Causes and Consequences of Minimum Wage on the Labor in Hong Kong

Topics: Minimum wage, Unemployment, Employment Pages: 10 (3025 words) Published: July 22, 2013
INDU–1050 Employee Relations & Reward
Coursework 2

Causes and Consequences of Minimum Wage on the Labor

March 12, 2013

Word count: 2,514

Table of contents

Title Page

Introduction 3 Definition and Causes of minimum wage in Hong Kong 3 Implementation of the minimum wage policies around the region 4
Debate prior to the legislation of minimum wage ordinance in Hong Kong 6

Recommendations into the implementation of minimum wage in Hong Kong 9 Bibliography 10

Appendices 10


“Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social services, and the right to security in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihood in circumstances beyond his control.” Article 25 of THE UNIVERSAL DECLARATION OF HUMAN RIGHTS

Definition and Causes of minimum wage in Hong Kong

Definitions in Hong Kong
Minimum wage, or as called the statutory minimum wage (SMW) became effective since May 01, 2011 in Hong Kong. According to the chairperson speech on the yearbook, claims that it will provide further protection to the remunerations of the “grass root employees”. The SMW is HK$28 (£2.39) per hour during the first stage (May 01, 2011); and it will rise to HK$30 (£2.56) per hour starting May 01, 2013. And the commission will review the SMW rate and report to the Chief Executive of Hong Kong in the Executive council at least once in every two years Working poor

Base on the Census and Statistics report in 1981, some scholars proposed Hong Kong is the Affluent Society, especially during 90’s when the society is shifted from manufacturing-base to servicing-base economy, the problem of poverty did not fade away with the economic development, but in contrast the working poor is steadily risen. In our mindset those poor "old and sick" or the unemployed are lacking the ability to adapt and self-improve and leading them to live poor. But in fact, there are many hidden "new poor" groups, such as single-parent women, the influx of unconditional-approved new immigrants from mainland China and included recently asylum seekers from South Asian continent, their poverty is partly due to the exclusion of social mainstream jobs, and moreover, not enough job vacancies to absorb those workforces. (Galbraith, John Kenneth, The Affluent Society , New York, 1958) Soon after the handover of Hong Kong’s Sovereignty to China and the economic downturn due to the Asian financial crisis in 1997. The wages in Hong Kong has continued to decline to the fourth quarter of 2003, nearly two hundred thousand households with a monthly income of less than HK$4,000 accounted for 9.1% of the proportion of households in Hong Kong, reached a new record since 1997. By the definition of ILO on the concept of working poor, that a worker’s incomes not be able to support the living, and at the end leads him fall below the poverty line. The trade unions, political parties, and academicians in...

Bibliography: Galbraith, John Kenneth, The Affluent Society , New York, 1958
Census and Statistics Department
Card, David, and Krueger, Alan B. 1994. Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. American Economic Review, vol. 84 (September): 772-793.)
Donald Deere, Kevin M
Constable, Nicole (1997): Maid to Order in Hong Kong: An Ethnography of Filipina Workers/Cornell University
Japan Press Weekly / 2012-07-18-24 / (retrieved on 07/03/2013)
China Securities Journal (retrieved on 01/03/2013) /
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