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Meeting the Challenges: Implementation of the Minimum Wage Legislation in Hong Kong
Organised by School of Business Hong Kong Baptist University

Speech by Mr Lam Woon-kwong, Chairperson, Equal Opportunities Commission, on Minimum Wage

22/04/2010

The Minimum Wage Bill has been under hot debate ever since it was published. Some people staunchly advocate the Bill’s proposals, while others consider it an evil piece of legislation. The debate has since moved on from whether the legislation is necessary to at what level the minimum wage should be set and whether the Government should top-up the difference of the minimum wage.

Let us first put aside the controversy, as some academia have claimed, that the minimum wage would reduce employment. The fact that all developed countries already have minimum wage in place shows that it is one of the means to narrow the poverty gap. Undoubtedly, minimum wage is a mechanism to smooth out the sharp edge of free market operations. I do not believe that the free market principle is so venerable that no intervention should be made. In fact, a totally unregulated “free market” has never existed in the real world. All civilized societies, while pursuing economic growth, do put in place regulatory regimes to reallocate resources to ensure that the underprivileged communities are adequately protected financially and can live with dignity. This is also the fundamental belief of the Equal Opportunities Commission (EOC).

I remember in earlier days, when the anti-discrimination laws were enacted and implemented, there were similar worries and doubts in the society. Some were concerned that the legislation would cause a wave of complaints and social disharmony. However, operational experience over the years has shown that Hong Kong is indeed a civilized and broad-minded society. The anti-discrimination laws have been widely accepted by the Hong Kong people, and the laws have not brought about unreasonable burden to our economy. I believe that the minimum wage legislation will also be widely accepted. Business operators in Hong Kong, like in other parts of the developed world, should have the social obligation in paying sufficient wages to support their employees’ basic needs. The minimum wage legislation is similar to the anti-discrimination laws in many respects. The objective of these laws is to ensure that the society functions fairly and harmoniously.

Some employees with disabilities have expressed their concerns that a minimum wage law may adversely affect their employment opportunities. We fully understand such concerns. The anti-discrimination laws have been implemented for more than a decade, yet “subtle discrimination” still exists and we have not yet uprooted certain entrenched misconceptions. In this respect, the EOC still has much to do. The EOC Members and I had extensive discussions on the Minimum Wage Bill. We welcome the Bill and hope that it will be implemented as soon as possible. We have also discussed the possible impact of the minimum wage legislation on workers with disabilities. We believe that the minimum wage protection should be extended to employees with disabilities. However, in view of their concerns, the EOC will not object to the proposal whereby employees with disabilities, on a voluntary basis, may opt to undergo a fair work assessment mechanism for wage assessment purpose.

The United Nations Convention on the Rights of Persons with Disabilities (CRPD) has come into force for China (including Hong Kong SAR and Macao SAR) since 31 August 2008. Article 27 of CRPD provides that States Parties recognize the right of persons with disabilities to work, on an equal basis with others. This includes the right to the opportunity to gain a living by work freely chosen or accepted in a labour market and work environment that is open, inclusive and accessible to persons with disabilities. States Parties shall ensure that persons with disabilities are not held in slavery or in servitude, and are protected, on an equal basis with others, from forced or compulsory labour. I want to stress that the spirit of the Convention is that persons with disabilities are capable and have the right to make their own choices freely and independently. Like everyone else, they can contribute to the betterment of society. For this reason, I believe that persons with disabilities should be equally protected by the minimum wage legislation like other employees.

(Note : This is a translation from the original Chinese speech.)

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