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ªÀµûÂù»y¹D¡G¥[±jºÊ¹î½T«O¤u¸ê¸É¶K¸¨¨ì¹µ­û¤â¤W Strengthen supervision to ensure wage subsidies go to employees

2020-07-06

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The SAR government published the list of the first batch of employers who have received wage subsidies under the Employment Support Scheme. By adopting a transparent approach, the government is aiming at a combined effort with the community to monitor employers and ensure that the wage subsidies go completely to employees. To prevent dishonest employers from abusing the subsidies, the government must set an example and punish severely those who are found to have violated the conditions of the scheme. Relevant government departments should make available ample manpower and resources for this purpose, and employees and trade unions should provide necessary assistance when needed. Meanwhile, the government should also regularly review and improve the scheme based on the feedbacks of its implementation, so as to ensure employers who applied for the scheme comply with its undertakings and weather the storm with their employees.

First hit by anti-government protests and then battered by the Covid-19 pandemic, the economy of Hong Kong has hit a deep trough. In order to save enterprises from the brink of collapse and avert the subsequent large-scale layoffs, the government has adopted a two-pronged strategy of supporting both enterprises and employment at the same time. With HK$80 billion drawn from the fiscal reserves, the government's unprecedented Employment Support Scheme could help employers to ride out the storm and let employees keep their jobs.

From the list of employers announced yesterday, enterprises in the tourism, retail, aviation, and hospitality industries, sectors that have been hit the hardest by the pandemic, have all applied for the government subsidies. Among them, many are well-known brands and big enterprises. The list covered close to 25,500 employers who receive a total wage subsidy of HK$4.8 billion with a combined committed headcount exceeding 200,000.

At present, what the society most concerned about is whether the wage subsidy will 100 per cent go to the employees or not. Although it is safe to say that most employers are trustworthy and will keep their words by spending all subsidies on employees and not making redundancies, there may still be dishonest employers out there who would abuse the wage subsidies and steal from their employees' pockets. For instance, some might work around the undertakings by keeping the number of employees unchanged, but replace existing employees with new and lower-paid ones. Some might even lay-off the same employees and then proceed to rehire them with lower salary offers. These actions are obvious misuses of public funds. Employers who do so are blatantly damaging the interests of employees, and would defeat the purpose of the scheme. A survey found that 42.6 per cent of the respondents agreed, and 35.2 per cent strongly agreed that there are loopholes in the Employment Support Scheme. They did not think that employers would fully spend the wage subsidies on their employees. Nearly 80 per cent of the respondents believed that there is not enough supervision from the government, and that the penalties for violators of the scheme are lacking.

The government spokesperson stressed that all wage subsidies received each month during the subsidy period must be fully spent on paying wages to their employees. The spokesperson also said that if an employer is found to have abused or violated the conditions of the scheme, employees concerned or members of the public may report to the Employment Support Scheme Secretariat who will proactively follow up on it. However, labour unionists have pointed out that even if the government has published the list of employers who have applied for the subsidies, workers of the lower levels might not have the time, vigour and knowledge to look at the published information. Moreover, the unionists raised a concern that the inequality between employees and employers would make it even harder for workers to protect their interests. Therefore, the society hopes that the government will take the responsibility to punish violators of the scheme, and prevent employers from abusing the subsidies. The government should take targeted precautions for fraudulent employers' tricks and punish them accordingly. The government should also mobilise employees and trade unions to monitor employers together. In particular, they should encourage employees to defend their rights and interests and report dishonest employers.

The Employment Support Scheme has absorbed opinions from the society and has been optimised, but it is still necessary to pay close attention to how the first batch of enterprises make use of the subsidies. Problems and loopholes must be found in time, and improvements must be made continuously to further reduce the chance of the subsidies being abused. Only then will the second phase of the scheme give full play to its role in supporting employment.

¡½Jeffrey Tse

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