G.F. 323

CONFIDENTIAL # 機密

39.

order to maintain a stable supply of labour, usually provide better

In many

facilities to workers which may not count as part of wages.

cases, they can also adapt to a lower level of orders by simply reducing

the extent to which they contract work to other, p:obably smaller,

manufacturers. The reason why they contract work out in times of

prosperity may be that in paying higher wages to attract extra labour,

they also have to pay their existing labour at the higher rate; so the

marginal cost of hiring extra labour is high. The workers, recognizing

the benefits of more assured employment, are prepared to accept lower

wages in times of prosperity. As a result, movements of wage rates in

large establishments tend to be less marked. Per capita earnings of

operatives in money terms in the 166 large manufacturing establishments

on the monthly panel increased less rapidly than the general wage

level reflected in the wage indoxes, and in September 1976 were 14%

higher than in September 1975; a further increase of 1% was recorded

between September and November 1975.

Wages in the construction industry

79.

Wages in the construction industry* started increasing at a

moderate rate in July 1975. They increased at a higher rate during 1976,

averaging 3% per quarter or at an annual rate of 13%. The index for the

first, second and third quarters of 1976 was 2%, 5% and 10% higher than

for the same quarters of 1975. The increasing trend has continued into

the fourth quarter of 1976. The construction wage index in November 1976

was 12% higher than the index in November 1975. These movements are

consistent with the revival in building and construction activity.

Diagram 11

*

Nominal average daily wage rates excluding fringe benefits collected. from public sector building and construction sites.

CONFIDENTIAL

機密

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