HONG KONG -(Dow Jones)- Hong Kong lawmakers on Saturday overwhelmingly passed the city's first minimum wage bill, marking a victory for labor unions and activists who for years have sought statutory wage protection for low income workers in this business-friendly city.
The bill was enacted following a marathon 41-hour debate, and comes nearly two years after the Hong Kong government bowed to immense public pressure and announced plans to seek a minimum wage for workers.
The law was opposed by businessmen, who said it will hurt Hong Kong's competitiveness, but was welcomed by social groups.
Secretary for Labor and Welfare Matthew Cheung told reporters the passing of the bill "marks a very important milestone in the protection of our labor, particularly grass-root workers in Hong Kong."
However, though the new bill empowers the administration to set a minimum wage, it doesn't stipulate the actual wage level. Instead, a committee appointed by the government will recommend the hourly rate, which will be decided on as early as August.
Local unions and labor groups are seeking minimum hourly wages of HK$33 (US$4.23) to sustain the livelihood of the city's lowest income group, though representatives from the business community argue that the rate is too high, and would ultimately lead to layoffs in certain industries as operating costs substantially increase with higher wages.
Cheung acknowledged concerns of possible layoffs, and said the government will closely monitor developments once the minimum wage law is implemented in the first half of 2011.
"We will be watching the situation carefully and do what we can to help those displaced because of this new measure, help to retrain them and if necessary, provide social security for them," he said.
The government had for several years resisted public demands for a minimum wage, and relied on a voluntary program, which ultimately failed to meet its expectations.
As part of the new law, the government will review the minimum wage level at least once every two years.
However, the minimum wage law won't cover the tens of thousands of live-in foreign domestic workers in Hong Kong. These workers, mainly from the Philippines and Indonesia, are already promised a minimum monthly wage of HK$3,580 to assist in day-to-day household chores.
Copyright 2009 Dow Jones Newswires
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