The state of labour relations in Hong Kong remained harmonious. In 2002, the Labour Relations Division of the Labour Department provided conciliation service in 433 trade disputes, an increase of 17 per cent over 2001. There was no work stoppage. During the year, the division handled 34 821 claims for wages and other employment-related benefits or entitlements. This represented an increase of 11 per cent over 2001. About 63 per cent of the disputes and claims in 2002 were settled through conciliation by the division.

    The Labour Department promotes harmonious labour relations through a variety of activities such as organising seminars, training courses and workshops and disseminating information on labour legislation.

    The department provides free consultancy services to help employers develop effective machinery for staff communication, consultation and voluntary negotiation. It also promotes tripartite dialogue at the industry level through the setting up of committees comprising representatives of employers, employees and labour officials. With the assistance of the department, nine tripartite committees have been formed, covering the catering, construction, theatre, warehouse and cargo transport, property management, printing, hotel and tourism, cement and concrete, and retail industries.

Trade Unions

Trade unions must be registered under the Trade Unions Ordinance (TUO), which is administered by the Registrar of Trade Unions. Once registered, a trade union becomes a body corporate and enjoys immunity from certain civil suits.

    During the year, 23 new unions were registered. At year-end, 666 unions (comprising 622 employee unions, 23 employers' associations, and 21 mixed organisations of employees and employers) and three trade union federations were registered under the TUO.

    About half of the employee unions are affiliated to the following four major labour organisations registered under the Societies Ordinance: the Hong Kong Federation of Trade Unions (147 affiliated unions), the Hong Kong and Kowloon Trades Union Council (47 unions), the Hong Kong Confederation of Trade Unions (56 unions), and the Federation of Hong Kong and Kowloon Labour Unions (50 unions).

Labour Advisory Board

The Labour Advisory Board is a non-statutory body set up to advise the Commissioner for Labour on matters affecting labour, including legislation and Conventions and Recommendations of the ILO. The Labour Advisory Board comprises 12 members. Six of them represent employers, and another six represent employees. The Commissioner for Labour, or the deputy, is the ex officio chairman.

    The board has set up five committees and one working group on special subjects which cover employees' compensation, employment services, occupational safety and health, labour relations, the implementation of international labour standards and the processing of applications for labour importation under the Supplementary Labour Scheme.

Protection of Wages on Insolvency Fund

The Protection of Wages on Insolvency Fund is financed by an annual levy of $600 on each business registration certificate with effect from May 2002. Employees who are owed wages and other employment termination benefits by insolvent employers may apply to the fund for ex gratia payment.

    The fund covers arrears of wages not exceeding $36,000 accrued during a period of four months preceding the applicant's last day of service; wages in lieu of notice for termination of employment up to $22,500 or one month's wages, whichever is less; and severance payment up to $50,000 plus 50 per cent of any entitlement in excess of $50,000. The fund paid out a total of $513.8 million to 20 157 applicants in 2002.