Minimum wage under public consultation

2013-10-7

From：Macau Daily Times

The Labour Affairs Bureau (DSAL) has released the consultation document for minimum wage legislation  for cleaning and security personnel who work in residential or commercial buildings. During the 47-day consultation period, ending on November 15, the public can tell the government their opinions on the legislation.
In the document, the government  set the minimum wage ranging from MOP23 to MOP30 per hour, allowing residents to choose an amount that they think is reasonable and within range. There are about 10,800 security guards and cleaners working in residential and commercial buildings. 86 to 96 percent of the security guards will benefit from the new law, while it is estimated that only 47 to 88 percent of cleaners will be given a wage hike after a minimum wage is implemented as their current wages are higher.
DSAL director Mr Wong Chi Hong said that the government will consider opinions from all sides and will compose a report as soon as possible. “When setting the amount, we will look at the wage level of the employees, the operation of the employers and the enterprise, the overall competitiveness of Macau and the overall economic development. We will strive to finish the preparation for the legislation before the end of this year.”
When asked what the authority will do if the consultation result indicates that the amount should be more than MOP30, the director refused to answer what he deemed “hypothetical questions”. He said that he understood the demand from the employees, but would still make adjustments after considering the following factors: hte competitiveness of Macau, the wages, as well as how well employees can handle the increase in employee compensation. Mr Wong stressed that the setting of a minimum wage must consider the actual condition of Macau as he didn’t want to see middle and small business struggling because of the legislation.
The director also pointed out that the government will be looking into Hong Kong’s history regarding the legislation of a minimum wage. He added that the system and timing is related to Macau’s recent economic development, and thought that minimum wage would encourage more people to reenter the labour market.
In response, the Bureau has proposed that minimum wage should be reviewed every two years. Mr Wong has stated that this is also from the experience of nearby cities.
Employers and employees have different opinions on the issue. The employer representative in the government’s Standing Committee for the Coordination of Social Affairs, Vong Kok Seng, is concerned about impact on Macau businesses if the minimum wage is set too high. “If you (the government) are not being realistic and consider the operation environment and affordability of different industries, it would trigger a serious chain effect.” An employee representative from the Committee claimed that the government should explain why the minimum wage has to be set within the given range. She also suggested that a more scientific calculation of minimum wage could avoid the legislation being outdated.

Copyright@Macau Daily Times