9.
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The requirements of the law on unfair dismissal in the United Kingdom (UK) as introduced in the Industrial Relations Act 1971 were examined. It is found that the UK system has many enforcement problems and cannot provide job security for employees. A note on the UK's unfair dismissal legislation is at Annex C. Taking into consideration the UK experience and the local situation, the introduction of unfair dismissal legislation in Hong Kong is considered inappropriate. The LSP scheme is a practical alternative to unfair dismissal legislation.
Collective Bargaining
10.
There are no statutory provisions in Hong Kong relating to collective bargaining. The government is aware that collective bargaining has been established in many countries as a legitimate and stable framework for joint labour-management negotiation on conditions of employment and for resolving conflicting interests in employment relations. However, collective bargaining tends to work effectively mainly in an environment where a small number of businesses employ large numbers of people, where the majority of employees are represented by trade unions and where both sides consider it mutually advantageous to do so.
11.
Such an environment does not exist in Hong Kong, where over 90% of the business and industrial establishments employ less than 20 employees. If legislation on collective bargaining were to be introduced, complicated problems such as union recognition would arise. Considering the state of development of trade unions vis-a-vis the overall labour relations scene in the territory, it is considered more advisable to continue the policy of encouraging voluntary collective bargaining. This policy has served Hong Kong well so far as can be seen from our record of harmonious labour relations.
Right to Strike
12.
In Hong Kong, there is no legislative prohibition on strikes. Employees have the freedom to strike, and limited statutory immunities are given to registered trade unions and striking employees under the Trade Unions Ordinance (TUO) (Chapter 332). For example, a registered trade union is immune from any civil action in respect of certain acts done in furtherance of a trade dispute, and certain acts of peaceful picketing are stated to be lawful. However, freedom to strike is not tantamount to a positive and unequivocal 'right to strike'. In the latter instance, an employee who goes on strike is not treated as being in breach of his