Chapter 1 Highlights of Year 2017

1.1

In 2017, the labour market remained in full employment and tightened on the back of a vibrant local economy. Both the unemployment and underemployment rates went lower progressively over the course of 2017, averaging at post-1997 lows of 3.1% and 1.1% respectively for the year as a whole. Both total employment and the labour force expanded notably, with the former reaching 3 833 100 in 2017. We will continue to closely monitor the labour market situation and enhance our employment services on all fronts, especially in netting suitable vacancies from the market and rendering assistance to job seekers.

Employment Services

Enhancing Employment Services

1.2

To help job seekers enter the labour market and respond speedily to the recruitment needs of employers, the Labour Department (LD) organises employment promotion activities at various locations across the territory. A total of 18 large-scale job fairs and 946 district-based job fairs were organised in the year.

Large-scale job fair organised for job seekers

1.3

LD adopts a proactive approach in providing employment assistance. For example, in major business closure or redundancy cases, we set up enquiry hotlines and special counters at our job centres to provide special employment services to affected employees. In the year, the free recruitment service provided for employers by LD recorded 1 422 380 vacancies from the private and public sectors; and 154 222 placements were secured.

1.4

Since May 2017, we have engaged two Employment Assistants proficient in ethnic minority languages at two selected job centres on a pilot basis to strengthen employment support for ethnic minority job seekers, especially those of South Asian origins.

Strengthening Employment and Training Support for Our Youths

1.5

LD spared no efforts in enhancing the employability of young people through the provision of comprehensive youth employment and training support services by administering the Youth Employment and Training Programme (YETP) and operating two youth employment resource centres. In 2017, LD regularised and enhanced the employment project “Action S5” by implementing a new project named “Career Kick-start” to offer on-the-job training of 12 months’ duration to young people with acute employment difficulties through placements in non-governmental organisations. Moreover, we increased the attachment allowance and training allowance payable to YETP trainees with effect from September 2017 so as to encourage young persons to participate in workplace attachment training and pre-employment training under YETP. We also continued to collaborate with training bodies, individual employers or specific sectors to launch special employment projects, providing tailor-made pre-employment training and on-the-job training for young people.

Broadening Horizons of our Youths

1.6

LD continued to explore with more economies to establish new Working Holiday Scheme (WHS) arrangements while at the same time sought to expand our existing bilateral arrangements. We agreed with France to increase the reciprocal annual quota under WHS from 500 to 750 starting from July 2017. In June 2017, a new WHS was established with Sweden for commencement in January 2018.

Labour Relations

Promoting Harmonious Labour Relations

1.7

To foster harmonious labour relations, LD continued to adopt a proactive and pragmatic approach in helping employers and employees resolve their disagreements through communication, mutual understanding and flexible adjustments. In 2017, we handled a total of 57 labour disputes and 14 666 claims. Over 70% of cases with conciliation service rendered were resolved. The average waiting time for conciliation meetings was 2.5 weeks in the year. Besides, the number of working days lost in Hong Kong as a result of strike remained among the lowest in the world.

Stepping up Enforcement against Wage Offences

1.8

In 2017, LD sustained its all-out efforts to combat wage offences, including breaches of the Statutory Minimum Wage provisions. Territory-wide inspection campaigns targeted at offence-prone trades were launched. Apart from proactive inspections to check compliance, we widely publicised our complaint hotline (2815 2200) and collected intelligence on non-payment of wages in various industries through an early warning system in collaboration with trade unions. We conducted prompt investigation into suspected wage offences and employed veteran ex-police officers to strengthen the investigative work and collection of evidence so as to facilitate speedy prosecution.

1.9

We continued to step up the prosecution against employers and responsible individuals 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.

1.10

Since the implementation of the Employment (Amendment) Ordinance 2010 from October 2010, employers who wilfully and without reasonable excuse defaulted awards for wages or some other entitlements made by the Labour Tribunal or the Minor Employment Claims Adjudication Board have become liable to criminal prosecution. This has further strengthened the deterrent against law-defying employers.

Enhancing Good Human Resource Management Practices and Harmonious Labour Relations

1.11

LD organised a wide range of promotional activities including exhibitions, seminars and talks to promote public understanding of labour laws and publicise “employee-oriented” good human resource management measures. In 2017, a series of seminars were staged for around 260 human resources managers and corporate executives to promote effective communication between employers and employees or employees’ organisations. A newspaper supplement and a casebook were also launched to convey relevant messages to the general public. Promotional activities were organised in collaboration with industry-based tripartite committees to encourage wider adoption of good human resource management methods, including the implementation of family-friendly employment practices in different industries.

Employees' Rights and Benefits

Statutory Minimum Wage (SMW)

1.12

The increased SMW rate at $34.5 per hour effective from 1 May 2017 was implemented smoothly. Our employment market remained stable while the income of grassroots employees continued to improve. In the year, LD organised extensive publicity activities to promote the revised SMW rate and the Minimum Wage Ordinance (MWO). To safeguard employees’ entitlement to SMW, we also conducted proactive workplace inspections of establishments in various trades and mounted targeted enforcement campaigns in low-paying sectors.

1.13

The Minimum Wage Commission (MWC) is an independent statutory body established under MWO with the main function of reporting to the Chief Executive in Council its recommendation about the SMW rate at least once in every two years. MWC comprises a Chairperson and 12 Members drawn from the labour sector, business community, academia and Government. The current two-year term of MWC commenced on 1 March 2017.

Safeguarding the Rights of Employees of Government Service Contractors

1.14

To protect the employment rights and benefits of non-skilled workers employed by government service contractors, we conduct inspections of their workplaces to check employers’ compliance with statutory and contractual requirements. With the concerted efforts of LD and procuring departments in stepping up monitoring and enforcement, the situation of contractors abiding by the labour laws had improved.

Protection of Wages on Insolvency Fund

1.15

The Protection of Wages on Insolvency Fund provides assistance in the form of ex gratia payment to eligible employees affected by insolvency of their employers. LD continued its efforts in clamping down at source on employers evading their wage liabilities, thus preventing wage defaults from developing into claims on the fund.

Vigorous Enforcement against Illegal Employment

1.16

LD collaborated with the Police and the Immigration Department to combat illegal employment activities. A total of 220 joint operations were mounted in the year.

Working Hours Policy

1.17

The Standard Working Hours Committee submitted a report with its recommendations on the working hours policy direction to the Government in January 2017. The Government reviewed and followed up on the recommendations, taking into account the views of the community. LD has started formulating sector-specific guidelines through industry-based tripartite committees to provide guidance to the designated industries on working hours arrangements, overtime compensation methods and good working hours management measures.

Safety and Health at Work

Safety of Major Works Projects (MWPs)

1.18

In light of the commencement of MWPs, LD’s dedicated teams continued to urge contractors to implement safety management systems on construction sites for the prevention of accidents through stepping up inspection and enforcement, publicity and promotion, as well as participating in the project preparatory meetings and site safety management meetings. LD strengthened the coordination with the Development Bureau, relevant works departments and other public works project clients to enhance MWP site safety measures, with a view to ensuring more effective control of risks by contractors. LD also launched enforcement operations with the Marine Department on sea-based construction works to deter work practices contravening safety requirements.

Safety of Hand-dug Tunnelling Works

1.19

With a view to enhancing the occupational safety and health (OSH) of hand-dug tunnelling works, LD issued “Guidance Notes on Safety and Health of Hand-dug Tunnelling Work” by the end of December 2017. The set of guidelines particularly highlights that hand-dug tunnelling method should only be adopted under exceptional circumstances, and specifically requires relevant duty holders to adopt more stringent safety measures.

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

1.20

There has been a rising trend in industrial accidents related to RMAA works in recent years and the volume of such works are expected to grow further with the ageing of our buildings and the implementation of mandatory requirements for inspection of buildings and windows by the Government.

1.21

To enhance the safety condition of RMAA works, LD continued to step up inspection and enforcement efforts to deter contractors from adopting unsafe work practices. Territory-wide special enforcement operations on RMAA works with emphasis on high risk processes, such as work-at-height; truss-out scaffolding works; lifting operations; lift installation, repair and maintenance works; electrical work, etc. were also launched. During the special operations, 471 suspension/improvement notices were issued and 292 prosecutions were taken out.

1.22

On the educational and promotional front, we organised a series of intensive promotion and publicity campaigns, targeting RMAA works, work-at-height and electrical work to arouse the safety awareness of all parties involved. These included continuing the two-year publicity campaign which was launched in 2016 in collaboration with the Occupational Safety and Health Council (OSHC) with a wide range of initiatives seeking to reach contractors and workers engaged in RMAA works more effectively and impress upon them the importance of work safety. We also partnered with District Councils/District Offices and the property management sector to organise publicity and promotional activities to promulgate work safety at the district level. In 2017, we in collaboration with OSHC produced a safety promotional video on “Safety Helmet with Chin Strap” for broadcast on the website of LD and OSHC, the Housing Channel of Housing Authority, district job centres and Social Welfare Department offices.

1.23

In 2017, we organised in collaboration with OSHC a series of safety seminars including RMAA works and work-at-height to engage industry stakeholders in exploring means to further enhance the construction safety standard.

1.24

LD and OSHC continued with the Occupational Safety and Health Enterprise Scheme on RMAA Safety Accreditation in 2017. It enhanced the OSH standard of the industry through auditing the safety management system, training and subsidising purchase of fall arresting equipment and related facilities.

1.25

In 2017, LD in collaboration with OSHC launched a new “Safety Helmets with Y-type Chin Straps Sponsorship Scheme for SMEs” and “Enhanced Light-duty Working Platform Sponsorship Scheme for SMEs” to subsidise Small and Medium Enterprises (SMEs) of the construction industry to purchase safety helmets with Y-type chin straps and light-duty working platforms which conform to safety standards to further enhance the protection for workers engaged in works above ground.

Safety Award Schemes

1.26

Two safety award schemes were organised for the catering and construction industries to inculcate a work safety culture and to enhance the safety awareness of employers, employees and their families. The schemes featured a variety of activities which included organising safety performance competitions, roving exhibitions, safety quizzes and award presentation ceremonies cum fun days; conducting site visits; producing radio programmes and DVD-ROMs; as well as broadcasting Announcements in the Public Interest and promotional films on television/radio and buses.

Occupational Safety Enhancement Campaign “Construction Industry: Safety First”

1.27

In 2017, LD organised the Occupational Safety Enhancement Campaign “Construction Industry: Safety First”. The Campaign received strong support and active participation from major stakeholders of the construction industry including representatives from developers, contractors, sub-contractors, workers and safety professional bodies. More than 40 activities/initiatives were rolled out in the themes of safe working practices, use of safety equipment, enhancing safety training and promotion, etc. under the Campaign. The Campaign was concluded in end of 2017.

Complaint Channel

1.28

In 2017, LD produced an OSH poster/notice featuring LD’s complaint hotline in Chinese, English and six other languages of ethnic minorities, viz. Hindi, Indonesian, Nepali, Tagalog, Thai and Urdu, to strengthen the promotion of current complaint channel to construction workers in order to improve the safety condition at work.

Review of the System of Recognition and Monitoring of Mandatory Safety Training Courses

1.29

LD continued the improvement measures to enhance the system of recognition and monitoring of mandatory safety training courses, including our enhanced inspections to training course providers.

Strengthening Local and International Partnerships

Labour Day Reception

1.30

On 28 April 2017, the Secretary for Labour and Welfare, Stephen Sui Wai Keung, hosted a reception at the Hong Kong Convention and Exhibition Centre to pay tribute to the workforce. The Chief Executive, C Y Leung, officiated at the reception, with guests from trade unions, employer associations and other organisations attending.

Chief Executive, C Y Leung (middle), officiating at the Labour Day Reception

Contacts with Other Labour Administrations

1.31

LD maintained active liaison and interflows with other labour administrations through visits and participation in various activities in 2017.

1.32

In March, Ms Tomoko Nishimoto, Regional Director of the International Labour Organisation Regional Office for Asia and the Pacific, was invited by the Government to visit Hong Kong. She met with the Secretary for Labour and Welfare, the Commissioner for Labour and other officials of LD, and shared with the Labour Advisory Board the latest development of international labour affairs.

1.33

In June, a tripartite team comprising the Government, employer and employee representatives attended the 106th Session of the International Labour Conference in Geneva, Switzerland as part of the delegation of the People’s Republic of China.

Tripartite team attending the 106th Session of the International Labour Conference in Geneva, Switzerland