In recent old ages, working hapless ( legislative council 2005 ) became a celebrated term in Hong Kong, when the economic system of Hong Kong is continuously developing, the figure of poorness people is besides turning up, harmonizing to the study of The Hong Kong Council of Social Service ( 2010 ) , there are 1.26 million people are populating in poorness, those sound ask for more occupation subsidies to assist hapless people. At the same clip, The Chief Executive-in-Council has adopted the recommendation of the Provisional Minimum Wage Commission ( PMWC ) to put the initial statutory minimal pay rate at $ 28 per hr ; The Chief Executive-in-Council has besides decided that the initial statutory minimal pay rate will come into force on May 1, 2011. The legislative council has been traveling to discourse the lower limit pay, some political relations likes Lee Cheuk-Yan ( 2010 ) was inquiring for early implement day of the month of statutory minimal pay.
However, there are some political relations and people still hold difference positions to the statutory minimal pay, such as Cheung Yu-Yan ( 2010 ) . The first statement of statutory minimal pay is the policy will impact the market freedom, one of the successful key in Hong Kong, now when Hong Kong authorities set up a statutory minimal pay, will harm the market freedom even deduce endeavor ‘s fight. But in another position, if there is no statutory minimal pay, hapless people can non acquire a stable income to keep their life.
In broad society, authorities should give no interfere of the market, and under a free platform people can contend for their involvement themselves. In this societal context, the smart, difficult working cats can gain more money, and some non high competitory people may be gain less money, but it is their ain job. It seems just of difference people earn difference sum of money. However, in the station industrial society ( Bell Daniel, 1974 ) , Hong Kong became knowledge-base society from industrial society, in the new societal context, some lower making and unskilled people can non good survive in Hong Kong, although they can happen occupation in Hong Kong, they have less bargaining power in knowledge-base society ( Robert M Grant, 1996 ) , the consequence is, they earn less money, even work in alleged on the job hapless. If there are merely a few sum of figure is working hapless, we may specify it ‘s merely an single job, but when there are about 480000 people working with lower than $ 5000 monthly income, it ‘s non a person job, it is besides a consequence of the alterations of society.
This paper is traveling to exemplify that why statutory lower limit pay is needed in Hong Kong, and to what extent statutory lower limit pay the policy will disenable. Except the debut, there are several different parts, including of the paradox of market freedom, acceptance of broad equalitarianism, knowledge-based society how to drive people hapless, briefly history of statute law of statutory minimal pay in Hong Kong, side consequence of statutory minimal pay, Hong Kong ‘s hapless people need statutory minimal pay, to what extent statutory lower limit pay will be disabled, how to do policy good and the decision.
Paradox of market freedom
M.Friedman ( 1980 ) named Hong Kong is the last resort if free market in the universe, he thinks that the free market political orientation was the cardinal factor for the success of Hong Kong economic system over old ages. Before 1997, Hong Kong authorities was pattern the “ positive non-intervention policy ” . Under the “ positive non-intervention policy ” , the low revenue enhancement rate and market freedom made Hong Kong became really successful trading port in the universe. Hong Kong has been taking Economic Freedom for 15 consecutive old ages ( 1996-2010 ) harmonizing to the “ Index of Economic Freedom ” ( Economist ) , no other state has of all time surpassed it. When the endeavor competes in a free platform, and Hong Kong people develop their calling in those state of affairs, it seems really just for contending involvement. However, free market will set good itself? We all know that, free market means people can work and gain money well, but earn more or less based on their ability, in the other words, it can besides based on market value. If a individual is high qualified and with strong senses, who deserve acquire more in free market, it ‘s just. And if a individual is low qualified even unskilled, who deserve acquire less in the construct of free market, it ‘s besides just. However, although some people earn more and some people earn less, is it means people should gain less money even the sum can merely fulfill their very basic demands?
The most advantage of market freedom is people can gain whatever by their sense and seting attempt, but the market value of some people is rough excessively. If a individual with no accomplishment and low making, he is really difficult working to gain money, he should non acquire much more money, but it does n’t intend the sum he earn is highly non plenty by back uping his life.
Except market value, labour value is besides numbering on the supply and demand. The demand of low accomplishment and low making people is non really strong, even it ‘s a spot of glut, the sum of those people is excessively high, and the consequence so is because there are many picks in employer ‘s custodies, so they do non hold to give a good wage to those people. But the same inquiry occurs once more, they are less demand, is it means they can merely gain really less money? The job is non gaining really less money, is the sum of money can non fulfill their demands, it is just excessively?
In face of the employers, low skilled and low making people has no more bargaining power, possibly they should gain less, but when the wage is non plenty for life, the inquiry is non market value effectual or non, but for it is perfect or non. Peoples likes M.Friedman ( 1962 ) thinks that market freedom is benefit for society economic system. However, even it is benefit for economic system, benefits the smart, difficult working and high making people, should authorities see about the low skilled and low making people.
Effective is non equal to hone, free market political orientation is a effectual manner in Hong Kong ‘s economic system, but when 1.26 million people are populating hapless, even the GDP in 2009 are over 1,632,284 1000000s ( Census and Statistics Department ) , it ‘s merely intend Hong Kong people are doing a big merchandise sum, non equal to most of Hong Kong people populating with stable income. It ‘s non traveling to deny the market freedom political orientation, it ‘s the clip to see that, Hong Kong authorities still has to pattern those “ positive non-intervention policy ” or “ little authorities, large market ” political orientation? If the reply is yes, there is a question authorities should believe of, if the sums of hapless people keep lifting, GDP is merely a beautiful figure to demo how Hong Kong comfortable? Furthermore, if sums of hapless people keep lifting, it ‘s non a short term jobs, it ‘s a long term societal jobs of Hong Kong, over million people populating bad, they ca n’t acquire a sensible income through working, would they take to forgive the occupation and acquire the CSSA? If people keep unrecorded in a hapless state of affairs, will they make some condemnable things to acquire money?
Adoptation of broad equalitarianism
Previous statement non to knock the effectivity of the free market political orientation, but doubting how is the system perfect or non. If free market failure to do every people populating in a happiness manner, so people should reconsider how to do it better, the significance of better is non emphasis on maximise the net income and do the GDP of Hong Kong traveling up, it ‘s about how authorities usage policy to do society more equal for people get sensible income.
In those fortunes, shall broad equalitarianism ( Dworkin, R. , 1975 ) be the political orientation of solve the jobs of market freedom political orientation?
“ each individual is to hold an equal right to basic autonomies ” and “ eventual societal and economic inequalities could be tolerated if they are both ( I ) for the greatest benefit of the least advantage and ( two ) attached to offices and places open to all ” . ( John Rawls, 1971 )
Dworkin, R. ( 1975 ) knock the proposition of autonomies and equality by John Rawls ( 1971 ) , and Rawls ‘s effort to demo that basic autonomies are more of import than economical and societal differences is flawed. But in Dworkin ‘s ( 1975 ) theory seems that there is no existent struggle between freedom and equality, and society should set equality as a land of liberalism.
Harmonizing to Winsby, Meghan A ( 2006 ) , “ Luck equalitarianism is an attack to broad classless distributive justness, the end of which is to supply a step of how resources are to be divided in conformity with a steering rule of equal concern and regard for citizens. ”
In order to keep the equality and esteem the people, broad equalitarian is an political orientation liberalism to modify the liberalism, and under some kinds of distributive step, people will be more concerned. In the other words, Liberal equalitarianism means people should administer resources so that people can freely make up one’s mind their life programs ; it sounds good, but broad equalitarianism is hard to wholly implement in Hong Kong context, the ground is simple, free market political orientation is the nucleus political orientation in Hong Kong, people should non deny the whole system to do hapless people live better, but people can modify the system to better hapless people ‘s life, may be minimal pay is a signifier to make so.
Share the resources every bit, authorities can lift the revenue enhancement rate, and so administer the resources to hapless people, but the nucleus job comes once more, except the free market political orientation, low revenue enhancement rate ( Inland Revenue Department 2010 ) is besides a successful key of Hong Kong, if lifting up the revenue enhancement rate, the fight may be cut down in this context. Therefore, it means lifting up revenue enhancement rate may non be the best method to administer resorts. In the purposes of distribute resources, there are two chief standings, Neo-voluntary support pattern the policy of cosmopolitan basic income, it can besides depict it as statutory minimal pay in Hong Kong ; Neo-liberal merely think that authorities should give occupation subsidy. There is a really controversial issue between both statement, but exclude the controversial understanding, Hong Kong now is traveling to pattern both policies for the inexpensive labour, Why say that? It is because on the side of cosmopolitan basic income, Hong Kong will implement the statutory minimal pay in following twelvemonth ; on the other side, transport support strategy will be expanded to all Hong Kong labour if their monthly income is $ 6500 or below.
Implement of statutory minimal pay and spread out conveyance support strategy, it ‘s the signifier of pattern the political orientation of broad equalitarianism. The relationship between broad equalitarianism and statutory minimal pay, it ‘s about usage the regulative policy, to administer the resources from employers to employees. However, it is non traveling to inquire the employers to administer their net incomes to employees every bit, and merely administer more money to employees, in the other words, sensible income which can back up labour populating demands.
Knowledge-based society how to drive people hapless
Peoples ever say that Hong Kong now is a knowledge-based society ( Robert M Grant 1996 ) , industrial economic system is gone through already, in the context of knowledge-based society or station industrial society ( Bell, Daniel 1974 ) , why it makes people acquiring hapless? In 70 ‘s and 80 ‘s, Hong Kong is a typical industrial economic system society, the development of light industry like fabric and vesture is dominant. The unemployment rate from 1982 to 1990 was merely about 2 % to 4 % ( graph 1 ) . However, signifier 1990 to 1999, the unemployment was traveling up from about 2 % to 6 % , the fabrication industry and the building industry is two of the serious unemployment businesss.
When the economic system alterations, the vacancies likes fabricating industry cut down enormously ( graph 2 ) , the consequence is people working in those industries will lose their occupation, and so in a cognition base society, they have no endurance accomplishment and no making, what can they make? In the new context of economic system, though they can happen a new occupation, their bargaining power are really weak, because they have no cognition in the new context of society, and the consequence is earn lower income. The job is non they are gaining lower income, is they merely earn highly low incomes ; Even the income can non back up the life demands.
Brief history of statute law of statutory minimal pay in Hong Kong
The arguments of set up statutory pay in Hong Kong has been discoursing over old ages, from the papers of legislative council, the first paper of propose statutory minimal pay in Hong Kong is in 1998, the panel noted the research paper on “ proposal on Minimum pay in Hong Kong ” by HKSSS ( Hong Kong Social Security Society ) . Although statutory was being discussed in those old ages, authorities has no existent action for the statute law of statutory minimal pay until 2009. Before the set up of Provisional Minimum Wage Commission ( PMWC ) , authorities was making something to promote the employers give more salary to specific workers such as cleaning workers and security guards, it is a Wage protection Movement ( 2006 ) . Unfortunately, the Wage Protection Movement can non acquire the expected consequence, harmonizing to the study of The Hong Kong Confederation of Trade Unions ( 2007 ) , there were merely 30 more organisations of 8000 more organisations joined the strategy.
In February 2009, Provisional Minimum Wage Commission ( PMWC ) is established, in November 2010, Executive Council accepted and adopted the Provisional Minimum Wage Commission ‘s suggestion, and announced that the statutory minimal pay will be set up on $ 28 per hr, believe that the statutory minimal pay will be implemented on May 2011.
Side effects of statutory minimal pay
When people speaking about the side effects of statutory minimal pay, causes more unemployment seems a must. Harmonizing to the Provisional Minimum Wage Commission ( PMWC ) study on October, 2010, if set up the hourly minimal pay to $ 24, so will makes 18900 people lose their occupation ; If set up to $ 28, so there are over 40000 people will be unemployed ; If set the pay degree on $ 33, so unemployment people will increase 81000 ( chart 3 ) .
On the other side, except the doomed of occupation, the study of the Provisional Minimum Wage Commission ( PMWC ) study shown that, if the statutory lower limit has been set up, whether the hourly income from $ 24 to $ 33, besides may do the shortages of endeavors ( chart 4 ) , if statutory minimal pay set up at $ 24, there are around 200 endeavors will turn net incomes to shortages ; If the pay degree on $ 28, so around 800 endeavors will acquire shortages ; If set up on a much higher degree such as $ 33, so will do over 1600 endeavors get shortages.
The side effects of unemployment seems a must consequence of set up a statutory of lower limit pay, the statement is really clear that, a policy should protect the benefits of labour, but if it may do the unemployment, authorities should besides make so?
Except unemployment, shortages and fight of endeavors, if the oversea domestic workers will do judiciary reappraisal of the authorities, disable cat demand to measure their ability before acquire the lower limit pay, so why authorities should besides put up a policy to regular the statutory lower limit pay?
Hong Kong ‘s hapless people need statutory minimal pay
Before discuss Hong Kong ‘s hapless people need statutory minimal pay or non, people should believe about under the public assistance system in Hong Kong, merely pattern statutory minimal pay is or is non plenty. If authorities will spread out the conveyance support strategy shortly, it means some kind of occupation subsidy will assist Hong Kong people, this policy should be user friendly. However, harmonizing to The Hong Kong Council of Social Service ( 2010 ) specify “ poverty household ” as their income are lower or equal to the half of household income median, for illustration, one individual who earns $ 3275 or less per month.
The surveies of The Hong Kong Council of Social Service shown that, there are 1. 26 million people who is populating in hapless. And from the web site of the Census and Statistics Department of Employed ( 2010 ) , there are around 478,200 people who earns less than $ 5000 per month.
In this state of affairs, authorities should make more except the occupation subsidy such as spread outing conveyance support strategy, so may be set up statutory minimal pay is a signifier to make so. The statement is it ‘s the market monetary value of the labour, why authorities intervene the system, but if people think this job in another facet, should the hapless people deserve better.
Peoples can fault the hapless people, populating in hapless is the consequence of their ain attempt, but the context of post-industrial society or knowledge-base society, new in-migration or others state of affairs, there is no pick with some people, may be they are really difficult working in their industries such as fabrication industry, but after the economic system alterations, they can non last good any longer, it ‘s a single job or a structural job, it ‘s really obvious.
When people speaking about statutory minimal pay, people ever discuss the pros of it, except those points about improve the life of labour and Maintain the societal stableness, there is a point people should besides reasoning for, it ‘s about the self-respect of human being.
When people focus on the life demands, would they believing of the self-respect of human being, from the intelligence of above image ( graph 5 ) , we can see that the specific household how to last in Hong Kong, they have n’t take the aid of CSSA, and rely on the really limited income from the hubby, If they can fulfill their life demands, so people should believe that those income is adequate already, but the adult female of above instance, who did n’t hold adequate money to purchase nutrient, so who can merely travel to the market and pick up some dropped nutrient to allow her and her household to eat. From this instance, people have to believe about why some people do non take the aid of CSSA and strive to populate themselves, but the consequence is populating in hapless even no money to purchase nutrient, no money to give kids to purchase inexpensive stuff for survey.
If some people populating in those state of affairss, it ‘s non merely the inquiry about life demands, we besides think that people live in this manner, are they happy, and are they live with self-respect?
When statutory minimal pay is being practising, some endeavors would cut off the human power to cut down the production cost, and those people may be unemployed finally. However, some kind of people may be unemployed in the statutory minimal pay, but if over 100 thousand people can benefits on the policy, it is still worthwhile.
Furthermore, the research of Provisional Minimum Wage Commission shown there are over 40000 people will lose their occupations under the $ 28 of statutory minimal pay, is it dependable? The reply may be non. It is because from assorted surveies oversea, such as the study of Ravn and Sorensen ( 1995 ) , besides pointed out that minimal pay may non do unemployment.
Peoples should reconsider the research of Provisional Minimum Wage Commission ( PMWC ) , they ask the employers what will they make if statutory minimal pay tallies, their first response is what? May be they will state the fact such as farther action likes cut off the employers, nevertheless, would they protect themselves? Though they have no purpose to put off the staff, and besides tell the research worker they will put off some people. It ‘s non traveling to knock the truthfulness of the study, but it may merely reflect the ideas of employers, in the existent operation of endeavor, they want to put off the staff, but they besides need people to work for them.
Another facet we have to pay attending on, it ‘s about the motive of work. The impact of statutory minimal pay people does non cognize at the minute, but there is one more point people should traveling to see, it does heighten the motive of people traveling to work. CSSA is a chief typical safety cyberspace in Hong Kong, there are many unemployed people live rely on CSSA. If statutory minimal pay implement in following twelvemonth, the rewards of people will being guaranteed, in this state of affairs, work and acquire salary should much better than acquire CSSA, even people earn $ 6500 or less, authorities will subsidy their transit cost through spread outing conveyance support strategy. In the combination of statutory minimal pay and spread outing conveyance support strategy, work is a good pick comparison with get CSSA.
Sum up the statement of back uping statutory minimal pay, except those points about improve the life of labour and Maintain the societal stableness, people should besides see about the self-respect of hapless people, if a individual difficult working but still enduring, enduring non merely no money to shopping or travel, but for working in rough state of affairs, and live in really bad environment, how would they believing of. From the side of oppose statutory minimal pay, unemployed seems a chief statement, but some surveies shown that minimal pay may non do those jobs. Furthermore, heighten the motive of work is besides a pros of pattern statutory minimal pay.
To what extent statutory lower limit pay will be disabled
Exclude the statement of the demand of statutory minimal pay, authorities, people and political parties should pay attending for the effectivity of statutory minimal pay, it ‘s non speaking about the economic system consequence, but for the possible leaks of minimal pay. Harmonizing to the intelligence characteristic of Apple day-to-day ( July, 2010 ) , there are several method to undertake statutory minimal pay in endeavors positions, including lay off the staff, cut down working hr, increase the merchandise monetary value, contract out the work, coercing rest hr, dining hr no payment, lay off the old staff and enroll them once more to salvage the money of long term service.
Peoples focus on the pay degree of statutory minimal pay, and the unemployment will be caused by statutory minimal pay. Except those things, the method of avoid statutory minimal pay is besides a key. Cafe de Coral Group was announced that from October 2010, the pay of staffs will increase $ 2 to $ 3.5 per hr, but dining clip would non include in on the job hours. In the other words, though worker ‘s pay is traveling up, but dining clip is non calculate in working hr, may be they will gain less money finally. After the mass force per unit area, Cafe de Coral Group promised that they cancel the determination of cutting dining pay. From the instance of Cafe de Coral Group, people may detect that if those endeavors cutting the dining clip from working hr, statutory minimal pay can be wholly handicapped.
Except cutting the dining clip from working hr, endeavors can besides coerce staff to rest being the non-busy hr, and so cipher a less salary to them because of cut down the working hr. In the state of affairs of cutting dining clip ‘s wage and coercing remainder clip, statutory minimal pay will go a useless policy.
Even employers non inquire their staffs to rest ; they can besides cut down their working hr, for illustration, if a staff working over 10 hours per working twenty-four hours, in the statutory minimal pay, the production cost may be lifting up enormously. Therefore, the employers can inquire their staffs to work less clip for salvaging production cost.
Furthermore, if endeavor put some kind of work contract out, and give the work to specific people or company, they will so disregard the liability of statutory minimal pay. If employers want to salvage money, they do non hold to put off their staff straight, cut off the dining clip from working hr is all right already, merely number a simple mathematics, if a individual acquire $ 24 per hr, and work 8 hours per twenty-four hours including 1 hr dining clip ; In the implement of statutory minimal pay, who can gain $ 28 per hr now. In the old rewards, who can gain $ 192 ( 24X8 ) per twenty-four hours ; And in new policy, who can merely gain $ 196 ( 28X7 ) per twenty-four hours.
Some method likes contract out the work ; it ‘s non hard to undertake in legal facet. However, if authorities does non modify the policy good, dining clip cut off, coercing labour to rest without salary and cut down their on the job hr are the keys of implement of statutory minimal pay.
How to do policy well
If authorities wants to do statutory minimal pay in a more effectual manner, there are 4 kinds of things who should make. Firstly, give a clear definition of dining clip is or is non including in working hr ; Second, set up the lowest working hr, to protect people have adequate on the job hr and income ; Third, prohibit endeavor to contract out some kind of work to avoid the statutory minimal pay ; Finally, shorten the rating period from 2 old ages to 1 twelvemonth.
First, authorities should give a clear image to specify dining clip is or is non count on working hr, some people like Cafe de Coral Group human resources adjunct manager said that dining clip excepts from working hr, can allow staff acquire a existent remainder in those clip. The understanding is, whether it is count on working hr or non, staffs can besides take good remainder in those times. Further, if dining is exclusion, the policy will be partially collapsed.
Second, set up a lowest working hr, to protect the on the job hr and income of labour. Dining clip exclusion is a kind of avoid minimal pay, and infer working hr is another cardinal component of policy inside informations. In general sense, enterprise necessitate human resources to work, but in some businesss and some fortunes, employers can order the staffs to rest without payment, and so salvage the cost of wage. For illustration, providing operation is divided as busy hr and non-busy hr, breakfast clip, lunch clip, tea clip and dinner clip are the busy hr. However, between the tea clip and dinner clip, there is a non-busy hr. Some eating houses will allow staff to rest, and in the new context of statutory minimal pay, those hours can be excluded from working hr. The consequence is, hourly income is lifting up but working hr lessening, the monthly wage may non be traveling up finally. Set up a lowest working hr, can protect the benefits of labour, even enterprises like eating houses decrease the working hr, but under the protection of new, at least they can work plenty to acquire a spot more sensible income, for illustration, set up the lowest working hr at 7 to 8 hours per twenty-four hours. May be it is hard to implement of this policy, because in some instances, full clip labour does non desire to work 7 to 8 hr per twenty-four hours, because it is excessively long for them. But how to take a balance between those people and the bulk, lowest working hr should be more benefit.
Third, prohibit endeavor to contract out some kind of work to avoid the statutory minimal pay. Contract out the plants, it ‘s common in Hong Kong, authorities besides contract out the plants likes cleaning occupation to private company. But in new context, would enterprises contract out the plants to single or specific company. If a company contract out some plants outside, it does n’t count, but it must be a registered company, and the staff they employ must be satisfy the demand of statutory minimal pay. Government should heighten the observation of the job of contract out work, forbid the endeavors avoid statutory minimal pay in the method of contract out the plants.
Finally, the rating period is besides has to set. If the rising prices is coming up quickly, but the statutory minimal pay is evaluated every 2 old ages, the populating criterion will be reduced. Peoples should bear one thing in head, if the evaluate period is excessively long, the rise of labour income can non follow the rising prices, their living criterion would still on a lower degree. Thus, authorities should shorten the rating period, from 2 old ages to 1 twelvemonth.
Decision
In decision, lower limit pay is an intercession in free market society like Hong Kong ( M.Friedman, 1980 ) , market freedom and the “ little authorities and large market ” is the successful key of Hong Kong. However, when Hong Kong developing its economic system continuously, most of the Hong Kong people should populate in a better criterion, why there are 1.26 million people populating in hapless? It ‘s non traveling to knock how is market freedom effectual, but for how perfect it is. If it is a good system to pull greater income, it ‘s no job ; nevertheless, if behind the high GDP, it ‘s a effect of more hapless people, shall people happen some solution to undertake the jobs of hapless. Market freedom is based on the liberalism, and can liberal equalitarianism be a better political orientation in Hong Kong. And so, broad equalitarianism accent the distribute resources so that people can freely make up one’s mind their life programs, when authorities pattern “ the little authorities and large market ” , authorities can make something for the hapless people, one of the signifiers is occupation subsidy, another signifier is implement statutory minimal pay.
Hong Kong now is a knowledge-base society ( Bell, Daniel 1974 ) , the unskilled labour go lower market value in new societal context, they ca n’t gain adequate money to keep their life, occupation subsidy is a signifier of solution, but when people believing about occupation subsidy, it ‘s a long term load of authorities, and $ 600 sum of spread outing conveyance support strategy, is it truly plenty for low income labour?
Another statement is the side consequence of statutory minimal pay, unemployment seems a must in the Hong Kong harmonizing the study of Provisional Minimum Wage Commission ( 2010 ) , but under some surveies of oversea, statutory minimal pay may non be causes unemployment, even it may heighten the motive of work in the sight of people who acquiring CSSA ‘s aid.
The statute law of statutory minimal pay, non merely protect the life demands of low income labour, it ‘s besides for protect their self-respect. However, in the context of Hong Kong, there are some methods to avoid statutory minimal pay, such as dining clip exclude from working hr, diminish the working hr of labour and contract out the work.
In order to do the policy a spot more prefect, authorities should make something to undertake the jobs, including give a clear definition of dining clip should including in working hr, set up the lowest working hr, to protect people have adequate on the job hr and income, prohibit endeavor to contract out some kind of work to avoid the statutory minimal pay and shorten the rating period from 2 old ages to 1 twelvemonth.
