I can foresee that challenges for our sector will abound since the Minimum Wage Bill has been passed in mid July 2010 and the initial minimum wage rate will soon be proposed by the Provisional Minimum Wage Commission (PMWC). 

    I suggest that we should study the Bill carefully as this has caused fundamental changes to the trade practice in terms of employment and employment contracts.  The impact of this bill on trade practices are more serious than that of the MPF.  The passing of this bill will surely instigate another wave of contract renewal.

    The minimum wage will further push up our labour costs and restaurants having labour-intensive operations will be hit hard.  I have earnestly urged the PMWC to duly consider the hardship of the catering industry and scrutinize figures provided by us upon setting of the minimum wage level.  I have also appealed for consideration that the rate of the minimum wage should not be higher than $24 an hour.

    To allow the trade to adapt to the new system, I have requested the Government for a one-year grace period and pleaded with the Authorities to widely publicize the code of practice before the enactment of the statutory minimum wage. 

    Please refer to the set of preliminary guidelines for the minimum wage in my website.  Should you have any enquiries, please feel free to call my office at 2397 2688.