Pay clawbacks a matter of concern for HK
Editorial | Mary Ma 22 Jul 2024
It's pretty shocking to learn that a practice - not uncommon among financial institutions nowadays in the mainland - to claw back pay, including bonuses, already made to staff has reportedly gone beyond the border to affect Hong Kong.
If the controversial practice had once been limited to staff working in the mainland, that apparently is no longer the case.
The news was first reported by Bloomberg and it is curious that none of the state-backed financial firms has spoken to either confirm or deny the report even though they were named by the news agency.
This has helped increase the credibility of the claims.
It has been well known among mainlanders that state-backed financial companies have been asking some of their mainland staff to return part of their pay earned in recent years.
This could be in line with Beijing's policy of promoting "common prosperity" across the country or to silence criticism that bankers had been earning outrageous amounts in contrast to those lower on the economic pyramid.
But such a practice is unheard of in Hong Kong, which is supposed to be operating a capitalistic economy. Just imagine what it would be like if such a practice were also to become common here.
Hong Kong has not been short of pay disputes, with incidents mostly involving employees acting against employers defaulting on their pay.
Although their mainland counterparts may face a crackdown by local authorities for claiming outstanding pay owed to them, Hong Kong workers can readily do so in the city without such fears.
That employees are being asked to return part of their pay to their employers after performing their duties is unprecedented in the city.
According to the reports, those subject to clawback calls are mainly Chinese executives stationed in Hong Kong.
Does it necessarily mean that employees who are Hongkongers are being spared the clawback?
It is not necessarily like that as employees who are Hongkongers are also reported to have to return part of the allowance for overseas duties already made and with retrospective effect.
Few would have likely heeded the call at time of economic boom. The fact that the controversial practice is being extended to the city may also be viewed as additional evidence of the economic health of the SAR.
Some will refuse the call to hand back the cash already pocketed, taxed and spent but more will likely comply with the demand in order to keep their jobs.
Should Secretary for Labour Chris Sun Yuk-han allow the Labour Department to turn a blind eye to the media reports about what has been occurring at the Hong Kong offices of the named Chinese financial companies?
While the media reports may not contain all the details, Sun's department could take the initiative to understand the situation since what is being reported concerns the rights and benefits of workers here, whether they are from the mainland or Hong Kong.
The reported clawbacks have raised many eyebrows and the minister is duty bound to look into the matter to advise the affected workers what they can do to protect their rights while making sure that nobody acts above the law.
