SGUnited host organisations not obliged to hire trainees, says Manpower Minister

TAKING action against companies that do not offer permanent employment to SGUnited trainees is against the spirit of the scheme, Manpower Minister Tan See Leng said on Tuesday (Jan 11).

"Were it with the expectation that host organisations were obligated to employ all their trainees, then we must accept the corollary, that they would not be able to offer so many traineeships during the most critical period of the crisis," he added.

That's as 2,300 of the 7,200 trainees who completed the scheme as at end-Aug 2021 were hired by their host organisations, with another 3,500 employed at other companies, according to Tan.

People's Action Party MP Cheng Li Hui (Tampines GRC) had asked how many graduates who have at least 1 traineeship under their belt were not hired on a permanent basis at the host workplace and why not. She also asked what recourse is available to these job seekers.

The SGUnited Traineeships Programme, which was introduced in March 2020, supports training stints of up to 6 months for fresh grads. The government funds 80 per cent of their allowances.

Trainees may not be converted into full-time employment, depending on their fit with the job as well as the business situation and hiring needs of host organisations, Tan told Parliament.

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He also noted in a reply to Workers' Party MP Leon Perera (Aljunied GRC) - who asked separately about the Professional Conversion Programme for mid-career job seekers - that "not all trainees will be hired by their host organisations or even remain in the same sector".

But Tan added: "Trainees who are not employed by their host organisations will nevertheless have benefited from the traineeship experience, which boosts their employability.

"Taking recourse against host organisations will be against the spirit in which employers, job seekers and the government came together to ensure that opportunities continue to exist despite the disruption to the labour market due to Covid-19."

He added that Workforce Singapore reaches out to trainees who have not secured employment, with job seekers also able to tap extra resources such as career-matching services.

Some 11,500 graduates have taken part in the traineeship scheme as at end-Nov 2021, with participation easing off as the economy recovers, Tan disclosed.