Labour Chief Rejects Cash Handouts For The Jobless

The Labour and Welfare Secretary, Law Chi-kwong, has dismissed the idea of giving the unemployed HK$10,000 cash handouts to tide them over the pandemic.

Speaking on a radio programme on Saturday, Law said it's a "very complicated" matter because public money is involved.

He said the government has to consider factors such as how much the workers used to earn before losing their jobs, or whether they are fresh graduates who just haven’t found a job.

But he said those in need can get help from the Comprehensive Social Security Assistance (CSSA) scheme, which he said is now "more lenient".

Law also defended the employment subsidy scheme, saying it gives companies flexibility to use the money.

Some workers complained that even after their employers were granted the wage subsidy – which is capped at HK$9,000 per month for each employee – they ended up being paid only half of what they used to earn because they were forced to take unpaid leave.

Law admitted it's hard for the government to hire hundreds of workers in a short period of time to monitor how the companies use the subsidies.

He said he believed if employers are required to submit details of how they use the subsidy, or if the government were to set a certain salary level for the workers, half of the bosses would rather close their businesses than apply for the wage assistance,.

Law said protecting the employer in fact means “protecting the relationship between the employer and the employees”.

Meanwhile, Law said he won't be too optimistic about the labour market although the latest jobless rate fell by 0.1 percent to 6.1 percent in the three months to July.

He said it’s because the social distancing measures in August have been more stringent than ever.

But he said with the government's employment and anti-epidemic subsidies, the situation won't get as bad as during Sars in 2003, when the unemployment rate hit 8.7 percent.