Hong Kong workers still left to hope for fair deal as Labour Day passes
- Despite some good news, too many people continue to struggle to survive or achieve a better standard of living in increasingly expensive Hong Kong
Hongkongers marked the first post-Covid Labour Day with mixed feelings. While the previous large-scale demonstrations for better working conditions are yet to return, there was good news about a minimum wage rise and progress on banning bosses from dipping into pension pots to cover payments to employees.
But improvements on the labour front remain a challenge. It is to be hoped that economic recovery will help nurture a more conducive environment for improving workers’ rights and benefits.
It was also the first Labour Day of the current government. Summing up his work so far in a post on social media yesterday, Chief Executive John Lee Ka-chiu pledged to enable workers to share the benefits of economic development and achieve what he called a win-win situation.
How this will pan out in the coming years remains to be seen. So far Lee’s labour initiatives are relatively scant, but some important undertakings by previous administrations now fall squarely on his shoulders.
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On Friday, he declared that the ban on the so-called offsetting mechanism of the Mandatory Provident Fund, under which employers may use contributions to foot long-service and severance payments, would come into force on Labour Day 2025.
The announcement signals the end of a decade-long wait to scrap the much-criticised arrangement. It is now incumbent upon the Lee administration to get the HK$33 billion transitional government subsidies for employers ready for the next 25 years.
Separately, the government is steering a review of the minimum wage adjustment mechanism, a hot potato amid tense relations between the business and labour sectors.
The latter is also fighting an uphill battle against the importation of foreign labour in a revamped legislature dominated by business interests.
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Furthermore, there are calls to impose stiffer penalties for overdue pension contributions by bosses, after more breaches were found during the pandemic. Such issues will continue to put the administration to the test.
Lee said labour was fundamental to productivity and he thanked workers for their contributions to the city and the state.
For many it is a struggle to survive or achieve a better standard of living, and the new wage floor of HK$40 per hour can hardly meet the basic needs in our increasingly expensive city.
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Calls for the introduction of standard working hours and other measures are still not going anywhere.
Hong Kong has never been at the forefront of labour rights and benefits. They might even have become an afterthought in the wake of the prolonged economic hardship brought by the pandemic.
Now that normality is gradually returning, hopefully there will be more rational discussions on improving the lot of workers.
