Calling for better wages and standard working period

Minimum Wage Ordinance in Hong Kong SAR will take effect on 1 May 2011, and that will become the landmark of protecting workers from exploitation by their employers.
In addition, that will become the start of intergrating labour laws in Hong Kong to most of the regions in the world.
The idea of minimum wage can be traced back to 1894 in New Zealand, in order to reduce the women or Asian population enter the labour market.
Authorities in Victoria, Australia established wages board, which set basic wages for 6 occupations that were considered paying low wages in 1896 in response to frequent, bitter strikes.
However, sweat shops were still a serious social problem in industrialized countries until about 1930.
By 1817 Robert Owen had formulated the goal of the eight-hour day and coined the slogan 'Eight hours labour, Eight hours recreation, Eight hours rest'.
In Great Britain, Trade Boards Act 1909 provided for creations of boards to set minimum wage criteria.
Winston Churchill MP argued that allowing residents receiving less than a living wage in return for their utmost exertions is a national evil, regardless of classes.
In order to protect service sector workers, who are most vulnerable to low wages, authorities in GB implemented National Minimum Wage Act 1998 to improve labour protection.
In 1936, Franklin Delano Roosevelt implemented New Deal to improve economy in USA and suggested the idea of federal minimum wage.
The congress in USA passed the Fair Labor Standard Act and nationwide minimum wage was introduced on 1 January 1939, which was at USD0.25 per hour.
In the next 29 years, this level had been increased for several times, and reached USD1.6 per hour in 1968.
But the minimum wage steadily declined since then when price inflation is taken into account.
In recent years, fewer employers provide health plans to minimum wage earners.

Many critics claimed that minimum wage distorted the supply and demand of workers and it is fundamentally against free market economy.
In addition, the requirement on experience, qualifications, labour strength of various sectors can differ greatly. Danger of the job can also be a factor of wages.
Workers may require a 'risk premium' for dangerous position, such as construction labourers, armed guards.
Some positions, like brokers receive income largely based on transaction amount, not a certain level.
That makes minimum wage implementation more troublesome.
Therefore, collective agreement between commercial chambers and trade unions can largely resolve such disputes and set up a wage level truly reflect a fair market level.
Furthermore, collective agreement is conducive to workers fighting for better working conditions and prevent long working hours.

MINIMUM WAGES, By David Neumark and William L. Wascher, 377 pages; MIT Press, 2008
Hansard HC vol 155, col 1888 (24 April 1906)
Colliver, Victoria (August 29, 2010). "Health plans dwindle in U.S. Number of firms offering insurance drops as costs rise". San Francisco Chronicle. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/09/15/BUG8OENLE61.DTL.

For the issues in working hours, standard working period is usually 40 hours per week in USA. If employees work for more than the period, employers have to pay 1.5 times to the hourly rate.
Standard working period in Europe is usually between 35 to 40 hours, and the laws usually restricts the workweek that must not exceed 48 hours.
This can ensure workers to have enough period to rest and prevent themselves suffer from poor health due to excessive labour.
However, the Minimum Wage Ordinance in Hong Kong SAR does not mention standard working period.
Employees still have to suffer from long working hours, especially among nursing assistants, cleaners and security guards.

Giannis Kouzis, Lefteris Kretsos, Annualised hours in Europe, European Industrial Relations Observatory on-line, 23 October 2003
http://www.eurofound.europa.eu/eiro/2003/08/study/TN0308101S.htm

I am very dissatisfied that the minimum wage level is set on just HKD28 (USD3.59) per hour, which is just slightly high than that in Taiwan and Turkey, which have GDP significantly lower per capita!
Such wage cannot even provide a wage of bare subsistance level of two people!
It is estimated that the minimum wage level should be at least HKD8500 per month, or HKD42 per hour to sustain a family of two.
When compared with the income level to OECD members, this level is very low even under purchasing power parity basis!
I recommend that the minimum wage should be HKD42 per hour, and a lower rate, such as HKD30 per hour for under-experienced employees.
Maximum working hours should be set at 2400 hours annually.

(The original text was distributed on 25 April 2011, 10:58pm)