VZCZCXRO6617
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). 
 
¶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  (C) Summary:  A bill to overhaul Macau's outdated labor 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outdated 1989 labor laws, the draft law remains stalled in 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