Media response by Housing Department on contract arrangement for cleansing workers
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HD is highly concerned about the case and will take it seriously. When the issue was made known to the Labour Department (LD), LD has been closely monitoring and following up on its development and the cleansing workers' requests. LD also arranged mediation meeting for the contractor and its employees where HD was represented earlier on. We understand that the Competition Commission (CC) has received a complaint on the case. HD will fully support LD and CC.
The Hong Kong Housing Authority (HA) will not tolerate service contractors involving labour exploitation or non-compliance with the laws. HA has an established tendering system and contract management mechanism whereby only companies admitted to HA's lists of contractors (HA's lists) can bid for estate services contracts (including property management, cleansing and security services). If any service contractor is found to have committed misdeed during tendering process or in respect of contract performance, HA and the HD will handle it seriously. Depending on actual circumstances and seriousness of the case, appropriate regulatory actions will be taken, including removal from the respective list, restriction or suspension from tendering as well as contract termination.
According to HA's current Guide to Registration of Works Contractors and Property Management Services Providers, companies are deemed to be related if their relationship falls within the meaning of "related parties" as defined in the Hong Kong Institute of Certified Public Accountants (HKICPA) - Hong Kong Accounting Standards on Related Party Disclosures. When applying for admission and retention on a List, contractors shall submit certification of "related company" status by their own director or a qualified accountant. Related companies who are admitted onto and retained on the List shall each give an undertaking that only one company will submit a tender for a particular contract. Failure to observe this undertaking will render the tenders submitted by these related companies null and void.
HD has been attaching great importance to ensuring that lawful interests of the contractors' workers are properly protected. When signing a new service contract with a service contractor, the HD will stipulate that the contractor shall comply with all relevant ordinances and regulations, terms and conditions of the Standard Employment Contract as well as policies, measures and guidelines of the HA.
When a service contract is tendered out by HD, the estate office concerned will issue a notice to the concerned contractor's workers to remind them of their rights under the Employment Ordinance. When it is confirmed that the contractor will be changed, the estate office will meet with both the incumbent and new contractor to remind them that they must comply with the contractual and legal provisions, as well as handle staff matters in a reasonable and compassionate manner.
The estate office will also alert the workers affected by the change of contractor through notices or letters that they have to communicate with their employers as early as possible on the work arrangement after expiry of the contract. HD will also remind the affected workers not to sign any documents recklessly for the protection of their own interests and that they must clearly understand and agree with the content before signing any document. After the service contract is awarded, HD will continue to monitor performance of the service contractor.
Ends/Thursday, January 4, 2018
Issued at HKT 21:45
Issued at HKT 21:45
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