Excessive Regulation of Trade Unions

In December 2022, the Executive Council of Macau SAR presented a draft Trade Union Law to the Legislative Assembly. While the Basic Law of Macau confers the right to form and join trade unions, the proposed legislation falls short of international standards and demonstrates a tendency towards excessive regulation. Critically, the draft law contains no references to the right to strike or the right to collective bargaining.

Exclusion of Migrant Workers from Leadership

Article 14(4) of the draft Trade Union Law requires that office holders of a trade union must be Macau residents. This effectively bars migrant workers — officially classified as “non-resident workers” — from taking managerial roles. Forming a trade union would be practically impossible for domestic workers, as the overwhelming majority are migrant workers.

Limited Collective Bargaining

The proposed functions of trade unions under Article 18 of the draft law are largely limited to consultation, training and service provision. Article 18(1) only permits a trade union to represent its members in “individual employment disputes”, implying the exclusion of collective bargaining.

No Right to Strike

Although Article 27 of the Basic Law confers the right to strike on Macau residents, no local legislation protects workers or trade union officials from retaliation or liability for breach of contract in connection with strike action. The draft Trade Union Law implicitly seeks to prevent public service workers from organising industrial action.

Monitoring of International Activities

The draft law proposes extensive reporting requirements concerning international engagement:

  • Trade unions would be required to submit quarterly reports on events organised with non-local organisations.
  • Trade unions must inform the Labour Affairs Bureau (DSAL) when joining an international labour organisation.
  • Affiliation with any international organisation not related to labour requires the prior approval of the Chief Executive.

The DSAL has stated that a “supervision mechanism” will monitor trade unions that affiliate with international labour alliances, citing “national security” concerns. These requirements do not currently apply to any association in Macau.

Exploitation of Domestic Workers

Exclusion from the Minimum Wage

Domestic workers are expressly excluded from the minimum wage under Article 2(1) of Law no. 5/2020 (Minimum Wage for Workers). The Deputy Director of the DSAL justified this exclusion on the grounds that domestic workers “do not help families to make profits”.

Excessive Agency Fees

Despite the enactment of Law no. 16/2020 (Employment Agency Activities), which caps agency fees at 50% of the first month’s salary, domestic workers report being charged approximately two months’ wages by agencies. Agencies decline to process applications from workers who do not pay fees in advance. Workers have reported that some colleagues have had to borrow money to cover the fees before securing employment. The change in practice — from deducting fees from wages to requiring upfront payment — has made migrant workers more vulnerable.

Restriction on Unskilled Migrant Workers

A 2020 amendment to Law no. 21/2009 (Law on Hiring Non-resident Workers) introduced a requirement that unskilled migrant workers may only be granted a work permit if they enter Macau on a work visa. This prevents unskilled workers from visiting prospective employers on a tourist visa to seek employment — a practice that remains available to skilled workers. The requirement is both impractical and discriminatory.

Observations by UN Treaty Bodies

Human Rights Committee (July 2022)

Trade unions: The Committee was concerned about the absence of a specific law protecting trade union rights, and that the draft law excludes a reference to the right to strike and appears to excessively regulate the right to freedom of association, including by monitoring unions that join international labour alliances. The Committee urged Macau to guarantee the meaningful exercise of the right to freedom of association, including the right to strike. (paras. 40–41)

Migrant workers: The Committee was concerned that recruitment agencies continue to charge migrant domestic workers excessive fees, and that the minimum wage does not apply to non-resident domestic workers. It urged Macau to enhance the protection of migrant workers and provide effective complaints mechanisms. (paras. 24–25)

(CCPR/C/CHN-MAC/CO/2)

Committee on Economic, Social and Cultural Rights (March 2023)

Trade unions: The CESCR was concerned that no legislation has been passed to regulate trade union rights, and that the law does not provide for collective bargaining or specific protection from retribution for workers who strike. It was also concerned that employers and the Government are influencing certain unions. The CESCR recommended that Macau pass legislation to regulate the right to form and join trade unions and the right to strike. (paras. 138–139)

Exploitative practices: The CESCR was concerned that migrant construction and domestic workers are vulnerable to exploitative measures such as recruitment fees, withholding of passports and debt-based coercion. It recommended extending minimum wage protection to domestic helpers and increasing the effectiveness of labour inspectorates. (paras. 136–137)

(E/C.12/CHN/CO/3)

Recommendations

MRG has recommended that the relevant UN treaty bodies urge Macau, China to:

  • Ensure that all workers, including migrant workers, can equally form and participate in trade unions;
  • Introduce the rights to strike and to collective bargaining;
  • Remove excessive regulatory requirements on international engagement by trade unions;
  • Include domestic workers in the scope of the minimum wage;
  • Proactively reach out to migrant worker communities to encourage them to report exploitative practices;
  • Raise awareness amongst employers regarding lawful and unlawful employment practices; and
  • Allow unskilled migrant workers to seek employment in Macau as visitors.