Salaries falling as factory, service jobs move to China's Pearl River delta
For the first time in its history, Hong Kong is considering introducing a minimum wage.
According to a report in the Financial Times, the move comes in response to concerns from politicians and labour groups about a high unemployment rate as low-skilled work is shifted from Hong Kong to China.
“The shift of factory and some service jobs to southern China’s Pearl River delta is creating a surplus of less-skilled workers and contributing to a decline in wages for lower-end jobs in the former British colony,” states the report.
As a result, salaries in the city’s manufacturing sector have been falling since 2002, according to government statistics.
A 2003 report showed that by 2007 Hong Kong could have a surplus of 230,000 workers with low education levels.
“Proponents of the minimum wage argue it would encourage the city's unemployed to return to work and cut the number of welfare recipients.”
Though critics argue a minimum wage could push the jobless rate to 12 or 13 per cent as more jobs are driven into cheaper labour locations.
In the past, a shortage of labour in Hong Kong allowed people to move freely from job to job, demanding better pay. “As a result of this shortage and the government's market-driven economic policy, Hong Kong never imposed legal requirements for overtime pay, working hours, or a minimum wage for most workers,” according to the Financial Times.
In addition to a minimum wage, labour advocates are pushing for a 44-hour working week and overtime pay of one and a half times the normal hourly wage
“Advocates of a ceiling on working hours say the limit would increase productivity and stimulate the economy by giving employees more time to shop and eat out.”
According to a report in the Financial Times, the move comes in response to concerns from politicians and labour groups about a high unemployment rate as low-skilled work is shifted from Hong Kong to China.
“The shift of factory and some service jobs to southern China’s Pearl River delta is creating a surplus of less-skilled workers and contributing to a decline in wages for lower-end jobs in the former British colony,” states the report.
As a result, salaries in the city’s manufacturing sector have been falling since 2002, according to government statistics.
A 2003 report showed that by 2007 Hong Kong could have a surplus of 230,000 workers with low education levels.
“Proponents of the minimum wage argue it would encourage the city's unemployed to return to work and cut the number of welfare recipients.”
Though critics argue a minimum wage could push the jobless rate to 12 or 13 per cent as more jobs are driven into cheaper labour locations.
In the past, a shortage of labour in Hong Kong allowed people to move freely from job to job, demanding better pay. “As a result of this shortage and the government's market-driven economic policy, Hong Kong never imposed legal requirements for overtime pay, working hours, or a minimum wage for most workers,” according to the Financial Times.
In addition to a minimum wage, labour advocates are pushing for a 44-hour working week and overtime pay of one and a half times the normal hourly wage
“Advocates of a ceiling on working hours say the limit would increase productivity and stimulate the economy by giving employees more time to shop and eat out.”
