Lessons to learn from the container port workers strike
Updated: 2013-05-07 06:55
By Li Kui-Wai(HK Edition)
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The just-ended prolonged strike by container port workers had been politicized, as unions and workers exploited it for non-work related ends, including the raising of funds for strike workers. Economic attention in Hong Kong in the last decade has focused mainly on the weaker sections of the economy, as the elderly, the poor, the unemployed, inequality and the underprivileged have become the headlines of local news. But these issues are not confined to Hong Kong. Despite more than three decades of high economic growth on the mainland, inequality is just as bad or worse when compared to Hong Kong.
The worker-employer relationship in Hong Kong has been largely harmonious, though there have been clashes. Hong Kong is a "business-led" economy, and businessmen are risk-takers. As such, the city has nurtured a number of successful business personalities. Of course, even if there was no Li Ka-shing, there will be another person in the same business.
There are a number of realistic economic issues one has to consider, like it or not. The container port business is part of the re-export trade that Hong Kong revitalized in the 1980s after the mainland opened its economy and trade flourished. However, over the decades, a growing number of port facilities have flourished in nearby cities, including Shenzhen, Zhuhai, Macao, Guangzhou and so on. Although it used to be ranked the largest container port, Hong Kong has lost out to Shanghai and Shenzhen in terms of the volumes handled. Of course, some of these nearby competitors were developed by Hong Kong businesses that made use of lower cost and large export volume from mainland cities.
Since 2008 exports from the mainland have fallen, and given the high cost in container handling in Hong Kong, container port workers in Hong Kong are losing their competitiveness on two fronts: lower cost across the border and less exports passing through Hong Kong. The advantage Hong Kong has is efficiency and reliability, but custom checks may have caused unnecessary delay when containers pass through Hong Kong. The re-export trades in Hong Kong are simply goods that pass through Hong Kong to or from the mainland; re-exports are not goods destined for Hong Kong. Since the fall in manufacturing industry, domestic exports from Hong Kong have dropped. Thus, the container port business is saturated, and it is more likely that the business will shrink than expand.
Work in the container port requires skills and a special working schedule. Firstly, its business is seasonal. At peak seasons, work is plentiful and extra schedules are needed. Secondly, the work may require long hours and shift work above the ground. It may be also true that workers may have to stay up in the container lift for hours. And once workers are in a container lift they cannot expect it to be like sitting in an office where you can get a drink or visit the toilet conveniently.
It is always easy to blame employers for low pay. It is true that in any market economy, pay is not entirely dictated by the employer, but also by workers' productivity and competition in the market. In short, skilled workers are meant to be more productive and can earn higher pay.
Management should be more sensitive to workers' contribution, but equally workers have to understand the prospects of their work. Union leadership and collective bargaining sound like a good solution, but can be politicized, militant and become restrictive. Unrealistic demands may affect an employer's willingness to hire, expand business and foster new investment. All sides must put Hong Kong's competitiveness as their top priority, and personal political interests should be avoided.
The author is an associate professor with the Department of Economics and Finance at City University of Hong Kong.
(HK Edition 05/07/2013 page1)