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Monday 1 December 2008
14 Beauty Salons Shut as the Crisis Bites Deeper
At least 14 beauty salons, which mainly served employees in the financial sector, closed down in October and last month, with their customers badly affected by the economic crisis.
At least 14 beauty salons, which mainly served employees in the financial sector, closed down in October and last month, with their customers badly affected by the economic crisis.
About 100 salon employees are among the nearly 6,000 people in Hong Kong who have lost their jobs in the past six weeks as the global financial crisis worsens. More job losses in the trade are expected.
Hong Kong Hair Dressing and Make-up Trade Workers General Union chairman Tong Kang-yiu said the beauty salons that had shut were mostly on Hong Kong Island.
“Most are in the areas around Wan Chai and North Point. These small and high-end beauty salons were most affected, as most of their customers worked in the financial sector,” he said. Mr. Tong expects more closures after the Lunar New Year. “Now is a golden time for the beauty industry, as the festive season is on the way and people have to attend parties and annual dinners.”
He blamed weak spending power and high rents on Hong Kong Island for forcing the salons out of business.
The union has received more requests for help from members who have not been paid for up to a month in the past few months.
“We are handling about 40 to 50 wage dispute cases. Our members told us many beauty salons ask employees to register a company and make them become self-employed so that their bosses only have to pay them when they have work to do and can avoid covering their fringe benefits and making contributions to the Mandatory Provident Fund,” he said.
In another labour dispute case, a spokeswoman for the Neighbourhood and Workers’ Service Centre, Cheung Sin-yi, said a printing firm had left more than 40 employees unpaid, owing them a total of HK$5 million. “Many of them have served the company for more than 10 or even 20 years. Some have been left unpaid since June. The Hong Kong employees are mostly office workers in the accounting and computer departments which provide service to the company’s factory on the mainland,” she said.
The unpaid HK$5 million included wages, severance pay, wages in lieu and contributions to the Mandatory Provident Fund, Ms Cheung said. Unionist legislator Leung Yiu-chung will help the affected workers lodge their case with the Labour Department today.
While some companies have tried many ways to keep labour costs down, some are still recruiting extra staff.
Hong Kong Disneyland managing director Andrew Kam Min-ho said there were no plans yet for any layoffs or pay cuts at the theme park and that the financial turmoil was not expected to have a discernible impact on its business.
About 600 temporary staff will be employed during the Christmas period in jobs mainly in park operations.
PCCW, the city’s largest telecommunications firm, said it would not cut jobs - or its US$400 million capital expenditure budget to boost network coverage - despite the downturn but bonuses were under review.
Meanwhile, Sony and organisers of the Asia Game Show held a recruitment fair in Tin Shui Wai that attracted more than 1,300 job seekers, mostly teenagers, housewives and some unemployed people yesterday.
The number of temporary vacancies was increased from 100 to 110, in response to the large number of job seekers. An hourly rate of HK$40 was offered, up from HK$35 last year.
Chinese restaurant Nam Pak Tseuk in Mong Kok Road was closed yesterday. Scores of jobs were lost.
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14 Beauty Salons Shut as the Crisis Bites Deeper
Dennis Eng and Agnes Lam
1 December 2008
At least 14 beauty salons, which mainly served employees in the financial sector, closed down in October and last month, with their customers badly affected by the economic crisis.
About 100 salon employees are among the nearly 6,000 people in Hong Kong who have lost their jobs in the past six weeks as the global financial crisis worsens. More job losses in the trade are expected.
Hong Kong Hair Dressing and Make-up Trade Workers General Union chairman Tong Kang-yiu said the beauty salons that had shut were mostly on Hong Kong Island.
“Most are in the areas around Wan Chai and North Point. These small and high-end beauty salons were most affected, as most of their customers worked in the financial sector,” he said. Mr. Tong expects more closures after the Lunar New Year. “Now is a golden time for the beauty industry, as the festive season is on the way and people have to attend parties and annual dinners.”
He blamed weak spending power and high rents on Hong Kong Island for forcing the salons out of business.
The union has received more requests for help from members who have not been paid for up to a month in the past few months.
“We are handling about 40 to 50 wage dispute cases. Our members told us many beauty salons ask employees to register a company and make them become self-employed so that their bosses only have to pay them when they have work to do and can avoid covering their fringe benefits and making contributions to the Mandatory Provident Fund,” he said.
In another labour dispute case, a spokeswoman for the Neighbourhood and Workers’ Service Centre, Cheung Sin-yi, said a printing firm had left more than 40 employees unpaid, owing them a total of HK$5 million. “Many of them have served the company for more than 10 or even 20 years. Some have been left unpaid since June. The Hong Kong employees are mostly office workers in the accounting and computer departments which provide service to the company’s factory on the mainland,” she said.
The unpaid HK$5 million included wages, severance pay, wages in lieu and contributions to the Mandatory Provident Fund, Ms Cheung said. Unionist legislator Leung Yiu-chung will help the affected workers lodge their case with the Labour Department today.
While some companies have tried many ways to keep labour costs down, some are still recruiting extra staff.
Hong Kong Disneyland managing director Andrew Kam Min-ho said there were no plans yet for any layoffs or pay cuts at the theme park and that the financial turmoil was not expected to have a discernible impact on its business.
About 600 temporary staff will be employed during the Christmas period in jobs mainly in park operations.
PCCW, the city’s largest telecommunications firm, said it would not cut jobs - or its US$400 million capital expenditure budget to boost network coverage - despite the downturn but bonuses were under review.
Meanwhile, Sony and organisers of the Asia Game Show held a recruitment fair in Tin Shui Wai that attracted more than 1,300 job seekers, mostly teenagers, housewives and some unemployed people yesterday.
The number of temporary vacancies was increased from 100 to 110, in response to the large number of job seekers. An hourly rate of HK$40 was offered, up from HK$35 last year.
Chinese restaurant Nam Pak Tseuk in Mong Kok Road was closed yesterday. Scores of jobs were lost.
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