In a bid to address employee compensation amidst ongoing economic challenges, Cathay Pacific Airways has announced an average salary increase of 3.8% for its staff in 2025. This increase aligns with the salary adjustments made in 2023, reflecting the airline's commitment to improving staff welfare as it continues to navigate the complexities of returning to full operational capacity post-pandemic. Notably, the airline's top executives, including CEO Ronald Lam Siu-por, have seen significant pay increases, with Lam earning HK$10.45 million (approximately US$1.34 million) in 2023, a 32% rise from HK$7.91 million in 2022. This disparity in pay raises has raised questions about equity within the company, especially as workers across various sectors in Hong Kong face wage stagnation and rising living costs. [56cc578b]
In Hong Kong's broader economic landscape, the construction industry is grappling with a significant financial crisis, as firms reportedly owe over HK$290 million in unpaid wages and subcontractor fees. This staggering amount includes approximately HK$70 million specifically allocated for unpaid wages and benefits, affecting around 1,500 workers. Reports of unpaid wages began surfacing in March 2024, and since July, over 20 strikes have occurred as workers demand their rightful payments. Notably, prominent contractor Fung Cheung Kee has been identified as owing HK$150 million and announced its closure in March 2024. Union leaders attribute the widespread wage issues to the ongoing economic downturn, which has led to salaries being frozen for over 200,000 workers across 14 different job categories. In response to these challenges, a bill aimed at improving payment practices was proposed in May 2024, highlighting the urgent need for legislative action to protect workers' rights in the construction sector. [0c7b70a2]
In a related context, Labour Secretary Chris Sun Yuk-han has urged former staff of the now-closed Physical gym chain to be vigilant when signing new contracts with Perface, the company that has retained about 200 of the 770 former employees. The Physical gym chain closed on September 6, 2024, due to unpaid contributions totaling HK$3 million (approximately US$386,000) for 740 employees. The government plans to file a winding-up petition to assist affected employees in claiming ex gratia payments. Perface, which aims to employ all former workers, has already renamed one of the branches to 'Perfit'. Additionally, the government is investigating allegations of exploitation concerning imported workers, underscoring ongoing labour rights and employment issues in Hong Kong. [5e16ec93]
Meanwhile, Hi-Speed Human Resources, a subsidiary of Hi-Speed Supply Chain, has been warned by the Mandatory Provident Fund Schemes Authority to pay HK$1.6 million in pension contributions for 400 employees or face legal action. The Labour Department has received complaints from workers at the firm about pay arrears, as Hi-Speed Human Resources has not paid employees' salaries for two months. The authority has requested immediate payment of the arrears and will pursue civil claims in court if necessary. Employers who fail to pay staff within seven days of the wage period expiry face fines and jail time. The Labour Department is actively following up on the incident and has reminded employers to comply with the Employment Ordinance. [2a4434f6]
Adding to the troubling economic landscape, a recent survey indicates that Hong Kong employees received a mere 3.2% pay rise in 2024, the lowest since the pandemic ended in 2022. The survey, conducted from January to September 2024, involved 186 enterprises and nearly 110,000 employees. Alarmingly, 8.3% of firms implemented pay freezes affecting 20% of employees. The social work sector saw the highest pay rise at 4.1%, while retail and wholesale had the lowest at 1.4%. Local companies offered larger salary increases than multinational companies, highlighting a disparity in wage growth. A forecasted 3.6% pay rise is expected for 2025, but the current stagnation raises concerns about the overall economic health of the region. Lawrence Hung Yu-yun, president of the Hong Kong Institute of Human Resource Management, emphasized the need for strategic planning to address these wage issues moving forward. [9a376418]