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Tag: wages

  • Hong Kong’s Dining Industry Struggles: Super Star Seafood Restaurant Closes, Leaving 50 Employees Jobless

    Hong Kong’s Dining Industry Struggles: Super Star Seafood Restaurant Closes, Leaving 50 Employees Jobless

    The vibrant culinary scene in Hong Kong has taken another hit as Super Star Seafood Restaurant announced its closure this week. The notice, posted at the restaurant’s last remaining outlet in the Moko shopping centre, highlights the troubling landscape for the city’s dining industry. “In recent years, the catering industry in Hong Kong has been facing structural challenges,” it noted.

    According to a report by the South China Morning Post, the closure announcement cited a continuation of weak local consumer sentiment, coupled with profound shifts in tourist spending behaviors that have adversely impacted business. The restaurant described its struggle to negotiate rent adjustments or suspensions with landlords, ultimately leading to an impasse.

    This abrupt closure leaves approximately 50 employees in a state of uncertainty as they grapple with the aftermath. Many were informed just hours before the shutdown, around 11 p.m. the night prior. These workers are now collaborating with the Federation of Hong Kong and Kowloon Labour Unions to seek resolutions regarding their employment status. Experts predict that the number of affected employees may rise as more details emerge.

    Compounding their woes, the restaurant reportedly owes about HKD6 million in outstanding payments, including one and a half months of back wages, unclaimed annual leave, and termination payments for numerous workers. Among them, 15 employees meet the required tenure for potential severance payments.

    Founded in 1989, the Super Star Group was once a powerhouse in Hong Kong’s dining scene, operating 16 branches at its peak. However, the Moko branch had become the final outpost of a brand that once boasted widespread popularity. The closure reflects a broader trend in the region, where a significant number of establishments have shuttered their doors in recent months due to high rents and dwindling consumer spending.

    On the heels of Super Star’s announcement, the Four Point Gold Restaurant chain declared its own closure of one of its two remaining locations. Their statement resonated with the echoes of many in the industry: “Can’t stand up to times, can’t stand up to the current market.” Last month, King Parrot Group, another stalwart in the dining business, closed nine of its eateries and reportedly owed staff over HKD1 million in unpaid wages and benefits, further underlining the urgent issues plaguing Hong Kong’s restaurant sector.

    Questions & Answers

    What factors led to the closure of Super Star Seafood Restaurant?
    The restaurant faced structural challenges within Hong Kong’s catering industry, including weak consumer demand and changing tourist spending habits, which ultimately impacted its viability.

    How are the affected employees handling the situation?
    About 50 employees are seeking assistance from the Federation of Hong Kong and Kowloon Labour Unions to navigate their employment issues, as they deal with unresolved wages and potential severance payouts.

    What does the closure of Super Star Seafood Restaurant signify for the local dining scene?
    This closure reflects a troubling trend in Hong Kong’s restaurant industry, where ongoing challenges like high rental costs and reduced consumer expenditures are driving many beloved eateries to shutter their doors.

  • Thailand Boosts Bangkok Minimum Wage to $12 Daily, Enhancing Economic Opportunities for Workers

    Thailand Boosts Bangkok Minimum Wage to $12 Daily, Enhancing Economic Opportunities for Workers

    The recent announcement by the National Wage Committee heralds a significant shift for workers in Thailand’s hospitality and entertainment sectors, as reported by Bangkok Post. About 700,000 employees are set to benefit from an impending 7.5% increase in the minimum wage—an enhancement that will bring the daily wage from THB372 to THB400 in Bangkok and the surrounding provinces.

    New Wage Structure Expands Nationwide

    Currently, the THB400 rate is restricted to tourist-heavy areas like Phuket, Chon Buri, Rayong, Chachoengsao, and the island of Koh Samui. After a three-hour debate, the wage augmentation garnered a two-thirds majority support among committee members, as affirmed by Boonsong Thapchaiyut, both the committee chairman and permanent secretary of the Ministry of Labour.

    “This wage increase is focused initially on the tourism and service sectors, where we believe employers will feel less financial strain,” Boonsong stated, clarifying that the THB400 daily wage will apply to hotels rated two stars and above, as well as any establishments with over 50 rooms or a restaurant.

    Support for Businesses Amid Changes

    To ease any potential financial burden on businesses—especially amid these changes—the Ministry of Labor has collaborated with six commercial banks to provide THB30 billion in soft loans. Additionally, discussions about further relief measures are underway.

    Analysts at Finansia Syrus Securities, as reported by Kaohoon International, expect that the minimum wage adjustment will have a minimal impact on Thailand’s retail industry, particularly in Bangkok. This is largely because the capital’s wage figures only account for around one-third of the overall sales in the sector. Most major retail businesses in the city are already exceeding the current minimum wage levels.

    As this wage increase takes effect, one can only wonder: will ice cream cones start costing a fortune as prices rise to cover the new wages?

    Questions & Answers

    What is the new minimum wage for Bangkok and surrounding provinces?
    The minimum wage will increase from THB372 to THB400.

    How many workers are expected to benefit from this wage increase?
    Approximately 700,000 workers nationwide will benefit.

    What sectors will the new wage apply to?
    The THB400 daily wage will apply to the tourism and entertainment sectors, including hotels rated two stars and above, and establishments with over 50 rooms or a restaurant.

  • Indonesia Introduces $9 Wage Subsidy Aiming to Support Low-Income Workers

    Indonesia Introduces $9 Wage Subsidy Aiming to Support Low-Income Workers

    The Indonesian Government is on the brink of launching an ambitious wage subsidy program aimed at supporting low-income workers. Set to provide IDR150,000 (approximately US$9.23) monthly, this initiative targets those earning less than IDR3.5 million. It’s an essential step amidst the ongoing global economic challenges.

    A Stimulus for Economic Resilience

    This new subsidy is slated for rollout as part of a broader economic stimulus package in the second quarter of 2025. Chief Economic Affairs Minister Airlangga Hartarto revealed on May 26 that discussions are ongoing with relevant ministries, with the program expected to kick off on June 5.

    The timing of the subsidy couldn’t be more crucial, aiming to bolster public purchasing power just as households are gearing up for increased spending during the school holidays.

    A Multifaceted Approach

    This wage support forms part of an expansive stimulus plan dubbed the Incentive Package, which also includes discounts on electricity tariffs, food aid, subsidies for airline tickets, and various social protection measures. In conjunction with the wage subsidy, the government will reintroduce electricity bill discounts for low-power households starting the same day.

    For the earlier part of this year, a substantial IDR13.6 trillion has been allocated to provide a 50% discount on electricity bills for customers using between 450 volt-amperes (VA) and 2,200 VA, benefiting around 81.4 million households. This multifaceted approach illustrates the government’s commitment to cushioning citizens from economic shocks.

    In a world where financial surprises lurk around every corner, it’s a relief to know that support is on the way—let’s hope it arrives faster than the average delivery pizza!

    Questions & Answers

    What is the purpose of the wage subsidy program?
    The program aims to support low-income workers by providing financial assistance to help sustain their purchasing power amid global economic challenges.

    When will the wage subsidy take effect?
    The wage subsidy program is scheduled to launch on June 5, 2025.

    What additional measures are included in the Incentive Package?
    The Incentive Package includes electricity tariff discounts, food aid, airline ticket subsidies, and other social protection programs designed to support various segments of society.

  • Laos raises minimum wage for workers

    Laos raises minimum wage for workers

    The Lao Government has decided to raise the monthly minimum wage from LAK1.2 million (nearly US$70) to LAK1.3 million starting May 1 to ease workers’ difficulties amid soaring inflation and economic uncertainties.

    The decision was made at the Lao Government’s meeting held on April 25 – 26 under the chair of Prime Minister Sonexay Siphandone.

    In 2022, as workers’ lives were hit hard by soaring inflation, the Lao Federation of Trade Unions Central Committee proposed increasing the monthly minimum wage to 1.5 million LAK.

    However, the Lao National Chamber of Commerce and Industry opposed it, saying that the wage hike would negatively impact enterprises that were also struggling with difficulties.

    Aside from the minimum wage rise, PM Sonexay Siphandone told the Ministry of Labour and Social Welfare to work with related sectors to consider how the increase is relevant to the current economic situation.

    He also asked ministries and sectors to conduct an in-depth study on wage hikes and report results to the Government in the third quarter of this year.

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  • Vietnam unable to match minimum wages with living standards

    Vietnam unable to match minimum wages with living standards

    The minimum wage – minimum living standard gap has been widening for years, but there is no solution in sight as workers struggle to make ends meet.

    Vietnam first introduced the “minimum living standard” term in its 2012 Labor Law, which requires that the minimum wage must meet the minimum living standard.

    A decade later, the gap between the two has kept widening and the current minimum wage far is from matching the level needed for an average laborer to make ends meet.

    The minimum wage in Region 1, referring to the most developed areas of a province or city, has stayed unchanged at VND4.42 million ($194) since 2020, which is 5 percent shy of the official minimum living standard, according to a study by the Research Center for Employment Relations.

    When compared with the acceptable living standard, the figure is 41 percent lower, it said.

    One of the reasons for such a wide gap is that the starting point of the minimum wage was too low, said Mai Duc Chinh, former deputy chairman of the Vietnam General Confederation of Labor.

    In 2013, representatives of businesses and workers negotiated and agreed that the first minimum wage level would be VND2.35 million, 30 percent lower than the minimum living standard at the time.

    In 2014, the labor confederation proposed that the gap be eliminated, but the Vietnam Chamber of Commerce and Industry (VCCI) and the Ministry of Labor, Invalids and Social Affairs opposed it, saying a sudden surge would hurt businesses.

    They finally agreed to increase the wage by 15 percent to VND2.7 million.

    In the following years, the minimum wage level was increased mostly to make up for inflation, which means technically the “15 percent gap” is still there, Chinh said.

    Another reason that the gap still exists is the lack of an independent organization to determine the minimum living standard, said Vu Quang Tho, former head of the Institute of Workers and Trade Union.

    Labor representatives think that raising a child costs 70 percent of an adults’ living costs, but businesses think the ratio should be around 50 percent. The labor reps also say that the average daily amount of food a worker needs is 2,300 calories, but businesses think the figure should be 2,000 calories.

    Chinh said that current labor laws allow business owners to increase workers’ salaries “according to the ability of the business,” which is something that authorities cannot evaluate and manage.

    Therefore, if a company claims to continuous losses or plunging revenues, it can keep workers’ salaries unchanged for years, which is what happened over the last two years of Covid-19.

    Do Quynh Chi, director of the Research center For Employment Relations, said many countries have shown that a well-designed minimum wage set of policy will protect workers at the “bottom” of the labor market.

    He said: “Other countries have strong union organizations, and the wage there meets minimum living standards.”

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  • Minimum wage increase Kicked off in April

    Minimum wage increase Kicked off in April

    The minimum wage increase announced by the government last December is set to kick in on April 1. Starting Monday, the adult minimum wage will rise from the current rate of $16.50 per hour to $17.70 per hour.

    This means that businesses that have adult employees earning less than $17.70 an hour are legally required to increase their wage rates.

    Businesses will need to advise the employee of this and record the change in writing, such as by drafting a ‘Variation Letter’ for the employee to sign.

    The industry association advises employers should keep a copy for their records in case of an audit by the Labour Inspectors.

    The minimum rates apply to all employees whether they work full-time, part-time or casually and whether they are paid a wage for time worked, a salary, partly or wholly on a commission basis, or for what they produce (piece rates).

    The minimum adult rate applies to any employee aged 16 years and over unless they are eligible for the ‘starting-out’ wage or the ‘training’ wage.

    There is no legal minimum rate for employees aged 15 years or younger.

    If a business has salaried employees, it will need to make sure the employees’total remuneration meets minimum wage requirements for each individual pay period, taking into account any overtime, meetings, or time spent opening and closing stores.

    While the new minimum wage will likely put pressure on other business costs, the association said there are a number of ways to combat this, and to incentivise employees other than simple pay increases.

  • Vietnam’s employers, unions fight again over wage increase

    Vietnam’s employers, unions fight again over wage increase

    Discussions for the annual wage increase have started, and as expected, the business group at the table, the Vietnam Chamber of Commerce and Industry, has come in with a relatively low offer of 5 percent for 2018.

    That would be down from the 7.3 percent hike earlier this year and much lower than the preferred 13.3 percent bump wanted by the Vietnam General Confederation of Labor, which speaks for unions across the country.

    The business chamber, better known as VCCI, argued that businesses are facing harsh competition and many have to scale down their operations.

    But the labor confederation said a 5 percent increase would be just enough to offset inflation. Consumer prices rose 4.74 percent last year, according to official data.

    “Despite annual increases, the current minimum wages are not enough to pay for workers’ basic demands,” a spokesperson for the labor group said. If the group manages to have its way this year, the minumum wage for workers will be raised to as high as VND4.2 million ($185) a month.

    The two groups are the major parties of Vietnam’s National Wage Council, which also includes government officials.

    Minimum wage is used by businesses to calculate salaries for their workers, by multiplying the basic amount by a coefficient assigned to each worker, based on their skills and experience.

    Vietnam has been raising this yardstick every year, a policy that has pitted labor groups against employers.

    Last year, prolonged negotiations ended with a 7.3 percent increase, the smallest in 10 years. The wage now ranges between VND2.58 million and VND3.75 million ($113-165) depending on regions.

    In a March survey by the Vietnam’s Institute of Workers and Trade Unions, a third of the 2,600 workers questioned said their incomes were low and barely sufficient to live on, while 12 percent said their wages simply did not cover living expenses, forcing them to work extra hours.

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