The number of applications for the Protection of Wages on Insolvency Fund in the first six months dropped 36% - to 7,184 from 11,297 in the same period last year.

Speaking at the launch ceremony of the Good People Management Award today, Permanent Secretary for Economic Development & Labour Matthew Cheung said the remarkable drop is an indicator of the improving economy and better labour relations.

"Labour disputes and claims handled by the Labour Department have declined from the fourth quarter last year. This is another indicator," he said.

"The department resolved 69.5% of labour disputes and claims it handled in June this year, the highest conciliation rate since the Asian financial crisis of 1997."

Last year, the department handled 34,116 labour disputes and claims, a drop of 3% against the record-high level of 35,254 cases in 2002. Comparing the first half of last year with the same period this year, the number of cases handled dropped from 16,816 to 14,355, down 15%.

"It is noteworthy that the number of labour disputes involving 20 or more employees recorded in this first half-year declined by a significant 51% to 118, compared with 242 in the same period last year," Mr Cheung said.

Award promotes good people management

The Good People Management Award aims to encourage and commend employers in achieving good people management and to promote harmonious labour relations. Entries are invited from all enterprises in Hong Kong. The deadline for submission is September 10.

The contest has 15 awards. Participating companies will be divided into three groups according to their employment size, each with five prizes.

All contestants will be shortlisted according to their self-assessment of the good people management measures they have adopted in five aspects:

* recruitment, selection and offers of employment;

* staff training;

* safety and health at work;

* employer-employee communication; and

* termination of employment.