Identifier
Created
Classification
Origin
07HONGKONG2597
2007-10-11 10:40:00
CONFIDENTIAL
Consulate Hong Kong
Cable title:  

MACAU LABOR SQUEEZE EXACERBATES POLITICAL TENSIONS

Tags:  PGOV PHUM PREL PINR CH HK MC 
pdf how-to read a cable
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PP RUEHCN RUEHGH RUEHVC
DE RUEHHK #2597/01 2841040
ZNY CCCCC ZZH
P 111040Z OCT 07
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC PRIORITY 3164
INFO RUEHOO/CHINA POSTS COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
C O N F I D E N T I A L SECTION 01 OF 02 HONG KONG 002597 

SIPDIS

SIPDIS

NSC FOR DENNIS WILDER
DEPARTMENT FOR EAP/CM

E.O. 12958: DECL: 10/11/2032
TAGS: PGOV PHUM PREL PINR CH HK MC
SUBJECT: MACAU LABOR SQUEEZE EXACERBATES POLITICAL TENSIONS

REF: HONG KONG 2157

Classified By: E/P Chief Laurent Charbonnet. Reasons: 1.4(b,d).

C O N F I D E N T I A L SECTION 01 OF 02 HONG KONG 002597

SIPDIS

SIPDIS

NSC FOR DENNIS WILDER
DEPARTMENT FOR EAP/CM

E.O. 12958: DECL: 10/11/2032
TAGS: PGOV PHUM PREL PINR CH HK MC
SUBJECT: MACAU LABOR SQUEEZE EXACERBATES POLITICAL TENSIONS

REF: HONG KONG 2157

Classified By: E/P Chief Laurent Charbonnet. Reasons: 1.4(b,d).


1. (C) Summary: A bill to overhaul Macau's outdated labor
laws remains stalled in the legislative process. Exacerbated
by a politically disengaged public and weak political party
structure, labor woes are increasingly straining the
livelihood of many Macau citizens. Several thousand Macau
citizens took to the streets during a September 30 - October
1 rally in an unusual protest against a mass of grievances.
This was the first protest rally in Macau scheduled on the
PRC National Day, October 1, since the handover in 1999. End
summary.


2. (C) Comment: Following explosive economic growth in
recent years, dissatisfaction over working conditions,
tensions between imported and local labor, and allegations of
public corruption have become politically charged issues in
Macau's historically sleepy civil society. In the absence of
well developed democratic channels for coherent political
debate and accomodation, however, citizens of the Macau
Special Administrative Region (MSAR) have increasingly taken
up activism, rallies and public protests to compel the MSARG
to attend to their concerns. China's central authorities
certainly are unenthusiastic about the potential development
of a more robust representative system in Macau (Hong Kong's
is headache enough) and the director of the Central
Government's Liaison Office in Macau told the press China was
unworried about the protests, which were Macau's internal
affair. We know for a fact, however, that Beijing is
increasingly concerned about the MSARG's apparent inability
to cope with rising social stresses and the changes wrought
by the in-flow of foreign capital. End comment.

Labor Law Languishes in Legislature
--------------


3. (SBU) Although Macau's Executive Council completed
discussions in April on a bill to overhaul the MSAR's
outdated 1989 labor laws, the draft law remains stalled in

Macau's sluggish and unassertive legislature. If passed, the
new labor law would regulate the importation of non-resident
workers to take jobs left unfilled by Macau residents
(reftel). Employers seeking to import laborers would be
required to get approval from the newly-established Human
Resources Office of Macau (HRO) by proving that: (1) resident
workers are not available to fill the vacancies; and (2) the
importation of laborers would not jeopardize the interests of
resident workers. (Note: The HRO was established in May
under the Secretary for Economy and Finance. End note.)
According to a government information release, the bill
contains proposals to better protect both employers and
employees. For example, workers who quit their jobs must
give more notice than the present seven days. Also, the new
law stipulates overtime compensation for holiday and
late-shift work.

Reaching a Political Flashpoint
--------------


4. (C) The draft law has not been enacted in part because
Macau,s various political parties, often referred to as
"associations," rarely are able to mobilize and champion
effectively the concerns of Macau's politically disengaged
public. President Ho Heng Kwok of the Macau Worker's Union
(MWU) told us that Macau's grassroots community will not pay
any attention to the draft labor law until it passes, adding
that many citizens do not trust the Legislative Assembly
(LA),where only 12 of 29 legislators are directly elected,
and also regard the LA-government public consultation process
as inadequate.


5. (C) This lack of established channels for political
debate exacerbates the rise of social tensions in Macau.
Political activist Antonio Ng's New Macau Association,
operating on a shoestring budget, has had some success in
taking on the Macau government on complex social issues
facing Macau today and, according to many observers, is the
only effective voice challenging Macau government policies.

Grassroots or Bust
--------------


6. (C) Instead, Macau's citizens are increasingly using
demonstrations to supplant the territory's shallow political
system. Several thousand Macau citizens took part in
protests spanning September 30 and October 1 to voice
concerns over the MSAR's new Road Traffic Law, which took

HONG KONG 00002597 002 OF 002


effect on October 1, as well as corruption, education reform,
illegal labor, and other social woes. The peaceful
demonstrations, organized by members of the Macau Workers
Union, highlighted the increased willingness of Macau's
citizens to try to force the government to hear their
concerns. "The Macau Post Daily" reported that one teacher
claimed to have joined the march alongside his colleagues
because they had "no other channel to express their
opinions." The teachers took part largely to express
dissatisfaction over insufficient consultation between the
government and teacher associations when the government
considered new education policies. Chief Executive Edmund
Ho, while speaking at a National Day reception following the
two days of protests, said that Macau needed to develop its
economy in order to improve Macau's "first priority" -- the
livelihood of its citizens. Bai Zhijian, Director of the
Liaison Office of the Central People's Government in Macau,
reportedly denied having any concerns over the protests and
stated that these were Macau's own affairs. However, the
"South China Morning Post" speculated that Macau's Chief
Executive, Edmund Ho, was summoned the day after the protests
to Shanghai (during the Special Olympics) to meet with
President Hu Jintao and report on Macau's social problems.
Marut