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Introduce targeted measures to protect wage earners' livelihoods
¡iĶ¤å¡jOn 4 November, the Employment Support Scheme (ESS) Secretariat published the name list of the fourth batch of employers who have received wage subsidies under the second tranche of ESS. Up to this point, a total of about 135,000 employers have received almost HK$37 billion from the second round of the government's wage subsidy scheme, involving a total committed headcount of paid employees of about 1.56 million. However, this inclusive wage subsidy plan is going to end in December this year, and employers who have benefitted from the plan will be able to make redundancies and slash wages again. As the Covid-19 pandemic continues to wreak havoc around the world, hard-hit industries such as tourism, aviation, catering, and hotel are now under great pressure to lay off workers. The government must promptly introduce targeted measures to help these industries and their workers to survive.
To discourage enterprises from carrying out large-scale layoffs due to the impact of the Covid-19 pandemic, the government launched two rounds of ESS in the past six months and paid half of the employees' salaries on behalf of the applicant companies.
With the government having rolled out two rounds of ESS since May, Financial Secretary Paul Chan Mo-po recently stated that there will be no third round. That means companies that have participated in the scheme can start cutting jobs and wages again starting from December. According to a survey, 35 per cent of respondents think they are going to lose their jobs or face pay cuts in the next six months, while over 40 per cent of young respondents are worried about their job security.
To provide assistance as soon as possible, the ESS adopted the "inclusive" principle, where applications were processed with leniency and were open to all employers, draining HK$80 billion from the public coffers. An "inclusive" measure such as the ESS no doubt is effective in stopping companies that are hit hard by Covid-19 from cutting jobs, but its effects are temporary only. Some also suggest that it lacks focus, and therefore cannot help those sectors and workers that are truly in need. For instance, supermarkets and property management companies still received subsidies from ESS despite being relatively unscathed in the midst of the Covid-19 pandemic. The wage subsidies were also kept by these companies instead of going into the pockets of workers and citizens as promised. Such self-enriching behaviour has drawn criticism from society. The aims and objectives of ESS were also distorted, as some companies still cut wages and request employees to take unpaid leave after receiving subsidies.
As the Covid-19 pandemic is not under control in Hong Kong yet, the economy is not going to recover in the near future whereas the labour market outlook is also becoming increasingly pessimistic. Following Cathay Pacific's layoff of 5,300 local employees, Jardine Aviation Services has also announced the layoff of 340 employees, clearly citing the ending of ESS as one of the reasons behind its decision. When this could happen to large enterprises, waves of layoffs in small and medium businesses will likely come soon.
As the unemployment rate in Hong Kong hits a 16-year high of 6.4 per cent in the period between July and September, the number of people that are out of jobs rose to 259,800. Multiple industries that are dealt a severe blow by the Covid-19 pandemic now have double-digit unemployment rates. Among them, the figure for tourism-related sectors including the retail, accommodation, and food services sectors rose to 11.7 per cent, which is the highest since the SARS outbreak. Meanwhile, the unemployment and the underemployment rate for the food and beverage sector also soared to 15.2 per cent and 9.5 per cent respectively. According to Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, business in the past month alone has fallen by over 30 per cent. He estimates that more than 2,000 eateries will be forced to close down in the coming two or three months.
ESS is coming to an end soon, but the Covid-19 pandemic is staying. As the livelihoods of wage earners working in hard-hit sectors are now hanging in the balance, the government must not sit idle. The government has to actively explore and roll out as soon as possible targeted measures to help those who are truly in dire need. Multiple political parties have already demanded the government to introduce short-term unemployment benefits for those who are put on unpaid leave or are jobless. The government should listen with an open mind, and be prepared to make use of its fiscal reserves to help those wage earners meet their urgent household needs.¡½Jeffrey Tse
Exercise
1. ³Ò°Ê¤O
2. °]¬F¬Fµ¦
3. °]¬F¹wºâ
4. ¥¢·~
5. ´N·~¤£¨¬
Answer
1. workforce/ labour force
2. fiscal policy
3. budget
4. unemployment
5. underemployment