Major business chambers are divided on promoting the government's 'wage protection movement', with one sending a circular to members that has been criticised for dissuading them from joining the scheme.
In a letter to more than 4,000 members last month, the Hong Kong General Chamber of Commerce warned of the movement's possible drawbacks, including rising wage bills and legal liabilities.
One chamber lamented a lack of unity on a scheme which it saw as a last bulwark against legislation for a minimum wage.
The impact of minimum wages 'will be felt most keenly by the smaller employers who, when faced with a rising wage bill, are likely to employ less people or make more expensive staff redundant', the letter stated. There was concern on 'a legal risk that might accrue to enterprises were they held responsible for the actions of sub-contractors employed by their contractors'.
The letter also cast doubt on the Labour Department's formula for calculating the minimum wage for cleaners and security guards, which companies joining the scheme have pledged to meet. It noted that this was determined only by the average market wage updated by the Census and Statistics Department every quarter, but did not take into account the cost of living, living standards, inflation and productivity.
The vice-chairman of the Federation of Hong Kong Industries, Stanley Lau Chin-ho, said it was a pity that employers were not more united on the issue.