Hong Kong, a paradise for lovers of wild unfettered market? From 1 May, this image may take a lead in its liberal wing. For Labor Day, Hong-Kong authorities will establish a minimum wage. A revolution for the city-state accustomed to having no regulation of the labor market. So much so that besides the bosses, some of the employees and some unions are opposed.
This "minimum wage" sauce Hong Kong provides a minimum hourly wage of 28 Hong Kong dollars (2.43 euros). Its principle was passed in July 2010 and the government has fixed the amount in January. The authorities have decided to take this course in light of the growing wage inequality.Hong Kong has indeed been singled out by the United Nations Program for Development (UNDP) has ranked in 2010, the last place of developed countries on equal pay.
And Hong Kong was also rather isolated internationally. "90% of countries have some sort of minimum wage," says FRANCE 24 John Richotte, Asia specialist for the International Labour Organisation (ILO). Even in Asia, the city-state was exceptional. Only Malaysia and Singapore do not yet have the minimum wage. "Malaysia has committed to build one by the end of the year," said John Richotte.Singapore, after hesitating a year ago, still holds.
Lobbying employers ready to fight
A victory would be in social work? The views of Hong Kong is much more mixed on the issue. "The lowest paid employees fear being laid off, not increased," reports the Hong Kong daily The Standard. Others fear losing some benefits such as paid leave. The unions expect to "historical events" in Hong Kong on May 1 to put pressure on employers.
The showdown promises to be severe indeed.The major fast-food chain in the country, Cafe de Coral, announced that the minimum wage would force it to revise downward its profit ... and probably to cut payroll. The employers' lobby, in any case, is developed. "So we have to reconnect with an unemployment rate before the crisis, establishing a minimum wage falls ill," said one CEO Hong Kong EconomyWatch on the site. But the threat of unemployment is not their only weapon. They also predict an inevitable increase in prices. Inflation in Hong Kong is already greater than 3% and the minimum wage would further increase prices. This would, according to employers, to negate the advantage of uen salary increase for workers."Actually this is not the minimum wage causes inflation, but inflation, which increases the minimum wage," says John Richotte. That prospect does not appeal to employers Hong Kong.
