Wage Protection Movement
for Cleaning Workers and Security Guards -
Rules and Operation

The Government joined hands with the business community and labour sector to launch the Wage Protection Movement for cleaning workers and security guards (WPM) in October 2006. The WPM signifies an important step towards providing wage protection, through voluntary and non-legislative means, for cleaning workers and security guards who are often considered as having the least bargaining power and most prone to exploitation.

Government's mandatory wage arrangement
In designing the WPM, the Government had drawn on the key features of the mandatory wage arrangement for its outsourced service contracts. Under that arrangement, a tender shall not be considered if the monthly wage rate offered to non-skilled workers by the tenderer is less than the average monthly wage for the relevant industry/occupation as stipulated in the Census and Statistics Department's Quarterly Report of Wage and Payroll Statistics (Quarterly Report) when the tenders are invited. Since its inception in May 2004, the mandatory wage arrangement has generally been accepted as an effective administrative measure in providing wage protection for non-skilled workers.

Salient features/ requirements of the WPM
Since the launch of WPM, participants have been required to -

1. pay their cleaning workers and security guards wages not lower than the relevant market averages as published in the Quarterly Report; and
   
2. enter into written employment contracts with these workers, and compensate them suitably if they have to work beyond contractual hours.

To protect workers from being exploited where there is subcontracting, the above requirements also apply to contractors and sub-contractors of the participating entities. It should, however, be noted that for current service or employment contracts signed before an entity joins the Movement, it would be acceptable to apply the WPM terms only upon renewal of the contracts. This caveat is put in place to cater for the need of some employers to observe the terms of contracts they have already signed prior to joining the WPM.

As a recognition of their support, we provide a commendation certificate to all WPM participants for display.

Compliance with WPM terms
As the WPM is voluntary in nature with a view to creating a culture shift towards corporate social responsibility and wage protection for low-skilled workers, employers are not meant to be sanctioned by law.

However, to ensure compliance with the WPM terms, the Labour Department (LD) conducts regular inspections and investigates complaints received. Up to 31 March 2008, LD had conducted inspections to 981 participating entities and 171 service contractors, out of which 15 employers (or 1.4%) were found non-compliant with the terms of the WPM.

Of the said 15 employers, 14 of them or their contractors paid wages to their cleaning workers and security guards at a level below the relevant average market rates, and one employer did not enter into written employment contract with his cleaning workers. We have requested the concerned employers to take remedial actions. As a result, four employers subsequently rectified the breaches and seven employers decided to withdraw from the WPM due to various reasons. Meanwhile, the LD is taking follow-up actions with the remaining four employers.

Together with two other employers who withdrew from the WPM out of their own volition, there are so far a total of nine withdrawals from the WPM, amounting to 0.8% of all the participating entities.

LD will continue to visit workplaces where cleaning workers and security guards are engaged by employers participating in the WPM and their contractors. Where non-compliance with the WPM terms is detected, we will do our utmost to explain and urge for rectification as every cleaning worker and security guard who benefit from wage protection counts.

Way forward
The Government conducted a mid-term review of the WPM in October 2007. It showed mixed results. There were some indicators showing progress, whereas others indicating lackluster results and that there was still considerable room for improvement and further work. In a pragmatic spirit, the Government then started to conduct further study on practical issues that would be relevant to both the implementation of the WPM and the possible introduction of a statutory minimum wage for cleaning workers and security guards.

In October 2008, as clearly spelt out by the Chief Executive in the 2007-08 Policy Address, an overall review of the WPM will be conducted to gauge its effectiveness. If the overall review finds that the WPM has failed to yield satisfactory results, the Government will introduce a bill on a statutory minimum wage for security guards and cleaning workers as early as possible in the 2008-09 legislative session.

In the mean time, we will continue to promote the WPM in full gear and appeal to employers in different sectors, in particular the owners' corporations, for their support. Participation of each and every employer counts, as it would help nurture a positive culture change and foster the spirit of corporate social responsibility such that more cleaning workers and security guards would benefit from wage protection. Apart from employers who are paying wages lower than market averages, we also appeal to employers who are already paying their workers at or above the market averages to join the WPM, for their formal participation in the Movement will also go a long way towards achieving the said goals.