Annual Report 2013-14

14 FHKI Annual Report 2013-14 Operational Review // Advocacy for the Industries Manpower Issues The FHKI keeps a close watch on labour issues with regulatory or cost implications for the business sectors. We are concerned that increasing regulatory requirements in recent years have raised operating costs of enterprises, hence eroding Hong Kong’s comparative advantages. Take wages as an example, statutory minimum wage has been introduced since 2011 and its hourly rate has been revised from HK$28 to HK$30 since May 2013. We need to closely monitor its impact on local enterprises and inflation. Another issue of concern is the proposal to legislate on standard working hours. The FHKI has conveyed our strong objection to the Standard Working Hours Committee. A Government study in 2014 found that a total of 49,000 employees performed uncompensated overtime work recognised by their employers in 2013, but the majority of them was managers and professionals and only 25.5% (12,500 employees) were non-skilled workers and clerical workers, etc. We consider that other measures should be explored to tackle this limited problem instead of going for legislation which will affect the entire workforce. Any solution should take into account Hong Kong’s competitiveness, manpower supply, business flexibility and other pertinent factors. Another subject in our radar is unionists’ call for abolishing or reducing the level for offsetting severance payments and long service payments against Mandatory Provident Fund accrued benefits. We acted swiftly in December 2013 to impress upon the Government the business sector’s strong opposition against the proposal. The proposal not only runs against the original policy intent of carrying forth the long-established offsetting arrangements under the Employment Ordinance, but would also impose heavy financial burden on employers especially SMEs. FHKI Chairman Stanley Lau attended a joint meeting of Legislative Council’s Panel on Financial Affairs and Panel on Manpower in March 2014 to speak out on our worries. Mindful of an array of population-related challenges, the FHKI submitted concrete proposals to the Government in February on how best to address the matter. Our proposals include increasing investment in vocational training, a review of the Supplementary Labour Scheme and admission schemes for professionals, and extending the retirement age to 65, etc. We consider that an expanding workforce with the right mix of skills and a growing middle class who are professionally skilled and tax-paying are essential to sustain Hong Kong’s economic growth. Environmental and EnergyMatters Waste reduction and recycling are key elements in the sustainable development of the community. They also generate business opportunities for the relevant industrial sectors. We have sent three submissions to the Government in 2013-14 on a proposed Producer Responsibility Scheme on Glass Beverage Bottles, recommendations for promoting waste recycling industry, and a planned municipal solid waste charging scheme. An incentive system should be worked out, with suitable government financial support, to encourage enterprises to collect and recycle valuable waste, and to incentivise the public to segregate reusable materials. The introduction of a quantity-based waste charging scheme will be an effective tool to motivate the public to reduce waste at source. FHKI Deputy Chairman Ir Daniel Cheng elaborated on our proposals at the Legislative Council’s Panel on Environmental Affairs and other meetings with senior officials. Regarding the options on fuel mix for electricity generation suggested by the Government in March this year, the FHKI notes the proposed wider use of cleaner but more expensive energy will result in higher tariff which will definitely affect the industries and the community. We will examine the pros and cons of the proposed and other fuel options and then give our views to the Government. Managing Director of Mandatory Provident Fund (MPF) Schemes Authority Diana Chan consulted General Committee members on matters relating to the MPF Scheme. 強制性公積金計劃管理局行政總監陳唐芷青就強積金計劃諮詢理事會成員的意見。 Legislative Councillor the Hon Andrew Leung (centre) exchanged views with FHKI members on 2014-15 Budget. 立法會議員梁君彥（中）就2014-15年度財政預算案與工總會員交換意見。