HONG KONG: The government Friday appointed Teresa Cheng as chairperson of the new Provisional Minimum Wage Commission.

Cheng, currently chairman of the Transport Advisory Committee, will lead the new statutory body comprised of 12 other members drawn equally from business, labor, academia and government.

The commission will convene its first meeting as soon as possible, said Cheng. She said she hopes the commission will recommend an initial minimum wage level to the chief executive during the second quarter of 2009.

Secretary for Labour and Welfare Matthew Cheung announced the makeup of the provisional commission at a press conference Friday. He said the Census and Statistics Department will carry out a survey comprising 10,000 enterprises (mainly small and medium sized) and 60,000 employees, to obtain comprehensive data related to wage levels, age, education, type of work etc. The study will be carried out in the second quarter.

Cheng said her role as chairperson is important and challenging. She expressed confidence that the provisional commission will analyze data objectively and recommend an impartial initial minimum wage rate, after consulting the public and stake holders.

Responding to calls from business circles to abandon the minimum wage amidst the financial crisis, she said the question is not about making a law tomorrow. After vetting the data, the provisional commission will make a report to the chief executive in the second quarter and the government will introduce a bill into the Legislative Council in July.

"The whole process takes about two years and the earliest instance we have a statutory minimum wage is the second half of 2009 and we hope economy has recovered by that time," she said.

Meeting the press separately, Cheng said the provisional commission would use an evidence-based approach for the survey. She said the commission must ensure a sensible balance between forestalling excessively low wages and minimizing the loss of low-paid jobs, while sustaining Hong Kong's economic growth and competitiveness. She expressed the hope her experience as a senior counsel and arbitrator would prove useful to the work of the commission.

Asked if her role is meant to balance divergent interests among commission members, she said she hoped the commission could settle matters through discussion.

(HK Edition 02/28/2009 page4)