Opinions divided over the implementation of minimum wage

2014/7/1

From:Macau Daily Times

The government has introduced the AL to the bill on the minimum wage for security guards and cleaners working for property management companies. Several lawmakers have questioned whether the government has fully considered the impact of the legislation on property management fees, unemployment and human resource issues.
On the other hand, the AL vice- president Lam Heong Sang is upset by some of his colleagues’ comments, which he thinks are blaming property management issues on the beneficiaries of the minimum wage.
The legislation proposes to set the minimum wage at MOP30 per hour or a minimum monthly salary of MOP6,240. The amount is subject to annual review and can be adjusted according to the economic condition. It will come into force 180 days after the legislation is passed by the AL.
When discussing the bill, Song Pek Kei said that she agrees and supports the government for introducing such a bill to protect low-income earners. However, she questioned the timing of this policy.
Song Pek Kei suggested that the implementation of minimum wage will result in the rise of property management fees. She said that it is already difficult for some proprietor committees to keep their management fees at a low level. “Prices of everything are increasing. If the proprietor committees have seen the situation, how are they going to get the courage to propose a rise in their management fee?”
Song Pek Kei continued to claim that some property management companies have already stated that they have to raise the management fee from 40 to 70 percent and retreat from their buildings if they cannot receive the extra funds for the fee. “In such a hurry, how can the proprietors committees find [a new company] or the money to pay for [their buildings’] utility bills?”
The lawmaker also pointed out that other legislations on the rights and regulations of proprietors, as well as property management companies, are not finished yet.
Her colleague, Tsui Wai Kwan, also asked the government whether it has any contingency plan on the different possible scenarios that could be triggered by the implementation of the minimum wage.
He is also concerned with the future of some of the more elderly security guards. “After the implementation of the minimum wage, I believe that there will be a group of elderly security guards who will certainly be laid off. If I paid this amount of money, I would definitely want somebody who is young and strong.”
Meanwhile, Kou Hoi In warned the government of the possible impact on inflation brought by the legislation. “When legislating [on the issue], there are some issues that have been raised… Firstly, it will pull up the wage level in general, which will result in a higher inflation. Although this bill is only for security guards and cleaners of property management companies, it will definitely affect the wage level of other industries…This is going to affect all Macau residents.”
However, Lei Cheng I from the labor sector has defended the merits of the bill, pointing out that the wage levels of some employees are unreasonably low. Lei also stated that she does not want to “wait for the infinite discussion” before legislating on the issue that continues to leave some employees in a vulnerable position. The lawmaker also used the opportunity to urge the government to impose a general minimum wage for all sectors in society.
Lam Heong Sang also put his support behind the bill. Mr Lam suggested that, from what he heard in the meeting yesterday, it seemed like laborers are paying the price for “an original sin”, because some opinions have blamed the security guards and the minimum wage for other issues that are related to property management.
Due to time constraints, the Secretary for Economy and Finance, Francis Tam, and other officials were unable to reply to the comments. The discussion on the introduction of the minimum wage will continue today in the plenary session, where it is expected the government will address the growing concerns.

Copyright@Macau Daily Times