Hong Kong sets controversial minimum wage

[NNN0LHI]

http://www.khaleejtimes.ae/DisplayArticle08.asp?xfile=data/international/2010/November/international_November517.xml§ion=international

(AFP)

10 November 2010,

HONG KONG — Hong Kong on Wednesday set the city’s first minimum wage at 3.60 US dollars an hour, prompting anger from labour groups which criticised the amount as unreasonable amid a growing income gap.

The government is aiming to usher in a base wage of 28 Hong Kong dollars (3.60 US) from May next year — lower than the 33 Hong Kong dollars which labour activists have been demanding.

The controversial issue has divided business and labour groups for more than a decade, with business groups warning it would lead to widespread job losses among poor workers.

[David__77]

1. It's something. Now the rest of the PRC should follow suit.

This is basic stuff here.

[NNN0LHI]

2. Not sure of the accuracy of this but is says PRC instituted a Minimum Wage in 2004

http://en.wikipedia.org/wiki/Minimum_wage_law

People's Republic of China

The Ministry of Labor and Social Security set China's first minimum wage law on 1 March 2004. The Regulations on Enterprises Minimum Wage was made to "ensure the basic needs of the worker and his family, to help improve workers' performance and to promote fair competition between enterprises." One monthly minimum wage was set for full-time workers, and one hourly minimum wage for part-time workers. Provinces, municipalities, and autonomous regions are allowed to legislate for their own minimum wage separate from the national one.

In February 2010, officials in Jiangsu province increased the minimum wage to 960 RMB (about US$140.62) per month, the same as Shanghai. China's highest minimum wage is in Shenzhen (1000 RMB per month).

Guangdong Province increased its minimum wage on 1 September 2006 and was split into five categories. The highest is ¥780 per month or ¥4.66 (~US$0.68) an hour (in Guangzhou city). The lowest is ¥450 per month or ¥2.69 (~US$0.39) an hour.

[David__77]

3. True, there are regional minimum wages.

But I do think imposing a national one would be helpful in the long run. The regional disparities are so great, though, that it would render it meaningless in expensive coastal cities. They need to implement stronger measures to ensure income increases in the inland and rural sectors.