Over quarter of a million low-paid workers will be sure to benefit from the introduction in Hong Kong of a minimum wage. This is approximately 10 percent of the working population who will have to earn at least HK$28 ($US3.60) an hour and is an attempt to “narrow the territory’s wealth gap.” Of course however, there will always be those who aren’t happy about the news. This comes from the business community which claims the move is going to be too pricey and that ultimately employers will have to start laying off staff and it will be a move away from the country’s free-market roots which won’t be attractive to overseas investors.
Hong Kong Lagging Behind?
But it’s not like Hong Kong is the first to be legislating such a move. Indeed, apart from Singapore, throughout Asia the minimum wage is in place (or it is at least being considered). Ultimately the average Hong Kong man-in-the-street will probably be quite happy since this new law will no doubt boost the country’s proletariat, such as restaurant workers and security guards. The government of Hong Kong felt it had no choice but to introduce the legislation following a “voluntary minimum wage scheme in 2006 met with a tepid response from businesses.”
But one shouldn’t break out the champagne just yet. This figure for lowest minimum wage might not actually do all that much since many employees claim it will not even “cover rising living costs.” As well, some employers are doing their best to fudge this law, hiring the same workers on “new contracts with unpaid meal breaks and rest days to avoid paying a higher wage bill.”
So while it may initially look as if Hong Kong is coming forward in protecting its proletariat, a closer analysis shows that this is not exactly the case. Of course, this legislation is a first step, but there are many more actions that need to take place before Hong Kong can be seen as a country of fair employment.
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