After the passage of the minimum wage law, Matthew Cheung, the Secretary for Labour and Welfare, openly acknowledge that workers would lose their jobs. It is said that the legislation is passed and that now there is no point debating if Hong Kong should have a statutory minimum wage, the focus is on setting an optimal level of wage so the impact is kept minimal. Is this really possible?
Let’s stop fooling ourselves. Everyone is an individual and different, therefore every person has his/her own minimum wage. An one-size-fits-all statutory minimum wage, no matter the wage rate, will cost many people’s jobs.
The Lion Rock Institute stands firmly that the legislation should be repealed. Ahead of us, the challenge is to demonstrate the damage to be done by the legislation. Lion Rock set up a task force to study the effects of the legislation, and to prove that price control is the worst form of government policy.
The task force will answer:
- Who are the workers being displaced?
- How does the legislation change the way new immigrants integrate into Hong Kong’s society, especially when it is more difficult for them find a job?
- How does the legislation affect young people with little career experience? Also, for women who need working hour flexibility,? How does the legislation affect people’s lives?
- How many positions will be displaced forever by new business methods and processes?
- Are people retiring earlier?
- Will there be more CSSA cases?
- Does the change in labor market create more domestic disputes and violence?
The legislation will distort the market in ways not imagined. For instance, if it is cheaper to use disposable utensils, there will be less hiring of dish washers. These unintended consequences will inevitably become the pretext for socialists of different flavor to demand for more statist interventions.
We continue to fight, but Lion Rock needs your support to win. At as little as $3.33 a day, you are helping LRI in this worthy cause. Please also let us know if you can provide assistance in kind.