CHAPTER
1
HIGHLIGHTS
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
Initiatives
SARS-related
Employment Packages
1.3
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 Industries
1.6
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 SARS
1.7
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.
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.
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".
Labour
Relations
Record
Settlement 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 Offences
1.14
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 Employees
1.15
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".
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 Scheme
1.17
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 Contractors
1.18
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 Work
Legislative
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 Schemes
1.20
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.
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.
| Index |
Chapter 1 | Chapter
2 | Chapter 3 | Chapter
4 | Chapter 5 | Chapter
6 | Chapter 7 |
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Figures and Charts |
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