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SEM's statement on protection of wages on insolvency

The Secretary for Education and Manpower, Mr Joseph W P Wong, today (Thursday) issued the following statement in response to the decision by Legislative Councillor, Mr Lee Cheuk-yan, to table a resolution in the Legislative Council on January 31 to revise the coverage of arrears of wages and wages in lieu of notice under the Protection of Wages on Insolvency Ordinance:

"We will oppose Mr Lee Cheuk-yan's resolution because it is arbitrary and seeks to further revise unilaterally the package agreed by the Protection of Wages on Insolvency Fund Board (Fund Board) and the Labour Advisory Board (LAB) which comprise representatives from employers and employees,

The Fund Board and LAB have already agreed to increase the maximum payment of arrears of wages and wages in lieu of notice. The package represents substantial improvements over the present level (details at annex).

If Mr Lee's resolution were passed, it would destroy the present tripartite arrangement to discuss labour matters and to take decisions on proposals at the LAB.

Also, the passage of the solution would seriously hinder our continuing efforts to promote rational discussions between employees and employers representatives and make it extremely difficult for the Government to play its mediating role.

We have therefore submitted a notice to the Legislative Council to move an amendment so as to bring into effect the proposal agreed by the Fund Board and the LAB."

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