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Union representatives protest against the plan to import labour outside the government headquarters in Admiralty on June 20. The business community has largely welcomed the government’s plan to import workers to ease staffing shortages, but labour unions have condemned the proposal. Photo: Elson Li.
Opinion
John Hanzhang Ye
John Hanzhang Ye

Focus on Hong Kong’s working conditions, not number of workers, to fix labour shortage

  • The government is going all out to deal with the shortage of workers in various sectors, but opposition from unions suggests the need for caution
  • Rather that focusing on the number of available workers, it would be more effective to improve working conditions to make people more eager to come to the city for work
John Hanzhang Ye
John Hanzhang Ye
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Earlier this month, the government announced a special scheme to import thousands of workers to deal with the shortage of labour in Hong Kong. The announcement triggered opposition from trade unions, which serves as a reminder to the government of the need for caution when handling the issue of imported workers.
Chief Executive John Lee Ka-chiu acknowledged during his 2022 policy address that Hong Kong’s workforce had shrunk by about 140,000 over two pandemic years. In response, the government put forward a series of measures to reverse that trend, including a new visa scheme to attract talent.

In May, Secretary for Labour and Welfare Chris Sun Yuk-han said that when he met Xia Baolong, the head of the Hong Kong and Macau Affairs Office, Xia said Hong Kong should do more to attract talent.

The Hong Kong government’s latest plan involves importing 20,000 workers in the construction, transport and aviation sectors as well as lifting an import ban on 26 low-skilled job types for two years.

While the business community has generally reacted favourably to the plan, concerns have been raised about the scheme bypassing the Labour Advisory Board, which was designed to be a platform for negotiation between employees and employers on critical issues.

This is not the first time the government has set up a special scheme to import workers. Last year, the government announced a programme to bring in carers to address labour shortages at care homes for the elderly. Given that its latest scheme is broader in scope, encompassing a variety of sectors, there was a greater need for the government to proceed with caution.

Record drop in Hong Kong labour force as 94,000 workers call it quits in 2022

However, the government doesn’t appear to be aware that there is more at stake when it comes to labour issues than the economics involved in filling out rosters. Labour issues can be politically sensitive and workers need to be convinced to accept more competition without feeling threatened.

Lower-income workers whose livelihood depends on there being stability in society have long been an important source of support for the Hong Kong government. Social movements that are driven by politics can disrupt the daily lives of these workers, many of whom cannot afford to lose a single day’s work as they support their families.

These workers have suffered a great deal during the past three years of the Covid-19 pandemic amid government restrictions. While Hong Kong is trying to return to normal, the government needs to do more for these groups to keep their discontent from turning into something more volatile.

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Underprivileged class bearing the brunt of Hong Kong’s rising inflation

Underprivileged class bearing the brunt of Hong Kong’s rising inflation
It is hard to say whether importing workers will be enough to fix Hong Kong’s labour shortage. In the short term, it might be effective in boosting the number of available workers. According to Chief Secretary Eric Chan Kwok-ki, the city’s talent admissions schemes attracted more than 80,000 applicants in the first five months of this year, with 49,000 applications approved so far.
However, focusing on the number of workers misses other important costs and the critical question of working conditions. Unlike local workers, many of whom are eligible for public housing, imported workers have to bear the high cost of living which will consume a significant amount of their salaries.

Another issue is whether imported workers can blend into the local community beyond work. There are unspoken rules associated with the local culture which can be hard for those not from the city to understand. How to ensure that imported workers get along well with local workers and integrate into the community is a challenge that needs to be thoroughly discussed.

An employee walks past a poster at a local fast-food chain in Hong Kong. Almost 90 per cent of the city’s workforce is employed in the service sector. Photo: AP

What will really help alleviate the labour shortage is not boosting the total number of workers but improving working conditions so that more people are eager to come to work here. In a city with almost 90 per cent of its workforce in the service industry, maintaining a good working environment is important to ensure quality of service and attract talent.

Importing workers will not solve the problem. Instead, the government should pay attention to workers’ needs and help them negotiate with the business sector. The only long-term solution to fixing the labour shortage is creating an attractive working environment.

John Hanzhang Ye is a PhD student in science and technology history at the University of Minnesota, Twin Cities and also holds an MPhil degree in sociology from the Chinese University of Hong Kong

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