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The Implementation of the Minimum W age S ystem in Hong Kong

The Implementation of the Minimum W age S ystem 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). Content.

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The Implementation of the Minimum W age S ystem in Hong Kong

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  1. The Implementation of the Minimum Wage System in Hong Kong GROUP 4 Group Leader: Chiu CheukHin (4) Group Members: Kwok Wai Fung (10), Lee KaChing (16), NganKaKee (22) Chu Hiu Lam (28), ShiuWai Fun (34)

  2. Content 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

  3. 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 worker’s income

  4. 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

  5. The Progress of the Implementation Minimum Wage in Hong Kong • 2010: Proposed wage • 10th November • Proposed wage: HK$28 per hour rate • By the Provisional Minimum Wage Commission

  6. 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

  7. The Comparison of the Minimum Wage in Hong Kong and Japan

  8. The Minimum Wage in Japan 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)

  9. QUESTION Why does the minimum wage in Hong Kong is lower than that of Japan?

  10. 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 ↑

  11. Reason (2):Not suitable for Automation *SME=Small and median size enterprise(中小企) Large investment ∵ The small capital of HK SME ∴ The investment on Automation(自動化) to HK’s SME is comparatively large -The minimum wage already increase SME’s burden, The costs will ↑> before

  12. Reason (3): Not suitable for Automation 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 is not suitable for HK

  13. Reason (4):High Rent ∵ Limited Land + High Rent + Minimum wage ∴ HK SME cannot afford the increasing production cost  Unemployment Increases  End the business

  14. Reason (5):The culture 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

  15. Advantages of minimum wage’s implementation 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.” Cheng Yiu Tong (National People's Congress.)

  16. Advantages of minimum wage’s implementation 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

  17. Disadvantages of minimum wage’s implementation Lack of Manpower in Labour Force ↑ the selling price Deprived right of employees ↓ the number of full-time jobs ↑ the unemployment of elderly

  18. Disadvantage(1) :Lack of Manpower in LabourForce 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 in labour force

  19. Disadvantage(1) :Lack of Manpower in Labour Force

  20. Disadvantage(1):Lack of Manpower in LabourWork VS Example : Security guards VS cleaners Workers will choose to work as security guards

  21. Disadvantage (2):Increase of selling price

  22. Disadvantage (3):Deprive the rights of employees Some unscrupulous(無良) employers  save the company costs minimize the workers’ meal period time / reducestaff working hours

  23. Disadvantage (4): Less full-time jobs • 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

  24. Disadvantage (5):Increase Unemployment of elderly X X With the same amount of wage  Employ different educated people.  Employ highly educated young people instead of the elders

  25. How to Optimize the Minimum Wage System in Hong Kong ?!

  26. Method (1) : Set the Standard working hours ∴ The government should legislate this to protect the employees. 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

  27. Method (2):Set Up A Foundation 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 -Let Hong Kong to became a modern cities

  28. Method (3):Increase the training programs Who gave the training programs?! -The Open University Of Hong Kong -One Person One University (一人一大學) 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

  29. Method (4):Set Up Award Scheme 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

  30. Method (5):Increasing the construction of tall buildings 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

  31. 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 Hope the minimum wage can be getting better and better!!

  32. THE END

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