On the controversial minimum wage issue, Yin said employers at first had strong reservations about having a statutory minimum wage in Hong Kong.

But after understanding there is a very strong voice in society, they reluctantly and eventually agreed, with the hope of narrowing wealth gaps and creating social harmony.

He also said that at its inception, the statutory minimum wage was intended to cover only the cleansing and security workers.

But during discussions at the meetings of the Labour Advisory Board, it was suggested that the law should be written to cover workers of all sectors, to save the trouble of having to add different sectors into the law every year.

As the Legislative Council will soon scrutinize the bill, he envisages the main arguments will be the wage level and whether foreign domestic helpers shall be entitled to the minimum wage.

"The HK$33 hourly rate proposed by the trade unions is on the high side," said Yin, who was a member of the Labour Advisory Board until January 1 this year, after six years in service.

As to what the appropriate level should be, he said the employer side will make known its views after the government has worked out a figure in one year's time, and after referring to relevant economic statistics.

"Initially, the wage should not be too high, and it should also be subject to upward or downward adjustments annually," he commented.

"Otherwise, employers may choose to hire fewer staff when there is a minimum wage in force. Similarly, they may prefer younger, stronger staff to older, physically disabled staff if they are bound by law to pay the same wage to all types of staff."

A Legislative Council bills committee will start vetting the draft legislation on September 24. As many as 36 members have joined the committee, with balanced power from the pro-business and pro-labour lawmakers.

Though the employer and staff sides always appear to be in conflict, Yin said the relationship between the two sides was amicable during his days with the Labour Advisory Board.

"It is important we sit down and talk, even though we have different views, and sometimes we need to make compromises. Sometimes the more we debate, the more easily we discover the truth," he said.

Yin also called on employers to work hand in hand with their staff to endure the difficult times.

He said: "I heard that staff of certain companies, even though they suffered pay cuts, were very understanding and did not blame their employers, because it is a broad economic problem."

(HK Edition 08/07/2009 page4)