Hong Kong: Low pay for convenience store workers
By Elmer W. Cagape Jul 19, 2010 5:42PM UTCEver wondered why beer at “Club 7-Eleven” is cheaper than in those cozy bars?
Apart from lower overhead operation costs, 7-Eleven pays its slaves — err workers — the lowest hourly rate. In fact, if you compare 7-Eleven with other similar shops, it has the worst payscale. A 7-Eleven employee in Yuen Long is paid HK$20 ($3) an hour while a Circle K pays a dollar an hour more, according to a survey of 110 outlets by People’s Alliance for Minimum Wage in May and June.
7-Eleven is the worst payer, with an average of HK$23.4 per hour, followed closely by Circle K and Wellcome which pays HK$23.9.
As Hong Kong introduced its first-ever minimum wage law a few days ago, there has been intense debate about what should be the minimum pay for the city’s workers. Legislator Tommy Cheung received criticisms for suggesting HK$20 wage rate, including a HK$20 banknote from a man wearing a pig mask. No rate has been fixed so far, but a resolution is believed to be around HK$24 (US$3) — much less than those mandated in other similar economies — US$7.25 in USA, US$9 in Britain, US$9 in New Zealand — a shame for a rich territory ranked among the top in terms of GDP ($30,863 in 2008), number of billionaires and most Rolls Royces per capita.
Curiously, a regional director of Dairy Farm, which owns 7-Eleven and Wellcome, sits as a member of the Provisional Minimum Wage Commission – the body that will recommend to the government the city’s first statutory minimum wage. Another member of the commission is Dr Michael Chan, chairman of food chain Cafe de Coral, who said his company would have to issue profit warnings if the minimum wage was set at HK$33 an hour. I wonder why the government appointed these folks who may have conflicts of interests while serving the agency?
And we’re not just talking of convenience store staff. Minimum wage is also a conscientious topic among members of the other industries such as construction, property management and security services where staff are paid between HK$6,000 (US$771) and HK$7,000 (US$900) per month and work extended hours. A group representing disabled workers oppose a measure under the bill that allows employers to pay less to disabled staff. And rightly so, because employers are likely to abuse this provision.
While we don’t classify them together with retail shop employees in terms of work nature, domestic helpers mostly from Indonesia and the Philippines are even exempt from the minimum wage discussion. Officials argue that it’s difficult to calculate work hours given the round-the-clock nature of their jobs but also noted that helpers are granted free food, housing, health insurance and an air fare at the end of their contracts.
Nevertheless, the adoption of minimum wage law is a bold and rare move from capitalist economy of Hong Kong. It’s far from perfect but hopefully over time, it serves the purpose it originally intended.



