Security agency Apro disputes NTUC announcement of its right-sizing exercise; union stands by its actions
LOCAL security agency Apro has expressed contrition over the execution and communication of a right-sizing exercise; but said it was surprised by labour chief Ng Chee Meng’s statement on Tuesday (Feb 7) criticising its actions, as it said Apro had consulted the relevant union.
In response, the Union of Security Employees (USE) said any suggestion of it having “agreed to unfair conditions is inaccurate” and that it stands by its actions.
In an interview with The Business Times on Wednesday, Apro’s deputy managing director Li Xiaowen said the company had conducted its exercise to prepare for a wage hike of more than 10 per cent that was to kick in between this and next year.
Ng, who is secretary-general of the National Trades Union Congress (NTUC), had described in USE’s statement a forced demotion by an unnamed “errant security agency” attempting to reset the wages of its security officers.
He added that the agency had since agreed to “conduct joint engagements with affected workers to establish remedial actions”. But Li, who acknowledged Apro is the agency referred to, said he is not aware of any such efforts. He also claimed USE had been consulted and had already accepted a remedy.
Following adjustments to the Progressive Wage Model (PWM), basic monthly wages for security officers will increase by S$1,000 to S$2,650 next year. Increases for other job levels range from S$1,120 to S$1,310. The new structure also provides for salaries to rise between 15 per cent and 16 per cent per annum over 2023 to 2028.
The new wage structure would have hit Apro’s cost base hard because the company had accumulated a bloated rank structure over the past two to three years, Li said.
Some security guards in Apro’s employ perform the duties of security officer while holding a senior security officer rank, due to a mismatch in demand and supply. As many as 362 of a total of 1,145 officers in its employ as at early December fell into this category.
“When our costs go up so significantly (to accommodate the salary hikes), there’s a need to assess what are the other aspects of costs that we are able to optimise further on,” said Li. “And that will go towards sustaining our price competitiveness versus our competitors.” Li said Apro’s peers have salary structures that allow them to be more competitive.
To right-size its operations, Apro demoted some of its senior officers. The exercise was done in December alongside the regular increment cycle to “mitigate any negative impact to salaries”.
On average, Li said, there was a slight increase in salaries after factoring in overtime pay. Only 20 people saw a decrease.
Li said there were consultations with lawyers for months to ensure the exercise was done “the right way”. But one week after introducing these new contracts to his staff, he received “representations” from USE as well as employee feedback “that these reductions in rank were deemed to be forced demotions”.
“All the while I was trying to mitigate negative impact, and I thought I knew what was best for everybody,” Li said. But he had not foreseen that the exercise would be seen in such a light. “That was certainly my error.”
He strongly disagreed with NTUC’s characterisation of Apro as attempting to reset the wages or employment terms of workers, however.
Following feedback from USE, Apro had offered an alternative scheme to all affected by the exercise. USE had even provided input on the scheme, Li said. He was, therefore, caught unawares by Ng’s statement.
Responding to Apro’s claims, USE said the officers would have been better off if they had been retained in their original job ranks.
In a statement on Facebook, USE said: “Workers at the senior security officer rank would be able to earn a PWM baseline wage of S$2,950 according to the 2024 wage schedule. If demoted to a security officer rank, these workers would only be able to earn a PWM baseline wage of S$2,650. This is S$300 less than what they should be earning in their current job ranks. The worth of S$300 every month for these workers should certainly not be undervalued. And according to the PWM wage ladder, their wages and work prospects would continue to progress.”
USE said it therefore brought the case to the Ministry of Manpower (MOM) for conciliation.
Below is Li’s retelling of the timeline of events:
Dec 1, 2022: Apro rolls out new employment contracts with new salary structures in anticipation of the mandated 2024 wage levels, putting everyone at a net gross monthly pay of more than S$2,600. These include the contracts with demotions built in for the group of 362 officers.
Dec 8, 2022: USE approaches Apro, saying Apro’s actions were not acceptable. Apro engages union representatives to remedy the situation.
Dec 10, 2022: USE asks Apro to rescind the contracts of the 362 officers. Li declines to do so.
Dec 13, 2022: USE proposes a redundancy exercise. Li declines again, proposing instead to
- Preserve senior ranks;
- Raise salaries; and
- Require a six-day work week, instead of the current five-and-a-half, as a six-day work week is the industry norm.
Dec 16, 2022: USE responds in support of the new scheme and asks about next steps. Li offers the new contracts to 362 officers, but only nine take the new deal.
Some time after Dec 17, 2022: USE asks Apro for the personal data of the officers affected by the demotions, with the intent of offering them alternate employment opportunities.
Li declines and USE declares a “deadlock” in negotiations, bringing MOM in.
Jan 18, 2023: MOM facilitates a conciliatory session between USE and Apro. Apro agrees to conduct small-batch briefings, the first of which would be observed by USE, to explain to affected officers why the recent adjustments have been necessary.
