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The Labour Department handled 129 labour disputes in the first seven months of this year, down 8.5% when compared with 141 cases in the same period last year.
Of these, the number of disputes involving the catering industry dropped substantially by 52% to 26 from 54 in the corresponding period last year.
Addressing an inauguration ceremony of the Eating Establishment Employees General Union today (September 12), Permanent Secretary for Economic Development and Labour (Labour) Mr Matthew Cheung Kin-chung said that the decrease of labour disputes in the catering industry was attributed not only to the improved economy, but also to the concerted efforts of trade unions and the Government in protecting the rights and benefits of employees in the sector.
Mr Cheung said that in the light of the spate of closure of Chinese restaurants in the first half of 2005, the Labour Department launched the Operation COMBAT in August that year to tackle the problem through early intervention and proactive consultation.
The operation aimed to deter few unscrupulous employers in the catering sector from depriving their employees' rights and from abusing the Protection of Wages on Insolvency Fund (PWIF) through conciliation as well as enforcement.
"Through reinforcing our intelligence collection on all fronts, strategic follow-up, proactive and close monitoring as well as strengthened enforcement efforts, we focus on combating errant employers and company directors of wage offences," he said.
Mr Cheung noted that since the launching of the Operation COMBAT, applications for PWIF from the catering industry dropped significantly from 6,160 in the period between August, 2004, and July, 2005, to 2,518 in the period from August, 2005, to July, 2006.
The payment of PWIF also dropped from over $76.2 million to $33 million in the corresponding period. Both the number of applications and payment recorded a drop of more than 50% when compared with the same period last year.
"By pinning down the unscrupulous employers, we hope we can gradually forge a change in the business culture, enhance labour relations and upgrade the image of the catering sector, thereby achieving a win-win situation for both employers and employees," Mr Cheung said.
Ends/Tuesday, September 12, 2006
Issued at HKT 19:34
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