Chapter 1 Highlights of Year 2019

1.1

The labour market was increasingly under pressure during 2019, especially in the second half when economic conditions deteriorated abruptly. The seasonally adjusted unemployment rate went up from a low of 2.8% in the second quarter of 2019 to 3.3% in the fourth quarter. The underemployment rate edged up to 1.2% in the fourth quarter, after staying at a low of 1.0% in the previous three quarters. For 2019 as a whole, the unemployment rate was 2.9%, up 0.1 percentage point from 2018, while the underemployment rate was 1.1%, the same as in the preceding year. 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 Employment and Recruitment 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 960 district-based job fairs were organised in the year.

Large-scale job fairs of the Labour Department well received by job seekers

1.3

The 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 the LD recorded 1 291 502 vacancies from the private and public sectors; and 111 568 placements were secured.

Broadening Horizons of our Youths

1.4

The LD continued to expand the Working Holiday Scheme (WHS) network. In July 2019, a new WHS was established between Hong Kong and Italy (commencement date to be confirmed).

Labour Relations Promoting Harmonious Labour Relations

1.5

To foster harmonious labour relations, the LD continued to adopt a proactive and pragmatic approach in helping employers and employees resolve their disagreements through communication and mutual understanding. In 2019, we handled a total of 76 labour disputes and 13 755 claims. Over 70% of cases with conciliation service rendered were resolved. The average waiting time for conciliation meetings was 2.4 weeks in the year.

Stepping up Enforcement against Wage Offences

1.6

In 2019, the 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 by labour inspectors. 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 so as to facilitate speedy prosecution.

1.7

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.

Enhancing Good Human Resource Management Practices and Harmonious Labour Relations

1.8

The LD organised a wide range of promotional activities including exhibitions, seminars and talks to promote public understanding of labour laws and publicise employee-oriented and good human resource management measures. In 2019, a series of seminars were conducted for human resources managers and corporate executives, including the promotion of effective workplace communication. We also launched the Good Employer Charter 2020 in November to further encourage more employers in different industries to adopt good human resource management, including the implementation of family-friendly employment practices in the workplace.

Roving exhibitions promoting public understanding of labour laws and publicising employee-oriented and good human resource management measures

Employees’ Rights and Benefits

Statutory Minimum Wage (SMW)

1.9

The SMW was uprated to $37.5 per hour effective from 1 May 2019. In the year, the LD organised territory-wide publicity activities to promote the revised SMW rate and the Minimum Wage Ordinance (MWO). To safeguard employees’ entitlement to the SMW, we also conducted proactive workplace inspections of various establishments and mounted targeted enforcement campaigns for low-paying sectors. Overall, the implementation of the SMW was smooth and the earnings of low-income employees continued to improve.

1.10

The Minimum Wage Commission (MWC) is an independent statutory body established under the 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. The MWC comprises a Chairperson and 12 Members drawn from the labour sector, business community, academia and the Government. The current two-year term of the MWC commenced on 1 March 2019.

Safeguarding the Rights of Employees of Government Service Contractors

1.11

The Government has introduced new improvement measures since April 2019 to enhance the protection of non-skilled employees engaged by government service contractors, such as increasing the technical weighting (including the marks assigned to wage level) in the marking schemes for tender evaluation, and requiring the contractors to pay contractual gratuity to the employees. The LD continued to step up inspections of workplaces to check government service contractors’ compliance with statutory requirements and the relevant improvement measures.

Protection of Wages on Insolvency Fund

1.12

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. The 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

1.13

The LD collaborated with the Police and the Immigration Department to combat illegal employment activities. A total of 81 joint operations were mounted in the year.

Working Hours Policy

1.14

In 2019, the LD continued to engage its 11 industry-based tripartite committees (including nine existing committees and two committees being set up specifically to discuss working hours arrangements of the cleaning services and elderly homes industries) to formulate for these sectors working hours guidelines with suggested sector-specific working hours arrangements, overtime compensation arrangements and good working hours management measures for reference and adoption by employers and their employees.

Safety and Health at Work Safety of Major Public Works Projects (PWPs)

1.15

In light of the commencement of major PWPs (including major infrastructure projects), the LD established dedicated teams to monitor the safety performance of their workplaces. Besides, we continued to urge contractors to enhance construction site safety through stepping up inspection and enforcement, as well as promotion and education. These included conducting in-depth surprise inspections of the major PWP sites with high risk processes or poor safety performance to scrutinise the safe system of work and safety management system of duty holders. We also stepped up participation in site safety management committee meetings of major PWPs to keep close tabs on the projects’ occupational safety and health (OSH) conditions and risks, with a view to devising more focused inspection strategies accordingly. During the meetings, we gave advice on work processes of higher risk and urged the contractors and relevant duty holders to conduct risk assessments, devise safe working procedures and adopt adequate safety measures with respect to these processes as early as possible. We also strengthened the coordination with the Development Bureau, works departments and other public works project clients to enhance the site safety measures of major PWPs, with a view to ensuring more effective control of risks by contractors. We also launched enforcement operations with the Marine Department on sea-based construction works to deter work practices from contravening safety requirements.

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

1.16

The volume of RMAA works is expected to grow further with the continuous ageing of buildings in Hong Kong and the implementation of mandatory requirements for inspection of buildings and windows by the Government.

1.17

In light of serious accidents that happened from time to time in the RMAA works in recent years, the LD continued to step up inspection and enforcement efforts to deter contractors from adopting unsafe work practices, so as to enhance the occupational safety condition of the RMAA works. Territory-wide special enforcement operations on the RMAA works with emphasis on high risk processes, such as work-at-height, truss-out scaffolding works, lifting operations and electrical work were also launched. During the special operations, 646 suspension/improvement notices were issued and 344 prosecutions were taken out.

1.18

On the fronts of education and promotion, we organised a series of intensive promotion and publicity campaigns, targeting the RMAA works, as well as the related 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 2018 in collaboration with the Occupational Safety and Health Council (OSHC) with a wide range of initiatives seeking to reach contractors and workers engaged in the RMAA works more effectively and to impress upon them the importance of work safety. We also partnered with the Home Affairs Department and the property management sector to organise publicity and promotional activities to promulgate work safety at the district level.

1.19

In 2019, the LD organised in collaboration with the OSHC a series of safety seminars concerning the RMAA works and work-at-height to engage industry stakeholders in exploring means to further enhance construction safety.

1.20

To encourage the contractors of the RMAA industry to use suitable working platforms for work-above-ground, the LD in collaboration with the OSHC and the Hong Kong Association of Property Management Companies actively deepened the “Pilot Partnership Scheme on Promotion of Light-duty Working Platforms by Property Management Companies” launched in January 2018 to encourage contractors and workers conducting repair and maintenance works in relevant properties to use suitable step platforms and hop-up platforms (light-duty working platforms).

Safety Award Schemes

1.21

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 and producing radio programmes, as well as broadcasting Announcements in the Public Interest (APIs) and promotional films on television/radio and public transport.

Encouraging and Facilitating OSH Complaints

1.22

In order to facilitate employees and members of the public to lodge complaints against OSH malpractices more conveniently, the LD launched a new online OSH platform in March 2019 to facilitate complainants to lodge complaints by using online forms accessible to mobile electronic devices such as smart phones, tablets and laptops to report unsafe working conditions and environments at workplaces. Upon receiving the complaints, the LD will, having regard to the nature and content, conduct investigations and follow-up actions as soon as possible with a view to preventing occurrence of accidents. We have also produced a set of new TV and Radio APIs for publicising the new platform.

1.23

Besides, the LD produced and widely distributed a new OSH poster with messages in Chinese, English and six languages of diverse race (Indonesian, Hindi, Nepali, Tagalog, Thai and Urdu) and a handy plastic card holder printed with details of the complaint channels in 2019 to step up their promotion to facilitate workers of diverse race to lodge complaints.

“Work Safety Alert” Animation

1.24

The LD continued to produce “Work Safety Alert” in the form of animation videos to enable the industry to better comprehend how some accidents happened and the necessary preventive measures to be taken to prevent recurrence of such accidents. Eight animation videos were produced, and uploaded to the LD’s website and disseminated through various channels in 2019.

Continuous Refinement of Mandatory Safety Training (MST) Courses

1.25

The LD continued to refine the content of different MST courses. In 2019, we launched the revamped “Safety Training Courses of Confined Spaces Operation” to enhance workers’ knowledge of common risks in confined spaces operation. We also continued to conduct different modes of inspections to enhance the monitoring of training course providers.

Reducing Health Risks Associated with Standing at Work

1.26

In December 2018, the LD issued a new guideline providing practical preventive measures on reducing health risks associated with standing at work and recommendations on service counter design in light of the fact that many employees in the retail, catering, security and other service industries often stand at work. In 2019, the LD widely publicised the guideline and strengthened enforcement work.

Pilot Rehabilitation Programme for Employees Injured at Work

1.27

The Chief Executive announced in the 2019 Policy Address that the LD would introduce a three-year pilot rehabilitation programme for employees injured at work (Pilot Programme) targeting construction industry employees injured at work, and commission the OSHC to take charge of this programme. In 2019, the LD consulted relevant stakeholders on the design and proposed mechanics of the Pilot Programme, and undertook relevant preparatory work, with the aim of launching the Pilot Programme in 2022.

Strengthening Local and International Partnerships Labour Day Reception

1.28

On 26 April 2019, the Secretary for Labour and Welfare, Dr Law Chi-kwong, hosted a reception at the Hong Kong Convention and Exhibition Centre to pay tribute to the workforce. The Acting Chief Executive, Mr Matthew Cheung Kin-chung, officiated at the reception, with guests from trade unions, employers’ associations and other organisations attending.

Acting Chief Executive, Mr Matthew Cheung Kin-chung, officiating at the Labour Day Reception

Contacts with Other Labour Administrations

1.29

The LD maintained active liaison and interflows with other labour administrations through visits and participation in various activities in 2019.

1.30

In June, a tripartite team comprising representatives of the Government, employers and employees, led by the Secretary for Labour and Welfare, Dr Law Chi-kwong, attended the 108th Session of the International Labour Conference (the “Centenary Conference” to mark the 100th anniversary of the International Labour Organisation) in Geneva, Switzerland as part of the delegation of the People’s Republic of China.

Secretary for Labour and Welfare, Dr Law Chi-kwong (seventh from right), and members of the tripartite team attending the 108th Session of the International Labour Conference in Geneva, Switzerland

1.31

A delegation led by the Commissioner for Labour, Mr Carlson Chan Ka-shun, visited the Ministry of Human Resources and Social Security of the State Council and met with Vice Minister You Jun in Beijing in October under the Reciprocal Visit Programme. The delegation also met with senior representatives of the National Health Commission, the Ministry of Emergency Management, the All-China Federation of Trade Unions, the China Enterprise Confederation and the International Labour Organisation Country Office for China and Mongolia to exchange views on labour and work safety issues.

Commissioner for Labour, Mr Carlson Chan Ka-shun (centre), leading a delegation to Beijing under the Reciprocal Visit Programme