Publications

Report of the Commissioner for Labour 2000

HONG KONG LABOUR SCENE
PART ONE

Chapter 1 : Overview

The Economy in 2000
1.1 Following the revival in 1999, the Hong Kong economy continued to grow in 2000. The Gross Domestic Product (GDP) recorded the highest growth rate since 1987, with a marked rise of 10.5 per cent in real terms, comparing to the 3.1 per cent increase in 1999. Strong and broad-based upturns were registered on both the external and domestic fronts.

1.2 Total exports of goods showed a double-digit growth, owing much to the buoyant import absorption in all major markets, improved price competitiveness and upgraded productivity. Exports of services also picked up remarkably, owing to the strong performance in inbound tourism, offshore trading and various trade-related services. The combined visible and invisible trade account recorded substantial surplus in 2000.

1.3 Improved employment and increased real labour income continued to contribute positively to the revival of local consumer spending. Concurrently, overall investment spending rebounded to a notable growth amidst a better business outlook. The sharp turnaround in investment was spurred mainly by the substantial intake of machinery and equipment. Yet building and construction output was still slack in the year, despite the slight improvement towards the year-end.

1.4 The downtrend of consumer prices was gradually levelling off. Price discounts at the retail outlets were reduced amidst a stronger consumer demand, and the downward adjustments in wages and rentals were moderating. Import prices, especially those for fuels, were also on the rise. For 2000 as a whole, the Composite CPI fell by 3.7 per cent, less than the 4.0 per cent decline in 1999.

1.5 Labour market conditions improved further in 2000, in line with the recovery of economy. Both unemployment and underemployment rates showed a drop, along with a slight increase in the number of private sector vacancies and a mild rise in labour earnings. Related trends and key indicators will be further elaborated in Chapter Two of this report.

Major Activities and Events
1.6 2000 was an eventful year for the Labour Department. Some of the major activities and events are as follows:

Strengthening Tripartite Communication
1.7 The department actively promotes direct and voluntary negotiation at the industry level through the setting up of tripartite committees. Eight tripartite committees have been set up in catering, construction, theatre, warehouse and cargo transport, property management, printing, hotel and tourism, and cement and concrete industries. Matters discussed in 2000 included sample employment contract, distinction between contract of employment and contract for service, work arrangements in times of typhoons and rainstorms, employers' obligations under the Employees' Compensation Ordinance, implementation of the Mandatory Provident Fund Schemes, and occupational safety and health.

Good People Management Award 2000
1.8 The Workplace Consultation Promotion Unit organised the second Good People Management Award to promote, encourage and commend employers in achieving good people management. Eighteen enterprises, comprising eight with employment size 501 and above, five with employment size 101 to 500 and five with employment size 100 or below, were chosen from 180 entries for granting awards. These establishments demonstrated commendable performance in such areas as employment policies, staff training, safety and health at the workplace, termination of contract arrangements and staff communication.

Workplace Consultation Fiesta 2000
1.9 A large-scale, territory-wide promotional campaign Workplace Consultation Fiesta 2000 was staged by the Workplace Consultation Promotion Unit to publicise the importance of effective staff communication and good people management practices. Activities of the Fiesta included seminars, workshops, experience-sharing visits, training courses, quiz and exhibition cum video show. Over 7 300 persons attended the activities.

Labour Relations - Small and Medium Sized Enterprises 2000
1.10 To enhance the awareness of small and medium sized enterprises on the Employment Ordinance, the department launched a large-scale territory-wide event titled Labour Relations - Small and Medium Sized Enterprises 2000 from 8 October to 22 November 2000. Activities launched during the period included TV drama series, an EO (Employment Ordinance) quiz, a lyrics competition, roadshows, exhibitions as well as training courses, seminars. Information kits tailor-made for the small and medium sized enterprises were distributed. The event was well-received, attracting 12 000 participants.

Large-scale Labour Disputes Resolved by the Department
1.11 The business environment in 2000 remained competitive. The number of labour disputes and employment claims continued to stay at a high level. During the year, there were a number of large-scale disputes involving Cathay Pacific Airways Limited, Hong Kong Air Cargo Terminals Ltd., etc. Through its conciliation efforts, the department successfully resolved these disputes and averted any adverse effect to the economy.

New Reference Materials on Labour Relations
1.12 In 2000, five new publications were produced by the department to enhance employers' and employees' understanding of labour legislation and good people management practices. These publications were: Souvenir Publication for the Good People Management Award 1999, Code of Labour Relations Practices for the Catering Trade, A Report on the Survey 'Communication and Human Resources: Hong Kong Style', A Practical Guide to Employees' Rights, Benefits and Obligations under Labour Legislation and Notes for Employers and Employees on Mandatory Provident Fund Schemes and Employees' Rights and Benefits. In addition, a VCD introducing selected provisions of the Employment Ordinance and two CD-ROMs on 'Interactive Games on the Employment Ordinance' and 'Computer Programme for Roster Scheduling and Leave Management for the Catering Trade' were produced.

Labour Department's Cyber Resource Centre for Business Website (http://www.ld.gov.hk)
1.13 To create more jobs by attracting more foreign investment to Hong Kong, a new website - the Labour Department's Cyber Resource Centre for Business was launched in November 2000. It is a one-stop information centre on labour matters for potential investors overseas as well as the business sector in Hong Kong. It provides a wide range of information related to labour laws, labour issues and services provided by the department. It also links up various related websites that are useful to potential investors.

Enhancements of Interactive Employment Service
1.14 The Employment Services Division strengthened its Interactive Employment Service in 2000 by introducing an on-line registration service and building up an Employment Information Superhighway linking other major employment websites in Hong Kong. Besides, private employment agencies were for the first time allowed to post their job vacancies on the Interactive Employment Service. As part of the Government's Electronic Service Delivery Scheme, members of the public can use public information kiosks installed at convenient locations, including Mass Transit Railway and Kowloon-Canton Railway stations, shopping centres and supermarkets, to access the on-line employment service from early 2001 onwards.

Special Recruitment Functions
1.15 To help job-seekers find jobs and employers recruit staff, two large-scale recruitment activities were organised in 2000. They were the Employment Information Expo 2000 in March 2000 and the Employment Information Post 2000 in October 2000. In both functions, the department introduced various aspects of its employment services while participating employers and retraining institutes conducted direct recruitment and on-the-spot registration for retraining courses respectively.

Job Centres with Modern Facilities
1.16 Four Job Centres of the Employment Services Division were re-provisioned in 2000 to provide better environment and facilities for job-seekers. The new job centres are all adjacent to Labour Relations Division offices to provide a one-stop employment and labour relations services for job-seekers and employers. They are fully equipped with self-service touch-screen computers, fax machines, toll-free phones, computer terminals connected to the Internet and a careers information corner. The four new job centres are in Kwun Tong, Kai Tak (Kowloon East), Sham Shui Po (Kowloon West), and Tuen Mun.

Revamp of Job Matching Programme
1.17 The Job Matching Programme was revamped in 2000 by introducing group counselling, in the form of a briefing session followed by a workshop, to complement individual counselling. Latest labour market information is provided during the briefing sessions, while core skills training in self-analysis of strengths and weaknesses, networking, communication and interviewing skills is conducted during the workshop. The programme adds value to job-seekers and enables placement officers to better understand job-seekers, thus making the subsequent one-to-one job matching more effective.

First-ever Seminar for Registered Trade Unions
1.18 The Registry of Trade Unions organised for the first time a large-scale seminar for all registered trade unions in Hong Kong in December 2000. The theme was 'China's Accession to the World Trade Organisation and the Development of Labour Market in Hong Kong'. It provided a valuable opportunity for union officials to update their knowledge and exchange views on this contemporary subject. 171 union officials attended the seminar.

Youth Pre-employment Training Programme
1.19 To address the problem of high unemployment of young persons aged between 15 and 19, a Youth Pre-employment Training Programme was launched in September 1999. The programme provided young people with a wide range of employment-related training and workplace attachment opportunities with a view to improving their competitiveness and employability.

1.20 Government departments, statutory training bodies and voluntary agencies joined hands in providing employment-related training under the following four modules: (a) leadership, self-discipline and team building; (b) job-search and interpersonal skills; (c) basic computer application; and (d) job-specific skills. Organisations from both the private and public sectors as well as social welfare agencies offered workplace attachment training places to allow trainees to gain some practical work experience and better understand the world of work. Professional youth workers rendered registrants with the necessary support, guidance and counselling services throughout the programme.

1.21 The programme was concluded in March 2000. It provided 22 132 training places to 10 707 trainees and arranged 5 752 trainees to participate in workplace attachment training, with 9 016 of them receiving counselling services by youth workers.

1.22 The well-received programme was re-launched in October 2000. The new programme offered customised service in employment-related training, workplace attachment and on-the-job training. The counselling, guidance and follow-up services were substantially strengthened. The Programme Office set up its website in August 2000 to disseminate up-to-date information to trainees, parents and training bodies.

1.23 Under the programme, the department launched an On-the-Job Training Scheme in June 2000 to give participants a taste of the real working situation. Employers have to employ the trainees at the market rate, and will receive a monthly training subsidy of $2,000 for up to three months. A Training Kit and a Train-the-trainer session are also offered to participating employers.

The Education and Careers Expo 2000
1.24 The department jointly organised with the Hong Kong Trade Development Council the Education and Careers Expo 2000 from 24 to 27 February 2000. The expo gave young people an opportunity to obtain the latest information on careers choice and further education options, both locally and overseas. It also provided an ideal forum for employers to explore young talents. There were 275 participating exhibitors from a wide range of trades, government departments and professional bodies, as well as local and overseas educational and training institutes. Other associated activities included careers video shows, careers seminars and the Careers Quiz. With a record hits of 201 283, it proved to be the most popular careers information event in Hong Kong.

Trial Placement Scheme for People with a Disability
1.25 To encourage employers to offer job vacancies to people with a disability and to enhance employers' understanding of their working abilities, the Selective Placement Division launched the Trial Placement Scheme for People with a Disability in September 2000. Participating employers received a financial incentive that equalled to half of the wages paid in the one-month trial period, with a ceiling of $3,000. Employers who continued to employ the persons after the trial period were awarded a Certificate of Appreciation by the Labour Department as recognition. Employees with a disability who successfully completed the trial placement also received a Certificate of Commendation as an encouragement. Initial results of the scheme have been very favourable. About 70 per cent of those who completed the trial placement were offered long term employment by their employers.

Self Help Integrated Placement Service (SHIPS)
1.26 The Selective Placement Division launched for the first time the Self Help Integrated Placement Service (SHIPS) in April 2000. The SHIPS aimed at improving the job-searching skills of job-seekers with a disability through group counselling sessions. It also encouraged the participants to be more proactive and independent in the search for jobs using computer facilities and careers information available at the offices of the Selective Placement Division. The overall placement rate of 74 per cent of this scheme compared favourably with the general placement rate of 53 per cent of the Selective Placement Division.

Occupational Safety Charter
1.27 Since 1996, the department and the Occupational Safety and Health Council have been actively promoting the Occupational Safety Charter. It sets out clearly the roles of the Government, employers, employees and other parties in accident prevention. It also outlines a safety management framework for employers and employees to work together to improve work safety in the spirit of shared responsibility.

1.28 Organisations are encouraged to sign the Charter to signify their commitment to the spirit of the Charter. By the end of 2000, 510 organisations, including public utilities and construction companies, other industrial and non-industrial establishments, unions and associations, have subscribed to the Occupational Safety Charter.

Safety and Health at Work Campaigns
1.29 During 2000, four major publicity campaigns were launched, including two safety award schemes to promote safety in catering and construction industries, a programme to promote greater awareness of occupational safety and health among small and medium sized enterprises, and a campaign to promote the Factories and Industrial Undertakings (Safety Management) Regulation.

Publications and Publication Stands
1.30 The Occupational Safety and Health Branch produced 44 new or revised items of publications including guidebooks, codes of practices, pamphlets, leaflets and posters. They were distributed to the public through the branch offices, trade associations, employee unions, government departments, professional and educational institutions, Occupational Safety Charter subscribers and interested parties.

1.31 The dissemination of occupational safety and health information to members of the public was enhanced by placing 250 publication stands at convenient locations in housing estates, shopping centres, clinics, transport stations, public utility service counters and government offices. During the year, about 1.1 million copies of pamphlets on different occupational safety and health subjects were distributed through these stands.

Labour Advisory Board Election of Employee Representatives
1.32 The two-year term of the Labour Advisory Board (LAB) expired by the end of 2000. An election to return the employee representatives for the new term of the LAB was held on 25 November 2000.

1.33 Eleven candidates vied for five seats. 318 registered employee unions took part in the voting, representing a turn-up rate of 90 per cent. The five newly elected employee representatives will serve the LAB from January 2001 to December 2002.

Labour Day Reception
1.34 The Secretary for Education and Manpower hosted a cocktail reception at Government House on 1 May 2000 to celebrate the Labour Day. The reception was officiated by the Chief Executive and attended by some 200 guests from various trade unions, employer associations and other organisations. Addressing the occasion, the Chief Executive paid high regard to the harmonious labour relationship in Hong Kong, and encouraged employers and employees to continue to work hand in hand for the development of Hong Kong.

Contacts with Other Labour Administration
1.35 In December 2000, a six-member delegation led by the Director-General of the Department of International Cooperation, Ministry of Labour and Social Security of State Council, Mr Li Donglin, visited the department under the Reciprocal Visit Programme. The briefing-cum-visit sessions organised not only strengthened mutual understanding on various labour issues (including employment creation, vocational training, labour relations, employees' rights and benefits, etc.) but also further enhanced co-operation.

1.36 The interflow with other labour administration enables us to have a comprehensive understanding of the latest development of labour issues both in the Mainland and the international arena. This is conducive to the formulation of labour policies.