HONG KONG (SE): The Hong Kong Catholic Commission for Labour Affairs expressed disappointment over the decision by the government on February 2 to freeze the statutory minimum wage at $37.5, which will come into force in May this year. The commission said it showed a lack of consideration of the contributions made by workers on the frontlines of the Covid-19 pandemic and the financial difficulties they are enduring.
In a statement released on February 4, the commission pointed out that although businesses are suffering in the present economic climate, people on minimum wage are usually the lowest paid staff. Over half of them are cleaning workers or security guards, while the rest are the basic workers in the catering, retail or transportation industry. It said that their salaries only account for a small percent of the total operating cost of an enterprise so the impact of a salary increase would be minimal.
The commission pointed out basic workers have responsibly performed their duties during the pandemic despite the risk of infection. They also need to spend extra money to buy virus prevention materials and the freezing of minimum wage showed a lack of respect for their efforts.
The commission pointed out basic workers have responsibly performed their duties during the pandemic despite the risk of infection. They also need to spend extra money to buy virus prevention materials and the freezing of minimum wage showed a lack of respect for their efforts.
The commission noted that the governments of other countries such as South Korea, Taiwan and Britain, have increased the statutory minimum wage in line with predicted wage growth. The Low Pay Commission in Britain even pointed out that frontline workers run a higher risk of getting infected due to frequent contact with people, so the increase in minimum wage is in recognition for their contributions and is a way to protect their living standards.
The labour commission added that many basic workers are enduring economic hardship. Many are the breadwinner in a low income family so freezing minimum wage will further decrease their purchasing power and increase the burden of life.
As minimum wage is reviewed every two years, the commission is worried that the sixth minimum wage, to be implemented in May 2023, won’t keep up with the inflation caused by a possible economic recovery later.
The commission is also concerned that freezing minimum wage may set a bad example for employers in different sectors, further worsens employment welfare and encourage salary deduction as well as other deprivations.
The commission stressed that salary disbursed by employers should be regarded as the main source of income for families, while government subsidies like the Working Family Allowance or the Work Incentive Transport Subsidy Scheme should not be used as an excuse to deprive workers of their proper wages.
The commission urged the government to turn down the suggestion of Minimum Wage Commission and review the minimum wage again. The statutory minimum hourly wage suggested by the commission is $49.4, the median of the hourly wages of unskilled workers released by the Census and Statistics Department in 2019.
It added that the minimum wage should also be reviewed yearly to make sure that wage levels meet basic daily needs.
