Labor groups charge employers?union is working to defeat the intent of new law

Trade unions have blasted the city's biggest employers' association over a letter to association members reminding them that they are not required to pay for staff meal breaks or rest days under the minimum wage law that will come into effect on May 1.

In a letter sent on Tuesday to its members, employers of one million workers in the city, the Employers' Federation of Hong Kong (EFHK) urged companies to review contracts with their staff to avoid misunderstanding and confusion.

The letter said that meal hours and days off are not required to be included in calculations for monthly salary, although the employers' association said it is a matter for the employers themselves to decide.

Trade unions now suspect the letter is suggesting employers change the payment calculations from monthly basis to hourly basis and exclude meal hours and days off, leading to a de facto reduction of the amount that the workers are actually paid.

The latest war of words between the employers' federation and trade unions emerged from section four of the minimum wage law. That section states that the HK$28 hourly minimum is payable based on actual hours of work.

However, the law does not stipulate whether meal hours and days off are to be included in wages. The government have left it for employers and employees to come to their own consensus.

The employers' association has said in earlier statements that if lunch hours and days off were to be counted, the minimum monthly salary would reach HK$8,456 a month, equal to, by its calculation, HK$40 per hour of work.

In response to the letter, the Hong Kong Federation of Trade Unions denounced on Tuesday that the action as "irresponsible" and "provocative".

Lawmaker Ip Wai-ming from the trade union federation said the employers' association is looking for loopholes in the law.

"Employers and employees could embrace the new law peacefully but the EFHK's advice will create tension and confrontation between them," said Ip.

He added that the reminder sent to employers about just one month before the law to take effect leaves no time for employees to fight back, and many of them will be forced to accept new contracts to maintain employment.

Lawmaker Wong Kwok-kin, also from the trade union federation, charged the letter openly encourages employers to "exploit staff even further", completely at variance with the purpose of the minimum wage law, which was introduced in July 2010 after years of extensive debate.

"The law aims to improve remuneration of employees, but what the EFHK did just now would disunite both parties. Although the letter does not require the employers to exclude meal breaks and rest days' wages, the message is clear: they can choose to do it if they want," Wong noted.

Wong encouraged employees to report to the Labour Department if they are dismissed without justification for refusing to accept new contracts.

The EFHK did not respond to China Daily's request for an interview.

China Daily

(HK Edition 03/23/2011 page1)