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HKSAR to introduce legislation on statutory minimum wage
15/10/2008 17:30

Hong Kong Special Administrative Region (HKSAR) Chief Executive Donald Tsang said in Hong Kong today that the HKSAR government will proceed with the legislative work on a statutory minimum wage.
Delivering the 2008-09 Policy Address at the Legislative Council this morning, Tsang said the HKSAR government is inclined to go for an across-the-board statutory minimum wage and aim to introduce a bill into the Council in the 2008-09 legislative session.
"I am aware that some people, including businessmen, employers and academics, have qualms about the introduction of a statutory minimum wage. Let me stress that the government will handle the relevant issues, including the minimum wage level and related review mechanism, in a prudent and pragmatic manner," he said.
Tsang said the SAR government will establish an advisory Minimum Wage Commission MWC) after drawing reference from the successful experience of other countries. MWC members will be drawn from the labor sector, business community, academia and government departments. The Commission will study the level of minimum wage as well as the review mechanism, to ensure a sensible balance between safeguarding the interests of grassroots workers and forestalling the loss of low-paid jobs, while sustaining our economic growth and competitiveness. The Labor and Welfare Bureau (LWB) will proceed immediately with the preparatory work for the establishment of the MWC.
Tsang reiterated that the introduction of an across-the-board minimum wage should protect workers against exploitation while at the same time prevent the loss of low-paid jobs. He said wages are returns for employees' labor. As family needs vary, the minimum wage may not be sufficient to cover family expenses of all employees. Employees in need can obtain assistance under the current social security system, which can also encourage able- bodied recipients of the Comprehensive Social Security Assistance( CSSA) to rejoin the workforce and motivate them to move from welfare to self-reliance.
The policy address, titled "Embracing New Challenges," responded to Hong Kong's new challenges, including the current global financial crisis, food safety and environmental pollution.
The Policy Address was Tsang's second annual policy address since he won a second term as HKSAR Chief Executive in March 2007.


Xinhua