On July 8, Lau Chin-shek, HKCTU President and directly-elected Legislative Council (LegCO) member, challenged the HKSAR Chief Executive, Tung Chee-hwa, in LegCo over the government's inaction in dealing with unemployment, which has hit record levels in the territory. In response, Tung reiterated the government's free market approach. He said that the government will deal with unemployment by improving the business environment in Hong Kong and attracting more foreign companies to invest here. In response HKCTU argued that new foreign investment will not necessarily create more jobs, particularly for those who constitute the bulk of the unemployed.

Resolving the unemployment problem cannot be left to the 'invisible hand' of the market, but requires government intervention to create jobs. The government cannot continue to use the budget deficit as an excuse for inaction on the unemployment problem, but must make the 'rice bowl' (livelihood) of working people its top priority.

The next day HKCTU put forward its proposals on resolving the unemployment problem to the newly-appointed Secretary for Economic Development and Labour, Stephen Ip Shu-kwan, who visited the union for consultations. Included in HKCTU's 8 concrete proposals were measures such as increased government spending, maximum working hours, local purchasing requirements in government procurement contracts, increased penalties for employers of illegal workers, and legislation on age discrimination and collective bargaining.


Secretary for Economic Development and Labour, Stephen Ip Shu-kwan speaks at a
press conference at HKCTU after listening to the union's proposals

The union argued that it is necessary to increase public spending and expand public sector employment, particularly through the removal of the freeze on public housing development, better public waste management and environmental services, and employment in the delivery of social services.
Workers are faced with a situation of over-work or no work. By imposing maximum working hours excessive overtime can be reduced while more jobs will be created. Specifically, the government should limit working hours in the Housing Department's security and cleaning services to three 8-hour shifts (as opposed to the current two 12-hour shifts). This should then be extended to other government departments and public agencies such as the Hospital Authority and universities.

The government should also encourage local job creation by purchasing locally made products in government procurement, as well as making it a condition in government tenders. This move requires the government to abrogate the WTO Government Procurement Agreement which it signed voluntarily.
Additional measures are needed to support the rights and livelihood of the working poor and the unemployed. The union proposes that a statutory minimum wage be introduced, together with low-income family allowances, the extension of labour protection to casual and part-time workers, and the introduction of unemployment benefits.

In his response, Stephen Ip agreed that the regulation of maximum working hours, preferential treatment for local products in government purchasing and tenders and increased penalties for employers hiring illegal migrant workers were measures that would be considered. However, he did not accept other key proposals such as the introduction of unemployment benefits and legislation on minimum wages, collective bargaining and protection against age discrimination.

Back> Union Action September 2002