TNAG-1064-FCO40-1314-Labour-relations-in-Hong-Kong-Professor-H-A-F-Turner-s-stud-1981 — Page 15

ཅསAmཡཱཀ

Lor about 84,000

persons

a distorted picture. In any event Professor Turner's conclusion, which would imply that some 100,000 to 200,000 people are below the poverty line, is not reflected in the total Public Assistance caseload of 48,000/in 1978 with the majority (over 60%) being old people aged 60 and over. A probable explanation is the tendency for individuals to underreport earnings in a statistical survey, particularly when the questions are directed at households and not employers.

(b) Ineffectiveness of minimum wage-fixing

in neighbouring Asian countries

Minimum wage laws are in existence in Indonesia, Thailand and the Philippines, but are ineffective in practice. In Indonesia, minimum wages are fixed

for various regions and industries but, for some reason, they are regarded as cofidential information.

It is

doubtful if these rates have ever been applied. Minimum wages in the Philippines are usually revised every two years. However, since the introduction of a mandatory payment of an Emergency Cost-of-living Allowance in August 1974 to counteract inflation, the

need for frequent revision of minimum wages has reduced. In Thailand, the minimum wage is not applicable to employees in the public sector, agriculture, fisheries, forestry and animal husbandry. Because of enforcement

difficulties, it is generally felt that the minimun

wage law only brings marginal improvements in wages

for low-pay workers.

(c) Effects of minimum ware in the United States

*

There are certainly contrary opinions to the effect

of minimun wages.

An article published in the Daily Telegraph of 2 October 1980, written by Anthony Lejeune,

pointed out the damaging effects of protective laws. He contended that the present high rate of unemployment (40% among black youths, and 16% among white youths)

was the effect of the introduction of minimum wage laws. Minimum wage legislation in --*-

.....

are trades, such as agrioviture, which are out of

contact with other sector? and in which wages are left way behind. In Hong Kong. it is difficult to pay

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