Motion Debate on "Comprehensive review of labour legislation"

(11 January 2006)

MR JAMES TIEN (in Cantonese): President, let me get down to business to express my views on this motion debate on a comprehensive review of labour legislation. I do not think I have to speak so loudly when delivering my speech.

President, I believe the changes in labour relations experienced by Hong Kong due to economic transformation occur not only here in the territory, but also in other parts of the world. Some countries going through economic transformation will change from an agricultural to industrial country, while some from an industrial country to a country relying on services or financial industries. Of course, as the economic pattern changes, the roles of employers and employees have to be adjusted too. In this connection, I share the question raised by Mr SIN Chung-kai earlier: Given the expansion of the service sector and the large number of employees engaged in the sector, are the ordinances previously targeting factories still applicable? This issue warrants our discussion.

However, the Liberal Party disagrees that the existing labour legislation cannot keep abreast of the times and that the Government seems to have done nothing over the years. The Liberal Party does not have any strong views on the last sentence of the motion which reads "this Council urges the Administration to expeditiously conduct a comprehensive review of various legislation relating to labour matters" because we believe more ordinances will have to be deleted upon the completion of the review. Obsolete ordinances that offer extreme labour protection are meaningless.

President, the Liberal Party has looked up some information to ascertain if the Government has really done virtually nothing over the years and if the employers have refused to compromise no matter what, as alleged by Members of the labour sector? Yet, we have found from the record that this was not the case really.

Hong Kong's labour legislation can be broadly divided into three major categories. The first category, related to basic rights, covers the Employment Ordinance, the Protection of Wages on Insolvency Ordinance, and so on. The second category, related to compensation for injuries or deaths in employment, or occupational diseases, covers the Employees' Compensation Ordinance, the Employees Compensation Assistance Ordinance, the Pneumoconiosis (Compensation) Ordinance, the Occupational Deafness Compensation Ordinance, and so on. The third category, related to working in a safe environment, covers the Factories and Industrial Undertakings Ordinance, the Occupational Safety and Health Ordinance, and the like. We can see from here that there are three major categories of labour legislation in Hong Kong.

President, I returned to Hong Kong in 1970, and have been running my father's factory since 1971 for 35 years. I have requested the staff of the Liberal Party to look up the records of the past 35 years to ascertain if the Government and employers have made any efforts in improving labour legislation in a gradual and progressive manner. Eventually, 12 protection measures have been identified. Such protection, though being offered at the moment, was unavailable in 1970 when I just returned to Hong Kong. Let me start from the first measure.

First, expanding the scope of protection under the legislation. When the Employment Ordinance was initially enacted, it was applicable merely to manual workers and non-manual employees with a monthly salary of $1,500. In 1990, however, the income ceiling on non-manual employees was abolished as a gradual and progressive initiative. As a result, from 1990 onwards, all employees, whether or not engaged in manual work and regardless of their level of income, are protected. Furthermore, the Employees' Compensation Ordinance was expanded in 1998 to cover employees employed by Hong Kong employers but have sustained injuries in employment outside Hong Kong.

Starting from 1988, even employees working in factories operated in Shenzhen are protected as well. In 1990, the Factories and Industrial Undertakings Ordinance was further amended to include food undertakings. In other words, even the catering industry was brought under the Factories and Industrial Undertakings Ordinance in 1990 because many from Hong Kong were engaged in the catering industry at that time. Therefore, even though the title of the Ordinance remains unchanged, the catering industry, treated as factories, is included.

Second, increasing the number of holidays. The legislation initially provided that workers were entitled to only one rest day in every period of seven working days and six statutory holidays a year. The number of statutory holidays was increased to 10 in 1976, to 11 in 1983, and even to 12 in 1999. This proves that it is not true to say that the Government has, though confronted with economic restructuring over the years, not kept abreast of the times and has done nothing in addressing labour legislation. On increasing the number of holidays, we have also noticed that provisions on paid holidays were introduced in 1977. The number of paid holidays was increased in 1990 from seven to 14.

Third, sick leave and sickness allowance. The period of paid sick leave - sorry, it should be accumulated paid sick leave - was initially 24 days while sickness allowance was one half of wages. In 1977, the period of accumulated paid sick leave was increased to 36 days while sickness allowance was increased from one half to two thirds of wages. In 1983, the number of accumulated paid sick leave was increased to 120 days. In 1996, sickness allowance was further increased from two thirds to four fifths of wages. Has the Government not kept abreast of the times over the past years?

Fourth, maternity leave. When the relevant legislation was enacted in 1970, pregnant employees were entitled to 10 weeks' unpaid maternity leave only. In 1981, pregnant employees could obtain payments at a rate of two thirds of their wages under the Employment Ordinance. The rate was further increased in 1995 to four fifths of wages.

Fifth, introduction of severance payment and long service payment. After the enactment of the relevant legislation in 1974, the rate of severance payment was increased in 1984 from one half to two thirds of a month's wages for every year of service. Furthermore, long service payment was provided for in 1985. And in 1995, the qualifying period of service for long service payment upon old age retirement was lowered from 10 to five years.

President, I have not yet told Members the sixth to twelfth changes made by the Government for the protection of labour rights and benefits. As I predicted that I would not have enough time to speak, I will pass my draft speech to Mr Howard YOUNG later so that he can read out the remaining part of my speech.

I only wish to point out that, since I came back 35 years ago, the Government has introduced a total of 12 pieces of legislation successively. All the legislation, as part of the Government's on-going exercise, is in keeping with the times. The Liberal Party supports the Government continuing with the review. However, the Liberal Party disagrees with the accusation that the Government and employers have done nothing over the many years past.

Thank you, President.