Hong Kong Passes First Minimum Wage Bill

[Omaha Steve]

http://online.wsj.com/article/SB10001424052748704201604575372410955773710.html

* JULY 17, 2010, 7:43 A.M. ET

By JEFFREY NG

HONG KONG—Hong Kong lawmakers on Saturday overwhelmingly passed the city's first minimum wage bill, marking a victory for labor unions and activists who for years have sought statutory wage protection for low income workers in this business-friendly city.

The bill was enacted following a marathon 41-hour debate, and comes nearly two years after the Hong Kong government bowed to immense public pressure and announced plans to seek a minimum wage for workers.

The new bill doesn't stipulate the actual wage level. Instead, a committee appointed by the government will recommend the hourly rate, which will be decided on as early as August.

Local unions and labor groups are seeking minimum hourly wages of 33 Hong Kong dollars (US$4.23) to sustain the livelihood of the city's lowest income group, though representatives from the business community argue that the rate is too high, and would ultimately lead to layoffs in certain industries as operating costs substantially increase with higher wages.

The minimum wage law won't cover the tens of thousands of live-in foreign domestic workers in Hong Kong. These workers, mainly from the Philippines and Indonesia, are already promised a minimum monthly wage of HK$3,580 to assist in day-to-day household chores.

The law was opposed by businessmen, who said it will hurt Hong Kong's competitiveness, but was welcomed by social groups.

FULL story at link.