Workers first to feel pain, last to see gains
The pain of the financial tsunami has led to companies laying off workers.
The workers are always the first group to suffer during a slump. However, they will not necessarily benefit during good times. That is why more than 200,000 workers still earned less than HK$6,000 a month when the Hang Seng Index reached almost 32,000 points last year. The recent government call to lower employees' wages during the downturn is understandable, but ill-considered. By how much can wage levels be lowered? On the other hand, it is the company executives who need to demonstrate their commitment and social corporate responsibility by lowering their ridiculously high remuneration. Why does the government not ask landlords to cut rents instead of asking workers who are already on low pay to accept less?
These workers are vulnerable and it is easy for employers to exploit them. A rent hike can mean that rent for a small or medium-sized business, can comprise 30 to 40 per cent of operating costs, while employees' wages still only make up about 20 per cent.
If rents are lowered the whole community will benefit.
The government should take a lead and waive some fees it charges for the use of its facilities. Speeding up construction projects and providing more job opportunities would also be welcomed.
At the same time, it is important that the rights and wages of local workers are protected and not subjected to further exploitation. It is not uncommon for some construction firms to cut costs by bringing in cheaper foreign labour and employing illegal workers rather than hiring locals on decent salaries.
