VZCZCXRO5381
RR RUEHCHI RUEHCN RUEHDT RUEHGH RUEHHM RUEHVC
DE RUEHHK #1953/01 2940605
ZNR UUUUU ZZH
R 210605Z OCT 09
FM AMCONSUL HONG KONG
TO RUEHC/SECSTATE WASHDC 8780
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHOO/CHINA POSTS COLLECTIVE
RUEHC/DEPT OF LABOR WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 HONG KONG 001953 
 
SIPDIS 
 
STATE FOR EAP/CM 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV ETRD ELAB HK CH
SUBJECT: NEW FOREIGN LABOR LAW IN MACAU TO SEVERELY 
RESTRICT WORKERS' ABILITY TO CHANGE EMPLOYERS 
 
¶1. SUMMARY: Macau's Legislative Assembly passed a 
controversial bill on October 9 that will establish stiff 
criminal penalties for employers of illegal migrants.  Upon 
becoming law in the second quarter of 2010, the bill's 
provisions will also impede foreign workers from changing 
employers in Macau and require them to leave for six months 
before applying for a new work permit with a different 
employer.  Groups representing migrant workers criticized the 
bill, stating it would lead to increased abuse of migrant 
workers by employers and effectively prevent foreign workers 
from improving their wages by changing employers.  The bill 
is part of broader government of Macau (GOM) efforts to 
replace foreign workers with Macau residents.  Several 
legislators were disappointed that the bill did not include 
specific caps on imported labor.  END SUMMARY 
 
Employers of Illegal Workers Face Prison 
---------------------------------------- 
 
¶2. Macau's 81,500 legal non-resident workers account for 
approximately one-fourth of Macau's total workforce.  After a 
legislative debate described by local media as "heated," 
Macau's Legislative Assembly passed a bill on October 9 that 
will establish strong criminal penalties for employers of 
illegal foreign workers.  Anyone found guilty of employing a 
non-resident worker without a valid work permit may be 
incarcerated up to two years; repeat offenders may be 
sentenced up to eight years.  The bill states that an illegal 
worker found on a construction site will be presumed to have 
entered into an employment relationship with the respective 
contractor.  Legal analysts stated this latter provision may 
violate the "presumption of innocence" principle for 
defendants and will likely be challenged in Macau's courts. 
(Note: The original draft bill submitted by the GOM to the 
Legislative Assembly purposely excluded special provisions 
and penalties for employers of foreigners on construction 
sites.  The Legislative Assembly added the provisions to the 
bill's final text over the objections of Secretary for 
Economy and Finance Francis Tam.  End Note) 
 
Migrant Workers "Locked In" to Existing Employers 
--------------------------------------------- ---- 
 
¶3. A separate controversial provision in the bill requires 
all non-resident workers (whether skilled or unskilled) 
seeking to change employers to leave Macau for six months 
before reapplying for a new work permit.  This so-called 
"cooling off" period also applies to workers who terminate 
their employment contracts prior to expiration -- typically 
to join a higher-paying employer.  Migrant workers noted that 
employers will have little incentive to provide pay raises or 
improve working conditions for foreign workers, as these 
workers will be "locked in" their current positions by the 
new law. 
 
¶4. Various groups representing foreign workers criticized the 
new cooling off period, stating it would tighten the grip of 
Macau's employers on low-income foreign employees and lead to 
increased employer abuse of migrant workers.  Macau NGO Care 
for Indonesian Migrant Workers Group spokesperson Cindri 
Purnasari told media sources, "I'm worried that employers 
will not hesitate to treat their (foreign) workers badly. 
And if an employer doesn't renew our contract, we will be 
unemployed for at least six months until we can possibly get 
a new work permit."  She added that most foreign workers fill 
relatively low-paid positions and could not afford such an 
extended period without pay.  NGO Macau Migrants Rights 
Network (MMRN) sent a letter signed by 2,000 workers to 
Legislative Assembly President Susana Chou describing the new 
law as "racist and discriminatory."  In their letter, MMRN 
stated they would present their concerns to the International 
Labor Organization and the UN Committee to End Racial 
Discrimination.  The Philippine Consul General in Macau 
released a statement on October 10 that called for the Macau 
government to observe applicable international labor 
conventions and ensure fair, non-discriminatory treatment of 
migrant workers. 
 
Some Macau Legislators Want Even Tougher GOM Stance 
--------------------------------------------- ------ 
 
¶5. Four Legislative Assembly members who represent the labor 
sector issued a joint delaration on October 9, after passage 
of the bill, stating the new law would not sufficiently 
protect Macau resident workers' rights.  They called on Macau 
to cap the number of foreign workers -- both skilled and 
non-skilled -- and prohibit employment of foreign workers in 
 
HONG KONG 00001953  002 OF 002 
 
 
some (unidentified) sectors and professions.  They also 
stated that real estate developers should receive stiffer 
punishment for the illegal workers employed by local 
contractors. If enacted, such a provision would impact U.S. 
gaming companies that might occasionally employ local 
contractors and thousands of migrant workers to complete the 
various construction projects around Macau. 
 
¶6. The bill is expected to become law in 2010, 180 days after 
its pending publication in the Official Gazette. 
MARUT