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Written by: Commentary Editing Room
2020-09-26 07:00
The last update date: 2020-09-26 07:00
The Minimum Wage Committee reportedly completed the biannual review of the statutory minimum wage level, but was unable to reach a consensus, and most members preferred to freeze the amount.
The committee will submit a report to the Chief Executive by the end of next month.
The new crown pneumonia epidemic and the economic recession have dealt a severe blow to the grassroots.
In addition to listening to the "mainstream opinions" of the committee, the government must be independent and raise salaries to protect the livelihoods of grassroots workers.
The minimum wage was implemented in 2011. The committee agreed on the previous four reviews to raise the wage level, which was adopted by the Chief Executive in Council.
After the committee met this month to discuss, Huang Guo, chairman of the Federation of Trade Unions, confirmed media reports that the committee did not have a consensus.
Although the labor sector supports salary increases, it is the business and academic circles that support the wage freeze.
If the government adopts the committee’s mainstream opinion, it means that the minimum wage will remain at 37.5 yuan per hour from 2021 to 2023.
It is a fact that the market is weak, and it may be difficult for a strong person to ask for a raise. However, if an employee is hired at the minimum wage, and calculated on the basis of working 26 days a month and working nine hours a day, the monthly salary is only $8,775, which is definitely not enough.
They either make more money while processing, or they cut down on food and clothing, neither of which is ideal.
Whether it is the government's 10,000 yuan or 4,000 yuan epidemic prevention allowance for cleaning and security, it is a drop in the bucket for employees. I believe that a considerable part of it has been spent on epidemic prevention materials and medical expenses.
They are looking forward to an additional three to five hundred yuan in income per month in the future, and now they hope that they will be available at any time.
An anti-epidemic subsidy of $26,000 was issued to public and private property management companies in Hong Kong, including an additional $1,000 per month for cleaners and security guards during the epidemic.
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Don't exaggerate the ripple effect
More importantly, if the minimum wage is raised, not all companies and all employees will be affected.
According to the Annual Survey of Income and Working Hours by the Census and Statistics Department in 2019, there are 21,200 people receiving minimum wages in Hong Kong, and only 1,500 work in the catering service industry, and more than half, or 11,400 work in property management, security and cleaning. Service, 9,000 people work in supermarkets, convenience stores, and retail stores.
The latter two are the beneficiaries of the epidemic, and they are busy coping with the huge epidemic prevention needs of the public. Not only are there less chances of bankruptcy and layoffs, but they also have more power to increase salaries.
It can be seen that raising the minimum wage is essentially to help the workers most in need.
Don’t forget that many related companies have also applied for the government’s job-guarantee program. The government has already assumed half of the salary expenditure for half a year, reducing their financial pressure.
As for the ripple effect triggered by the minimum wage increase frequently mentioned in the past few years, even if it exists, the impact has been greatly reduced because the market wage has already exceeded the minimum wage, and employers should not exaggerate the gap between the two.
In fact, society needs to worry that employees are eager to find jobs and accept lower wages than in the past few years, and the minimum wage plays the role of wage "guarantee".
According to the law, the Chief Executive in Council has to refer to the recommendations of the Minimum Wage Committee, "but not subject to such recommendations."
Especially during the anti-epidemic period, grassroots workers paid silently in different positions to guard the community.
They have followed that deserves the praise of society, and also deserves a better material life, and raises the minimum wage
The Assistant Commissioner of the Labour Department Ho Jinbiao believes that it is more appropriate to maintain the biennial inspection.
(Photo by Zhang Haowei)
Two-year inspection is unrealistic
Since the introduction of the minimum wage, labor has been criticizing the two-year inspection.
In a good economy, minimum wage growth failed to catch up with price increases in time, and it was not until 2019 that wage growth surpassed inflation.
This review is more difficult because the economic outlook is unclear, and the reference data does not match the current situation.
As pointed out in the committee document, the committee will consider the Annual Survey of Income and Working Hours in 2019, and will also consider wage data and economic conditions later this year.
The former reflects the good economy, and the latter reflects the economic downturn.
On the other hand, the new minimum wage level will be implemented from May 2021 to April 2023. By then, the economy may have returned to moderate growth, and employees’ wages will be reduced if they remain unchanged.
Regardless of the situation, the two-year inspection is lagging behind the trend, and the annual inspection can reflect reality.
The Bureau of Labor and Welfare once responded that because it takes time to collect data and implement it, as well as to assess the impact of adjustments on the labor market, inspections are required every two years.
Some labor unions suggested that the Census and Statistics Department could issue a statistical report in December each year, and the Minimum Wage Committee would submit its recommendations in February of the following year to maintain the implementation in May.
The specific schedule can be discussed separately, but since the minimum wages in the United Kingdom, Japan, Australia and other countries are also reviewed annually, it has proven to be completely feasible.
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