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The number of labour disputes and claims handled by the Labour Department in the first 10 months of this year dropped by 9.5% to 21,786 from 24,068 in the same period last year. At the same time, the successful conciliation rate has risen by 2.7% from 67.5% to 70.2%.
The Permanent Secretary for Economic Development and Labour, Mr Matthew Cheung Kin-chung, disclosed the figures at a Seminar on Good People Management in the Catering Industry today (November 11).
"As the catering industry is a labour-intensive service sector, maintaining harmonious labour relations is very important to the industry. We encourage all establishments to adopt good human management practices that are employee-oriented, legitimate, fair and impartial," Mr Cheung said.
In practising good people management, Mr Cheung recommended the following five rules: to be fair in recruitment, to be reasonable in setting out employment terms, to promote employer-employee communication in all aspects, to formulate a long-term training plan for employees and to exercise corporate social responsibility.
"Meanwhile, we note with concern that the catering industry still faces the problem of arrears of wages. The Labour Department has adopted a multi-pronged approach to clamp down on offending employers so as to protect the statutory rights and benefits of employees. We have stepped up enforcement and prosecutions to combat wage offences," he said.
Mr Cheung noted that in the first 10 months of this year the Labour Department had secured 493 convictions against wage offences in various trades and industries, up 10% over 447 in the same period last year. Of these, 100 convictions were related to catering establishments, up by a hefty 144% over the figure of 41 convictions in the same period last year.
"To achieve a greater deterrent effect, the Labour Department is taking steps to increase the maximum penalty for wage offences. We propose to raise the maximum penalty to a fine of $350,000 and imprisonment for three years. The proposal will be submitted to the Legislative Council Manpower Panel for discussion next Thursday (November 17) and the bill is expected to be introduced to Legco early next year," he said.
In addition, two newly-designed leaflets have been produced in an effort to crack down on wage offences. Employers are reminded of their statutory responsibility of wage payments while employees are urged to pursue wage claims promptly and come forward as prosecution witnesses to safeguard their rights.
Mr Cheung said that the Labour Department had set up an early warning system in conjunction with labour unions, trade associations and suppliers in the catering industry to gather intelligence on late payment of wages.
If employers are facing difficulties in running their catering establishments, unable to clear wages and facing the risk of closure, the Labour Department will intervene as early as possible by reminding employers of their statutory obligations to pay wages and the seriousness of wage offences. Adequate assistance will be rendered to them.
"We have recently employed seven veteran former police officers with expert knowledge of criminal investigation. They help investigate suspected breaches of the Employment Ordinance and the Protection of Wages on Insolvency Ordinance, thereby reinforcing our capacity in law enforcement," he said.
Over 250 employers and human resources managers in the catering industry participated in the seminar today. A managing director of a catering group, Mr Cheung Shing-hung, spoke about being a good employer, drawing on his own experience.
Ends/Friday, November 11, 2005
Issued at HKT 15:50
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