CHAPTER 3

LABOUR RELATIONS

The Programme of Labour Relations

3.1 In Hong Kong, terms and conditions of employment are negotiated freely between employers and employees and they largely form the basis of the relations between the two parties. Employees and employers in Hong Kong are also free to form and join trade unions, which are required to be registered under the Trade Unions Ordinance. The objective of the Labour Relations Programme is to maintain and promote harmonious labour relations in the non-government sector. We achieve this by:

	giving advice on matters relating to conditions of employment, provisions of the Employment Ordinance and good management practices;
	providing voluntary conciliation service to help employers and employees resolve their employment claims and disputes;
	promoting understanding of labour laws and encouraging good labour management practices;
	adjudicating minor employment claims speedily through the Minor Employment Claims Adjudication Board; and
	registering and regulating trade unions to bring about sound and responsible trade union administration.

3.2 The principal legislation administered by this programme area includes the Employment Ordinance, the Labour Relations Ordinance, the Minor Employment Claims Adjudication Board Ordinance and the Trade Unions Ordinance (TUO).

3.3 With the provision of a comprehensive set of employment standards, the Employment Ordinance is the main piece of legislation governing conditions of employment in the non-government sector. The procedures of settling labour disputes in the non-government sector are provided in the Labour Relations Ordinance. The Minor Employment Claims Adjudication Board Ordinance establishes a machinery known as the Minor Employment Claims Adjudication Board (MECAB) to adjudicate minor employment claims when settlement cannot be achieved by conciliation. For the regulation of trade unions, the TUO provides a statutory framework for trade union registration and administration.

Our Work and Achievements in 2002

Key Indicators of Work

3.4 Some key indicators of work of the Labour Relations Programme Area are contained in Figure 3.1 .

Conciliation and Consultation Services

3.5 Our consultation and conciliation services have contributed to the maintenance of industrial peace in a difficult time. In 2002, we handled 147 861 in-person consultations. In particular, a record of 433 labour disputes and 34 821 claims was handled this year. Notwithstanding the continued increase in workload, 63.2 per cent of the cases were resolved amicably through conciliation, a settlement rate comparable to that of 2001. The number of cases settled through conciliation in 2002 reached 20 636 which was a historic high. No strike was recorded in 2002.Figures 3.2~3.8

Strengthening Tripartite Communication

3.6 To promote tripartite collaboration at the industry level with a view to fostering harmonious labour relations, nine industry-based tripartite committees have been set up in the catering, construction, theatre, warehouse and cargo transport, property management, printing, hotel and tourism, cement and concrete as well as retail industries. These committees provide useful forums for the representatives of employers, employees and the Government to discuss issues of common concern relevant to the industries. Successful examples of such tripartite cooperation include the drawing up of a Code of Labour Relations Practice and sample employment contract for the catering industry and the production of a reference guide on employment-related issues relevant to the hotel and tourism industry.

The Assistant Commissioner for Labour, Mrs Jennie Chor (fifth from left), with the construction tripartite committee members at a seminar for the industry.

Promotion of Good Employer-Employee Relations

3.7 To promote good employer-employee relations, a total of 1 063 activities at different levels was organised in the year, including publicity campaigns, seminars, visits, courses, workshops and talks.Figure 3.9

The Commissioner for Labour, Mrs Pamela Tan, presenting a souvenir to Mr S H Cheung, Chairman of the Chiu Chow Overseas Food Trade Merchants Association Ltd. at a seminar for catering trade.

3.8 We organised the territory wide Workplace Cooperation 2002 to promote effective staff communication and good people management practices. Over 12 000 persons took part in such activities as seminars, workshops, training courses and experience-sharing visits.

The Commissioner for Labour, Mrs Pamela Tan; Legislators, the Hon James Tien (third from right); and the Hon Leung Fu-wah (second from left); and three guest speakers officiating at the opening of the "Workplace Cooperation 2002".

3.9 We organised briefings for government bureaux/ departments and statutory bodies on the Employment Ordinance and good labour-management practices. We also staged special publicity campaigns to promote prior work arrangements in times of rainstorms and typhoons, and employment rights of foreign domestic helpers. New products such as publications, VCD and CD-ROM are listed in Figure 3.10.

Adjudication of Minor Employment Claims

3.10 The Minor Employment Claims Adjudication Board provides a speedy, informal and inexpensive adjudication service to members of the public. It is empowered to determine employment claims involving not more than 10 claimants for a sum not exceeding $8,000 per claimant.

3.11 In 2002, the board recorded 2 768 claims, amounting to a total of $11,795,016 and concluded 2 692 claims with a total award of $6,073,435.Figure 3.11

Regulation of Trade Unions

3.12 The Registry of Trade Unions promotes sound and responsible trade union administration, and is entrusted with a statutory duty to register trade unions, process and register their rules, and examine their annual audited statements of account to ensure that trade unions comply with the TUO.

3.13 As at the end of the year, the declared membership of the 622 employee unions was 676 534. In 2002, 23 new trade unions were registered while 11 trade unions were deregistered; making up an accumulated total of three registered trade union federations and 666 registered trade unions (comprising 622 employee unions, 23 employer unions and 21 mixed organisations of employees and employers). The trade union participation rate (Note 1) of employee unions in 2002 was 22.15 per cent.Figures 3.12 and 3.13

Note 1 :

Trade union participation rate =	declared membership of employee unions	X 100%
	number of salaried employees and wage earners

3.14 In the year, the Registry of Trade Unions examined 571 statements of account and conducted 363 inspection visits to trade unions to ensure that their administration and financial management were in compliance with TUO. A training video entitled 'Key to Trade Union Management' was produced and distributed to all registered trade unions to facilitate trade union officers in acquiring knowledge of union law and management. The Registry also organised 13 courses and two seminars on trade union management, bookkeeping, auditing and provisions of the TUO.

The Permanent Secretary for Economic Development and Labour(Labour), Mr Matthew Cheung; with Legislators, the Hon Li Fung-ying and the Hon Chan Kwok Keung; officiated at the premiere of "Key to Trade Union Management".