"Partnering in Construction Safety"

Speech by
Mr Matthew CHEUNG Kin-chung, JP
Permanent Secretary for Economic Development & Labour (Labour)
at the Hong Kong Construction Association
Annual Safety Conference
on 30 October 2003 (Thursday)

Mr Wong, Distinguished Guests, Ladies and Gentlemen,

Introduction

It gives me great pleasure to address the Annual Safety Conference of the Hong Kong Construction Association ("HKCA") this afternoon. The HKCA has been organising this meaningful event for over a decade and has set an inspiring and most fitting theme for this year's conference - "Partnering for Safety in our Construction Industry". Over the years, the HKCA had played a key role in promoting construction safety. As the cement that binds most of Hong Kong's major contractors in the industry, HKCA is itself a major and indispensable partner in our efforts to ensure and promote construction safety.

Partnering in Construction Safety

2. Construction safety is indeed very much a matter of partnership. It has long been recognised that a dire lack of coordination among key players of the industry and a reluctance to invest in safety are the crux of Hong Kong's construction safety problems. We believe that long-term and sustainable improvements in construction safety can only be achieved through collective commitment and joint efforts of all stakeholders of the industry, including the Government, contractors, workers, trade associations, workers' unions, training providers, professional bodies and other related organisations. It is only through genuinely working together, not paying lip service, that we can make a real improvement in the safety performance of our construction trade. If it takes two to tango, then it takes all stakeholders to join hands to promote and ensure construction safety. We must get our act together. Construction safety, and indeed the whole question of occupational safety, is far more than tango involving just two partners. I would liken it to dragon dance which involves a multiplicity of partners and players.

3. I would like to share with you this afternoon some of the Government's initiatives in promoting construction safety that build on the very foundation of partnership. These initiatives cover legislation, safety training and safety promotion.

4. Let me first give an overview of occupational safety and health from a global perspective as well as the safety performance of our construction industry.

Global Scene of Occupational Safety and Health
5. According to figures released by the International Labour Organisation ("ILO"), occupational accidents and work-related diseases claim the lives of two million people each year. In other words, there are nearly 5,500 work-related deaths every day, or four per minute. Added to these tragedies are some 270 million occupational accidents and 160 million occupational diseases annually across the globe. The ILO also estimates that the economic loss as a result of work-related injuries and diseases is equivalent to about 4% of the world's Gross Domestic Product (GDP).

6. These figures are no doubt alarming. They raise concerns about safety and health at work and remind us of the need to protect the well-being of our workforce and keep them away from harm. After all, there is nothing to gain but everything to lose from an industrial accident. Everybody is the loser. Whilst the employee suffers both physically and mentally or even loses his life and his family feels the pain, the employer also suffers in terms of lost productivity, suspension of work and compensation pay-outs. In Hong Kong, we have been tackling the occupational safety and health problem through the three-pronged approach of legislation and enforcement, education and training, as well as promotion and publicity.

Construction Safety in Hong Kong - Latest State of Play

Declining Accident Toll

7. Because of the nature of its work activities, the construction industry poses more hazards to its workers than most other economic activities. Not surprisingly, work accidents arising from construction activities topped the league table of accident toll for years. It was only until three years ago that its dubious "position of supremacy" was taken over by the catering industry. In the past decade, there was an average of over 14,000 construction accidents each year, accounting for 38% of all industrial accidents. Its accident rate per thousand workers was, on average, almost four times higher than that of the industrial sector as a whole.

8. But thanks to the concerted efforts of all the parties concerned, we have seen impressive improvements in the safety performance of the construction industry in recent years. The declining accident toll is rather telling. The number of construction accidents dropped from its peak of 19,588 in 1998 to 6,239 in 2002, representing a marked decrease of 68%. The accident rate per thousand workers also fell by almost two-thirds - from 248 in 1998 to 85 in 2002. More encouragingly, the improvements have continued this year. The accident statistics for the first half of 2003 show a reduction of 34% in the number of construction accidents (from 3,223 to 2,141) and 20% in the accident rate over the same period last year (from 82.6 to 66.0).

Fatal Accidents

9. The construction industry has long been the focus of our work in occupational safety and health, not only because of its sheer number of work accidents, but also because of its high incidence of fatalities and serious injuries. In the last ten years, construction accidents claimed the lives of 470 workers, accounting for over 80% of all fatal industrial accidents. While the number of fatal construction accidents has been on the decline in the past few years, we are very much concerned about the upward trend this year. Provisional figures indicate that the number of fatal industrial accidents in the first three quarters of 2003 increased by 38% from 21 to 29, compared with the same period last year. Of these, 25 occurred in the construction industry, representing an increase of 25% compared with 20 in the same period last year.

10. To counter this worrying trend, the Labour Department has stepped up law enforcement action in construction sites. A special operation was conducted in July and August this year to inspect 4,230 construction sites. As a result, we issued 17 suspension notices and 183 improvement notices. We also initiated prosecutions on 235 offences.

11. I am acutely aware of the fact that at a time of economic downturn and fierce competition for contracts in the construction trade, some employers and contractors tend to cut corners and spend less on site safety in a bid to reduce overheads. Let me say that these unwise and dangerous cost-cutting measures would lead to unnecessary work accidents. This is false economy, and in the end, the employer might have to pay a heavy price.

Employees' Compensation Cases
12. In Hong Kong, the Employees' Compensation Ordinance establishes a no-fault, non-contributory employees' compensation system for work injuries. Under the system, employers are legally required to take out insurance policies to cover their liabilities under both the Ordinance as well as common law for work injuries of their employees.

13. For the construction industry, there were 9,747 employee compensation cases with sick leave exceeding three days reported in 2001. As at the end of 2002, 9,108 non-fatal cases and 10 fatal cases were settled, with a sum of $341 million payable as compensation to the injured employees or family members of deceased employees. These accidents also resulted in the loss of 454,000 workdays, or about 50 days per worker.

Legislation

14. I shall now turn to the area of safety legislation. I wish to highlight two legislative initiatives that will help to foster closer partnership in managing safety and health risks on construction sites - that is, the proposed amendments to the Construction Sites (Safety) Regulations and the review on adopting the UK's Construction (Design and Management) Regulations approach in Hong Kong.

Amendments to the Construction Sites (Safety) Regulations
15. Safety and health at work in a construction site require the concerted efforts of all parties in the management of the project. While the principal contractor should bear the primary responsibility for the co-ordination of all contractors' activities and all safety matters on site, other contractors and sub-contractors should also have the obligation over safety and observe the law. But as you are fully aware, under the existing provisions, compliance with the Construction Sites (Safety) Regulations is primarily a matter for the principal contractor. This may, in some circumstances, absolve the offending contractors or sub-contractors from their legal responsibilities, and is certainly not conducive to improving construction site safety and health.

16. We have, therefore, introduced into the Legislative Council proposed amendments to the Construction Sites (Safety) Regulations. Our proposal, among other things, seeks to extend the duties imposed on the principal contractor to other contractors and sub-contractors who have direct, and perhaps better, control over safety matters in respect of their work activities. I must, however, stress that the proposed amendments would not in any way diminish the existing responsibility of the principal contractor with regard to safety and health at work on the site.

17. A subcommittee of the Legislative Council has completed its scrutiny of the proposed amendments and has agreed to the legislative changes. We intend to move the Amendment Regulation in the Legislative Council early next month.

UK's Construction (Design and Management) Regulations Approach
18. Construction safety can no doubt be improved if effective management of safety and health risks of a construction project begins at the planning and design stages. The underlying philosophy is that there must be close integration and co-ordination among the client, the design team and the contractor in order to ensure that matters such as adequate construction period, sufficient provision for safety, safer construction methods, etc are properly addressed before the construction phase. These are in fact the principles enshrined in the UK's Construction (Design and Management) Regulations.

19. The Construction Industry Review Committee, in its report published in 2001, recommended that the Government should review the need for introducing legislation similar to the UK's Construction (Design and Management) Regulations. The Environment, Transport and Works Bureau and the Housing Authority are taking the lead to try out this approach in their projects, and we are keeping a close watch on their experience.

Safety Training

Mandatory Induction Safety Training

20. Safety training has featured prominently in recent years. We believe that basic induction safety training for workers helps to enhance safety awareness and reduce accidents. In 1999, we introduced a new piece of legislation requiring mandatory induction safety training for workers in the construction and container handling industries. Only approved training providers are authorised to conduct the training and issue the certificate. The training courses have to be approved by the Labour Department. Upon successful completion of the course, a certificate, commonly known as the "Green Card", will be issued. The certificate will be valid for three years. To revalidate the certificate, the worker has to attend a half-day refresher course every three years.

21. To date, about 600,000 people, mainly construction workers, have taken up such training and obtained the "Green Card" which, in essence, is the passport to employment in construction sites and container yards. Some 180,000 workers have also completed the half-day refresher course and have their "Green Card" revalidated for another three years. Let me tell you that I spent a full Saturday in late 1999 at the Construction Industry Training Authority's Yue Wan Centre in Aberdeen to obtain my "Green Card" when I was Commissioner for Labour then. I remembered rubbing shoulders literally with 20 other construction workers of strong build attending the course. They all gave me a rather curious and unbelievable look initially. But we ended up as friends. After all, we were classmates. To me, it was a most worthwhile and interesting experience. I went through the refresher course in January this year to ensure that my "Green Card" remained valid for three more years and that I would not be debarred from inspecting construction sites! This time, I was wearing my new hat as Permanent Secretary for Economic Development and Labour (Labour).

23. To reinforce the legislative control of this important aspect of work safety, we have extended this certification regime to operation of loadshifting machinery as well as gas welding and flame cutting work, both of which can cause serious work injuries. We introduced the Factories and Industrial Undertakings (Loadshifting Machinery) Regulation in 2000 and the Factories and Industrial Undertakings (Gas Welding and Flame Cutting) Regulation in 2001 to regulate safety training of these operations and work.

24. Partnership clearly played a crucial role in implementing these safety training and certification programmes. Without the support and collaboration of the industry and training providers, these programmes could never have got off the ground.

Safety Promotion

25. Safety promotion is another area in which partnership is a must. To prevent accidents, promotion of safety awareness and programmes for initiating attitude change at the shopfloor are all the more important. Our promotion strategy is to enlist the support and participation of major players and key stakeholders of the industries in our promotional campaigns and publicity drives. By so doing, we can pool our ideas and resources together and better co-ordinate our promotional efforts to maximise their effects.

Occupational Safety Charter

26. In promoting safety and health at the workplace, it is imperative to secure the commitment of both employers and employees. To nurture a positive safety culture in the community, we launched the "Occupational Safety Charter" in September 1996. The Charter helps to unite the Government, employers and employees in the pursuit of a safe working environment by setting out in a clear statement their respective roles, obligations and responsibilities.

27. The Charter highlights safety as a "Shared Responsibility" among employers, employees and the Government. It also provides a safety management framework for employers and employees to work together to improve safety and health at work.

28. The Charter itself is not a legal document, but signing it signifies a commitment by both employers and employees to work together for a safe and healthy workplace. This programme has been successful. So far, 737 companies and organisations have subscribed to the Charter, of which about 45% are from the construction industry.

Construction Industry Safety Award Scheme

29. As I have said earlier, the construction industry is one of the most accident-prone and high-risk trades. To promote safety awareness among contractors, workers and their families, we launched the Construction Industry Safety Award Scheme in the past four years. The scheme has been jointly organised with key stakeholders of the industry, including, of course, the HKCA. Through an open competition, contractors, sub-contractors, safety teams and workers with good safety and health performance are identified and rewarded. These activities have helped to build up a stronger safety culture in these industries. We will continue to run the scheme in the years to come.

Employment of Illegal Workers

30. Before closing, I wish to say a few words on an issue which has caused considerable public concern - the employment of illegal workers. This is a problem posing threats not only to our law and order but also local employment opportunity and occupational safety. Let me stress that the Government is alive to the problem and is fully committed to combating it. On our part, the Labour Department has strengthened co-operation with other enforcement agencies including the Police and the Immigration Department. We have launched a series of joint operations to tackle illegal employment. We will keep up our efforts in this respect.

31. I wish to remind employers that under the existing legislation, employing illegal workers is a criminal offence and is liable, on conviction, to a maximum fine of $350,000 and imprisonment for three years. Those in charge of construction sites will also commit an offence if illegal workers are found working on their sites. The maximum penalty for the offence is a fine of $350,000.

32. The Environment, Transport and Works Bureau also imposes sanctions against contractors of public work projects convicted of offences under the Immigration Ordinance for employing illegal immigrants or for having illegal immigrants on sites under their control. Any contractors convicted of three or more such offences in a rolling 12-month period will face mandatory and automatic suspension from tendering public works for six months. Such convictions include both public and private contracts.

33. I must caution contractors and employers not to defy the law. Illegal workers are more prone to accidents as they are not familiar with local working environments and have not received proper safety training. Contractors and employers must remember that civil claims involving work injuries may cost unnecessary financial losses amounting to millions of dollars.

Concluding Remarks

34. Finally, let me reiterate the importance of partnership in promoting construction safety. I am glad to see that our collective efforts are paying handsome dividends. There are now concrete signs that the safety performance of our construction industry is improving. But we must not be complacent. We must continue to work together to further enhance the safety standards of our construction sites. If Hong Kong is to live up to its reputation as Asia's world city, we must all join hands in keeping our construction accident toll further down. We must ensure that our construction sites are safe workplaces, not death traps, minefields or battlefields.

35. In the final analysis, ladies and gentlemen, let us remember the saying that "united we stand, divided we fall". Thank you.