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Hong Kong

Unions gird for battle over minimum wage tricksBy Joseph Li (HK Edition)

Updated: 2011-04-02 08:06

Employers' tricks to avoid the pay for meal breaks and rest days continue to surface a month before thestatutory minimum wage, at a rate of HK$28 an hour, takes effect.

A dozen banner-carrying representatives from the Catering and Hotels Industries Employees General Unionprotested Friday at a Tsim Sha Tsui outlet of Tsui Wah Restaurant, a Hong Kong-style restaurant chain, whichhas asked its staff to agree to change the terms of work since March 28.

The tricks include cancellation of pay for rest days and reduction of working hours from 10.5 hours to 10 hoursdaily, although a higher hourly rate is offered, said Wu Shui-shan, organizing secretary of the union.

In addition, the 13th month payment is divided into 12 parts and added to the monthly salary, thus appearing to

inflate the monthly salary, but the restaurant is not paying more to "fulfill" the statutory minimum wagerequirement.

At the same time, some catering outlets are paying new staff members less than the HK$28 an hour, leaving aquestion mark as to whether they eventually will pay the statutory wage or will use tricks to squeeze the staff.

The Hong Kong and Kowloon Trades Union Council recently found that around 20 catering outlets hired newstaff in March at rates below HK$28 an hour.

For example, a fried chicken chain restaurant agreed to pay shop assistants HK$25 an hour, while a pizzarestaurant hired waiters and kitchen workers five days ago at HK$23 an hour, Lee Kwok-keung, chairman ofthe council said Friday.

"Although it is not unlawful to pay staff less than HK$28 an hour (at present), it gives an impression these

restaurants want to gain maximum profits before May 1," he said.

"We also worry that these restaurants will not pay the staff HK$28 an hour in May or force the staff to modifythe employment contracts with a view to canceling pay for meal breaks and rest days."

Organizing Secretary Wu gave an example of a worker at Tsui Wah Restaurant who earns HK$8,300 an month(equivalent to about HK$26 an hour).

Ideally, the worker will receive HK$7,644 (26 days x 10.5 hours x HK$28), plus HK$1,106.7 pay for rest days(HK$8,300/30 x 4 days). The total amounts to HK$8,750.70 (an increase of 5.4 percent) after the law comesinto force and the restaurant must pay a difference of HK$450 a month, Wu explained, while the staff shouldalso be entitled to a 13th month payment.

But after he has signed a new contract, the monthly salary becomes HK$8,491, which is the sum of HK$7,800(26 days x 10 hours x HK$30) and HK$691 (HK$8,300/12 months), Wu said.

This is less than what the employee should receive, as he is not paid for rest days and no longer enjoys theyear-end bonus, she said.

The union has sought a meeting to negotiate with the general manager of the restaurant next week, she said.

Since the formula of monthly wage divided by 30 days is used for calculation of overtime and holiday wages formost employees, this reflects that the paid rest day arrangement already exists, she said.

She asked the government to stipulate in law that unless otherwise stated in contracts, it is deemed that staffenjoy meal breaks and rest days with pay.

China Daily

(HK Edition 04/02/2011 page1