Annual Report 2008

Chapter 1
Highlights of the Year 2008

1.1

Local employment market held up well in the first half of 2008 when the economy still expanded at an above-trend pace. Yet the rapid deterioration in the business situation shortly following the abrupt escalation of the financial crisis led to a rise in the unemployment rate to 4.1% at the end of 2008 from the 10-year low of 3.2% at mid-2008. We will closely monitor the employment situation and continue to enhance our employment services on all fronts, especially in netting suitable vacancies from the market, to assist job-seekers. In the year, we had adopted new measures to better help the less competitive secure work. After reviewing the effectiveness of the Transport Support Scheme, we implemented a range of relaxation measures to encourage the unemployed and low-income employees living in four designated remote districts to look for jobs and stay in employment.

Secretary for Labour and Welfare Matthew CHEUNG Kin-chung officiates at a job fair co-organised by the Labour Department and the Hong Kong Federation of Restaurants and Related Trades in Tin Shui Wai.

Employment Services

Enhanced Employment Services

1.2

Upholding a proactive, innovative, flexible and cost-effective approach to further strengthening our employment services to help the unemployed re-enter the labour market and meet the recruitment needs of employers, we held 10 large-scale job fairs and 197 mini job fairs in the year to assist job-seekers in finding jobs and employers in recruiting staff. In major business closure or redundancy cases, we set up enquiry hotlines and special counters at our Job Centres to provide priority job referral and job matching services to the affected employees. 146308 placements were secured through the Labour Department in 2008. The number of vacancies obtained from the private and public sectors was 677650.

Secretary for Labour and Welfare Matthew CHEUNG Kin-chung officiates at a job fair co-organised by the Labour Department and the Hong Kong Retail Management Association in Tin Shui Wai.

Helping the Low-income Group

1.3

To enhance the support to those needy unemployed and low-income earners, the Government reviewed the effectiveness of the Transport Support Scheme and implemented a range of relaxation measures in July, including relaxing the income threshold to $6,500 and extending the subsidy period to 12 months. Eligible persons living and working in the same designated remote district could also apply under the scheme. Under the relaxed scheme, eligible applicants are entitled to have time-limited transport allowances, viz. Job Search Allowance of up to $600 and On-the-job Transport Allowance of $600 per month for up to 12 months.

Strengthening Employment and Training Support for the Youth

1.4

The Labour Department is determined to promote youth employment. In the year, we had adopted various measures to promote the employability of the young people.

1.5

To strengthen employment support for youths receiving outreaching services, the Youth Pre-employment Training Programme launched in the 2008/09 Programme a special training project codenamed "Targeted Career Training Mission" in collaboration with non-governmental organisations operating youth outreaching services. The project provides participating youths with flexible and tailor-made training in terms of training duration, course timetable and class size.

1.6

In March, we set up the second Youth Employment Resource Centre named Youth Employment Start (YES) to provide one-stop career advisory, employment and self-employment support services to young people aged 15 to 29. The YES provides facilities to enhance young people's employability, facilitate them to access the latest labour market information and help them secure a firm footing in the labour market for sustainable development.

Secretary for Labour and Welfare Matthew CHEUNG Kin-chung (middle, front row), Permanent Secretary for Labour and Welfare Mr. Paul TANG Kwok-wai (second from left, front row), and Commissioner for Labour Mrs. Cherry TSE LING Kit-ching (second from right, front row) officiates at the opening ceremony of the new Youth Employment Start.

Labour Relations

Record High Settlement Rate

1.7

The number of working days lost as a result of labour disputes in Hong Kong remains among the lowest in the world. Of the 120 labour disputes and 20623 claims handled in the year, 72.7 per cent were resolved by our conciliation efforts, a record high since 1994. The waiting time for conciliation meetings remained at a low level of 2.5 weeks in the year.

Stepping Up Enforcement Against Wage Offences

1.8

In 2008, the Labour Department sustained its all-out efforts to combat wage offences. Territory-wide inspection campaigns targeted at offence-prone trades were launched. We collected intelligence on non-payment of wages in various industries through an early warning system in collaboration with trade unions to step up enforcement against wage offences. The department conducted in-depth investigation into suspected wage offences and employed veteran police officers to strengthen the investigative work and collection of intelligence to facilitate speedy prosecution.

We continued to step up prosecution against employers and responsible persons of companies for wage offences. We also strengthened our educational and promotional efforts to remind employers of their statutory obligation to pay wages on time and to encourage employees to lodge claims promptly and come forward as prosecution witnesses.

With rigorous enforcement, a total of 958 convicted summonses on wage offences were secured in 2008, a figure comparable with the 960 convictions in 2007. Three company directors and responsible persons and one employer were given custodial sentences for wage defaults. In addition, one company director and two employers were imposed community service orders due to wage offences. An employer was fined $110,000 for committing wage offences.

Enhancing Good People Management Practices and Harmonious Labour Relations

1.9

To encourage the adoption of good people management practices in the workplace, we organised a wide range of promotional activities such as seminars, talks and exhibitions. In order to assist employees in maintaining a balance between work and family responsibilities, the department has been actively promoting family-friendly employment practices. Between July and November, 20 newspaper supplements with real-life examples on the implementation of family-friendly employment practices and other good people management measures were published weekly to encourage wider adoption of family-friendly measures at the workplace.

Employee Rights and Benefits

Vigorous Enforcement against Illegal Employment

1.10

The Labour Department collaborated with the Police and the Immigration Department to clamp down on illegal employment activities. 186 joint operations were mounted in the year. We also widely publicised the complaint hotline (2815 2200) to encourage the public to report illegal employment activities.

Wage Protection Movement for Cleaning Workers and Security Guards (WPM) and
Statutory Minimum Wage (SMW)

1.11

In October 2006, the Government joined hands with the business community and the labour sector to launch the WPM to protect the wage level of cleaning workers and security guards through voluntary and non-legislative means.

In October 2008, the Government conducted an overall review of the WPM. Despite increases in both the number and proportion of workers benefiting from the WPM, only slightly more than half (52%) of the relevant workers benefited from the WPM. Their wage increases were only slightly higher than that of other low-skilled workers. The situation, on the whole, was unsatisfactory. Hence, the Chief Executive announced in his Policy Address 2008-09 that the Government would introduce legislation for SMW.

Following thorough consideration of the views of the business community and the labour sector on the relative merits of a SMW regime confined to the cleaning workers and security guards, and an across-the-board regime, the Government decided in favour of the latter since cleaning workers and security guards were not the only low-paid jobs and there is considerable worker mobility among different types of low-paid jobs. We aim to introduce the Minimum Wage Bill into the LegCo in the 2008-09 legislative session.

Safeguarding the Rights of Employees of Government Service Contractors

1.12

We conducted vigorous inspections to workplaces of non-skilled workers employed by government service contractors in order to protect their statutory rights and benefits under labour laws. In the year, 688 inspections were conducted. We took out prosecution against contractors whenever there was sufficient evidence of breach of the labour laws. Four contractors were convicted in the year. Under the concerted effort of the Labour Department and procuring departments in stepping up monitoring and enforcement, the situation of contractors contravening the labour laws has greatly improved.

Protection of Wages on Insolvency Fund Continued to Record a Surplus

1.13

The Labour Department continued its all-out efforts in clamping down at source on employers evading their wage liabilities, thus preventing wage defaults from developing into claims on the Protection of Wages on Insolvency Fund. However, as a result of the economic downturn, the number of applications for the fund increased from 4836 in 2007 to 6448 in 2008. The fund registered a surplus of $371 million for 2008, the fifth year that the fund recorded a surplus since the Asian financial crisis in 1997.

Safety and Health at Work

Safety of Tower Cranes, Site Vehicles and Mobile Plant

1.14

To tie in with the "Guidelines on Safety of Tower Cranes" and the "Guidelines on safety of Site Vehicles and Mobile Plant" issued by the Construction Industry Council in June, the Labour Department launched territory-wide safety campaigns in the year to urge duty-holders in the industry to comply with relevant safety legislation. In these special enforcement exercises, 43 prosecutions were initiated and 52 improvement notices were issued.

Safety of Repair, Maintenance, Alteration and Addition (RMAA) Works

1.15

There has been a rising trend in industrial accidents related to RMAA works in recent years. With the introduction of the Mandatory Building Inspection Scheme, the Mandatory Window Inspection Scheme, the special operation to remove abandoned signboards and various sponsorship schemes for maintenance of dilapidated buildings by the Administration, the number of RMAA works is expected to increase.

To enhance the safety performance of RMAA works, the Labour Department continued to intensify enforcement actions to deter unsafe acts by further stepping up point-to-point inspections on normal working days, at night and during holidays. Territory-wide blitz campaigns on RMAA works with emphasis on work-at-height and use of electricity were also launched. In these special exercises, 65 suspension/improvement notices were issued and 44 prosecutions were taken out.

Occupational Safety and Health Seminar on Work-at-height, Minor Repair, Maintenance, Alteration and Addition Works.

On the educational and promotional front, we organised in 2008 a series of intensive promotion and publicity campaigns, targeting work-at-height and RMAA works to arouse the safety awareness of all parties involved, including launching in November a two-year publicity campaign to appeal to workers' concern about safety at work and the well-being of their families.

We also jointly launched with the Occupational Safety and Health Council (OSHC) a sponsorship scheme for small and medium-sized enterprises (SMEs) to assist contractors and employers in need to purchase suitable fall protection equipment to improve the safety standard of work-at-height.

Safety Award Schemes

1.16

Two safety award schemes were organised for the catering and construction industries in the year 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 safety performance competitions, roving exhibitions, site visits, radio programmes, CD-ROMs, safety quizzes, broadcast of "Announcements in the Public Interest" and promotional films on television/radio and "RoadShow" as well as award presentation ceremonies cum fun days.

Strengthening Local and International Partnerships

Labour Day Reception

1.17

On April 25, 2008, Secretary for Labour and Welfare Mr. Matthew CHEUNG Kin-chung hosted a cocktail reception at the Hong Kong Convention and Exhibition Centre to celebrate Labour Day and to pay tribute to the workforce. The Acting Chief Executive Mr. Henry Tang officiated at the reception, with guests from trade unions, employer associations and other organisations.

Toasting by Acting Chief Executive Henry TANG and senior government officials during Labour Day Reception.

Contacts with Other Labour Administrations

1.18

We maintain active liaison and interflows with other labour administrations through visits and participation in relevant activities.

1.19

In January, Commissioner for Labour Mrs. Cherry TSE LING Kit-ching led a delegation to visit the Macao Special Administrative Region. During the visit, members of the delegation exchanged views with officials of the Macao Labour Affairs Bureau on matters related to labour administration and work safety of the construction industry, laying the foundation for cooperation between the two regions.

Commissioner for Labour Mrs. Cherry TSE LING Kit-ching (third from right) and members of the delegation meet Secretary for Economy and Finance of Macao Special Administrative Region TAM Pak-yuen (third from left) and Director of Macao Labour Affairs Bureau SHUEN Ka-hung (second from left) in Macao SAR.

1.20

In June, Deputy Commissioner for Labour (Labour Administration) Mrs. Jenny CHAN MAK Kit-ling led a tripartite team comprising government, employer and employee representatives to attend the 97th Session of the International Labour Conference in Geneva as part of the Chinese delegation.

Deputy Commissioner for Labour (Labour Administration) Mrs. Jenny CHAN MAK Kit-ling (fifth from left), and members of the tripartite team at the 97th Session of the International Labour Conference in Geneva, Switzerland.

1.21

In November, Commissioner for Labour Mrs. Cherry TSE LING Kit-ching led a delegation to participate and delivered a speech in the 4th China International Forum on Work Safety in Beijing. The event was co-organised by the State Administration of Work Safety and the International Labour Organisation. The delegation visited the Ministry of Human Resources and Social Security and met with Minister TIAN Chengping. The delegation also visited the Hong Kong and Macao Affairs Office of the State Council and the Beijing Administration of Work Safety.

Commissioner for Labour Mrs. Cherry TSE LING Kit-ching (left) greets Vice Premier ZHANG Dejiang of the State Council (middle) and Vice Minister ZHAO Teichui of the State Administration of Work Safety (right) in Beijing.

1.22

In the same month, Vice Mayor GOU Zhongwen of the People's Government of Beijing Municipality and Director-General ZHANG Jiaming of the Beijing Administration of Work Safety each led a delegation to visit the Hong Kong Special Administrative Region (HKSAR). The delegations met with the Commissioner for Labour and exchanged views with officers of the Labour Department on occupational safety issues in Hong Kong. The delegation of the Beijing Administration of Work Safety also visited various local organisations to keep abreast of the latest development of work safety in Hong Kong.

Permanent Secretary for Labour and Welfare Paul TANG Kwok-wai (third from right), Commissioner for Labour Mrs. Cherry TSE LING Kit-ching (fifth from left) with the delegation led by Vice Mayor GOU Zhongwen (fourth from right) of the People's Government of Beijing Municipality.

Commissioner for Labour Mrs. Cherry TSE LING Kit-ching meets the delegation of the Beijing Administration of Work Safety.

Ms. SONG Juan, Director-General, Department of Conciliation and Arbitration Management, Ministry of Human Resources and Social Security of the State Council, also led a delegation to visit the HKSAR under the Reciprocal Visit Programme in the month. The delegation met with the Commissioner for Labour and exchanged views with officers of the Labour Department on various labour issues.

Commissioner for Labour Mrs. Cherry TSE LING Kit-ching (right) welcomes Director General SONG Juan of the Ministry of Labour and Social Security (left).