For discussion EC(96-97)5
on 10 April l996

ITEM FOR ESTABLISHMENT SUBCOMMITTEE
OF FINANCE COMMITTEE

HEAD 90 - LABOUR DEPARTMENT
Subhead 001 Salaries

Members are invited to recommend to Finance Committee the creation of the following permanent posts in the Labour Department -

l Deputy Commissioner for Labour
(D3)($111,100 - $117,750); and

1 Chief Factory Inspector
(D1)($80,450 - $85,400)



PROBLEM

The Commissioner for Labour (C for L) does not have sufficient directorate support to implement the Government’s new policy on occupational safety and health.

PROPOSAL

2. C for L proposes to create one permanent post of Deputy Commissioner for Labour (DC for L) (D3) and one permanent post of Chief Factory Inspector (CFI) (D1) to strengthen the directorate support of the Labour Department to implement the new policy on occupational safety and health.

JUSTIFICATION

Industrial safety

3. In his l993 Policy Address, the Governor deplored the poor industrial safety record in Hong Kong. Despite some improvement in recent years, about one in four of our construction labour force sustained injuries during l995. The overall fatality rate resulting from accidents at construction sites and in other industrial undertakings in Hong Kong stood at 67 and 77 in l994 and l995 respectively. This is unacceptably high compared to other developed countries.

4. Arising from a comprehensive review of industrial safety in Hong Kong by C for L, we have decided to change our strategy on industrial safety from focusing on enforcement to promoting safety management with a view to establishing a safety culture in Hong Kong. We will require large organisations to establish a safety management system at the enterprise level and to encourage the medium and small organisations to do the same by stages. The new system will include such components as a company safety policy, safety plan, safety committee, safety audit/review, general safety training for all workers and specific safety training for workers engaged in hazardous trades or processes.

5. As the concept of having a safety management system is relatively new in Hong Kong, an on-going and enhanced programme of education, promotion, training and enforcement is needed to inculcate this culture in the minds of the workforce. To implement the new policy, we need to provide additional staff to the Labour Department, raise the sanctions available to the inspectors and the level of fines imposed and restructure the Factory Inspectorate Division.

6. In view of the urgency to take the new policy forward, C for L has created, under delegated authority, a supernumerary post of DC for L (D3) [designated as DC (Special Duties)] for six months from 23 October 1995 to serve as the ‘change manager’. The DC (Special Duties) has been tasked to 01

  1. map out a business plan to restructure the Factory Inspectorate Division and implement the re-organisation proposals;
  2. introduce a new staff culture change with particular emphasis on safety management;
  3. equip the Factory Inspectorate with the necessary knowledge and skills to cope with the new requirements through upgrading the entry qualifications, safety management training, and general management training;
  4. formulate an interface strategy with training bodies with a view to cultivating a safety culture through education, training and publicity programmes;
  5. develop a safety charter at the workplace for consultation and publication and to promote the principles set out in the charter; and
  6. initiate new legislation or amendment to existing legislation to extend occupational safety and health provision to the non-industrial sector and to empower factory inspectors to issue suspension and improvement notices during their inspection.

7. C for L finds it necessary to create a permanent post of DC for L to continue the work of DC(Special Duties). With the additional DC for L post, C for L proposes to restructure his Department into two Branches in recognition of two very distinct functions under his command, namely the Labour Administration Branch and the Occupational Safety and Health Branch, each to be headed by a DC for L. The existing permanent Deputy Commissioner, to be designated as Deputy Commissioner (Labour Administration), will continue to be responsible for four major programme areas: Labour Relations; Employment Services; Employee Compensation and Administration; and Imported Workers. All of these programme areas are now under considerable pressure to respond to changing circumstances, such as the need to consider legislative changes arising from reviewing the labour relations and employees compensation systems, the administration of imported labour schemes, an expanded Job Matching Programme to cope with the current employment situation etc. His duties are so heavy that there is no capacity for him to give due attention to the new initiatives in occupational safety and health issues. The new DC for L, to be designated as DC(Occupational Safety and Health), will continue with his work as described in paragraph 6. He will also oversee all occupational safety matters including those related to prosecution and legal advice.

8. The main duties and responsibilities of Deputy Commissioner (Labour Administration) and Deputy Commissioner (Occupational Safety and Health) are at Enclosures 1 and 2 respectively.

Occupational safety and health

9. The development of a comprehensive programme of occupational safety and health is a long-term Government commitment. We have included provisions in the 1996-97 draft Estimates for the creation of 11 additional senior professional posts to implement our new initiatives. They will be placed under the Occupational Safety Division of the new Occupational Safety and Health Branch. The Occupational Safety Division is headed by an Assistant Commissioner for Labour (D2), whose duties and responsibilities are at Enclosure 3.

l0. In particular, as part of the reorganisation, C for L will set up a Support Services Section in the Occupational Safety Division. He proposes the creation of a CFI post, to be designated as CFI(Support Services), to head this Section. The Section will include two Senior Engineers to be seconded from the Electrical and Mechanical Services Department, one Senior Structural Engineer from the Buildings Department, and one Senior Chemist from the Government Laboratory, as well as one Senior Safety Promotion Manager. They will provide the technical services which include accident investigations on plant and construction, building safety and dangerous substances, and developing codes of practice, guidance notes and operational orders in these areas. Given that safety promotion will be a major commitment and the backbone to the new policy, CFI (Support Services) will need to realign Government’s efforts with the OSHC, Construction Industry Training Authority and other training bodies. The existing CFI in the Factory Inspectorate Division, who will be redesignated as CFI (Operations) in the Occupational Safety Ddivision, cannot cope with the additional workload. C for L considers it necessary to create an additional CFI in the Support Services SectionDivision of the Occupational Ssafety Division. The main duties and responsibilites of the proposed CFI (Support Services) and CFI (Operations) posts are at Enclosures 4 and 5 respectively.

11. Charts showing the existing and proposed organisation of the Labour Department are at Enclosures 6 and 7 .

FINANCIAL IMPLICATIONS

12. The additional notional annual salary cost of this proposal to create two directorate posts at MID-POINT is -

$ No. of Posts

New permanent posts

Deputy Commissioner

1,372,800

1

Chief Factory Inspector

994,200

1

Total

2,367,000

2

The full annual average staff cost of the proposed posts, including salaries and staff on-costs, is $3,847,656. In addition, this proposal will necessitate the creation of two additional non-directorate posts (one Personal Secretary I and one Personal Secretary II) at a notional annual mid-pont salary cost of $389,400 and a full annual average staff cost of $646,692.

13. We have made sufficient provision in the l996-97 draft Estimates to meet the cost of this proposal.

CIVIL SERVICE BRANCH COMMENTS

14. Civil Service Branch supports the proposal to restructure the department into two operational branches. It supports the creation of one additional Deputy Commissioner post to head the new Occupational Safety and Health Branch and one additional Chief Factory Inspector post to head a new Support Section. The ranking and grading of the two proposed directorate posts are appropriate.

RECOMMENDATION OF THE STANDING COMMITTEE ON DIRECTORATE SALARIES AND CONDITIONS OF SERVICE

15. The Standing Committee on Directorate Salaries and Conditions of Service has advised that the grading proposed for the permanent posts would be appropriate if the posts were to be created.

Education and Manpower Branch
March 1996


Enclosure 1 to EC(96-97)5

Deputy Commissioner for Labour (Labour Administration)

Main Duties and Responsibilites

Responsible to the Commissioner for Labour for -

  1. advising and assisting C for L in policy formulation in respect of labour relations, employment services, employees’ compensation and administration and imported workers;‚01
  2. supervising and coordinating the work of the four Assistant Commissioners for Labour; and the head of the Information and Public Relations Division;
  3. liaising and coordinating with the Education and Manpower Branch and other policy branches and departments on all labour administration matters;
  4. formulating and directing departmental policies and strategies in respect of organisational development of the Labour Administration Branch;
  5. dealing with staff unions of departmental grades and other staff matters, and chairing the Departmental Consultative Committee; and
  6. representing the Commissioner for Labour on various statutory bodies and inter-departmental committees and working groups; chairing three Labour Advisory Board Committees.


Enclosure 2 to EC(95-96)5

Deputy Commissioner for Labour (Occupational Safety and Health)

Main Duties and Responsibilites

Responsible to the Commissioner for Labour for -

  1. advising and assisting C for L in policy formulation in respect of occupational safety and health;
  2. supervising and coordinating the work of the Head of the Occupational Health Services Division and the Assistant Commissioner in charge of the Occupational Safety Division;
  3. liaising and coordinating with the Education and Manpower Branch and other policy branches and departments on all occupational safety and health matters;
  4. formulating and directing departmental policies and strategies in respect of the organisational development of the Occupational Safety and Health Branch;
  5. realigning and coordinating the work of the Occupational Safety and Health Council, Construction Industry Training Authority and other training bodies in promoting occupational safety and health and providing a comprehensive training programme for the workforce most exposed to workplace hazards and health risks;
  6. dealing with staff unions and other staff matters in the Occupational Safety and Health Branch; and
  7. representing the Commissioner for Labour on various statutory bodies and inter-departmental committees and working groups; and chairing the Labour Advisory Board Committee on Industrial Safety and Health.


Enclosure 3 to EC(96-97)5

Assistant Commissioner for Labour (Occupational Safety)

Main Duties and Responsibilites

Responsible to the Deputy Commissioner for Labour

(Occupational Safety and Health) for -

  1. assisting the DC(OSH) in formulating policy and strategies relating to safety and health at work;
  2. supervising and directing the activities of the following divisions -
    1. Operations Section under a Chief Factory Inspector;
    2. Support Services Section under a Chief Factory Inspector;
    3. Development Section under a Senior Training Officer and a Senior Planning and Development Officer;
    4. Boiler and Pressure Vessels Section under a Senior Surveyor;
    5. Prosecution and Legal Advice Section under a Senior Crown Counsel;
  3. reviewing and amending existing legislation on occupational safety and health;
  4. managing staff and other resources in the occupational safety programme area; and
  5. liaising with LegCo, policy branches, other government departments, professional and trade bodies on safety and health at work.


Enclosure 4 to EC(96-97)5

Proposed Chief Factory Inspector (Support Services)

Main duties and Responsibilites

Responsible to the Assistant Commissioner (Occupational Safety) for -

  1. developing the support services relating to occupational safety;
  2. directly supervising a Technical Services Unit staffed by four senior professionals to give expert advice, particularly in accident investigations on plant and construction, building safety and dangerous substances; to develop codes of practice, guidance notes and operational orders in these areas for internal and external use;
  3. developing a strategy to promote general safety awareness in the workforce and coordinating Government and external resources including the Occupational Safety and Health Council (OSHC) in such promotion and publicity;
  4. representing the Occupational Safety Division in OSHC committee meetings and various other inter-departmental working groups on occupational safety matters.


Enclosure 5 to EC(96-97)5

Chief Factory Inspector (Operations)

Main Duties and Responsibilites

Responsible to the Assistant Commissioner (Ocupational Safety) for -

  1. all field operations relating to enforcement of the Factories and Industrial Undertakings Ordinance and its subsidiary regulations, and the proposed Safety and Health at Work Ordinance and its subsidiary regulations;
  2. directly supervising five operational formations (HK Island, Kowloon, NT/West, NT/East and New Airport and Railway projects) each headed by a Deputy Chief Factory Inspector at senior professional level;
  3. developing a strategy to promote safety management and self-regulation at the enterprise level and equipping all operational staff with the skills and techniques required to achieve the policy objectives;
  4. ensuring consistency in performance, targeting and enforcement standards, including accident investigations and case reviews, among the five formations;
  5. aligning the field operations with the Support Services Section and other formations; and
  6. representing the Department at meetings with other government department and outside bodies on major operational issues relating to safety and health at work.

Last Updated on 3 December 1998