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A cleaner on Royal Caribbean International's Mariner of the Seas. Catherine Yan, convenor of the Environmental Services Contractors Alliance, said cleaners are now paid HK$35 to HK$36 an hour on average. Photo: Nora Tam

No one happy as Hong Kong minimum wage raised to HK$32.5 today

With minimum hourly rate going up to HK$32.5 today, unionists say it is not enough while experts warn recruitment will remain difficult

The hourly minimum wage goes up from HK$30 to HK$32.5 a day today - and neither employers nor workers are happy.

Businessmen said they are already offering security guards and cleaners way above the statutory minimum wage since it came in place in 2011, but recruitment has become increasingly difficult because workers have become picky in choosing jobs.

Property management fees at residential buildings are expected to go up by about 10 per cent as the extra cost of wages is transferred to the residents.

Meanwhile, unionists said the increase of 2.5 per cent is not enough to offset inflation over the years.

Catherine Yan Sui-han, convenor of the Environmental Services Contractors Alliance, said cleaners are now paid HK$35 to HK$36 an hour on average.

"I expect it to go up to HK$38. If you don't pay more, you can't recruit enough staff," she said. "In districts such as Tsim Sha Tsui and Central, some companies must pay as much as HK$40.

In 2011, Hong Kong implemented its first minimum hourly wage of HK$28 after years of heated debate between unionists and employers. At that time, about 189,000 workers were making HK$28 an hour.

The level, which is reviewed at least every two years by the Minimum Wage Commission, climbed to HK$30 in 2013.

According to a report by the commission released last year, it is expected that employers in the city will need to pay an additional wage bill of about HK$1.36 billion because of the new minimum wage level. About 150,000 people make less than HK$32.5 an hour before the new level comes into effect today.

Polly Ho Yeung Wai-fong, chairwoman of the Chamber of Security Industry, said many companies were paying security guards HK$36 an hour, but recruitment was so difficult there was a shortage of about 10,000 guards. "In some districts, such as Hong Kong Island, recruitment is so tough you can't find anyone even if you're paying HK$50 an hour. That's because people don't want to travel far there. Transportation costs money," she said.

Although more than 200,000 people in Hong Kong have a security guard licence, she said only 150,000 were working in the industry.

Labour sector lawmaker Tang Ka-piu said HK$32.5 was just "better than nothing". He said the commission made use of 2013 and 2014 census figures in its deliberation to come up with the HK$32.5 level, but when that level really goes up today there will have already been a "delay" of one to two years.

The level should be reviewed at least once a year instead of every two years, he added.

According to an earlier analysis by the , of the 22 countries that have statutory minimum wages - compiled by the Organisation for Economic Cooperation and Development - Hong Kong ranks 11th in terms of the number of Big Macs a worker can afford after an hour of work.

On Labour Day today, the Confederation of Trade Unions is organising a march from Victoria Park in Causeway Bay to the government headquarters in Admiralty at 2pm.

This article appeared in the South China Morning Post print edition as: Wage raise does little to satisfy anyone
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