Report of the Commissioner for Labour 2001

Contents

 

FOREWORD

CHAPTER 1 - HIGHLIGHTS OF THE YEAR 2001

CHAPTER 2 - THE LABOUR DEPARTMENT

CHAPTER 3 - LABOUR RELATIONS

CHAPTER 4 - SAFETY AND HEALTH AT WORK

CHAPTER 5 - EMPLOYMENT SERVICES

CHAPTER 6 - EMPLOYEE RIGHTS AND BENEFITS

CHAPTER 7 - INTERNATIONAL LABOUR AFFAIRS

 

Foreword

2001 is a challenging year to the Labour Department. The Hong Kong economy underwent a downward adjustment. The Gross Domestic Product (GDP) growth of only 0.1 per cent in real terms was in stark contrast to the robust growth of 10.5 per cent in 2000. In the quarter ended 31 December 2001, the seasonally-adjusted unemployment rate rose to 6.1 per cent. The dual impact of economic re-structuring and global economic downturn also led to an increase in the number of labour disputes and claims.

Despite the ever-increasing work pressure, the Labour Department strengthened its services on many fronts in the past year. We swiftly enhanced our employment services for local workers, helped the more vulnerable groups to secure employment and assisted the unemployed to re-enter the workforce as quickly as possible. At the same time, we also intensified our efforts in promoting good employer-employee relations and safeguarding the rights and benefits of our workforce. Our strenuous efforts proved to be valuable contributions to the society at a difficult time:

  • the number of placements in 2001 reached 62 838, representing an increase by 6 per cent over the previous year, and we made the record score of achieving 5 718 placements in a single month;
  • 12 066 young persons received training under the Youth Pre-employment Training Programme. 3 800 trainees decided to pursue further studies, while more than 6 500 of the remaining trainees secured employment. A very encouraging placement rate of almost 80 per cent was achieved;
  • a total of 2 405 middle-aged job-seekers was placed through the tailor-made Re-employment Pilot Programme for the Middle-Aged;
  • 2 348 disabled job-seekers succeeded in getting a job with our assistance, the historical highest since the establishment of the Selective Placement Division;
  • 157 786 inspections were conducted to combat illegal employment so as to protect the employment opportunities of local workers;
  • legislative proposals were put forward to restore the long-term financial viability of the Employees Compensation Assistance Scheme, to recognise Chinese medicine for entitlement to employee benefits under labour legislation and an administrative scheme, and to improve benefits to employees suffering from noise-induced deafness by reason of their employment under the Occupational Deafness Compensation Scheme; and
  • improvement in safety performance continued in 2001. A total of 28 518 industrial accidents was recorded in 2001, representing a drop of 15.3 per cent compared with the previous year. The construction industry recorded the most remarkable improvement, with a drop of 22.8 per cent in accident figure and 23.5 per cent in accident rate.

The adverse effect of economic restructuring and cycles will continue to affect the local labour market in the coming year. However, we are determined to brace the storm and we will steadfastly continue to give our best to serve the community. With concerted efforts of the Government, employees and employers, I am confident that we will continue to be one of the leading labour administrators in the world.  

 

CHAPTER 1

HIGHLIGHTS OF THE YEAR 2001

1.1       2001 was an eventful year for the Labour Department. The following is a glance of some of our major activities and events.

Employment Services

Workshop on Youth Employment in Hong Kong

1.2       The Labour Department co-organised with the International Labour Organization, the Labour Advisory Board and the Commission on Youth a large-scale seminar entitled 'Workshop on Youth Employment in Hong Kong' in November 2001 to provide a forum for different sectors of the community to discuss in detail various youth employment issues. Participants included representatives from the Government, commercial institutions, trade unions, social service organisations, public bodies, parents and youngsters. ¡@

Youth Pre-employment Training Programme

1.3         The Youth Pre-employment Training Programme was launched again this year with more customised service in employment-related training, workplace attachment and on-the-job training. In 2001, the programme provided training to 12 066 young persons aged between 15 and 19. Excluding the 3 800 trainees who decided to pursue further studies, about 80 per cent of the 8 200 trainees had secured employment. Ten 'Most Improved Trainees' were also selected to commend their achievements. The Commissioner for Labour, Mrs Pamela Tan (second from left), in touch with trainees of the Youth Pre-employment Training Programme. Trainees attended the graduation ceremony of Module A of the Youth Pre-employment Training Programme.

Re-employment Pilot Programme for the Middle-Aged

1.4         The Re-employment Pilot Programme for the Middle-Aged was introduced in 2001 to provide one-stop employment service to job-seekers aged above 40 who had been unemployed for more than three months. Participants are provided with personalised services including pre-employment training, tailor-made counselling and job matching. An employer could receive a training subsidy of $2,800 for the provision of induction training to employees recruited under the programme. Up till the end of December 2001, 2 405 job-seekers secured employment through this programme.

Outstanding Disabled Employees Award and Enlightened Employers Award

1.5         The 'Outstanding Disabled Employees Award' and the 'Enlightened Employers Award' were organised in 2001 to commend employees with a disability for their outstanding performance at work and employers for their distinctive efforts in providing employment opportunities for people with a disability. 12 disabled employees and 12 companies won the respective awards.

Employee Rights and Benefits

Reform of the Employees Compensation Assistance Scheme

1.6         In 2001, we proposed a package of measures to reform the Employees Compensation Assistance Scheme (ECAS) to restore its long-term financial viability. The ECAS provides assistance to injured employees who fail to receive their entitlements for employment-related injuries from employers or insurers after exhausting legal and financially viable means of recovery. It also protects employers against default of insolvent insurers. The proposed reforms include introduction of relief payment in lieu of the assistance for common law damages, adjustment of levy rates and imposition of surcharge on uninsured employers. ¡@

Vigorous Enforcement to Combat Illegal Employment

1.7         Territory-wide joint enforcement operations were mounted in co-operation with the Police and the Immigration Department to combat illegal employment in order to protect the employment opportunities of local workers. Apart from stepping up routine inspections, the Labour Department staged special campaigns frequently to retail shops, eating places, market stalls and entertainment establishments. Inspections were also carried out to crack down on illegal deployment of imported workers and foreign domestic helpers.

Enhanced Protection for Employees of Government Service Contractors

1.8         To better protect workers engaged by Government service contractors, we assisted the Finance Bureau in devising a set of new tendering arrangements for service contracts which mainly involve deployment of non-skilled workers. The new arrangements, which took effect in May 2001, seek to promote reasonable employment terms and conditions (such as wages, working hours) in line with market situation and to enhance protection for non-skilled workers engaged by government contractors. Sanctions would also be included in the service contracts to deal with breaches of contractual or statutory obligations by contractors. ¡@

Labour Relations

Labour Relations Extravaganza

1.9         Labour Relations Extravaganza was a large-scale function held from July to October 2001 to promote good employer-employee relations and understanding of the Employment Ordinance at the territory-wide level. The key components of good labour relations such as effective communication were emphasized, and employees and employers were encouraged to make concerted efforts in achieving harmonious working relations which would in turn boost productivity and competitiveness of their enterprises.  

Good People Management Award 2001

1.10        Good People Management Awards were presented to establishments for their commendable performance in such areas as employment policies, staff training, safety and health at the workplace, termination of contract arrangements and staff communication. The function went into the third year to encourage non-civil service enterprises to adopt good people management practices that are employee-oriented, lawful and equitable. In 2001, 19 establishments were presented with the award.

Occupational Safety and Health

Legislative Improvements on Safety Training

1.11        To ensure that risks to people's safety and health at work are properly managed, we proposed new legislation to enhance safety and health standards. In May 2001, we brought into effect the requirements on mandatory safety training for workers in the construction and container handling industries. All workers carrying out construction work and container handling are now required to have a valid certificate, commonly known as the 'Green Card'. In November 2001, a new piece of legislation was also enacted to require workers engaged in gas welding and flame cutting work to receive safety training and to obtain a certificate. ¡@

Safety Award Schemes

1.12        Two safety award schemes were organised in the catering and construction industries respectively 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 territory-wide open competitions, roving exhibitions, newspaper and radio quizzes, together with a TV show and award presentation ceremonies cum fun days. ¡@

Strengthening Local and International Partnerships

1.13        The Labour Department makes continuous efforts to develop and strengthen partnerships both locally and internationally to foster synergetic collaboration.

Labour Day Reception

1.14         On 1 May 2001, the Secretary for Education and Manpower 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.

Contacts with Other Labour Administrations

1.15        At the international level, we keep active liaison and interflow with other labour administrations through visits and participation in International Labour Organization activities. In 2001, the Hong Kong Special Administrative Region (HKSAR) participated in a variety of these activities, the most notable one being the International Labour Conference. In June 2001, a tripartite team of seven members comprising three government officials, two employer representatives and two employee representatives of the Labour Advisory Board attended the Conference in Geneva, Switzerland in the capacity as advisers to the People's Republic of China Delegation. Through participation in the conference, the team gained up-to-date information on newly adopted international labour standards and the application of Conventions in different countries. The team members also strengthened the rapport with their counterparts, thereby facilitating future co-operation in labour matters.

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CHAPTER 2

THE LABOUR DEPARTMENT

2.1         The Labour Department is the principal agency in the Hong Kong Special Administrative Region Government responsible for the execution and co-ordination of major labour administration functions. As at 31 December 2001, the department administered 12 sets of labour legislation. (Appendix II)

Vision, Mission and Values

2.2         Our Vision

To be a leading labour administrator in the region¡Xour aim is to enhance the well-being of our workforce progressively and promote the safety and health of those at work.

2.3         Our Mission

  • To improve the utilisation of human resources by providing a range of employment services to meet changes and needs in the labour market;
  • To ensure that risks to people's safety and health at work are properly managed by legislation, education and promotion;
  • To foster harmonious labour relations through promotion of good employment practices and resolution of labour disputes; and
  • To improve and safeguard employees' rights and benefits in an equitable manner.

2.4        Our Values

We believe in:

  • Professional excellence     
  • Partnership
  • Pro-activeness
  • Participation
  • Premier customer service

 

 

 

Key Programme Areas

2.5         The department has four key areas of work, namely, Labour Relations, Safety and Health at Work, Employment Services, and Employee Rights and Benefits. The objectives of these areas are given below:

Labour Relations

To foster and maintain harmonious employer and employee relations in the non-government sector.

Safety and Health at Work

To help employers and employees control their risks at work through regulation and promotion.

Employment Services

To provide free employment assistance and counselling services to help job-seekers find suitable jobs and employers fill their vacancies.

Employee Rights and Benefits

To improve and safeguard the rights and benefits of employees.

 

 

 

 

 

 

 

 

 

2.6        The strength and expenditure of each of the programmes are listed in Figure 2.1 in Appendix I. Detailed functions and major activities of these programme areas are contained in the following chapters.

Central Support Services

2.7         There are also divisions that provide essential central support services. They are the Administration Division, Information and Public Relations Division, Development Division, Prosecutions Division, Legal Services Division and Staff Training and Development Division.

2.8         The Administration Division assumes the primary responsibility for financial, personnel and general resources management.

2.9         The Information and Public Relations Division is responsible for the department's overall publicity and public relations activities through the extensive use of the media and various means. It keeps subject officers fully informed of public opinion as reflected by the news media, answers media enquiries, facilitates the media to cover events organised by the department, and arranges media conferences, briefing and interviews to publicise the work of the department. It also co-ordinates the production of major departmental publications such as the Commissioner's Report and newsletters.

2.10        The Development Division oversees matters relating to the application in the HKSAR of international labour instruments and participation in activities of the International Labour Organization. It is also responsible for the department's liaison with overseas and other international bodies. In addition, the division serves as the secretariat of the Labour Advisory Board, and is responsible for the administration of the departmental library. Another responsibility of the division is to conduct researches and studies to support the senior management of the department in the development of policies and the forward planning of the services.

2.11        The Prosecutions Division and the Legal Services Division help enforce relevant legislation by instituting prosecutions against suspected offenders. Major statistics on prosecution work are at Figure 2.2 in Appendix I.

2.12        The Staff Training and Development Division implements staff training and development policies, organises in-service training programmes and co-ordinates overseas training and duty visits for all departmental grade officers under the Labour Administration Branch. Training and development for staff of the Occupational Safety and Health Branch of the department is provided and co-ordinated by the Occupational Safety and Health Training Centre. Statistics on in-service training and development programmes offered in the year are shown in Figure 2.3 in Appendix I.

2.13        An organisation chart of the Labour Department is set out at Figure 2.4 in Appendix I, and some key statistical figures are listed in Figure 2.5.

Work Simplification

2.14        The department launched the Work Simplification Scheme in September 1990 to simplify work procedures and improve efficiency. We held various contests to encourage and recognise viable suggestions contributed by our staff. In 2001, 108 work procedures were simplified, mainly on the compilation of statistics and reports. Others included the improvement of work flow and simplification of standard forms.

Customer-oriented Services

2.15        We strive to provide quality service to the public. Performance standards and targets are laid down for a wide range of services. To collect customers' feedback on our performance pledges, a Customer Liaison Group comprising users of the department's pledged services has been formed. In 2001, the group met twice and expressed satisfaction over our services.

Environmental Policy and Achievements

2.16        We are committed to environmental protection by complying with relevant legislation and codes of practices, stringent monitoring of resource consumption, proactive improvement of office practices, minimising environmental pollutants, and training and publicity among our staff.

2.17        In 2001, we contained, and reduced in some areas, paper and electricity consumption despite an increase in activities. We also stepped up our efforts in collecting wastepaper for recycling. Some indicators of our achievements are in Figure 2.6.

Advisory Boards and Committees

2.18        There are various advisory boards and committees in Hong Kong providing expert advice on such areas as labour administration, occupational safety and health, employees' compensation and manpower development. They provide a useful forum for the department's consultation work and have made valuable contributions.

2.19        The most important one is the Labour Advisory Board (LAB) which is set up to advise the Commissioner for Labour on matters affecting labour, including legislation and Conventions and Recommendations of the International Labour Organization. The terms of reference and composition of the LAB and its membership as at 31 December 2001 are in Appendix III.

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CHAPTER 3

LABOUR RELATIONS

The Programme of Labour Relations

3.1         Good employer-employee relations are essential to social stability and success of the economy. 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 Labour Relations Programme of the Labour Department has been contributing invaluably to the labour relations system in Hong Kong, which is long-established and well-tested.

3.2         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 settle 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.

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

3.4         With the provision of a comprehensive set of employment standards, the EO 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 2001

 Key Indicators of Work

3.5         In 2001, economic re-structuring and global economic downturn added tremendous pressure to the programme, which was evident in the all-round upsurge of our workload. Some key indicators of work of the Labour Relations Programme Area are contained in Figure 3.1 in Appendix I.

Legislative Improvements Made in 2001

3.6         In 2001, progressive amendments of legislation were made with two new enactments. The first enactment, the Employment (Amendment) Ordinance 2001, removed ambiguities in relation to the prohibition of the dismissal of an employee during pregnancy or paid sick leave.

3.7         The other enactment, the Employment (Amendment)(No.2) Ordinance 2001, clarified the original policy intention that an employer shall be allowed to offset severance payment or long service payment payable to an employee upon termination of his employment against a relevant mandatory provident fund scheme benefit previously paid to the employee.

Conciliation and Consultation Services

3.8         Our consultation and conciliation services have contributed to the maintenance of industrial peace in a difficult time. Altogether, we handled 145 943 in-person consultations and 31 329 claims, representing a significant increase over 2000. In particular, a record of 369 labour disputes was handled this year. Notwithstanding the continued increase in workload, 64 per cent of the cases were resolved amicably through conciliation, a higher settlement rate than that of 2000. Only one strike was recorded in 2001. The number of working days lost per 1 000 salaried employees and wage earners was kept at as low as 0.26, an improvement over the figure of 2000 and one of the lowest in the world. (Figures 3.2~3.8)

Strengthening Tripartite Communication 

3.9         The setting up of a new tripartite committee for the retail industry in August 2001 brought the total number of tripartite committees to nine. Other such committees have been set up in catering, construction, theatre, warehouse and cargo transport, property management, printing, hotel and tourism as well as cement and concrete industries. With representatives from employers' associations, labour unions and the Government, these committees discussed and agreed on a number of industry-specific issues. Matters discussed in 2001 included skills upgrading of employees, sample employment contract, distinction between contract of employment and contract for service, work arrangements in times of typhoons and rainstorms, implementation of the Mandatory Provident Fund Schemes, and occupational safety and health.

Promotion of Good Employer-Employee Relations

3.10        To promote good employer-employee relations, a total of 1 390 activities at different levels were organised in the year, including publicity campaigns, exhibitions, seminars, visits, courses and talks. (Figure 3.9)

3.11        The 'Labour Relations Extravaganza', a large-scale promotional event from July to October 2001, featured a variety of programmes including a road show, a seminar, radio programmes, public competitions and training courses. It was very well received by the public and substantially enhanced their understanding of the Employment Ordinance and good labour management practices.

3.12        To benchmark companies that had been exemplary in good people management practices, the Good People Management Award was organised for the third time during the year. Nineteen enterprises, comprising eight with employment size 501 and above, six with employment size 101 to 500 and five with employment size 100 or below, were chosen from 201 entries for the awards. These establishments demonstrated commendable performance in such areas as employment policies, staff training, safety and health at the workplace, termination of employment contract and staff communication.

3.13        Workplace Cooperation 2001 was another territory-wide promotional event staged to publicise the importance of effective staff communication and good people management practices. Activities of the event included a premier, a seminar, workshops, experience-sharing visits, training courses and quizzes. Over 8 500 persons attended the activities.

3.14        A series of special campaign had also been launched to promote the understanding of the Employment Ordinance (EO) among government service contractors, employees' rights under the EO with the implementation of mandatory provident fund schemes, prior work arrangements in times of rainstorms and typhoons, and employment rights of foreign domestic helpers.

3.15        A total of seventeen publications, VCD and CD-ROM was produced in the year to enhance public understanding of labour legislation and good people management practices. Some new products are listed in Figure 3.10 in Appendix I.

Adjudication of Minor Employment Claims 

3.16        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.

3.17        In 2001, the board recorded 2 616 claims, amounting to a total of $11,480,746. Most of these claims were concerned with arrears of wages, wages in lieu of notice and annual leave pay. During the year, the board concluded 2 611 claims and awarded $5,766,167. (Figure 3.11)

3.18        Parties dissatisfied with the award or order may apply for a review or appeal to the High Court against the decision of the board on point of law or question of jurisdiction. In 2001, there were seven applications for leave to appeal. Leave was granted to two applications. Of these two cases, one was subsequently withdrawn by the applicant and the other was remitted by the High Court to the board for re-hearing.

Regulation of Trade Unions

3.19        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.

3.20        As at the end of the year, the declared membership of the 610 employee unions was 671 076, and the trade union participation rate ( Note 1 ) of employee unions in 2001 was 22.10 per cent. In 2001, 20 new trade unions and one new trade union federation were registered while four trade unions were deregistered; making up an accumulated total of three registered trade union federations and 654 registered trade unions (comprising 610 employee unions, 25 employer unions and 19 mixed organisations of employees and employers). (Figures 3.12 and 3.13)

Note 1 :
Trade union

declared membership of employee unions

participation =
rate


number of salaried employees and wage earners
X 100%

 

3.21        In the year, the Registry of Trade Unions examined 579 statements of account and conducted 362 inspection visits to trade unions to ensure that their administration and financial management were in compliance with TUO. A new computer programme was developed and distributed to all trade unions to facilitate them in managing their membership and subscription records. We organised 14 courses on trade union management, bookkeeping, auditing and provisions of the TUO, and two seminars for government employees unions. In addition, the Registry of Trade Unions organised for the second time a large-scale seminar for all registered trade unions in December 2001. The theme of the seminar was 'Economic Restructuring and Manpower Training - the Role of Trade Unions'. The seminar received enthusiastic response, with 176 union officers participating.

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CHAPTER 4

SAFETY AND HEALTH AT WORK

 The Programme of Safety and Health at Work

4.1         Workplace safety and health is vital for the well-being of a worker. It also helps to bring about high productivity. The primary responsibility for workplace safety and health rests with employers and employees. Employers must, as far as reasonably practicable, ensure the safety and health at work of all their employees while employees should also ensure their own safety and the safety of their fellow workers. The Occupational Safety and Health Branch of the Labour Department is responsible for the promotion and regulation of safety and health at work.

 4.2         The objective of the Programme of Safety and Health at Work is to ensure that risks to people's safety and health at work are properly managed and reduced to the minimum by legislation, education and promotion. More specifically, we achieve the objective by:

providing a legislative framework to safeguard safety and health at work;

  • ensuring compliance with the Occupational Safety and Health Ordinance (OSHO), the Factories and Industrial Undertakings Ordinance (FIUO), the Boilers and Pressure Vessels Ordinance (BPVO) and other relevant legislation by conducting inspections and taking out regulatory action;
  • investigating accidents and occupational health problems at workplaces;
  • improving the knowledge and understanding of employers, employees and the general public on occupational safety and health by providing them with appropriate information and advice; and
  • organising promotional programmes and training courses to improve safety awareness of the workforce.

4.3         The principal legislation for safety and health at work includes the OSHO, the FIUO, and the BPVO.

4.4         With few exceptions, the OSHO protects employees' safety and health at work in practically all branches of economic activities. It is basically an enabling legislation that empowers the Commissioner for Labour to make regulations prescribing standards for general working environment as well as specific safety and health aspects at work. The Occupational Safety and Health Regulation made under the OSHO sets down some basic requirements for accident prevention, fire precaution, workplace environment control, hygiene at workplaces, first aid and manual handling operations.

4.5         The FIUO and its 30 sets of regulations are the principal legislation in Hong Kong regulating safety and health at work in industrial undertakings, which include factories, construction sites, cargo and container handling areas, as well as catering establishments.

4.6         The BPVO and its subsidiary regulations aim at regulating the standards and operation of equipment such as boilers, pressure vessels, including thermal oil heaters, steam receivers, steam containers, air receivers and pressurised cement tanks mounted on trucks or trailers. They require that such equipment must be registered with the Authority, i.e. the Commissioner for Labour, and examined initially and periodically by examiners appointed by the Authority.

Our Work and Achievements in 2001

Continuous Improvement in Safety Performance

4.7         It is encouraging to note that Hong Kong's occupational safety and health record is improving as reflected in the accident figures. The trend of improvement is particularly noticeable in the construction industry.

4.8         A total of 53 719 occupational injuries (Note 2) , including 176 fatal cases, occurred in 2001, representing a drop of 7.5 per cent when compared to the figures of 2000. Among these occupational injuries, there were 28 518 industrial accidents, decreased by 15.3 per cent in comparison with that of 2000. In particular, the accident figure for the construction industry has dropped significantly by 22.8 per cent. (Figures 4.1-4.5)

Note 2: Occupational injuries (both industrial and non-industrial) are those injuries arising from work accidents, resulting in death or incapacity for work of over three consecutive days, and reported under the Employees' Compensation Ordinance. ¡@

 

Key Indicators of Work

4.9         In 2001, we continued to strive for a high standard of safety and health at work. Some key indicators of work of this programme area are shown in Figure 4.6 in Appendix I.

Legislative Improvements

4.10        We regularly keep our legislation under review and propose amendments or new legislation to enhance safety and health standards. In May 2001, we brought into full operation the requirements on mandatory safety training for workers in the construction and container handling industries. A new piece of legislation, the Factories and Industrial Undertakings (Gas Welding and Flame Cutting) Regulation, was enacted to require workers engaged in gas welding and flame cutting work to receive safety training and to possess a certificate.

Enforcement of Occupational Safety and Health Legislation and other Relevant Legislation

4.11        To secure safety and health at work, we inspect workplaces, monitor health hazards, investigate work accidents and occupational diseases, register and inspect boilers and pressure equipment and advise on measures to control hazards or prevent recurrences.

4.12        A key element in enforcement is the provision of advice on prevention of accidents. We conducted special promotional visits to encourage employers to adopt a self-regulatory approach in managing risk at the workplace. A number of special blitz operations and campaigns were also organised on the safety of work at height, suspended working platform, crane operation, noise, gas welding and flame cutting, fire and chemical, and plant and machinery.

4.13        We continued to target at establishments with poor safety performance for close surveillance. Improvement notices or suspension notices are issued when necessary to secure a speedy rectification of irregularities, or to remove imminent risk to lives and limbs. Many of these companies, especially those in the construction industry, have shown significant improvements in their safety performance. In view of the public concern about the health and safety of cleansing workers employed by government contractors, a special campaign was mounted in 2001 to step up the inspection of public toilets in order to ensure compliance with relevant legislative requirements. A total of 482 inspections to public toilets was conducted.

4.14        The Commissioner for Labour, as the Boilers and Pressure Vessels Authority, recognises competent inspection bodies to assess and inspect new pressure equipment during manufacturing. As at the end of 2001, there was a total of 37 appointed examiners and seven recognised inspection bodies. We also conduct examinations, monitor courses for training of competent persons and issue certificates of competency to qualified candidates as competent persons for various types of boilers and steam receivers. In 2001, 616 candidates were examined, of whom 445 were awarded certificates of competency. We also advise the Fire Services Department on approval and preliminary inspections of pressurised cylinders and storage installations for compressed gas.

4.15        As at 31 December 2001, a total of 143 347 workplaces, including 10 821 construction sites was recorded. In 2001, 130 464 inspections were conducted under the OSHO and the FIUO, while 6 503 inspections were made under the BPVO. 35 977 warnings were issued by Occupational Safety Officers while 4 462 warnings were given under the BPVO. Altogether, 2 369 suspension or improvement notices were issued. We also investigated 12 993 accidents and 2 792 suspected occupational diseases in the year. Among the suspected occupational diseases, 430 cases were confirmed. (Figures 4.7~4.9) Inspecting workplaces and advising on safety management system.

Safety Training and Occupational Health Education

4.16        We provide training-related services to help industry reduce occupational injuries. Such services are divided into three broad categories, namely training courses, accreditation of external training providers and registration of safety officers and safety auditors.

4.17        In 2001, we conducted 597 training courses on safety legislation for 6 391 participants and 218 tailor-made safety briefing sessions for 6 874 employees. We also accredited 17 mandatory basic safety training courses for the construction and the container-handling industries. As at the end of 2001, more than 475 000 persons have completed the training. Another 17 and 14 training courses were also accredited to offer training on confined space safety and loadshifting machinery safety respectively.

4.18        In 2001, 228 applicants were registered as safety officers while 244 applicants were registered as safety auditors. As at the end of 2001, there were 2 247 persons on the register of safety officers.

4.19        Occupational health education is an important strategy for the control of occupational health hazards and prevention of occupational diseases. Apart from the conventional way of organising health talks at our own premises, we have also developed outreaching services for occupational health education by delivering talks at the venues of individual companies or organisations. In 2001, we delivered a total of 1 775 health talks.

Safety Promotion

4.20        To inculcate a safety culture and to enhance safety awareness, we organised various promotional activities in 2001, some in conjunction with other organisations such as the Occupational Safety and Health Council and the Social Welfare Department.

4.21        Under a Customer Service Teams Project, volunteers visited small and medium-sized enterprises to introduce the OSHO and promote the safety management concepts to employers and employees. Over 37 000 visits were made since the project was launched in 1999.

4.22        The well-received Catering Industry Safety Award Scheme and the Construction Industry Safety Award Scheme were organised again in the year. The schemes featured a variety of activities, including territory-wide open competitions, roving exhibitions, newspaper and radio quizzes, and a TV show and award presentation ceremonies cum fun days. Campaigns were also launched to promote and publicise the Factories and Industrial Undertakings (Safety Management) Regulation and the Factories and Industrial Undertakings (Loadshifting Machinery) Regulation.

4.23        The Occupational Safety Charter was jointly launched with the Occupational Safety and Health Council in 1996 as part of the Government's strategy to improve workplace safety and health in Hong Kong. The Charter promotes the spirit of 'shared responsibility' among employers and employees in workplace safety and health. It also sets out a safety management framework for employers and employees to work together to create a safe and healthy working environment. By the end of 2001, 558 organisations, including public utilities companies, industrial and non-industrial establishments, construction companies, unions and associations, have subscribed to the Occupational Safety Charter.

Publicity and Advisory Service

4.24        In 2001, 29 new occupational safety and health publications were published, including three codes of practice and three guidance notes. Some of the new publications are listed in Figure 4.10 in Appendix I. Our publications were sent to various distribution points, including 241 publication stands located in housing estates, shopping centres, clinics, transport stations, public utility service counters and government offices.

4.25        Among our publications, a Construction Accident Casebook with a series of eight booklets was launched with a view to enhancing the safety awareness of workers and frontline supervisors in the construction industry. Another industry-specific reference material, the Occupational Safety and Health Guidebook for the Banking and Finance Industry, was jointly published with the Hong Kong Association of Banks to help the industry identify potential hazards and to suggest ways to enhance workplace safety and health.

4.26        The Occupational Safety and Health Information Collection 2001, a CD-ROM with information on our major publications, was produced for the public. The Occupational Safety and Health E-quiz, a self-learning package for secondary students, was launched on the Internet for free surfing by students and the public.

4.27        In 2001, we handled 20 302 enquiries, advising on various occupational safety and health matters. One-stop information and advisory services are provided to workers and employers at the Occupational Safety and Health Centre.

Medical and Clinical Services

4.28        Our medical and nursing staff at the Kwun Tong and Sham Shui Po Occupational Health Clinics provide clinical consultations, medical treatment as well as occupational health education and counselling services for workers suffering from work-related diseases. The workplaces of the patients are inspected if necessary to identify and evaluate occupational health hazards in the work environment. Besides clinical consultations, we also assess the medical fitness for work of radiation workers, aviation personnel and government employees exposed to specific occupational health hazards. In addition, our staff attend the Prostheses and Surgical Appliances Board and give medical advice on employee compensation cases.

4.29        In 2001, 8 358 clinical consultations were rendered, and a total of 2 043 medical examinations and assessments was performed. Seven patient support groups were also organised for patients to promote their treatment compliance and sustainability in good work practices through health talks, experience sharing and peer support. A total of 129 Prostheses and Surgical Appliances Boards was attended and 3 337 pieces of medical advice on employee compensation cases were given by our staff. (Figure 4.11)

Improved Application of Information Technology

4.30        In 2001, we improved our electronic databank that contained information on occupational safety and health accidents, safety and health legislation, legal advice and reference materials. A total of 11 local area mini-networks was installed at the Headquarters and regional offices to facilitate communication and the shared use of information resources within the branch.

4.31        We are implementing an Occupational Safety and Health Management Information System. The system will provide enhanced support to outdoor inspections and accident investigations, as well as expedite the analysis of occupational safety and health information for problem identification, strategic planning and policy formulation. We expect the project to be completed in 2002.

In-service Training and Development

4.32 To further empower our work teams, we continued to organise comprehensive in-service training and development programmes. Some key statistical figures on in-service training are listed in Figure 2.3 in Appendix I.

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CHAPTER 5

Employment Services

The Programme of Employment Services

5.1     Unemployment remains to be the foremost concern of the Labour Department in 2001. To complement the job creation efforts of the Government, we give every employment assistance to local job-seekers, in particular the more vulnerable groups in the community.

 

5.2     The objective of the Employment Services Programme is to provide a comprehensive range of free and efficient employment assistance and counselling services to help job-seekers find suitable jobs and employers fill their vacancies. We achieve this by:

  • providing user-friendly employment services to employers and job-seekers;

  •  offering intensive employment-related assistance and personal service to vulnerable groups of unemployed people;

  •  assisting young people to enhance their employability and advising them on careers choice;

  •  regulating local employment agencies;

  •  safeguarding the interests of local employees employed by employers outside Hong Kong to work in other territories; and

  •  ensuring that employment opportunities for local workers are not adversely affected by abuse of the labour importation scheme.

 

5.3     The two principal legislation administered by this programme area are the Employment Agency Regulations made under the Employment Ordinance and the Contracts for Employment Outside Hong Kong Ordinance.

 

5.4     The Employment Agency Regulations, together with the Part XII of the Employment Ordinance, regulate the operation of employment agencies in Hong Kong through a licensing system, inspection, investigation and prosecution.

 

5.5     The Contracts for Employment Outside Hong Kong Ordinance safeguards the interests of local manual workers and those non-manual employees with monthly wages not exceeding $20,000 who are recruited by employers outside Hong Kong to work in other territories through the attestation of employment contracts for these jobs.

Our Work and Achievements in 2001

Employment Situation in Hong Kong

5.6     2001 was a difficult year. The labour market remained generally slack throughout the year. The restructuring of labour market continued with a further decline of employment in the manufacturing sector. The seasonally-adjusted unemployment rate rose to 6.1 per cent in the fourth quarter of 2001, and the overall unemployment rate (Note 3) increased from 4.9 per cent in 2000 to 5.1 per cent in 2001. On the other hand, the overall underemployment rate (Note 4) decreased from 2.8 per cent in 2000 to 2.5 per cent in 2001. (Figures 5.1~5.7)

Note 3: For a person aged 15 or over to be classified as unemployed, that person should:
(a) not have had a job and should not have performed any work for pay or profit during the seven days before enumeration; and
(b) have been available for work during the seven days before
enumeration; and

(c) have sought work during the 30 days before enumeration.
Besides, if a person aged 15 or over fulfils the conditions (a) and (b) above but has not sought work during the 30 days before enumeration because he/she believed that work was not available, he/she is still classified as unemployed, being regarded as a so-called 'discouraged worker'. Unemployment rate refers to the proportion of unemployed persons in the labour force.

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Note 4: Underemployed persons refer to those employed persons who have involuntarily worked less than 35 hours during the seven days before enumeration and have sought additional work during the 30 days before enumeration, or have not sought but have been available for additional work during the seven days before enumeration. Underemployment rate refers to the proportion of underemployed persons in the labour force.

5.7     The median hours of work per week for all employed persons was 48 hours in the fourth quarter of 2001. The average wages and salaries received by employees showed an overall decline across various sectors in the year. (Figures 5.8 and 5.9)

Key Indicators of Work

5.8     In spite of the difficult times, our untiring efforts and good performance have been widely recognised. Vacancies registered with the Labour Department rose from 174 356 in 2000 to 175 841 in 2001. The department also achieved a record number of 62 838 placements during the year. Our achievements are fully reflected in the key indicators of our work. (Figures 5.10 and 5.11)

A Wider Service Choice

5.9     We strive to provide a wide range of free placement services to cater for the different needs of job-seekers and employers.

Services offered at Job Centres

 

5.10     Job-seekers can select suitable vacancies and seek referral service from our staff in the 11 district based job centres, including the two employment and guidance centres for new arrivals. In 2001, we had re-provisioned three more job centres to improve the environment and provide modern facilities such as self-service touch-screen computers, fax machines, toll-free phones, computer terminals connected to the Internet and a careers information corner. These job centres are all adjacent to the Labour Relations Division offices to provide a one-stop employment and labour relations services.

5.11     Through the Job Matching Programme, our staff conducts briefings and provides intensive and personalised job-matching and counselling services to unemployed job-seekers. Placement officers will also refer job-seekers to attend suitable retraining courses run by the Employees Retraining Board where appropriate. Since its launch on 1 April 1995 up to 31 December 2001, the Job Matching Programme had registered 82 071 job-seekers and secured 58 460 job offers.

Telephone Employment Service

5.12     Job-seekers who have already registered for our employment services may simply call our Telephone Employment Service Centre for job referral service. Through conference calls, staff of the centre can make arrangement for job-seekers to talk to employers directly.

Dedicated Employment Website

5.13     Our Interactive Employment Service (iES) (http://www.jobs.gov.hk) provides round-the-clock online employment services. Hyperlinked with nine leading employment websites in Hong Kong, the iES has built and maintained a shared pool of job vacancies with contribution from private employment agencies.

5.14     In 2001, the iES was further enhanced in contents and functions to provide a more comprehensive and one-stop on-line services including job-searching, registration, resume building and job application. New candidate search engines and more informative candidate profiles were also provided to employers. Moreover, dedicated webpages were launched to disseminate employment information to specific clientele groups. In 2001, a total of
24 141 787 page views was recorded. With a record of over half a million page views a day, the iES has been the most popular government website in Hong Kong.

Central Processing of Job Vacancies

5.15     Employers wishing to recruit staff can send their vacancy information to our Job Vacancy Processing Centre through the website (http://www.jobs.gov.hk), fax (number 2566 3331) or telephone (number 2503 3377). Within one working day, all vacancy information will be uploaded onto the iES and disseminated to all job centres through our computer network.

Special Recruitment Functions and Promotional Activities

5.16     We organise a variety of activities to promote our employment services. Visits and briefings are conducted to appeal for vacancies from employers. To introduce various aspects of our employment services to people in different districts, we stage roving exhibitions. In addition, recruitment seminars and job fairs are held to facilitate job-seekers and employers to meet and communicate directly. In 2001, these special recruitment functions and promotional activities reached out to over 50 000 job-seekers and employers. A job-hunting guide (in printed and CD-ROM versions) and an information kit named 'Recruitware' (comprising a CD-ROM and a set of leaflets) were produced to help job-seekers in job search and employers in candidate search.

Intensified Employment Services to the Most Needy

5.17     During the year, we stepped up our employment assistance to special groups of unemployed people. These included the middle-aged job-seekers, local domestic helpers, new arrivals, employees laid off in large-scale retrenchment and job-seekers with a disability.

Serving the Middle-Aged Job-seekers

5.18     The Re-employment Pilot Programme for the Middle-Aged was launched in February 2001 to provide one-stop service to job-seekers aged above 40 who had been unemployed for three months or above. Through workshops and tailor-made counselling services, we strived to enhance the employability of the middle-aged job-seekers and secure employment for them. An employer would receive a training subsidy of $2,800 for the provision of induction training so that participants under the programme could settle in their jobs more easily. By the end of December 2001, a total of 2 405 job-seekers had secured employment. In view of the favourable response from job-seekers and employers, the programme was extended to January 2003 to help more eligible job-seekers to re-integrate into the employment market.

Serving Local Domestic Helpers

5.19     In 2001, we actively publicised our dedicated employment services for local domestic helpers. Through the website of the iES, roving exhibitions, job fairs and many other promotional efforts, the service was widely introduced in different parts of the territory.

Serving New Arrivals

5.20     The two employment and guidance centres in Shau Kei Wan and Mong Kok continued to provide a comprehensive range of employment service tailor-made for the new arrivals. Each centre is equipped with a reference library with audio-visual facilities, supplying information on employment and training opportunities.

Serving Workers affected by Large-scale Retrenchment

5.21     We render on-the-spot assistance or assign special counters at the job centres to provide employment services to workers affected by major retrenchments. In 2001, the service reached out to 9 083 retrenched workers of 60 companies.

Serving Job-seekers with a Disability

5.22     The Selective Placement Division provides specialised employment services to job-seekers with a disability who seek open employment. Each job-seeker is given personal attention by a placement officer who provides counselling, employment services and referral to tailor-made retraining programmes. In 2001, 2 348 job-seekers with a disability were placed, a record in the history of the division. (Figure 5.12)

5.23     To canvass vacancies, we visit prospective employers, organise exhibitions and launch campaigns. We also stage an annual function to commend employees with a disability for their outstanding performance at work and enlightened employers for their distinctive efforts in providing employment opportunities for people with a disability.

5.24     In 2000, we launched the Trial Placement Scheme for People with a Disability to encourage employers to offer job vacancies to people with a disability. Participating employers will receive a financial incentive of half of the wages paid in the one-month trial period (with a ceiling of $3,000). The response from employers has been enthusiastic. By the end of 2001, there were 228 employers offering 387 job vacancies. About 77 per cent of the 293 persons with a disability who completed the trial placement were offered full employment by the participating employers.

5.25     In 2001, the Self Help Integrated Placement Service (SHIPS) was fully developed and implemented to help job-seekers with a disability through group counselling sessions. Participants are encouraged to adopt a proactive attitude in job search and make better use of the latest career information. The overall placement rate of 75 per cent of this scheme compares favourably with the general placement rate of 57 per cent of the division.

5.26     A series of radio programmes was produced during the year to enhance public understanding of the working abilities of people with a disability. We also conducted seminars for employers and produced a new self learning kit on job-searching skills and strategies for job-seekers with a disability.

5.27     A new programme, the 'Trial Placement cum Mentor Scheme for People with a Disability' is already in the pipeline to encourage employers to assign a senior staff to assist the trial workers with a disability to facilitate their early integration into the workplace. A reward of HK$500 and a commendation certificate will be awarded to each mentor as recognition.

Services for Young People

5.28     We help young people to enhance their employability and advise them on careers development.

Youth Pre-employment Training Programme

5.29     In 2001, we continued with the Youth Pre-employment Training Programme (YPTP) to provide young people aged between 15 and 19 with a wide range of employment-related training and workplace attachment opportunities. The new programme offers more customised service. Government departments, training bodies and voluntary agencies join hands to provide the following four modular training: (a) leadership, self-discipline and team building; (b) job-search and interpersonal skills; (c) elementary/ intermediate computer application; and (d) job-specific skills training. Organisations from the private and public sectors as well as social welfare agencies offer workplace attachment training places for trainees to obtain practical work experience and better understand the world of work. Professional youth workers are available to provide career counselling and support services throughout the programme. Vocational language training and courses leading to professional qualifications have also been incorporated into the programme.

 

5.30     There is an On-the-Job Training Scheme under the programme. Employers employing a trainee will receive a monthly training subsidy of $2,000 for up to three months. A Training Kit and a Train-the-trainer session are offered to participating employers. In 2001, the programme trained 12 066 participants. Some 3 800 trainees decided to pursue further studies. About 80 per cent of the remaining 8 200 trainees were able to secure employment.

Careers Information and Guidance

5.31     We operate two careers information centres that function as information banks for young people and careers teachers. Each centre has a reference library with publications and audio-visual resources on employment and training opportunities. Careers videos and VCDs are available for free loan to secondary schools and youth organisations. Careers counselling and guidance service are also available to visitors of the centre. In 2001, we received 26 851 visitors and handled 38 099 consultations.

5.32     To provide young people with first-hand careers information, we organised a variety of careers activities in 2001, with a record number of 960 485 participants. (Figure 5.13)

5.33     We jointly organised the Education and Careers Expo with the Hong Kong Trade Development Council for the 11th time in 2001 to provide the latest information on careers development and further education options. The Expo also served as a forum for employers to recruit young talents. There were 303 participating exhibitors from a wide range of trades, government departments and professional bodies, as well as local and overseas educational and training institutes. The event attracted 186 523 visitors and proved to be the most popular careers information event in Hong Kong. An associated event of the Education and Careers Expo, the Careers Quiz 2001, took place from 22 October to 2 November 2001, attracting 156 155 students from 303 secondary schools, including students from special schools.

5.34     In July and August 2001, a comprehensive service package ranging from counselling hotline, face to face counselling service to chat room service on the Internet was specially provided to Form 5 school leavers. In addition, a series of seven roving exhibitions on education and careers opportunities at locations throughout the territory had attracted
11 850 visitors. More than 100 000 copies of a tailor-made careers handbook were distributed through various means.

5.35     We continued to conduct school-based careers activities and promote summer job-seekers' awareness of employment traps and work safety. Posters, booklets and leaflets publicising the message were distributed to secondary schools and other outlets. Two part-time certificate courses were organised for in-service careers masters in the 2001/2002 school year in collaboration with the Education Department.

Regulating Local Employment Agencies and Employment Outside Hong Kong

5.36     We monitor the operation of employment agencies through licensing, inspection and investigation of complaint. In 2001, 1 447 employment agency licences were issued and two such licences were revoked. A total of 1 211 enforcement inspections were made to employment agencies. At the end of 2001, there were 1 388 licensed employment agencies in Hong Kong.

5.37     We regulate employment outside territory to safeguard the interests of local employees engaged by employers outside to work in other territories by attesting all employment contracts entered in Hong Kong involving manual employees and non-manual employees with monthly wages not exceeding $20,000.

Regulating Labour Importation

5.38     To cater for the genuine needs of employers, a Supplementary Labour Scheme that allows the entry of imported workers to take up jobs at the technician level or below and which cannot be filled locally, is administered by the Labour Department. It operates on the principles of ensuring the priority of local workers in employment while allowing employers with proven local recruitment difficulties to import labour to fill the necessary job vacancies. As at the end of 2001, there were 1 660 imported workers in Hong Kong.

5.39     We provide active job matching and referral services to local job-seekers to ensure their employment priority. Vacancies under the Scheme are widely publicised locally. To facilitate local workers in filling the vacancies, they could attend tailor-made retraining courses, if appropriate. Applications from employers who have set restrictive or unreasonable requirements in terms of age, education, sex, skill or experience for the vacancies or who have no genuine intention to employ local workers will be rejected.

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CHAPTER 6

Employee Rights and Benefits

The Programme of Employee Rights and Benefits

6.1     Employees will only give their best if their employment and working conditions are perceived to be fair. The objective of the Employee Rights and Benefits Programme is to improve and safeguard employee rights and benefits in an equitable manner. Our aim is to progressively enhance employment standards in a way which is commensurate with the pace of Hong Kong's economic and social developments and to strike a reasonable balance between the interests of employers and employees. We achieve this by:

  • setting and refining employment standards in consultation with the Labour Advisory Board (LAB), the most established consultative forum on labour matters;
  • enforcing compliance with statutory and contractual terms and conditions of employment through inspection to workplaces and investigation of complaints;
  • processing employee compensation claims;
  • maintaining close partnership with statutory bodies set up for protecting the rights and benefits of employees; and
  • providing customer-oriented information service to ensure that employees and employers know their rights and obligations.

 

6.2     The principal legislation administered by this programme area includes the Employees' Compensation Ordinance (ECO), the Pneumoconiosis (Compensation) Ordinance (PCO), the Protection of Wages on Insolvency Ordinance (PWIO), the Employment Ordinance (EO) on conditions of employment and its subsidiary Employment of Children Regulations and Employment of Young Persons (Industry) Regulations (termed as the Women and Young Persons (Industry) Regulations before 12 April 2001) and Part IVB of the Immigration Ordinance.

 

6.3     The ECO establishes a no-fault, non-contributory employee compensation system under which individual employers are liable to pay compensation for work-related injuries or fatalities. The ordinance requires all employers to possess valid insurance policies to cover their liabilities under the ordinance and at common law.

 

6.4     The PCO provides compensation to persons who suffer from silicosis or asbestos-related diseases. Compensation is paid from the Pneumoconiosis Compensation Fund, which is administered by the Pneumoconiosis Compensation Fund Board.

6.5     The PWIO provides for the establishment of the Protection of Wages on Insolvency Fund (PWIF) and its administration by a board. The PWIF is financed by an annual levy of $250 on each business registration certificate.(Note: the annual levy was increased to $600 with effect from 16 May 2002.) At present, the fund covers wages not exceeding $36,000 accrued during a period of four months preceding the last day of service; wages in lieu of notice for termination of up to $22,500 or one month's wages, whichever is less; and severance payment up to $50,000, plus 50 per cent of any excess entitlement under the EO. Under the PWIO, employees who are owed wages, wages in lieu of notice and severance payments by their insolvent employers may apply to the fund within six months after their last day of service for ex gratia payments.

 

6.6     The EO is the main piece of legislation governing conditions of employment in the non-government sector. The Employment of Children Regulations made under the EO prohibit the employment of children below the age of 15 in industrial undertakings and regulate the employment of children aged 13 but under 15 in non-industrial establishments. The Employment of Young Persons (Industry) Regulations set out requirements on the working time arrangements for young persons employed in the industrial sector and regulate their employment in dangerous trades.

 

6.7     The Labour Department also administers Part IVB of the Immigration Ordinance to combat illegal employment in order to protect the employment opportunities of local workers.

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Our Work and Achievements in 2001

Key Indicators of Work

6.8     We stepped up our efforts to safeguard the rights and benefits of employees through various activities in 2001. Some key indicators of work of this programme area are shown in Figure 6.1 in Appendix I.

Legislative Proposals to Preserve and Improve Employee Benefits

6.9     In 2001, we proposed a reform package for the Employees Compensation Assistance Scheme (ECAS), reviewed the Occupational Deafness Compensation Scheme (ODCS) and brought forward a proposal regarding the recognition of Chinese medicine under labour legislation and an administrative scheme .

 

6.10     The ECAS was set up to provide payment to injured employees who are unable to receive their entitlements for employment-related injuries from employers or insurers after exhausting legal and financially viable means of recovery. It has incurred annual operating deficits since 1996/1997. To restore the long-term financial viability of the ECAS, we put forward a reform package to the LAB, and it was endorsed. Legislative proposal shall be introduced into the Legislative Council in February 2002.

 

6.11     Working together with representatives of employers, employees and relevant professionals, we proposed a number of measures under the ODCS to improve the benefits of employees suffering from noise-induced deafness by reason of their employment in specified noisy occupations. The major proposals included 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. We consulted the LAB and shall introduce corresponding legislative amendments into the Legislative Council in Apirl 2002.

 

6.12     During the year, we also consulted the LAB on the proposal to recognize Chinese medicine under the Employment Ordinance, Employees' Compensation Ordinance, Pneumoconiosis (Compensation) Ordinance and the Pneumoconiosis Ex Gratia Scheme. The LAB agreed in principle to our proposal. We plan to introduce the necessary legislative amendments into the Legislative Council by end of 2002.

 

Vigorous Enforcement Efforts

6.13     We have stepped up our enforcement efforts to ensure that the statutory rights of employees under labour legislation are well protected.

6.14     In 2001, labour inspectors carried out 163 185 inspections to different economic sectors, including 157 786 inspections to combat illegal employment. We enhanced our communication with the Immigration Department and the Police for more effective exchange of intelligence and inter-departmental enforcement operations. Special inspection campaigns were conducted to workplaces and targeted trades where illegal workers, including foreign domestic helpers engaged in non-domestic duties, were more likely to be found. Altogether 1 508 suspected cases of illegal employment were referred to the Immigration Department in 2001 for follow-up actions. (Figure 6.2)

 

6.15     We further strengthened the monitoring of government service contractors to protect the statutory rights of their workers. In 2001, large-scale blitz operations were staged to check the working conditions of cleaners in public toilets throughout the territory. Contractors found to have breached labour legislation were prosecuted.

 

6.16     Furthermore, labour inspectors carried out territory-wide inspections to crack down on employers who failed to possess insurance cover for their employees.

6.17     To ensure compliance with the required conditions under the Supplementary Labour Scheme, we investigated 121 complaints and cases on suspected irregularities such as alleged displacement of local workers, underpayment of wages and deprivation of rest days or statutory holidays of imported workers.

 

New Tendering Arrangements for Government Service Contracts

6.18     During the year, we assisted the Finance Bureau in issuing a guideline on the procurement of government services that rely heavily on the deployment of non-skilled workers to ensure that these workers enjoy reasonable employment conditions. Under the new guideline, departments are required to include in their assessment criteria the wage levels and working hours of the workers to determine whether the tender offers are in line with the prevailing market conditions. Records of past convictions under the Employment Ordinance should be taken into account in the evaluation of tenders.

 

Processing Employee Compensation Cases

6.19     Under the current no-fault employees compensation system, compensation is payable to injured employees or family members of deceased employees for any work-related injuries or deaths. Employers are required to report occupational injuries irrespective of the period of temporary loss of earning capacity suffered by their employees.

 

6.20     Employee compensation cases involving sick leave of not exceeding three days are directly settled between employers and employees. For cases involving sick leave exceeding three days but not more than seven days and with no permanent loss of earning capacity, employers may also settle the compensation claims directly with their employees concerned. For other cases, sick leave clearance is required to decide whether the injured employees should be referred to assessment boards for assessment of the degree of permanent loss of earning capacity. Claims for compensation involving fatality are determined by the courts or the Commissioner for Labour under the improved settlement mechanism introduced in August 2000.

6.21     Among all the employee compensation cases reported in 2001, 10 722 were minor cases involving sick leave of not exceeding three days, 56 818 were cases involving sick leave exceeding three days, and 201 were fatal cases (Note 5). (Figures 6.3 and 6.4)

Note 5: The figure represents the total number of reported fatal cases, which includes 20 cases in which the death of the employee was found to be due to natural cause as at 31 December 2001.

6.22     In the year, we processed 41 132 non-fatal cases reported in the year and involving sick leave exceeding three days. This included 13 870 cases settled directly between employers and employees. Compensation amounting to $8.83 million and $358 million was payable respectively to the injured employees in minor cases and in cases involving sick leave exceeding three days.

6.23     For the 61 003 employee compensation cases reported in 2000, 58 503 non-fatal cases with sick leave exceeding three days and 150 fatal cases were settled as at the end of 2001. A sum of $1.003 billion was payable as compensation to the injured employees or family members of deceased employees. The number of days lost was 1 554 200. (Figure 6.5)

 

6.24     The Loan Scheme for Employees Injured at Work and Dependants of Deceased Employees provides temporary relief to victims of work accidents. Under the scheme, an interest-free loan up to $15,000 in each case will be made to eligible applicants. In 2001, a total loan of $430,141 were approved in 32 applications .

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Partnership with Statutory Bodies

6.25     We maintain close partnership with various statutory bodies which are set up under statutes to administer schemes that are geared to the protection of the rights and benefits of employees.

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Protection of Wages on Insolvency Fund Board

6.26     We support the Protection of Wages on Insolvency Fund Board by verifying applications and approving payments from the Fund. In 2001, we received 18 038 and processed 13 314 applications, leading to payments of $338.4 million. In the year, we also completed a comprehensive review of the financial position of the Fund. The review assessed the current and future needs of the Fund according to the trend in the number of applications and other possible impacts. (Figures 6.6 and 6.7)

 

Pneumoconiosis Compensation Fund Board

6.27     The Pneumoconiosis Compensation Fund Board (PCFB) is established under the Pneumoconiosis (Compensation) Ordinance (PCO) to provide compensation to persons suffering from pneumoconiosis. The Board is financed by a levy collected from the construction and quarrying industries. Under the PCO, the Labour Department is responsible for determining whether the applicants are entitled to compensation. For those eligible persons, they will receive compensation in the form of monthly payments from the PCFB.

 

Employees Compensation Assistance Fund Board

6.28     The Employees Compensation Assistance Fund Board (ECAFB) is set up under the Employees Compensation Assistance Ordinance (ECAO). The ECAFB is responsible for running the Employees Compensation Assistance Scheme which provides payments to injured employees who are unable to receive their entitlements for employment-related injuries from their employers or insurers. The scheme also protects employers in the event of the insurers underwriting their employees' compensation insurance becoming insolvent.

 

Occupational Deafness Compensation Board

6.29     The Occupational Deafness Compensation Board (ODCB) is established under the Occupational Deafness (Compensation) Ordinance to provide compensation to those persons who suffered from noise-induced deafness due to employment in specified noisy occupations.

 

Information and Advisory Services

Telephone Enquiry Service

6.30     We operate a round-the-clock Telephone Enquiry Service to handle public enquiries on labour legislation and labour matters. Members of the public can listen at any time to 69 topics of pre-recorded messages in Cantonese, Putonghua or English on labour legislation and services of the department. They can also obtain 72 forms and printed messages in Chinese or English by fax. During office hours,telephone enquiry officers are available to answer further enquiries. In 2001, this highly popular service handled 1 470 183 calls. (Figure 6.8)

Labour Importation Telephone Service

6.31     The Labour Importation Telephone Service is another computer-operated interactive telephone answering system, tailor-made for imported workers and their employers. Through the system, enquirers can obtain information on the rights and obligations of imported workers and their employers under the Supplementary Labour Scheme in five languages/dialects: Cantonese, Putonghua, English, Tagalog and Thai. Enquirers can also obtain information directly from its facsimile service. In 2001, the service handled 7 110 calls.

 

Briefings and Promotional Campaigns

6.32     In 2001, eight briefings were organised for representatives of government departments and their service contractors to acquaint them with employers' obligations under the Employment Ordinance. We also arranged 68 briefings for imported workers and their employers to publicise the rights and obligations of the parties concerned.

 

6.33     In addition, enhanced publicity through the mass media and other channels was launched to educate and warn employers against illegal employment.

 

6.34     On another front, the department actively publicised the statutory requirement of taking out employees' compensation insurance through exhibitions, seminars, workshops, publications and advertisements on buses and the Mass Transit Railway.

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CHAPTER 7

INTERNATIONAL LABOUR AFFAIRS

International Instruments Setting Out Labour Standards

7.1     A number of international instruments set out labour standards. The most important of them are the international labour Conventions set by the International Labour Organization (ILO). The international labour Conventions prescribe standards to be modelled on by ILO member States. Other international instruments touching on labour standards, albeit to a much smaller extent, include the International Covenant on Economic, Social and Cultural Rights and the International Covenant on Civil and Political Rights.

 

7.2     A set of labour legislation has been enacted which, supplemented by administrative measures, enables the Hong Kong Special Administrative Region (HKSAR) to give effect to internationally accepted standards. Through improvements made to the labour legislation and administrative measures, the HKSAR has been able to keep abreast with the latest developments in labour administration and maintains a level of labour standards broadly equivalent to those of neighbouring countries with similar economic development as well as social and cultural backgrounds.

The Hong Kong Special Administrative Region and the International Labour Organization

7.3     In accordance with the Basic Law, the provisions of the international labour Conventions as applied to Hong Kong before the return of sovereignty shall remain in force and shall be implemented through the laws of the HKSAR. The HKSAR aims at applying relevant international labour Conventions as the local circumstances allow. Notifications of application are registered with the ILO through the Central People's Government. As at the end of 2001, the HKSAR applied 40 international labour Conventions, with or without modification. The 40 international labour Conventions applied in the HKSAR are listed in Appendix IV.

7.4     The HKSAR may participate in ILO activities, either as members of delegations of the People's Republic of China or, for activities which are not limited to states, on its own using the name 'Hong Kong, China'. In 2001, the HKSAR sent tripartite teams to attend the International Labour Conference in Switzerland on work-related rights and safety and a regional meeting in Thailand on national policy for decent work. The department also received visitors from different countries, including a delegation led by the Director-General of the International Labour Office to exchange views on such issues as tripartite consultation and globalisation. Upon the invitation of the ILO, the department co-organised a large-scale seminar entitled 'Workshop on Youth Employment in Hong Kong' to collect ideas on future directions of youth employment.¡@

Contacts with Other Labour Administrations

7.5     In 2001, the Commissioner for Labour led delegations to visit labour administrators in the Mainland and Japan. During the trips, the department exchanged views and experience with overseas or Mainland counterparts on labour issues such as employment policy, vocational training, labour relations, employees' compensation, occupational safety and health etc. These visits also strengthened mutual cooperation.

 

7.6     Details of contacts with the ILO and other Labour Administrations are listed in Figure 7.1 in Appendix I.