability was unsatisfactory under the 1971 Act. Often we found that insurance companies repudiated liabilities on the ground that there was a breach of insurance policy. In this respect, the 1975 Act provides a provision to attach the insurer as if he were the employer. Interest at the rate of 1 1/2% per month was also imposed for late payments. To make employers and the insurance companies pay compensation on time, interest for late payment was increased in the 1980 amendment at the rate of 1 1/2% per month for the first six months and 3% thereafter. Again, this is the result of representation of hon. Members of this House. Some of the trickiest problems in workmen's compensation are medical rather than legal. The medical aspect, therefore, is an important part of the administration in workmen's compensation procedures. It is the physician who can determine that the disability is the direct result of an injury sustained in the course of employment and whether treatment is necessary or not. The cases involving serious injuries, for example, crushed limbs, cannot be assessed until the injuries have healed. The physician is the competent person to determine whether the disablement is temporary or permanent. This is one factor which is outside the control of the Ministry and the delay involved is unavoidable. However, the Ministry will certainly carry on looking at ways and means to see if any action can be taken to reduce the waiting period. 3.00 p.m. The Member for Pasir Panjang also raised the question of the need to review the list of occupational diseases in the light of changing trends in employment, as a result of newer techniques introduced into our industries. I share his sentiments. I would like to assure him that the list is certainly not exhausted, neither is the list static. For example, noise-induced deafness and industrial dermatitis were two occupational diseases which were added to the list in 1975. Other occupational diseases will be added to the list as and when they pose hazards to our workers. We appreciate the hon. Member's suggestion that the Ministry of Labour set up an advisory committee to look into the areas of occupational health hazards. However, the hon. Member may wish to know that the Ministry already has a programme to identify new industrial health hazards. The programme consists of the following: (a) Inspection of plans before new factories are registered to ensure that there are no environmental health hazards and sufficient precautionary measures are taken. This is carried out by our Industrial Health Unit. (b) Regular inspection of factories which pose high health risks through periodical surveys and studies and investigation into complaints. Besides this programme, the National Productivity Board also has an advisory committee on occupational safety and health with representatives from employers, the NTUC and professionals in the private sector and the Labour Ministry. This committee may make recommendations to the Ministry from time to time on occupational health measures. In view of these measures, we feel that setting up another advisory committee would not be really necessary. Nevertheless I would like to thank the hon. Member for his suggestion. As regards the Member's proposal that provision be made in the Workmen's Compensation Act to cover injuries sustained by a workman representing the company in organized games after working hours, I would like to point out that the underlying principle of the Workmen's Compensation Act is to compensate the injured workman or his dependants for all work-related injuries. Participation in organized games cannot be deemed to be strictly work related. Besides they are organized as part of the welfare benefits for the recreation of workers. In most cases participation is voluntary. Therefore, the employers should not be made liable for injuries sustained in such recreational activities. However, with our move towards company welfarism, the Member may like to take the suggestion to the National Productivity Board for their consideration.