Sunday, December 20, 2009   


Brickbats and bouquets for minimum wage law

Beatrice Siu

Thursday, October 08, 2009

Employer groups yesterday assailed the Minimum Wage Bill while those would benefit from it hailed it as an ethical piece of legislation.

The Legislative Council invited 75 organizations and individuals to express their views to the Bills Committee which is examining the draft legislation.

The first broadside came from Federation of Hong Kong Industries deputy chairman Stanley Lau Chin-ho, who said a minimum wage will lead to massive job losses and reduce Hong Kong's competitiveness.

"It will not end poverty but will ruin the free market and weaken the [society's] competitiveness," Lau said. Association of Restaurant Managers spokesman Lo Ho-wang said since salaries of workers account for 30 percent of operational costs, such a law will only increase overheads to be transferred to consumers.

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"The economy has not yet recovered from the financial crisis, so legislating a minimum wage at this time will only increase costs and keep customers away."

However, Oxfam Hong Kong spokesman Wong Shek-hung said legislating a minimum wage is the ethical thing to do.

"It is totally unacceptable that 400,000 people are still living in poverty even while holding a job, which means one in every seven to eight people is earning less than HK$5,000 a month," Wong said.

The Minimum Wage Concern Group and The Parents' Association of Pre- School Handicapped Children welcomed the legislation while the Hong Kong Women Workers' Association suggested the minimum hourly wage be set at HK$33.

Secretary for Labour and Welfare Matthew Cheung Kin-chung said the government will try to strike a balance between remaining competitive and avoiding job losses, though he admitted it will be hard to set a wage level for every industry.


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