Public urged to support minimum wage

May 1 not only marks annual International Workers' Day but also the historic date when the statutory minimum wage comes into effect in Hong Kong.

This is a significant milestone in the development of Hong Kong's labour policy. The statutory minimum wage is the culmination of years of discussion among all stakeholders and the fruit of mutual understanding, compromise and endeavour.

The recent debate surrounding the implementation of the statutory minimum wage should not undermine the positive value of this important legislative breakthrough. Under the new statutory minimum wage regime, non-skilled workers who used to earn a meagre wage working eight hours a day, six days a week will be guaranteed a minimum monthly salary of $5,824. The hourly rate approach - set at $28 per hour - ensures higher pay for more work done. It is a fairer system all round.

By its nature, the statutory minimum wage prescribes the minimum standard. For better human resource management, we encourage employers to offer better terms of service, if possible, taking into account existing contracts and their affordability. This principle has been adopted for the Government's out-sourced non-skilled workers contracts (including one paid rest day for every period of seven days).

Our decision is related only to the Government's procurement of service. It is for individual enterprises to decide whether to follow suit, having regard to their own circumstances. This is not so much a question of conscience, but of ability of employers to balance the welfare of employees with the needs of the company, which ultimately pays the wages.

Meal breaks, rest days

The recent debate over pay for meal breaks and rest days is part of the adjustment required in migrating from an all-inclusive monthly wage package to those that meet the statutory requirements for the hourly statutory minimum wage. In fact, there has never been any labour legislation prescribing whether meal breaks and rest days should be paid or not. They are terms of employment to be agreed between employers and employees.

The Minimum Wage Ordinance does not aim to change this long-standing arrangement. It would be inappropriate to stipulate these in legislation. The goal of the statutory minimum wage is to set a wage floor, rather than regulate or change the current contractual arrangement between employers and employees. This is similar to relevant legislation in other jurisdictions including the UK, Ireland, Japan and the Mainland.

I have repeatedly appealed to employers to provide better remuneration to their staff if they can afford to, while also urging staff to understand issues faced by their employers. The Government is not shirking its responsibility.

On the contrary, we are enabling both sides to resolve problems through communication and consensus in a lawful, rational and reasonable manner. The Labour Department stands ready to provide assistance in this process, through its network of district offices and a 24-hour enquiry hotline, 2717 1771, to achieve a win-win for employees and employers.

Guiding principles

Our guiding principles in introducing the statutory minimum wage are:
* That pay after implementation of the statutory minimum wage should not be lower than before,
* Where feasible, employers should not reduce employees' existing remuneration and benefits, and
* Employers should not unilaterally vary the employment terms and conditions of employees.

Guided by these principles, I am confident salaries will improve without significant impact on enterprises and the job market.

In recognition of the variety of work patterns in different trades, the Labour Department has devoted a lot of time to drawing up detailed guidelines, with reference to existing situations and in consultation with stakeholders. The Department has also published a concise guide to assist those who wish to have a quick grasp of the key statutory requirements.

We are equally mindful about the rights of employees with disabilities. These employees enjoy the same statutory minimum wage protection and are entitled to remuneration of no less than $28 per hour on average. Nevertheless, after in-depth discussion with persons with disabilities, parent groups, rehabilitation organisations, employers, professional bodies relating to approved assessors and the Equal Opportunities Commission, a special arrangement is provided for in the Minimum Wage Ordinance.

Under this arrangement, persons with disabilities have the right to choose to have their productivity assessed. We will closely monitor the implementation of the special arrangement and conduct a study for future review.

In the early stages of statutory minimum wage implementation, the Labour Department will adopt a multi-pronged approach to ensuring a smooth introduction. We will conduct inspections at workplaces of various trades to explain the Minimum Wage Ordinance to employers and employees and to ensure employers comply with the law.

If employers have inadvertently miscalculated employees' working hours, the department will require employers to settle the wages owed. For those who deliberately break the rules, the department will take strict enforcement action.

Enhanced services

The department has strengthened manpower for these purposes as well as to enhance its consultation and conciliation services to help resolve any differences.

The current buoyant economic environment is conducive to launching the statutory minimum wage. However, there is no room for complacency. The department will enhance its employment support services to render necessary assistance to those affected by statutory minimum wage implementation. The Employees Retraining Board will provide additional retraining places, too.

The statutory minimum wage is an important and fundamental reform not only affecting employers and employees but also people from all walks of life including property owners and consumers. From past experience, teething problems are inevitable in launching a major initiative of such magnitude. Indeed, we are entering uncharted waters in Hong Kong's social development.

Nevertheless, I am confident that we can surmount any hurdles if we are all prepared to join hands and walk an extra step for the long-term benefit and harmony of our society.

I sincerely appeal to the whole community to embrace the launch of the statutory minimum wage in the true spirit of Hong Kong's amicable labour relations tradition. Together, we can ensure a smooth introduction of the statutory minimum wage and better protect our grassroots workers.

Ends/Monday, May 2, 2011