TNAG-1795-FCO40-2555-Hong-Kong-Vietnamese-refugees-repatriation--including-Opera-1988 — Page 8

each contractor would be required to contract a minimum number (say 50 workers) to ensure that the imported work force is not scattered SO as to facilitate monitoring and control. But each contractor may employ only up

up to a maximum percentage (say 20%) of the total workforce on each construction site to ensure that local workers would not be displaced totally. The contractors would only be allowed to import workers on a "last in first out" basis, i.e. not to import unless they have demonstrated an inability to recruit locally and if they lay-off workers, imported labour must go first; and

rates

wages should be provided by

by the contractor direct to the

the workers in Hong Kong. The rates should not to be lower than current the Hong Kong Construction Association Ltd has undertaken not to reduce wage rates for the industry for the duration of any scheme to import workers.

The commission rates for the agency should be fixed. The contractor should also be responsible for the direct costs of importation and repatriation.

Recommendation

26

While we are under no illusion as

illusion as to the objections and problems relating to a scheme to import labour, we recommend that the possiblity should be examined in greater detail by the Administration in view of

in view of the seriousness of the situation within the construction industry. If a viable scheme could be devised, which could overcome the main objections and problems, detailed proposals would be presented to the Council.

Economic Implication

27

As a result of increased availability of labour through importation, projects would be completed quicker and more cheaply. Those local workers possessing similar skills as the imported workers are, however, expected to be adversely affected. With the imported workers potentially willing to accept a much lower pay, with the availability of more workers, the wages of the local workers concerned would rise more slowly. Contractors are expected to benefit from the slower rate of increase in labour costs. However, this would represent a re-distribution of income in favour of employers and the imported workers, at the expense of

of the

local workers.