Executive Summary for Minimum Wage Legislation

Executive Summary

To alleviate the problem of income disparity and in-work-poverty, the government has sought an effective way to implement a wage floor. After the failure of a non-compulsory Wage Protection Movement for cleaning workers and security guards in October 2006, the government decided to forge ahead with the Statutory Minimum Wage (SMW). The Statutory Minimum Wage (SMW) finally gained passage in the Hong Kong Legislative Council (LegCo) on 17 July 2010 and took effect from 1 May 2011 with its prescription of an hourly minimum wage of HK$28, which is estimated to have raised the pay of workers mostly in the cleaning, retail, food and security industries.

In this research paper, we would provide a comprehensive discussion on legislation on minimum wage in Hong Kong. Through a series of researches and analysis, we would like to conclude that that ___________. In supporting to our opinion, the report would be arranged in the following logical manner.

To start with, we would clearly define the concept of minimum wage and mention the progress of minimum wage development. The mechanism of Wage Protection Movement, which was launched as a substitute to direct legislation on minimum wage in 2006, would be discussed and evaluated for its effectiveness.

After providing the background information, we would examine arguments for and against the statutory minimum wage presented by different social communities and labor unions within Hong Kong. Addressing to the concerns that SMW would increase unemployment rate and create negative impact on business and economy, we would extract the relevant data to prove if there is any significant discernible effect since the implementation of SMW.

Then, Minimum Wage Ordinance would be examined in detail and some loopholes are identified with follow-up recommendations suggested to optimize the law and improve the protection to the labors, including guidelines for the provision of fringe benefits, meal period and rest...