Unions Decry Possible Freeze In Minimum Wage

Unions on both sides of the political divide have called on the government to increase the minimum wage, amid reports that the it would be frozen this year – for the first time since it was implemented nearly a decade ago.

Sources have told RTHK that labour and management representatives on the Minimum Wage Commission have failed to reach a consensus during a biennial review of the wage standard. Currently, the minimum wage is HK$37.5 an hour.

Kingsley Wong, the chair of the pro-Beijing Federation of Trade Unions, warned that a freeze in the minimum wage is effectively a cut in wages in disguise after taking into account inflation.

Wong told an RTHK's Millennium programme that about 20,000 workers are getting paid the minimum wage, that society should care more about them, and that in order for the minimum wage to catch up with inflation, it should be increased to HK$39.30.

Veteran unionist and former opposition lawmaker Lee Cheuk-yan echoed a similar sentiment, but said that even a wage increase by HK$2 was barely enough to overcome inflation.

Lee told RTHK's Hong Kong Today that a wage freeze would be a “double blow for the low-wage workers” given the high rate of unemployment and underemployment in the city, and that livelihood of workers will suffer.

He also said that if wages are frozen, it would last for two years because the review takes place bi-annually.

“I think it’s really very cold-hearted on the part of the government that when workers are suffering already they decided to freeze the minimum wage," he said.

Lee called for an increase in wages, and also take steps to improve the economy and be sure not to put "the burden of suffering on the lowest-paid workers".

"Even if you suppress wages of lowest-paid workers, it will not help employers or business, and [the] only way out is to improve the economy, and it depends on Covid-19 situation."