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Minimum Wage Policy in Hong Kong
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Minimum Wage Policy in Hong Kong

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As eradicating the working poverty, the minimum Wage legislation is needed in Hong Kong. …

As eradicating the working poverty, the minimum Wage legislation is needed in Hong Kong.
by Macy Lee 09428526 and Calvin Chung 09409572

Published in: News & Politics
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  • 1. Minimum Wage Policy in Hong Kong
    Macy Lee (09428526)
    Calvin Chung (09409572)
    POLS 7050 Public Administration Presentation
  • 2. History of minimum wage Policies / Laws in other countries
    “sweatshops” in manufacturing industries
    1890s :Adopted in New Zealand and Australia
    1909 :Adopted in UK
    1938 :a federal minimum wage law passed by U.S. Congress
    Sweatshops
  • 3. History of minimum wage Policies / Laws in Hong Kong
    1932: Minimum Wage Ordinance (MWO) but hasn’t been used.
    1990’s: Minimum wage discussion started to become a popular topic in society
    2005-2006: Wage Protection Movement (WPM)
  • 4. History of minimum wage Policies / Laws in Hong Kong (Cont’d)
    2007: The Wage Protection Movement failed
    Feb 2009: Provisional Minimum Wage Commission appointed
  • 5. Why do we need a minimum wage policy?
  • 6. Minimum wage as a basic human rights
    Universal Declaration of Human Rights : Article 25
    International Covenant on Economic, Social and Cultural Rights : Article 7
  • 7. Size of the working poverty group is a concern in HK
    Over 1 million people, which accounts for about 14% of the entire HK population, is classified as part of the working poverty group
    Potentially induces social instability if the sources of their income cannot be protected
  • 8. Inequality distribution of income in Hong Kong
    Gini coefficient:
    1991: 0.476
    2006: 0.533;
    2009*:0.53
    (Rank no. 1 in Asia in 2009 from U.N. Development Program, and compare with other developed countries like USA, who has 0.45 Gini coefficient score in 2007)
  • 9. Minimum wage policy is a world trend?
    Over 100 countries have different types of minimum wage
    PRC, Guangdong Province: implemented its minimum wage system in 1994
  • 10. However, is this legislation is the best choice for HK people?
    Marginal workers
    Working poor
    Social instability
  • 11. Existing proposal (WPM) for minimum wage policy
    1)national-wide
    2)domestic workers
    3)clear guidance to determine the wage level
    4)penalty and implementation plan
    5)supportive scheme/ subsidy was mentioned in the policy
  • 12. Hence….. the legislation of minimum wage is needed
  • 13. However…..this policy is needed to be adjusted and parallelly implemented with other supportive policies
  • 14.
  • 15. We propose the following modifications, implemented in 2 phases
    2 phases
  • 16. Phase 1 : 2009-2014
    Provisional Minimum Wage Commission determine the level of the of minimum wage
    Multi-industry / national minimum wage
  • 17. Phase 1 : How to measure?
    Use following criteria to measure minimum wage :
  • 18. Phase 1 : Who can protected by?
    The minimum wage system applies to most workers which also includes:
    Domestic worker
    Employees with disabilities
    Trainees and apprentices
  • 19. Phase 1: Others
    Enforcement
    Penal provisions
  • 20. Phase 1: The Supportive Schemes
    Enhance the ERB (Employees Retraining Board) scheme
    Government subsidy – to employer/employee
    Match up policy with “Comprehensive Social Security Assistance Scheme" (CASS)
  • 21. Phase 1 Evaluation
    • 1)By annual review index
    • 22. 2)Annual review unemployment rate and average wage in HK
    • 23. 3) Minimum wage policy on inflation risk
    • 24. 4) Investment on-the-job training
  • Phase 2: 2014-2019
    1) Expand function of the minimum wage commission
    2) Extend the coverage of the minimum wage policy ( e.g. by age, by nature of the job)
    3) Enhance the criteria for determining the minimum wage( e.g. labor productivity, employment rate)
  • 25. Phase 2 Evaluation
    1)A 5-year review
    2)Review economic effect and the cost effect after launch the minimum wage policy
    3) Review the penalty and monitoring system
  • 26. Conclusion
    Worker
    Boss
    1)A Lower social-cost policy
    2) Able to eradicate the working poverty as well as to bring a minor negative effect to economy
    3) For a long-term aspect, this policy can maintain social stability and enhance resource allocation
    Society
    Government
  • 27. Thank You!!- END -

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