• 11/30/2024

Hong Kong construction workers and subcontractors owed HK$300 million in 2024, union says

Hong Kong Free Press

construction site

Over 2,000 Hong Kong construction workers and subcontractors have seen delayed wages and project fees in the first 11 months of 2024, involving a total of HK$300 million.

The amount of money involved is so large a union said it is the highest in 40 years.

Construction worker site labour
Construction workers in Hong Kong. File photo: Kyle Lam/HKFP.

The Hong Kong Construction Industry Employees General Union, a group under the pro-establishment Hong Kong Federation of Trade Unions (FTU), revealed the figure during a press conference on Thursday, adding that the situation had worsened since July.

The development projects involved are not only those funded by private developers, but also government-led projects, the union said.

Chau Sze-kit, vice chair of the union, said the situation could be attributed to a slowdown in the construction sector in 2024, with fewer private projects. As a result, many contractors and subcontractors had encountered cash flow difficulties, Chau added.

Hong Kong Construction Industry Employees General Union hosts a press conference on November 28, 2024. Photo: Hong Kong Construction Industry Employees General Union.
Hong Kong Construction Industry Employees General Union hosts a press conference on November 28, 2024. Photo: Hong Kong Construction Industry Employees General Union.

Dennis Leung, a member of the FTU and a legislator, said some projects involved public housing estates, urging the government to investigate delayed payments to avoid affecting the development of public housing.

Since July, around 1,000 workers and subcontractors have sought help from the union. Those affected worked for 23 large-scale development projects, including nine public works led by the Housing Department and the Drainage Services Department.

‘They worked without their payment coming’

“We used to receive one or two requests every month for assistance involving delayed wages. But since July, we have received one or two requests a week, ” Ryan Ng, the union’s rights manager told HKFP by phone.

“It’s not only workers whose wages were delayed, but also the large-scale project fees of subcontractors, which has rarely happened before,” Ng said in Cantonese on Friday. “That’s why a total of HK$300 million is involved, and the figure is unusual.”

The union worker said after initial investigation, he found that most cases stemmed from the main contractor failing to pay their subcontractors.

construction site industrial crane
A construction site in Hong Kong. File photo: Kyle Lam/HKFP.

Wages and projects fees were delayed by two months to seven months, the union said. As of late November, a total of HK$30 million in delayed payment had been settled by employers or by a government fund established to pay workers when their employers fail to do so, representing only 10 per cent of the total amount.

“They worked without their payment coming,” Ng said. “For public works, we’ve been communicating with the government, and affected workers saw their wages last week. But for the private sector, we have had difficulties in reaching the main contractors, and the developers have refused to meet the workers, saying they have paid the main contractors.”

The union urged the government to establishment a better system to protect the labour rights of frontline workers.

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https://hongkongfp.com/2024/11/29/hong-kong-construction-workers-and-subcontractors-owed-hk300-million-in-2024-union-says/