Help urged for construction workers reportedly facing axe at Hong Kong firm

Building industry representatives have urged Hip Seng Construction, a major contractor in Hong Kong, to provide proper transitional arrangements for workers reportedly facing redundancy because of financial strains at the firm.

They also highlighted the issue of wage arrears widely plaguing the sector amid sluggish business conditions, calling on Thursday for more government support to help firms tide over difficulties.

Hip Seng Construction, established in 2012, is working on several projects, including student dormitories for the University of Hong Kong in Wong Chuk Hang, the SkyCity business and entertainment complex near the airport, and Pavilia Farm, a residential development in Tai Wai.

The company is reportedly struggling financially and will lay off employees, with some said to potentially be transferred to another contractor, Hip Hing Construction. It was also reported that some of the firm’s projects would be taken over by Hip Hing Construction.

Hip Seng Construction was reported to have recently sent a letter to employees that there would be “zero” pay rises in January or a discretionary annual bonus, citing a serious shortage of projects in the industry and difficult business environment.

While the number of affected staff was not immediately known, unionist lawmaker Lam Chun-sing told a radio programme on Thursday that the impact of the company’s financial struggles could go beyond its own workers.

“It had other subcontractors to carry out some projects. Will it have financial difficulties and be unable to pay the subcontractors, which will not be able to pay wages? It will lead to a chain reaction,” said Lam of the Federation of Hong Kong and Kowloon Labour Unions.