No explanation offered over silence on work ordinance

The expected announcement of the minimum wage, which is to become law in May of next year, failed to materialize Tuesday. No reason was given.

Speculation has placed the minimum at HK$28 an hour. The figure has become the subject of widespread grumbling among many employers, who complain the amount is so high it will eat into their profits and/or force them to cut staff.

On the other side of the argument, trade union leaders have complained that HK$28 an hour is far too low to provide workers with a decent living wage.

Hong Kong Federation of Trade Unions legislator Wong Kwok-hing declined to speculate about the reasons for the government's failure to announce the minimum wage. He said he would consult unions and workers before taking a position on whether to support the new ordinance, once the official announcement is made.

Lawmaker Wong Kwok-kim said the labor sector will continue to fight for a HK$33 per hour minimum.

Wong dismissed predictions that the new wage law would damage the catering industry or force the closure of restaurants. He noted, there are always a few restaurants that close after the Lunar New Year, "which is quite normal," he said.

Wong believes that some restaurants are merely bluffing by threatening to cut staff to reduce costs. "The (catering) industry is already shorthanded now actually. They are not in the position to cut staff," he said.

The Society for Community Organization also expressed disappointment with the HK$28 figure. "We hope it can go to HK$33 at least," said the Community Organizer Ng Wai-tuan. He voiced the concern that the government policy might actually reduce the incomes of low-income citizens. "What we are worrying about is, the employers, like Cafe De Coral, may exploit workers. They just may not be as high-profile though," Ng added.

Cafe de Coral, the city's largest fast-food chain, offered its staff a raise of between HK$2 and HK$3.50 on their hourly rates of between HK$22 and HK$25, on condition that they forfeit their right to a paid meal break of up to 45 minutes a day.

Cafe de Coral bowed to demands for the reinstatement of paid meal breaks after a call to boycott its restaurants by dozens of labor unions and university student organizations.

Chairman of the Hong Kong Federation of Restaurants & Related Trades Simon Wong said that the Cafe de Coral incident has, to a certain extent, damaged relations between employers and their staff.

"Both parties need to be understanding and compromising to reach consensus," he urged.

Simon Wong added that cutting back on food costs and finding other ways to scrimp, such as using energy-efficient equipment was a better solution than cutting back on staff. He also disagreed with staff layoffs.

Restaurants foresee operating costs increasing 2 to 3 percent under the new law and they are planning to mark up prices to maintain their profit margins. "It is social responsibility, all citizens should shoulder the burdens," Simon Wong commented.

Among the 200,000 workers in the catering industry, one third - more than 62,000 people, are expected to benefit from the new minimum wage law.

China Daily

(HK Edition 11/10/2010 page1)