Policy Address

Care for the Disadvantaged

Legislating for Wage Protection

63.     Since we launched the Wage Protection Movement (WPM) for cleaning workers and security guards in October 2006, there has been a gradual shift in the community's attitude towards a minimum wage, marked by a greater empathy and appreciation of wage protection for grassroots workers and corporate social responsibility.  I would like to thank wholeheartedly those trade associations, enterprises, employers and owners' corporations that have supported and participated in the WPM.  I am also grateful to the Labour Advisory Board for its efforts in monitoring the progress of the WPM over the past two years.  We have just completed a review of the WPM.  Despite increases in both the number and proportion of workers benefiting from the WPM compared with two years ago, the situation, on the whole, is unsatisfactory.  There are indeed limits in promoting wage protection through voluntary participation.  I have unequivocally pledged to introduce legislation on a statutory minimum wage for cleaning workers and security guards should the WPM fail.  To honour this pledge, the Government will now proceed with the legislative work.

64.     Some members of the business community and the labour sector are of the view that if the Government introduces a statutory minimum wage, employees in all trades and industries should be covered at the same time.  I share their views, particularly from the perspective of social justice.  In fact, cleaning workers and security guards are not the only low-income jobs, and worker mobility among different types of low-income jobs does exist.  Moreover, it is quite difficult to define “cleaning worker”, and any definition is bound to be controversial.  Therefore, the Government is inclined to go for an across-the-board statutory minimum wage.  We aim to introduce a bill into this 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.

65.     Drawing reference from the successful experience of other countries, we will establish an advisory Minimum Wage Commission (MWC).  MWC members will be drawn from the labour 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 Labour and Welfare Bureau (LWB) will proceed immediately with the preparatory work for the establishment of the MWC.

66.     Finally, I would like to reiterate my views on the minimum wage issue.  First, 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.  Second, wages are returns for employees' labour.  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.  This can also encourage able-bodied recipients of the CSSA to rejoin the workforce and motivate them to move from welfare to self-reliance.

 

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