Labour Administration and 'Voluntarism': The Hong Kong Case

Abstract

The notion of 'voluntarism' now looks obsolete as a state philosophy for labour policy prescription in its motherland, Britain. However, this concept which essen tially preaches state 'non-intervention' has left strong imprints on the current industrial relations system of its major overseas dependent territory—Hong Kong. One notable sign is the adamant resistance to introduce legislation on an economy- wide minimum wage. This paper traces the historical linkage between the British and Hong Kong institutional systems to explain the transfer of the 'voluntarist' framework to, and its persisting presence in, Hong Kong's industrial relations. It argues that while 'voluntarism' in Britain assumed an approximate equality in collective bargaining power between labour and capital, its application to Hong Kong has been justified by labour market conditions that are alleged to produce a rough equality of individual bargaining power between workers and employers. The paper goes on to examine implications for labour administration and asks whether the Hong Kong Government's recent series of 'discretionary' initiatives at labour reforms is an 'uneasy' recognition of and a 'reluctant' response to the strains and pressures endemic in such a purportedly 'free-market' laissez-faire economy.

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