A social service group has called on the government to set the city's new minimum wage, at HK$40 an hour, well above levels currently under discussion. Caritas Community Development Service (CCDS) made the recommendation based on a survey of 60 low-income families with three to four members, whose average hourly wages fell below HK$40 per hour.

The survey found that 60 percent of the interviewees' were unable to satisfy basic needs over the previous year. Over 20 percent said the family did not have sufficient savings to get by, if a family member became unemployed.

The results from the survey pointed out that many lower-income families had to restrict purchases such as buying clothes. Families below the HK$40 income level were restricted to an average of 0.18 family outings per month.

The HK$40 minimum wage, CCDS contends, would allow employees not only to survive but to improve skills for moving up the social ladder. CCDS also suggests the minimum wage be linked to inflation and reviewed annually.

Lau, a father whose hourly wage is $26, said at Friday's press conference that with a $40 hourly wage, he can "save more money and feel more secure".

The Provisional Minimum Wage Commission is still deliberating over the level at which the minimum wage should be set. Reports say the business members of the commission are prepared to go only as high as HK$28 per hour. The labor component of the commission is send to be willing to accept a rate not lower than HK$30. Secretary for Labor and Welfare Matthew Cheung Kin-chung dismissed those reports as pure speculation and called on the public to be patient and allow the commission to complete its duties.

The minimum wage level for Hong Kong employees is expected to be announced later this month.

Following consultations with Chief Executive Donald Tsang concerning the up coming Policy Address yesterday, lawmaker Ip Wai-ming of the Hong Kong Federation of Trade Unions (HKFTU) said the economic situation in Hong Kong remains uncertain. Even those who have jobs are poorly paid. HKFTU is on record as supporting of a minimum wage of HK$33 an hour.

China Daily

(HK Edition 08/21/2010 page1)