Flexibility, labour subcontracting and HRM in the construction industry in Singapore: can the system be reŽfined?

Labour subcontracting is an important labour-use strategy in the construction
industry. In their search for labour-market  exibility, employers in the construction
industry in Singapore rely extensively on the Kepala (labour subcontracting) system. The
Kepala system offers a ‘convenient’ way of managing operative (skilled, semi-skilled and
unskilled) construction workers. Essentially, this paper discusses the merits and demerits
of the Kepala system. It is argued that, although employers in the construction industry
derive some strategic beneŽ ts from the use of labour subcontracting, on the whole, the
system has some adverse consequences for workers, companies, the industry and HRM
functions. But, in the absence of any better system that the employers can turn to, it is
necessary for the Kepala system to be reŽ ned. Thus, it is suggested that the Japanese
model of labour subcontracting offers lessons, but will require modiŽ cations and
adaptations before being applied in Singapore.