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With employer groups, chambers of commerce and employers at large embracing increasingly the concept of corporate social responsibility in recent years, there has been a distinct culture change in Hong Kong conducive to the introduction of a minimum wage, the Secretary for Labour and Welfare, Mr Matthew Cheung, said this (May 25) morning.
"I am deeply appreciative of the understanding and co-operation of many major players in the business community, without which we would never have reached a consensus and breakthrough on this important and longstanding issue," Mr Cheung said in his keynote speech at The Best Employers in Hong Kong 2009 Conference jointly organised by SCMP Classified Post and Hewitt.
Mr Cheung said that the Government was convinced that safeguarding the interests of the vulnerable and enhancing social harmony were important social policy objectives, and that in formulating the initial minimum wage rate, a balance between three key factors would be struck.
"First, to forestall excessively low wages; second to minimise the loss of low-paid jobs; and third to sustain Hong Kong's economic growth and competitiveness.
"We will adopt an evidence-based approach and maintain a sense of proportion as well as a strong dose of prudence in charting our way forward.
"If everything goes well, a statutory minimum wage will come into force by end-2010 or early 2011 at the earliest," he said.
Noting that the global financial crisis and the ensuing economic recession continue to weigh heavily on Hong Kong's economy, Mr Cheung said that the unemployment rate, which stood at the 5.3%, was likely to be high in the near term. The emergence of human swine influenza has also posed a new source of uncertainty and pressure on the labour market.
"Whilst there are signs that the rise in unemployment is tapering off, with the pace of job loss slowing down from a monthly average of 15,600 in January and February this year to 5,500 in March and April, labour market conditions remain slack," he added.
Turning to labour relations, Mr Cheung said that "Hong Kong has been blessed with harmonious labour relations, thanks to the collective efforts of both employers and employees." He stressed that industrial peace had underpinned our economic and social stability over the past decades of sustained economic growth.
He said, "In 2008, the number of labour disputes conciliated by the Labour Department was 120, down 3% on 2007. It was the lowest level since 1998. The number of working days lost per thousand salaried employees and wage earners as a result of labour disputes and industrial action in 2008 was 0.46 - among the lowest in the world."
The situation has, however, changed dramatically since last September when a series of business closures, insolvencies and redundancies began to surface as a result of the economic recession.
"In the first four months of this year, the number of labour disputes handled by the Labour Department was 59, up a hefty 84% over the figure of 32 for the same period last year. And yet, despite the surge in the number of cases handled, the number of working days lost per thousand employees was only 0.27," he said.
Mr Cheung said it was understandable that when firms were struggling for survival and the business was bleak and uncertain, to be a caring employer might well be a tall order and easier said than done. Nevertheless, he said he trusted that some fundamental values would outlast whatever adversities we were now facing.
He said, "A people-oriented enterprise should possess three essential qualities, come rain or shine. First, enterprises should promote communication and co-operation amongst staff through 'empathy', with the objective of building a quality team.
"Second, employers should show 'care' in identifying the needs of employees and their families and provide them with a worry-free work environment.
"Third, employers should listen to employees' views with 'patience' and proactively transform them into effective measures. Noting the 'sincerity' of the employers, employees will work with 'willingness' and enhance the productivity of the enterprise.
"This will lead to a win-win situation. After all, a company is a living entity. All that needs to turn a company into a caring and responsible social citizen is a touch of compassion, humanity, empathy, flexibility and fairness," he concluded.
Ends/Monday, May 25, 2009
Issued at HKT 12:25
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