In response to a social workers' strike calling for a review of the lump-sum grant system, Secretary for Labour & Welfare Matthew Cheung has urged them to stay calm. He says he hopes to resolve the problem through the steering committee before the end of the year.

Mr Cheung stressed that the Government understands front-line social workers' pressures. It will work closely with the sector to improve any inadequacies of the lump-sum grant subvention system through the reconvened steering committee.

Director of Social Welfare Stephen Fisher said the steering committee will hold a special meeting on December 17 to discuss the two proposals recently raised by the "Alliance on Fight for Equal Work & Equal Pay in the Social Welfare Sector".

They propose setting up independent committees to review the lump-sum grant system and to handle complaints

Mr Fisher also noted that the Government is fully aware of the difficulties the sector faces operating under the lump-sum grant subvention mode.

To alleviate the problem, the Government has been allocating $330 million a year to assist the subvented welfare sector, so they can deal with the pressure for pay adjustments arising from the recent starting salary adjustment and civil-service pay adjustment, according to Mr Fisher.

The Government has also relaxed the restriction on the use of reserves to give non-governmental organisations greater flexibility in deploying resources to meet the need for temporary staff's pay adjustments. The measure has met with positive response by the sector.

The lump-sum grant steering committee has met three times since it was reconvened on August 29. Committee members include representatives from the Social Welfare Department, NGO management, staff unions and service users.