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Written by: Huang Yongyu
2021-02-02 18:04
The last update date: 2021-02-02 18:04
The Secretary for Labour and Welfare, Law Chi-kwong, said today (2nd) that the Chief Executive in conjunction with the Executive Council approved the acceptance of the Minimum Wage Committee’s recommendation that the minimum wage will be frozen at $37.5 from May 1, which is the introduction of the statutory minimum wage in Hong Kong since 2011. "Salary freeze" for the first time in 10 years.
Some labor unions criticized the government's decision to favor the business sector. In the past, it invested nearly 90 billion yuan in the employment protection plan, but now it is "careful" about grassroots workers.
However, there are business people and economists who think that it is "reasonable" to keep it unchanged, and even point out that if it is raised, it will ultimately be "society pays the bill."
Luo Zhiguang said today that the Minimum Wage Committee had already made recommendations. Most of the committee members considered Hong Kong’s deep economic recession and high unemployment rate and recommended that the hourly wage be maintained at 37.5 yuan.
The Chief Executive and the Executive Council passed relevant recommendations this morning.
He emphasized that a small number of committee members disagreed with the adjustments, and the committee members of both employers and employees had "very large differences." After considering the economic environment, the government believed that the consensus of the majority of committee members was acceptable.
The Secretary for Labor and Welfare, Luo Zhiguang (middle), said today that the Chief Executive in conjunction with the Executive Council approved the acceptance of the minimum wage committee’s recommendation that the minimum wage will be frozen at 37.5 yuan from May 1.
(Photo by Yu Junliang)
The Federation of Trade Unions: "Careful" on the grassroots
Huang Guo, chairman of the Federation of Trade Unions, believes that the government’s decision to freeze the minimum wage is "partial to the business community." He also pointed out that the employment protection plan has spent more than 90 billion yuan to help employers pay for their food. Even two supermarkets that have not been affected can be approved. Hundreds of millions of yuan is described as "careful" towards a very small number of grassroots.
It is understood that at the Minimum Wage Committee, the business community has proposed an increase of 5 cents.
Huang Guo criticized that the government's decision to "freeze wages" was more unscrupulous than the business community, and emphasized that the trade union would continue to follow up.
Huang Guo, chairman of the Federation of Trade Unions, believes that the government favors the business sector.
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Zhen Ruixian, the convenor of the Hong Kong Environmental Hygiene Industry Alliance, believes that the freezing level is "acceptable" and will ease the whole society.
She bluntly said that the current economic downturn, once the minimum wage is raised, will only intensify inflation and increase prices. "No one benefits, but one benefits?" Zhen said that the current salaries of most cleaners and security guards have far exceeded the minimum wage. I believe that "salary freeze" only affects a few people.
Associate Professor Zhuang Tailiang of the Department of Economics of CUHK analyzed that the two governments have different attitudes because of different financial policies and election factors.
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Compared to the United States, although the economy is also in a downturn, President-elect Biden recently proposed to raise the minimum wage from 7.25 US dollars to 15 US dollars per hour.
Associate Professor Zhuang Tailiang of the Department of Economics at CUHK analyzed that the two governments have different attitudes because of different financial policies and election factors. "One way is to win votes."
He emphasized that the final result of adjusting the minimum wage must be passed on to the common end of society, such as rising prices and more unemployment.
Zhuang believes that Hong Kong’s economy is uncertain and there may not be a significant improvement in the coming year. "The labor sector must want to increase, but employers want to reduce it." He said that it is a balanced approach.
Although the number of people receiving the minimum wage is only about 20,000, Zhuang said that once the adjustment will bring about a "ripple effect", it will still be "society to pay the bill."
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