Minimum Wage Policy in Hong Kong

6,431 views
6,266 views

Published on

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
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
6,431
On SlideShare
0
From Embeds
0
Number of Embeds
27
Actions
Shares
0
Downloads
136
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Minimum Wage Policy in Hong Kong

  1. 1. Minimum Wage Policy in Hong Kong<br />Macy Lee (09428526) <br />Calvin Chung (09409572)<br />POLS 7050 Public Administration Presentation<br />
  2. 2. History of minimum wage Policies / Laws in other countries<br />“sweatshops” in manufacturing industries<br />1890s :Adopted in New Zealand and Australia<br />1909 :Adopted in UK<br />1938 :a federal minimum wage law passed by U.S. Congress<br />Sweatshops<br />
  3. 3. History of minimum wage Policies / Laws in Hong Kong<br />1932: Minimum Wage Ordinance (MWO) but hasn’t been used.<br />1990’s: Minimum wage discussion started to become a popular topic in society<br />2005-2006: Wage Protection Movement (WPM)<br />
  4. 4. History of minimum wage Policies / Laws in Hong Kong (Cont’d)<br />2007: The Wage Protection Movement failed<br />Feb 2009: Provisional Minimum Wage Commission appointed<br />
  5. 5. Why do we need a minimum wage policy?<br />
  6. 6. Minimum wage as a basic human rights<br />Universal Declaration of Human Rights : Article 25<br />International Covenant on Economic, Social and Cultural Rights : Article 7<br />
  7. 7. Size of the working poverty group is a concern in HK<br />Over 1 million people, which accounts for about 14% of the entire HK population, is classified as part of the working poverty group<br />Potentially induces social instability if the sources of their income cannot be protected<br />
  8. 8. Inequality distribution of income in Hong Kong<br />Gini coefficient: <br />1991: 0.476 <br />2006: 0.533;<br />2009*:0.53<br />(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)<br />
  9. 9. Minimum wage policy is a world trend?<br />Over 100 countries have different types of minimum wage<br />PRC, Guangdong Province: implemented its minimum wage system in 1994<br />
  10. 10. However, is this legislation is the best choice for HK people? <br />Marginal workers<br />Working poor<br />Social instability<br />
  11. 11. Existing proposal (WPM) for minimum wage policy <br />1)national-wide<br />2)domestic workers<br />3)clear guidance to determine the wage level<br />4)penalty and implementation plan<br />5)supportive scheme/ subsidy was mentioned in the policy <br />
  12. 12. Hence….. the legislation of minimum wage is needed <br />
  13. 13. However…..this policy is needed to be adjusted and parallelly implemented with other supportive policies<br />
  14. 14.
  15. 15. We propose the following modifications, implemented in 2 phases <br />2 phases<br />
  16. 16. Phase 1 : 2009-2014<br />Provisional Minimum Wage Commission determine the level of the of minimum wage<br />Multi-industry / national minimum wage<br />
  17. 17. Phase 1 : How to measure?<br />Use following criteria to measure minimum wage :<br />
  18. 18. Phase 1 : Who can protected by?<br />The minimum wage system applies to most workers which also includes:<br />Domestic worker<br />Employees with disabilities<br />Trainees and apprentices<br />
  19. 19. Phase 1: Others <br />Enforcement<br />Penal provisions<br />
  20. 20. Phase 1: The Supportive Schemes<br />Enhance the ERB (Employees Retraining Board) scheme<br />Government subsidy – to employer/employee<br />Match up policy with “Comprehensive Social Security Assistance Scheme&quot; (CASS)<br />
  21. 21. Phase 1 Evaluation <br /><ul><li>1)By annual review index
  22. 22. 2)Annual review unemployment rate and average wage in HK
  23. 23. 3) Minimum wage policy on inflation risk
  24. 24. 4) Investment on-the-job training</li></li></ul><li>Phase 2: 2014-2019<br />1) Expand function of the minimum wage commission<br />2) Extend the coverage of the minimum wage policy ( e.g. by age, by nature of the job) <br />3) Enhance the criteria for determining the minimum wage( e.g. labor productivity, employment rate) <br />
  25. 25. Phase 2 Evaluation<br />1)A 5-year review<br />2)Review economic effect and the cost effect after launch the minimum wage policy<br />3) Review the penalty and monitoring system<br />
  26. 26. Conclusion <br />Worker<br />Boss<br />1)A Lower social-cost policy<br />2) Able to eradicate the working poverty as well as to bring a minor negative effect to economy<br />3) For a long-term aspect, this policy can maintain social stability and enhance resource allocation<br />Society<br />Government<br />
  27. 27. Thank You!!- END -<br />

×