Public works workers' payments and subcontracting put under tighter control
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    The Government would introduce a scheme of measures to monitor and control the payment of workers﷿ wages and multi-layer subcontracting for all new public works contracts from May 1, a spokesman for the Environment, Transport and Works Bureau (ETWB) said today (April 30).

     The measures were formulated by a working group established by ETWB with representatives from various sectors of the construction industry in January 2005.

     The measures include:

*  Maintaining workers' records

(i) Establishment of a smart card system to maintain workers﷿ attendance records;

(ii) All on-site workers must have a written employment contract with their employers; and

(iii) All wage payment and Mandatory Provident Fund (MPF) contributions are arranged through bank auto-pay.

     "These measures will provide well-maintained records covering details of employment and workers' attendance for better monitoring.

     "Well-maintained records will reduce the overall time required for processing complaints," the spokesman said.

*  Improving protection for workers

(i) Appointment of a Labour Relations Officer (LRO) to station on-site on a full time basis to monitor records of workers﷿ attendance and payment and assist the Labour Department in handling complaints on wage disputes;

(ii) The main contractor will be made responsible for all non-payment of wages under the contract, including those of the subcontractors of all tiers.

(iii) Worker must report the incident of non-payment to the LRO within seven days.

*  Subcontractor Management

(i) Prohibit certain specified element of the works from being subcontracted, such as foundation and bridge structures;

(ii) Restrict subcontracting of certain trades to two layers, such as cement works, electrical works, carpentry and bar bending; and

(iii) Contractor﷿s core management team must be its direct employees and these employees are prohibited from taking part in subcontracting any part of the works under the contract.

     "These  measures will reduce the risk of wages in arrears. We will further refine and adjust these measures as we proceed." the spokesman said.

     "The success of the measures relies on the joint efforts of the industry as a whole including the main contractors, subcontractors and workers."

Ends/Sunday, April 30, 2006
Issued at HKT 11:03

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