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20 residential care homes facing shut down following the minimum wage law, Sunday May 22, 2011
May 22 2011, 06:53 AM
Joined: 24-December 06
Member No.: 2,491
Translated by: R.E.D @ http://asianuniverse.net/forums/
Since the Hong Kong Government approved the minimum wage law, many residential care homes are now facing closing down. Lee Fai, Director for the Elderly Services Association of Hong Kong expressed her concern over the impact of the care home business since the minimum wage law was approved. At least 20 residential care homes are now either closing down or up for sale. The reason for this is a lot of middle age workers are now looking for more comfortable job instead of working for the care home as the work involves a lot of physical hard work. As a result, care home bosses have to employ elderly workers for the same job, and it has become a "old people looking after old people" phenomenon. Lee is worried that the quality of care may become deteriorated.
According to Lee, care home workers were getting $6,000-$7,000 HKD a month before minimum wage law, but now, their wage bill is up 20-40%. That has increased the care home expenditure bill of 25%. Recently, 20 care homes have expressed financial problems, they are either closing down or selling up. Some care homes are just hanging on, but do not know how long they can survive. Lee went on to say since the wages of a security guard and a care home worker are the same now, many middle age workers have changed job to work as security guard which is less physically demanding. Most of the workers employed in the care homes are now over the age of 60, looking after the elderly residents.
Tam Chee Man, director for Enlightened Care Home revealed that they employed 16 care workers in his residential care home , two of their care workers aged 30- 40 left for better jobs, they have now filled up the vacancies with two care workers who are over 60 years old. They now have 4 care workers over the age of 60, and it has an impact on the efficiency running of the care home management.
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This post has been edited by R.E.D: May 22 2011, 06:57 AM
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