By Hong Liang (China Daily)
Updated: 2007-11-13 07:03

Hong Kong people are well known for their generosity in giving to charities. But when it comes to paying workers with the least bargaining power, they appear most tight fisted.

This mean streak has manifested itself vividly in the rejection of the government's earlier call for employers to voluntarily raise the salaries of the many thousands of workers, mainly cleaners and security guards, who are widely considered to be living below the poverty line.

Local media reported that by the end of September, less than 10 percent of the 11,500 or so employers of cleaners or security guards had joined the government's sponsored "voluntary wage protection movement". The cool response had obviously caught Commissioner of Labor Cherry Tse Ling Kit-ching by surprise. She reportedly said the number of "participating" companies was "far below our expectations".

Thus surprised, the government sprang into action. Chief Executive Donald Tsang Yam-kuen said a minimum wage law would be introduced if the campaign for voluntary pay increase was not deemed effective.

Sure enough, members of the Labor Advisory Board, representing both the employers and employees, have agreed to begin preparation for such a law. They hope to reach a consensus on, among other things, setting the minimum wage level and the process of regular review.

To many civic leaders and common folk concerned about the rapidly widening wealth gap, resulting in an increasing under-class of working age citizens earning incomes that can hardly support their families, a minimum wage law is long overdue. The problem was brought to the forefront earlier this year when a middle-aged worker reportedly worked himself to death to support his family.

An earlier proposal to introduce the law was put on hold because of vigorous opposition from the powerful employers' groups. They argued that setting a minimum wage by statute would not only go against the free market principle but, more importantly, force many unskilled workers out of jobs.

Those arguments are not convincing. What we value most in a free market is its fairness and transparency. Minimum government intervention is, of course, desirable. But an orderly market can only be maintained with adequate regulations.

Proponents of the minimum wage law have remained unconvinced that it could lead to a serious layoff of low-income workers. This is because they do not believe that employers of those workers have kept a large number of surplus workers in their employment simply because of low pay. This does not make much business sense. Therefore, it seems most unlikely that employers will fire many workers because they are required to pay them a little more in compliance with a minimum wage law.

Latest government figures show that the average hourly rate for cleaners has risen less than 4 percent to HK$24.20 ($3.1) since the government's wage protection movement was launched in the second quarter of 2006. The average hourly rate for security guards rose by about the same ratio to HK$27.30 in the same period.

But only 46 percent, or 87,800, people in the survey earned at least the market average. The remaining 54 percent were earning less, with quite a few making about HK$4,000 a month, or less. That is very little money indeed in a town where the minimum fare for a subway ride is HK$5.

We must support minimum wage because we cherish fairness in a free market environment where all people, including those with the weakest bargaining power, can enjoy a fair share of our economic prosperity.

E-mail: jamesleung@chinadaily.com.cn

(China Daily 11/13/2007 page10)