The labour market has long been one of the biggest jewels in the laissez-faire economic crown that rests upon Hong Kong's head. But for how much longer? The deadline for the government to decide whether to introduce Hong Kong's first minimum wage law is fast approaching, and trade unions - sensing victory on the horizon - are massing their artillery for the big fight. October marks the end of the implementation period for the 'wage protection movement', introduced by Chief Executive Donald Tsang Yam-kuen in his policy address in 2006. The voluntary scheme was intended to ensure people in two of the lowest-paid occupations - cleaners and security guards - are paid at least the median wage for their sectors. Statistics show the scheme is failing - just over 1,000 companies, covering about 30,000 of the city's estimated 150,000 cleaners and security guards, have signed up. Even those who have are not paying what they should, the labour unions claim. Some are getting round its provisions by changing job titles, they say. Japanese restaurant chain Yoshinoya, for instance, recruits 'customer service assistants' and pays them between HK$18 and HK$22 an hour, says Lam Cho-ming of the Confederation of Trade Unions. 'The job title has changed, but people employed in this role have to do the job of a cleaner,' he says. The company has denied the claim. The latest to dismiss the wage protection movement as a failure and call for legislation on a minimum wage for cleaners and security guards is Executive Council convenor Leung Chun-ying. 'The market has failed [to ensure reasonable wages] and it is hard to protect these workers through voluntary measures,' he says. To promote the scheme, the government sent letters to more than 10,000 building owners' groups, urging them to offer cleaners and security guards wage protection. Permanent Secretary for Labour and Welfare Paul Tang Kwok-wai says support from these groups is the key to ensuring the success of the wage protection movement. But Ip Wai-ming of the Federation of Trade Unions claims that many housing estates will not heed a minimum wage unless laws are in place. All of which doesn't look good for those hoping to avoid legislation, something the government has pledged should the scheme fail. 'If the wage protection movement proves ineffective in the final analysis, the government will resort to legislation to stipulate a statutory minimum wage for cleaning workers and security guards,' says labour chief Matthew Cheung Kin-chung. Introducing legislation to the labour sector would bring Hong Kong in line with most of the world. Figures from the UN International Labour Organisation show that more than 90 per cent of countries have a statutory minimum wage. Two-thirds have adopted a national minimum wage, while a third have adopted a sectoral or occupational rate. Businesses are against using laws to protect the wages of Hong Kong's cleaners and security guards, arguing that higher salaries will hurt their competitiveness, and instead favour other ways to help the lowest-paid workers. But the tide of public opinion may be working against them. Ho Sau-chu, an employer representative on the Labour Advisory Board for more than a decade, says the tipping point has already passed. 'After Sars, the economy in 2004 and 2005 became better,' he says. 'But many workers did not benefit. The income gap between rich and poor became more serious. At the same time, more factories moved away from Hong Kong, leaving an increased number of workers to do cleaning jobs and be security guards.' Basic economic rules played out. 'The wages grew terribly low. Mr Tsang was running in the chief executive election; he had to respond to these trade unions,' Mr Ho says. According to the CTU, cleaners and security guards are not the only underpaid jobs. Staff of supermarket chains and convenience stores get HK$21 to HK$22 an hour. More than 90 per cent of delivery workers earn less than HK$30 per hour - the point at which one's annual income is going to be lower than welfare assistance. This is one of the union's key arguments. 'We told Mr Tsang that the wages earned by the lowest-paid members of the workforce are already lower than what they would receive from Comprehensive Social Security Assistance,' says Cheng Yiu-tong, FTU president and Executive Council member. 'This is a very important point to bear in mind as we move forward.' Labour unions, academics and the government have already begun to lay the groundwork for legislation, with the unions pushing forward to map out answers to the more complex questions: who is going to be covered? How will a minimum wage be determined and which institution will decide it? What mechanisms will be in place to enforce the law and punish transgressors? The first battle has already started. The Labour Advisory Board has discussed what defines a cleaner and security guard with the government. Opinion is divided on the importance of coming up with definitions, however. Wong Hung, assistant professor at Chinese University, has studied minimum wage for 24 years. He says that talking about definitions is a delaying tactic. 'The government wants to slow down the legislation process by discussing the definitions,' he says. 'All these legal procedures allow some people to think of a loophole.' However, the FTU says the approach taken with cleaners and security guards will be instrumental in determining the way forward for other sectors. 'We want to have legislation for these sectors first,' says Chan Yuen-han, a lawmaker with the federation. 'More and more workers will be covered following legislation. It is going to be the next battle.' The issues being discussed by the unions and government are among the many questions that must be answered before a minimum wage law can be introduced. The International Labour Organisation advises planners and lawmakers to take into account the effect a minimum wage would have on general wages, social security benefits, the economic needs of workers and families, inflation, general employment levels, the overall economic situation, productivity and the capacity of enterprises to pay. Being a laggard has given Hong Kong plenty of examples to study. The mainland, for example, requires the minimum rate to be higher than unemployment benefit to motivate people to look for work. Another area that needs to be taken care of is the relationship between a minimum wage and inflation. Most countries try to avoid seeing the earning power of a minimum-wage earner eroded by rising prices. However, in some countries, raising the minimum wage forced up salaries across the board, with businesses adjusting their prices to reflect the increase. In addition, minimum wages for young people, trainees and staff on probation, and the disabled must be discussed. In a sense, Hong Kong already has a legally enforceable minimum wage for one sector of the workforce - and how any new law affects the city's thousands of domestic helpers will strongly affect the approach to be taken on the issue. Would a minimum wage law apply to foreign domestic helpers? 'It is relatively sensitive; if we did not do so, we will be accused of racial discrimination,' Mr Ho of the Labour Advisory Board says. 'However, the living rates in their own countries are different from Hong Kong.' CTU general secretary Lee Cheuk-yan argues that the issue of domestic workers' wages cannot become an excuse to leave maids who work on an hourly basis unprotected. 'Maybe we apply 'live in' as a condition, which means those who are living in the employer's house are not protected by the different law.' Although momentum for a minimum wage appears to be gaining, the trade unions must deal with the rising number of workers who are hired on a self-employed basis. 'That would create another loophole as a statutory minimum wage is the same as the other employment ordinance, which is only applicable to employees, but not to those who are self-employed,' a CTU discussion paper noted. And what about the most basic question - how much should a minimum wage be? Neither the trade unions nor the government can tell at the moment, although the CTU suggests using welfare payments as a starting point. 'Taking into account the number of people on CSSA in 2006-2007 and the amount they were paid, the average received was about HK$2,800 per month,' says Lam Cho-ming, the convenor of the People's Alliance on Minimum Wage. 'Then, taking into consideration the total population and the working population, every worker in Hong Kong is responsible for supporting 2.02 people. As a result, the basic wage needs of every worker has to be doubled. Taking working hours and transport into consideration, the average hourly rate should be around HK$30.' Government statistics show that 13.9 per cent, or 457,100, of the working population in Hong Kong earned less than HK$6,000 a month in the fourth quarter of last year. Professor Wong says Hong Kong is long past the time for debating whether a minimum wage is needed. 'Throughout all these years, all arguments on a minimum wage have been debated. It is no longer the time to talk whether we should legislate a minimum wage, but to go into the details like wage level and adjustment mechanism. It is time to have a real test.' Dirt cheap A voluntary wage scheme is aimed at ensuring cleaners and security guards are paid at least the median wage for their sectors Labour unions say the average monthly income for a cleaner, in Hong Kong dollars, is $5,200