Legislative Council Tackles HK$200 Million Unpaid Wages and Debts in the Hong Kong Construction Industry

Legislative Council is acknowledging the alarming situation of HK$200 million in debts affecting the Hong Kong construction industry.

Encouraging Legislative Action

In response to escalating reports of unpaid wages and subcontractor fees, Lawmaker Dennis Leung Tsz-wing from the Hong Kong Federation of Trade Unions pointed out the need for a legislative bill aimed at improving payment practices. Since March, numerous construction firms have failed to remunerate approximately 1,500 workers, leading to strikes across various sites.

Unprecedented Strikes

• Ryan Ng Wai-leung, the rights officer for the HK Construction Industry Employees General Union, reported severe pressure on workers navigating through arduous legal processes to claim unpaid wages.
• About HK$290 million in debts has been amassed by main contractors, with HK$70 million attributed to unpaid wages and benefits.
• The ongoing strikes underscore an industry-wide crisis that necessitates prompt legislative measures.

Key Implications of Unpaid Wages

The Construction Industry Security of Payment Bill was proposed by the Development Bureau, intending to establish mechanisms to address long-standing issues of payment delays. Union chairman Chau Sze-kit urged swift legislative action, stressing the multifaceted nature of unpaid wages that impacts various tiers of subcontractors.

Industry Challenges

Growth in unpaid wages has overlapping consequences, notably the freezing of salaries for about 200,000 employees in various roles within the construction industry, as firms grapple with a sluggish economic environment.

Union leaders emphasize that immediate legislative changes are paramount to stabilizing the workforce and ensuring that workers receive their rightful compensation.