Over the past 11 months, more than 2,000 construction workers and subcontractors in Hong Kong have experienced delays in receiving their wages and project fees, leading to a total of HK$300 million in unpaid funds. This situation, as reported by the Hong Kong Construction Industry Employees General Union, is the highest amount in 40 years.
The union highlighted that the issue has escalated since July, attributing it to a slowdown in the construction sector due to fewer private projects. This has caused cash flow difficulties for many contractors and subcontractors, affecting both privately funded and government-led projects.
Dennis Leung, a member of the FTU and a legislator, expressed concern over the impact of delayed payments on public housing projects, urging the government to investigate and intervene to prevent further delays.
Since July, around 1,000 workers and subcontractors have sought assistance from the union, with delays ranging from two to seven months. Despite efforts to address the situation, only 10 per cent of the total amount owed has been settled, leaving many workers in a precarious financial situation.
The union worker emphasized that most cases of delayed payments stem from main contractors failing to pay their subcontractors, leading to significant financial hardship for workers. While progress has been made in resolving payment issues for public works projects, challenges remain in the private sector, with developers refusing to engage with affected workers.
The union has called on the government to establish a more robust system to protect the rights of frontline workers and ensure timely payment for their work. This situation underscores the need for greater oversight and accountability in the construction industry to prevent further instances of unpaid wages and project fees.
The challenges faced by construction workers and subcontractors in Hong Kong highlight the importance of upholding labor rights and ensuring fair compensation for all workers in the industry. It is essential for stakeholders to work together to address these issues and create a more equitable and sustainable construction sector for the future.