Chapter 6 : Investing in a Professional Workforce

6.1     People are the most valuable asset in the construction industry and a professional workforce is very important to the delivery of quality construction. In many developed countries, the construction industry is characterized by a professional and respectable workforce. Hong Kong lags sadly behind.

6.2     In Hong Kong, construction sites have always been regarded as dangerous and dirty places. Mobility of both workers and sub-contractors is high under the multi-layered sub-contracting and daily-wage systems. The value of training has not been fully recognized and the industry has failed to attract new blood. Substantial changes in its culture and operations are required to build up a professional workforce. This transformation however cannot be effected without the full support of the Government, property developers, contractors, workers and training authorities. In building up a professional local workforce, we need to -

(a) uplift the industry's status
  
(b) develop a visionary training strategy
  
(c) recognize the value of professionalism
  
(d) improve site safety

  
Uplift the Industry's Status

6.3     It is important to build up an industry in which workers take pride in their work. Job security and a clear career path are important elements for the industry to attract and retain talents and thereby enhance workers' commitment to quality. The Government should work closely with the industry to promote the use of direct or contract labour so as to give a sense of belonging and job security to workers.

6.4     We fully appreciate that the nature of the construction industry and the fluctuating workload make the use of casual labour inevitable. However, we also recognize that some reputable property developers and contractors are increasingly employing contract workers. The results are promising and the system does work, and we believe that the industry should actively widen the use of contract workers. The employment of contract workers should start from core trades and positions and their proportion should be increased progressively.

6.5     The HA will consider requiring contractors to employ a certain proportion of contract workers in core trades by themselves and through their nominated sub-contractors and domestic sub-contractors, e.g. levellers and mechanics. By providing greater job security to workers and more certainty to contractors, we can restrain multi-layered sub-contracting and uplift the professionalism of the industry. (see also para. 7.6 below) We indeed recognize that last year the HKCA, the CITA and the Real Estate Developers' Association (REDA) jointly proposed that contractors should employ direct labour. We will work out the implementation details with these parties and aim to introduce a pilot test for piling projects.

6.6     At the same time, the Government and the industry should jointly implement registration for workers. Currently, as there are no entry requirements for the industry, any worker or firm can simply turn up and claim to be a member. This results in poor discipline and monitoring problems. The registration system will not only provide greater recognition to the industry and workers, but will also screen out unqualified workers. The HA will support the Construction Workers' Registration System as a means of enhancing the industry's professionalism and will be glad to see its early implementation.

  
Develop a Visionary Training Strategy

6.7     While acknowledging that both the CITA and the Vocational Training Council (VTC) have provided valuable training courses to a large number of construction workers, less than 20% of the total workforce on sites are trade-tested. The HA supports the development of a visionary training strategy for the industry to upgrade the quality of the workforce through continuous learning.

6.8     From the HA's viewpoint, training authorities should address four issues urgently.

(a) First, more training courses should be provided for site management and supervisory staff as they are key change agents in upgrading building quality. We will require more qualified supervisory staff in our new projects. As public housing has a lion share in the overall construction activities, tailor-made training courses should be provided for this purpose.
  
(b) Second, training courses should reflect the spirit of continuous learning and advancement. The training programmes should be reviewed and intensified to match the changing needs of the industry and also the introduction of new technologies.
  
(c) Third, CITA's basic craft courses should be modified to attract new blood and to reduce the drop-out rate which is currently at about 25%. Very often, the lack of exposure to new and tough working condition on sites is the main contributory cause. While after-graduation counselling services and the Pilot Employers Subsidy Scheme have helped to address the problem to some extent, the CITA may consider introducing on-site practice in the curriculum to enable candidates to remain within the industry after graduation.
  
(d) Fourth, training authorities should closely liaise with the Independent Commission Against Corruption (ICAC) to strengthen ethical training for candidates. Upholding professional integrity and ethics are important to deter corruption and to enhance professional conduct.

Both the HA and the HD are willing to participate actively in drawing up new and expanded training programmes with these training authorities.

  
Recognize the Value of Professionalism

6.9     Proper recognition of the benefits of training is important to facilitate the development of professionalism. The provision of training must be linked up with requirements of the job market. The Government and training authorities should develop a hierarchy of qualifications for different aspects of trades so that both workers and supervisory staff can be induced to progress on the training advancement ladder. Trade-testing has proved to be an effective means to recognize the value of training. At present, the CITA provides 16 types of trade-testing for different trades at both intermediate and full test levels. The number and coverage of trade tests should be expanded progressively to uplift the overall professionalism of the industry and to keep pace with new innovations in building technology.

6.10     To promote the industry's professionalism, the HA will put greater emphasis on the professional and trade-test requirements for site supervisory staff and workers. We will -

(a) increase the proportion of trade-tested workers from 35% to 60% under our contracts in three years' time. We aim to improve the quality of workers and recognize the value of training.
  
(b) specify and enhance the qualifications and experience requirements for site supervisory staff under the new Quality Supervision Plans.

  
Improve Site Safety

6.11    A radical improvement to safety is necessary in its own right. It would also go a long way to enhancing the image of the industry. A safe working environment is a basic requirement for attracting and retaining workers. The HA has been working closely with the Government, the CITA and the Occupational Safety & Health Council to publicize the importance of site safety. The HA has been paying for Green Card/Silver Card training and the Safety Audit Scheme and has been promoting the awareness of site safety through the annual Site Safety Compaign. We have also progressively strengthened site safety requirements in contract provisions and have given increased weight in assessing tendering opportunities.

6.12    The fact that the accident rate in HA's construction sites is nearly 50% lower than the overall industry's average suggests that these measures have been effective. However, more must be done. We therefore propose to -

(a) implement the "Pay for Safety Scheme" to enhance contractors' safety performance. Instead of providing a lump-sum payment to assist contractors in providing specified safety provisions, our payment will only be effected if these provisions have been provided on sites. We will also specify the minimum threshold for safety provision budget during tendering exercises.
  
(b) impose heavier penalty on non-performing contractors regarding site safety. From August 1999 onwards, we suspended contractors from tendering if they had received Labour Department's suspension notices or were involved in the Works Bureau's panel hearings. Starting from the first quarter of 2000, we will automatically suspend contractors from tendering if they secure an unsatisfactory site safety audit score. Safety audit results will be consolidated into PASS 2000 for assessing contractors' overall performance.
  
(c) require contractors to develop more detailed site safety management guidelines under the Quality Supervision Plans.

6.13    It is important that all stakeholders invest in the building up of a professional workforce. The Government should take the lead in this reform and the HA will contribute proactively. A safe working environment, a secure career path, good prospects for advancement and full recognition of training by the market are necessary to facilitate the professionalization of our construction workforce.

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