CHAPTER
1HIGHLIGHTS OF THE YEAR 2003
1.1 2003 was a challenging year for the Labour Department. Continued
economic downturn combined with and the Severe Acute Respiratory Syndrome (SARS)
struck a great blow to Hong Kong, pushing the unemployment rate to a record high
of 8.7 per cent. Despite these, we adopted a pro-active and pragmatic approach
in tackling the challenges, resulting in a number of remarkable achievements in
our services. 1.2 Since July 2003, the Labour Branch of the Economic
Development and Labour Bureau has merged with the Labour Department. The new organisation
retains the corporate title of Labour Department and is headed by the Permanent
Secretary for Economic Development and Labour (Labour), who has also assumed the
role of Commissioner for Labour. The streamlining aims at achieving a better integration
of formulation and implementation of labour policies, as well as increasing efficiency
and economy. SARS-Related InitiativesSARS-related Employment
Packages1.3 In response to the outbreak of SARS and to prepare
for the entry of school leavers into the labour market in the summer of 2003,
two employment-cum-training packages, coordinated by the Labour Department, were
rolled out in May and July 2003 respectively. A total of 53 550 employment-related/training
openings were created at a cost of $1.15 billion. Of these, 30 550
were short-term employment-related openings (with 8 350 temporary
jobs for youths) and 23 000 training openings (with 6 000
for youths). 1.4 Altogether 17 000 training places were
offered under the Skills Enhancement Project (SEP), which was designed to provide
trade-specific and generic training to employees of industries hard-hit by SARS.
Eight weeks of training was offered to those belonging to the catering, retail,
tourism, hotel, passenger transport, building decoration, and real estate, as
well as airport and related industries who had become unemployed or had to take
no-pay leave owing to the outbreak of SARS. With an enrolment rate of about 90
per cent, SEP was well received by the trainees. Many of them found the opportunity
to upgrade their trade-related knowledge valuable and well worth their time. 1.5
Meanwhile, to address the mismatch in supply and demand in the local domestic
helper (LDH) market and to promote LDH service so as to enhance the hygienic conditions
in households after the outbreak of SARS, an incentive allowance scheme was launched
in June 2003 as part of the SARS-related employment packages. A sum of $60 million
has been earmarked to provide allowance to qualified LDHs who are willing to work
in a district different from the one in which they reside or during unsocial hours
(i.e. 5 pm to 9 am). It is estimated that some 8 000 LDHs will benefit
from the scheme. Successful applicants will receive an allowance of $50 per day
for a maximum of 24 days per month or 144 days in a year. The maximum allowance
to be obtained for each LDH is $7,200. As at end-2003, there were 993 approved
applications. Loan Guarantee Scheme for SARS Impacted Industries1.6
Following the outbreak of SARS, the Government established a low-interest Loan
Guarantee Scheme (the Scheme) with a commitment of $3.5 billion to help needy
employers in the worst-hit industries including tourism, restaurants, retail and
entertainment businesses to tide over the difficult period and preserve jobs.
The department assisted in the administration and publicity of the Scheme. At
the close of application for the Scheme on 31 July 2003, 1 802 loan
applications were received. Of these, 1 559 applications with a total
loan amount of $499,204,781 were approved. The successful applicants employed
altogether 18 236 staff. Promotion Work during the Outbreak of SARS1.7
To help resolve labour relations issues arising from the outbreak of SARS, the
Labour Department mapped out enlightened human resources strategies in collaboration
with the various industry-based tripartite committees and Human Resource Managers’
Clubs. The department also published guidelines and distributed reference materials
to employers and employees through newspapers and the electronic media.  | SARS-related
employment guidelines. |
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Review of the Policy on Foreign Domestic
Helpers (FDHs)1.8 Hong Kong has been importing FDHs since the 1970’s.
The policy on the importation of FDHs had by and large been unchanged over the
years. In 2003, as part of the formulation of the Population Policy, the Hong
Kong Special Administrative Region Government conducted a comprehensive review
on the policy on FDHs. Following the review, we adjusted the minimum allowable
wage of FDHs on 1 April 2003, after taking account of the prevailing local economic
and employment situation and in accordance with established practices. We have
also extended the Employees Retraining Levy under the Employees Retraining Ordinance
to employers of FDHs as from 1 October 2003. The funds so generated will be used
for training and retraining the local workforce, with a view to upgrading their
quality and competitiveness. We have also stepped up the enforcement of the standard
employment contract, especially against the alleged underpayment of wages, and
have taken steps to promote the service of local domestic helpers through the
provision of an incentive allowance as outlined in paragraph 1.5 above.
top Employment Services New Employment
Services
1.9 We continue to strengthen our employment service to
job-seekers. Three new employment programmes, namely, the Re-employment
Training Programme for the Middle-aged, the District Employment
Programme for the Middle-aged and the Graduate Employment Training
Scheme were launched in the year. A record high of 66 100
placements was secured through the Labour Department in 2003. The
number of vacancies solicited, at 225 106, also broke
past records, while the number of placements in October (6
739) was the highest in a single month.
Youth Work Experience and Training Scheme
(YWETS)1.10 The $400 million YWETS, launched in July 2002 to provide
on-the-job training of six to twelve months for young people aged between 15 and
24 with educational attainment below degree level, achieved encouraging results
in 2003. With the enthusiastic support of employers and social partners, the target
to provide 10 000 training places for young people in two years was
achieved in November 2003, eight months ahead of schedule. As at the end of December
2003, 10 971 trainees were successfully placed in training vacancies under the
scheme. In addition, 7 632 trainees were placed in other jobs in
the open employment market with the advice and assistance of their case managers.  | Trainees
performing in a joint function of YWETS and YPTP. |
Youth
Pre-employment Training Programme (YPTP)1.11 In 2003, the YPTP
provided training to about 10 300 young persons aged between 15 and 19. Apart
from those who decided to pursue further studies on completion of the programme,
about 65 per cent of the trainees had secured employment. In response to SARS,
the training capacity was expanded from 12 000 to 18 000
in the new phase of the programme to benefit more young people.  |
YPTP trainees participating in an experience sharing Day Camp. |
Enlightened
Employers Award 1.12 This award is to commend employers for their
distinctive efforts in providing employment opportunities for people with a disability.
In 2003, ten companies won the award.  | The
Permanent Secretary for Economic Development and Labour, Mr Matthew Cheung Kin-chung
(centre), pictured with 10 winners of the "Enlightened Employers Award". |
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Rate since 1997
1.13 Of the 427 disputes and 33 689 claims
handled in the year, 65.1 per cent was resolved by our conciliation
efforts, a record high since the financial turmoil of 1997.
Stepping Up Enforcement Against Wage Offences1.14
In 2003, the Labour Department secured convictions for 445 summonses on wage offences,
a significant increase of 220 per cent when compared with 139 convicted summonses
in 2002. The Employment Claims Investigation Unit continued to conduct in-depth
investigation into suspected wage offences in order to take out speedy prosecution.
The department also strengthened its educational and promotional efforts to remind
employers of their statutory obligation in paying wages on time and to encourage
employees to lodge claims promptly and come forward as prosecution witnesses.
Strengthening Tripartite Cooperation among the Government, Employers and
Employees1.15 A large-scale seminar on "Strengthening Platforms
of Tripartite Cooperation" was organised, with favourable response from employers,
employees representatives and human resource practitioners.  | The
Permanent Secretary for Economic Development and Labour, Mr Matthew Cheung Kin-chung,
delivering a speech at the seminar on "Strengthening Platforms of Tripartite
Cooperation". |
top Employee Rights and Benefits Vigorous
Enforcement against Illegal Employment
1.16 We adjusted our enforcement strategy in combating illegal
employment in order to better protect the employment opportunities
of local workers. In addition to territory-wide workplace inspections
to create a widespread deterrent effect, we frequently mounted intelligence-led
operations with the Police and the Immigration Department. The number
of joint operations, at 36, was 140 per cent more than the figure
in 2002. We strengthened the collection of intelligence to support
the new enforcement mode and publicised extensively the complaint
telephone hotline (2815 2200), to encourage the public
to report on illegal workers. Greater publicity was also given to
the operations to enhance deterrent and education effects. As a
result, a record high of illegal workers (490) were detected.
 | Labour
inspectors detecting illegal workers in a joint operation with the Police. |
Improving
the Occupational Deafness Compensation Scheme1.17 The Occupational
Deafness (Compensation) (Amendment) Ordinance 2003 came into operation in May,
introducing a package of measures to improve employees’ benefits under the
Occupational Deafness Compensation Scheme. The major improvement items include
raising the minimum and maximum levels of compensation in accordance with the
rate of nominal wage increase, revising upwards the percentage of permanent incapacity,
providing reimbursement of expenses for hearing assistive devices, adding four
new specified noisy occupations and empowering the Occupational Deafness Compensation
Board to conduct or finance rehabilitation programmes. Safeguarding the
Rights of Employees of Government Service Contractors1.18 To protect
labour rights, we improved communication with procuring departments so that the
latter could monitor more stringently their outsourcing service contractors who
mainly deploy low-skilled workers. Offence records were sent to these departments
for administrative sanctions against contractors. Briefings on labour laws were
also given to the procuring departments and their contractors. Complaints were
investigated promptly and vigorous workplace inspections conducted. Safety
and Health at WorkLegislative Improvements on Construction Site Safety
1.19 To improve the overall safety performance on construction
sites, the Construction Sites (Safety) Regulations and three related regulations
were amended in November 2003. The amendments extend the duties imposed on the
principal contractor of a construction site to other contractors who have control
on the way any construction work is carried out on the site. Safety Award
Schemes1.20 Two safety award schemes were organised in the catering
and construction industries to inculcate a safety culture and to enhance the safety
awareness of employers, employees and their families. The schemes featured a variety
of activities, including open safety performance competitions, safety and health
seminars, roving exhibitions, site visits, radio programmes, broadcast of promotional
films on "Roadshow" and award presentation ceremonies-cum-fun days.
 | Adjudicators
of the Catering Industry Safety Award Scheme assessing the safety and health performance
of a participating establishment. |
 | Construction
Industry Safety Award Scheme Awards Presentation Ceremony-cum-Fun Day. |
top Strengthening Local and International Partnerships
Labour Day Reception 1.21 On 1 May 2003, the Secretary
for Economic Development for Labour hosted a cocktail reception at Government
House to celebrate the Labour Day and to show our recognition of the contributions
of the workforce. The reception was officiated by the Chief Executive and attended
by some 200 guests from trade unions, employer associations and other organisations.
 | Labour
Day Reception. |
Contacts with Other Labour Administrations
1.22 We maintain active liaison and interflow with other
labour administrations through visits and participation in International
Labour Organization activities. In June 2003, a tripartite team
of government officials, employer and employee representatives of
the Labour Advisory Board attended the International Labour Conference
in Geneva to keep themselves abreast of the latest development of
international labour standards. The occasion also strengthened their
rapport with counterparts in other countries / regions, thereby
facilitating future co-operation.
 | (Front
row) The Vice Minister of the Ministry of Labour and Social Security of the State
Council, Mr Li Qiyan (second from right); the Ambassador and Permanent Representative
to the Permanent Mission of the People’s Republic of China at Geneva, Mr
Sha Zukang (first from right); and Assistant Commissioner for Labour (Employment
Services), Mr Tsang Kin-woo (third from right) attending the 91st Session of the
International Labour Conference. |
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