The Implementation of the Minimum Wage System in Hong Kong GROUP 4 Group Leader: Chiu Cheuk Hin (4)...
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The Implementation of the Minimum Wage System in Hong Kong 4 Leader: Chiu Cheuk Hin (4) Members: Kwok Wai Fung (10), Lee Ka Ching (16), Ngan Ka Kee (22 Chu Hiu Lam (28), Shiu Wai Fun (34)
The Implementation of the Minimum Wage System in Hong Kong GROUP 4 Group Leader: Chiu Cheuk Hin (4) Group Members: Kwok Wai Fung (10), Lee Ka Ching (16),
The Implementation of the Minimum Wage System in Hong Kong
GROUP 4 Group Leader: Chiu Cheuk Hin (4) Group Members: Kwok Wai
Fung (10), Lee Ka Ching (16), Ngan Ka Kee (22) Chu Hiu Lam (28),
Shiu Wai Fun (34)
Slide 3
The Progress of the Implementation Minimum Wage in Hong Kong
Comparison of minimum wage between Japan and Hong Kong Advantages
of minimum wage Disadvantages of minimum wage Optimization of
minimum wage system in Hong Kong Conclusion Content
Slide 4
The Progress of the Implementation Minimum Wage in Hong Kong
2000 : Voice Out Set up a minimum wage Demanded by many people
Protect Low-level workers income
Slide 5
The Progress of the Implementation Minimum Wage in Hong Kong
2008: Wage Protection Movement October 2008 Launched by Labour
Department Aimed to protect cleaners and security guards No
satisfactory results Failed the demand of setting a minimum
wage
Slide 6
The Progress of the Implementation Minimum Wage in Hong Kong
2010: Proposed wage 10 th November Proposed wage: HK$28 per hour
rate By the Provisional Minimum Wage Commission
Slide 7
The Progress of the Implementation Minimum Wage in Hong Kong
2011: Implementation of the minimum wage system 5 th January
Legislative Council accepted the proposed wage 1 st May Started
$28/hr
Slide 8
The Comparison of the Minimum Wage in Hong Kong and Japan
Slide 9
What is the average minimum wage in Japan? HKD72 (100HKD:
1000YEN) When it started? 1959 Why it started? The Japanese
Government this program can help workers with no fixed job (E.g.
Site workers) The Minimum Wage in Japan
Slide 10
QUESTION
Slide 11
Reason (1): Worker-Oriented HK is a traditional city
worker-oriented prefer using manpower than machines Japan : -No. of
labour forces can be by using machines -Machines provide higher
efficient and productivity reduce the production cost Wage can thus
be Hong KongJapan Type of the citytraditional cityautomated city
Influence of the Culture rely on staffuse machines and
technology
Slide 12
Reason (2): Not suitable for Automation Large investment The
small capital of HK SME The investment on Automation( ) to HKs SME
is comparatively large -The minimum wage already increase SMEs
burden, The costs will > before * SME=Small and median size
enterprise( ) Hong Kong (SME)Japan(SME) The Company
ScaleSmallerBigger The capitalSmallerBigger Work in automation
X
Slide 13
Reason (3): Not suitable for Automation Hong KongJapan The
area1095 sq. km29 751 sq.km The sizeSmallerLarger Not Enough Space
The area and size of Hong Kong is smaller than that of Japan No
extra land can be provide for automation in HK Automation X
Slide 14
Reason (4): High Rent Limited Land + High Rent + Minimum wage
HK SME cannot afford the increasing production cost Unemployment
Increases End the business Hong KongJapan Area1095 sq. km29 751
sq.km SizeSmallerLarger Competitiveness( )between different
enterprise HigherLower The rentHigherLower
Slide 15
Reason (5): The culture Hong KongJapan Culture X Consumer tidy
up after meal Consumer tidy up after meal So Employ more labour X
Provide Cleaning Services In some fast food shop : More services is
needed to provided to Hong Kong customers More workers are needed
Production Cost The minimum wage in Hong Kong is lower than other
countries
Slide 16
Cheng Yiu Tong : The minimum wage can make the life of the
primary attendant can be improved, and will not be insulting wages,
but also said the minimum wage of $28 is the dignity of labor.
Advantages of minimum wages implementation Cheng Yiu Tong (National
People's Congress.)
Slide 17
1. Increase the motivation of low-wage workers improve the
efficiency and productivity 2. Protect the low-wage workers a
minimum standard of living increase the purchasing power 3. Prevent
the exploitation of workers with low technical level Employers used
to pay them a lower wage Advantages of minimum wages
implementation
Slide 18
1.Lack of Manpower in Labour Force 2. the selling price
3.Deprived right of employees 4. the number of full-time jobs 5.
the unemployment of elderly Disadvantages of minimum wages
implementation
Slide 19
The wages of many low-skilled jobs are the same as given in the
hourly rate of $ 28 Workers will choose 1. a more comfortable
working environment 2. less workload Lack of manpower Lack of
manpower in labour force Disadvantage(1) : Lack of Manpower in
Labour Force
Slide 20
Slide 21
Example : Security guards VS cleaners Workers will choose to
work as security guards Disadvantage(1): Lack of Manpower in Labour
Work Security GuardsCleaners Physical StrengthLessMore Work
outdoors for a long timeX More ComfortablyX
Slide 22
Disadvantage (2): Increase of selling price Productio n Cost
Transfer to Customers Selling Price
Slide 23
Some unscrupulous( ) employers save the company costs minimize
the workers meal period time / reduce staff working hours
Disadvantage (3): Deprive the rights of employees
Slide 24
Disadvantage (4): Less full-time jobs Full-TimePart-Time Amount
of MPF paid by employers MoreLess With the implementation, the
production cost of the company increases. Company needs to find
another way to decrease the cost (e.g. decrease the cost of MPF) so
as to maintain the profit Employs less full-time jobs, but more
part-time jobs
Slide 25
With the same amount of wage Employ different educated people.
Employ highly educated young people instead of the elders
Disadvantage (5): Increase Unemployment of elderly
Slide 26
How to Optimize the Minimum Wage System in Hong Kong ?!
Slide 27
What is Standard Working Hours?! - To make additional wage
subsidies Why have to set up?! - Many workers work over time - The
company paid the overtime wages X The Aim: -To protect the
employees -Give the responsibility to the enterprise to compensate
overtime working Method (1) : Set the Standard working hours The
government should legislate this to protect the employees.
Slide 28
What is the foundation?! -the government should provide funds
to SME use to buy the machines Why have to set up ?! -Encourage SME
to buy some machines to replaced some low skilled workers The AIM:
-Reduce the low-skilled workers modern cities -Let Hong Kong to
became a modern cities Method (2): Set Up A Foundation
Slide 29
Who gave the training programs?! -The Open University Of Hong
Kong -One Person One University ( ) Why have to increase?!
-Unemployment of elderly and low-skilled workers is increase The
AIM: -More elderly and low-skilled workers can find more
professional jobs Method (3): Increase the training programs
Slide 30
What is the object of this scheme? - manpower in labour
work(E.g. Cleaners etc) What is the award scheme? Legislate the
employee benefits Legislate bonuses Why have to set up? - The lack
of manpower in labour work is The AIM: - Can attract the people
will find some manpower work Method (4): Set Up Award Scheme
Slide 31
limited land in HK tall building can be build to provide more
spaces. Automation can be introduced. can increase the efficiency
of the production, production cost thus decreases A higher minimum
wage can be introduced Method (5): Increasing the construction of
tall buildings
Slide 32
Conclusion The purpose is good for low-wage worker Lower than
other countries But Government needs to listen the voice of public
The minimum wage system is needed to optimize