Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Saturday, Apr 20, 2024

Hong Kong is no place for the jobless and low paid

Hong Kong is no place for the jobless and low paid

The government’s decision to freeze the minimum wage while rejecting calls for unemployment support is a double whammy for the city’s vulnerable. Hong Kong should have done better on humane and social justice grounds.

Two recent decisions by the government suggest to me that Bible study is still prevalent among the top echelon. The first was the move by the government, with regard to the findings of the Minimum Wage Commission, to freeze the statutory minimum wage at HK$37.50 (US$4.80) per hour for a further two years.

Thus, those who have been paid at this level since 2019 face a further stretch, until May 2023 at the earliest, before any possible increase.

The second was the decision that there was no case to introduce unemployment benefit, even as the jobless rate rose to 7 per cent in January. To do so would “distort the relationship” between employers and staff.

Let us take these decisions one at a time. A person working 10 hours a day for 25 days per month being paid the minimum wage would earn the princely sum of HK$9,375, which is barely enough for a single person to survive. An individual working eight hours per day would be receiving just HK$7,500.

It would certainly not be enough for a family of four with children at school. By coincidence, the amount payable to a family of four under the Comprehensive Social Security Assistance (CSSA) scheme would be HK$9,450. According to government figures, some 21,200 people (0.7 per cent of the workforce) are on the minimum wage.

Children study at their home, a subdivided flat in Tsuen Wan, in March 2020. A person earning the minimum wage would find it hard, if not impossible, to support a family of four on the salary.


This is the first time since the system for setting a minimum wage was introduced in 2011 that there has been no adjustment. Union representatives on the commission apparently wanted at least HK$39 per hour, while employer representatives were split between a freeze and a maximum of HK$38.

In announcing the decision, Secretary for Labour and Welfare Law Chi-kwong said there was a “majority consensus” (whatever that means) for a freeze. The commission considered that Hong Kong’s economy was in a deep recession and the unemployment rate remained high.

Let me float a wild idea here: what if, instead of HK$28, the starting rate 10 years ago had been set at a much higher figure, say HK$40? It would now be up to HK$50. That would still amount to only HK$10,000 for 25 eight-hour working days per month.

Two arguments are sometimes advanced against more generous minimum wage levels. One is that a higher rate would result in greater unemployment as employers would lay off some low-wage staff and/or increase the use of automation.

In theory, that might be true, but frankly at the levels we are talking about, any effect would be negligible. Besides, with the sort of low-end service jobs we are dealing with, the scope for greater automation is limited.

A cleaner at work outside the Hong Kong Central Library in Causeway Bay in August last year. Some people have argued that a high minimum wage would lead employers to lay off workers and turn to automation. In fact, for many low-wage service jobs, the scope for automation is limited.


The second line of argument is a circular one, to the effect that the minimum wage is only a benchmark, and that most employees receive a premium to reflect their greater skill level and experience. So, adjusting the minimum rate would in practice make little difference to most.

The counter argument to that is if it would make no material difference for most, why not just do it to help those for whom it would make a difference?

There is a bigger picture here too, of course. A typical restaurant has three main costs: food, staff and rent, with any surplus as profit. How about we pay the staff a little more and those rapacious landlords a little less?

But when we set aside all the hoopla and detailed calculations, there is another more basic factor to take into account: all work deserves its own dignity. The present minimum wage is undignified, it belittles us all.

Now for unemployment pay. Most advanced economies provide some temporary protection for employees when they are laid off. The reason is obvious. We live in a connected, complex world. A person can suddenly be rendered unemployed for reasons totally beyond the individual’s control.

It is reasonable in such circumstances for society to provide a cushion for a time while the individual seeks new work. The CSSA scheme with its stringent means test is not a substitute. We should be working to preserve that family as a going concern.

How such a scheme should be funded (a payroll levy like the Mandatory Provident Fund?), how long it should pay out to the individual (six months?) and how much (HK$9,000?) are all issues for another day. But we should surely be talking about such a scheme, not just dismissing the idea.

Instead, we seem to be operating under a Dickensian assumption that all workers are shirkers at heart, that once such a scheme were introduced, everyone would loaf around at home with their feet up watching daytime television. I don’t believe it.

There is a distortion in the relationship between employer and employees: in the existing set-up, the boss holds all the cards.

The biblical reference I had in mind comes from Matthew: “For whosoever hath, to him shall be given, and he shall have more abundance, but whoever hath not, from him shall be taken away even that he hath.”

Our ministers – each of whom earns more than HK$10,000 per day – should bear in mind that this quotation is an illustration of injustice – not a desirable political strategy.

Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×