Hong Kong Labor Day Protesters Back Dockers’ Struggle Against Li

Thousands of Hong Kong residents took to the streets today for Labor Day marches to petition for better labor conditions and in support of strike action by workers at docks operated by billionaire Li Ka-shing.

An estimated 2,600 people joined in a protest this morning organized by the Hong Kong Federation of Trade Unions for workers’ rights, said Kimmy Man, a spokeswoman for the Hong Kong Police Force, in a telephone interview.

Protesters carried a caricature mule and waved placards calling for standardized working hours, fully paid maternity leave, better retirement benefits and against the use of imported labor. The procession marched from Southorn Playground in Wan Chai to the government offices in Central.

The protests underscore rising public discontent at the growing gap between rich and poor in the former British colony. A 7.1 percent increase in the city’s minimum wage to HK$30 ($3.9) an hour took effect today, as the government attempts to narrow inequality that is at its worst level since records began in 1971.

Separate demonstrations were scheduled by the League of Social Democrats for the rights of local migrant workers, the Hong Kong Federation of Trade Unions, and the Union of Hong Kong Dockers, which is demanding pay rises and improvement of labor policies for dock workers.

Protesters rallied behind the biggest labor revolt against Li, Asia’s richest man. About 450 dock workers, crane operators and stevedores have been on strike since March 28 demanding higher wages and better working conditions at the world’s third- busiest container port.

Against Tycoons

Mass and social media have helped turn the strike by dockers into a social movement, said Randy Chiu, a professor at Hong Kong Baptist University.

The public “view that probably the same thing will happen to them if they don’t act together,” said Chiu. “People are really against tycoons and property developers who also control other businesses.”

The industrial action at Hongkong International Terminals Ltd. has led at least 100 ships to skip Hong Kong in favor of nearby ports, damaging the city’s role as a trade hub for China.

Talks organized by the labor department between the Union of Hong Kong Dockers and contractors of Li’s terminal have yet to reach any agreement. Workers rejected an earlier offer of a 7 percent pay increase, while scaling back demands for a 23 percent rise to a “double-digit” increase.

The terminals are operating at 90 percent of capacity and the delays faced by ships for berthing have been cut after the hiring of temporary workers, according to the port operator.

Job Losses

Some workers were told they will lose their jobs on April 19 as Global Stevedoring Service Co., one of the contractors which employs them, decided to wind up operations because it wasn’t able to meet the salary demands.

Hongkong International Terminals is operated by Hutchison Port Holdings Trust (HPHT), whose largest shareholder is Li’s Hutchison Whampoa Ltd. (13) Hutchison Port, along with partner Cosco Pacific Ltd., dominates half of the capacity at Hong Kong’s port. Hutchison Whampoa has interests in 52 ports globally from Panama to the Netherlands.

Terminals controlled by Hutchison Port also have a 46 percent market share in Shenzhen, where shipping lines including Evergreen Marine Corp Taiwan Ltd. (2603) diverted vessels because of the strike in Hong Kong.

The demonstration, which first took place outside the port, moved to Li’s Cheung Kong Center building in the city’s Central district as workers tried to escalate their protest. The move spurred a court battle with Li over their right to demonstrate.

Pay Cut

The port workers earn HK$55 ($6) an hour, less than the HK$60.70 they were paid in 1995, according to the Union of Hong Kong Dockers. They took a pay cut in 2003 during the outbreak of severe acute respiratory syndrome, or SARS, which hurt Hong Kong’s economy.

Li is boosting his dominance at the Hong Kong port as Hutchison Port in March bought a box terminal from DP World Ltd. and a partner. Li’s companies run businesses including retail, telecommunications, property development, electricity and port operations. He has a total wealth of $27.7 billion, according to the Bloomberg Billionaires Index.

Other protesters took to the streets to demand standard working hours working hours. The Hong Kong government last month set up a committee to study the issue.

To contact the reporters on this story: Jasmine Wang in Hong Kong at jwang513@bloomberg.net; Bei Hu in Hong Kong at bhu5@bloomberg.net

To contact the editor responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net

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