Annual Report 2008

In Hong Kong, employer and employee relations are largely premised on the freely negotiated terms and conditions of employment entered into between the two parties. Employers and employees in Hong Kong are free to form trade unions and participate in union activities. 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 people management practices;
• providing voluntary conciliation service to help employers and employees resolve their employment claims and disputes;
• promoting understanding of labour laws and encouraging good people 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.

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

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 for settling labour disputes in the non-government sector are provided for in the LRO. The MECABO 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.

Some key indicators of work of the Labour Relations Programme Area are contained in Figure 3.1.

Our consultation and conciliation services have contributed to the maintenance of industrial peace. In 2008, we handled 83 897 in-person consultations, 120 labour disputes and 20 623 claims. The number of labour disputes and claims handled in 2008 was down by 5 per cent compared with the figure of 21 822 cases in 2007. It was the lowest since 1998. Altogether 72.7 per cent of the cases handled in 2008 were resolved amicably through conciliation, the highest settlement rate since 1994. Four strikes were recorded in 2008. As a result, the number of working days lost per thousand salaried employees and wage earners was 0.46, among the lowest in the world. (Figure 3.2-3.7)

In 2008, the Labour Department maintained its proactive strategy to tackle the problem of non-payment of wages at source. In addition to enhancing publicity and promotion, and stepping up enforcement and prosecution, we made use of the early warning system set up in collaboration with trade unions to gather intelligence on non-payment of wages. The exercise codenamed Operation COMBAT continued to proactively forestall problematic restaurants from evading their liabilities to pay wages and achieved notable results.

To promote tripartite collaboration at the industry level with a view to fostering harmonious labour relations, nine industry-based tripartite committees have been set up in the catering, construction, theatre, logistics, property management, printing, hotel and tourism, cement and concrete as well as retail industries. These tripartite committees provide useful forums for representatives of employers, employees and the Government to discuss issues of common concern in the industries. In the year, posters, leaflets and souvenirs were produced in collaboration with the tripartite committees to promote good people management practices among practitioners in the industries.

To promote better public understanding of the EO and good people management practices, we organised various promotional activities such as seminars, talks and roving exhibitions for employers, employees, human resources professionals and members of the public. A wide range of publications were produced for free distribution to the public. Relevant information is also disseminated through the department's website and the media.

We organised experience-sharing sessions and briefings for human resources practitioners through our network of 18 Human Resources Managers' Clubs.

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.

In 2008, the board recorded 2 022 claims amounting to $8,167,494 and concluded 2 044 claims with a total award of $4,642,915.

The Registry of Trade Unions is responsible for the promotion of sound and responsible trade union administration, and is entrusted with the 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.

In 2008, 28 new trade unions were registered, making up a cumulative total of four registered trade union federations and 796 registered trade unions (comprising 752 employee unions, 19 employer unions and 25 mixed organisations of employees and employers). Please refer to the following webpage for the key trade union statistics: www.labour.gov.hk/eng/labour/content3.htm

In the year, the Registry of Trade Unions examined 668 statements of account and conducted 373 inspection visits to trade unions to ensure that their administration and financial management were in compliance with the TUO. To facilitate trade union officers in acquiring knowledge of union law and management, the Registry organised five courses on trade union bookkeeping, auditing and provisions of the TUO.