Half of Grassroots Workers Don’t Know What “Semi-Portability” Is: More Information Isn’t Better

This article is a rewrite of a report from November 2012.

On the eve of November 2012’s “semi-portability”, the Confederation of Trade Unions surveyed 454 workers: over half had “never heard of” the new arrangement or “heard of it but knew no details”; only 20% knew the launch date and that employee contributions could move. Respondents averaged 49 years old and HK$11,000 monthly pay, mostly in cleaning, catering and transport — the group needing protection most knew the new right least.

How stark are the numbers?

21% never heard of it; 33% heard but knew nothing. Nearly 10% more knew only the 1 November date; just 21% and 10% respectively knew their own scheme’s last-year return and management fee. If you don’t know how your money performed or what it costs, how do you make the best decision?

What is the problem with the Employee Choice Arrangement for grassroots workers?

Choice needs knowledge, and knowledge costs. The union noted most grassroots employees lack investment understanding — unaware of their rights and unable to decide optimally. Amid the information deluge, the vulnerable are easiest left behind: “semi-portability” granted the right but not the capability.

What did the union demand?

Two things: disclosure, and a public fund. The union demanded trustees disclose fee and return details, and proposed a government-run fund to protect grassroots workers. The 2012 demands cut to the scheme’s core tension: market competition presumes everyone can compete — reality says otherwise.