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some more-or-less firm understanding on wage policy for the next round
of adjustment, if not an attempt to determine the latter's amount.
43.
Second, there is the great importance in the Hong Kong business
structure of a few large organisations such as the great trading
companies especially in white-collar employment. There are moreover,
at least two systems of linkage between individual concerns apart from
the various trade and industrial associations: on the one hand, the
extent of common ownership, mutual shareholding and interlocking
directorships; and on the other hand (particularly in Chinese concerns)
the system of family linkage. Thus in one major European-owned concern,
Hong Kong Tramways, we were told that it was effectively a subsidiary of
the Hong Kong and Kowloon, Wharf and Godown Co, which also owns the
major Ferry Company, and was "connected" with Jardine's (one of the
great trading companies) through the chairmanship. The other situation,
an important Chinese garment manufacturer may illustrate.
This was
associated with seven other firms in different sections of the textile,
garment or associated industries by having in each case a member of the
same family as managing director: one of the firms was an important
member of the Spinners' Association (itself an affiliation of
32 companies).
44. Thirdly, there is a highly developed system of systematic informa-
tion exchange on pay rates and associated conditions. The administra-
tion itself, of course, publishes a good deal of data: but salary
surveys are also conducted by agencies such as the Hong Kong Management
Association and the Productivity Centre, and there are several groups of
firms which operate private "information clubs" for the exchange of data
on these matters. There is a personnel managers' club which appears also
to interest itself in the promotion of such things.
There
45. Fourthly, there are a number of general signals which are accepted
as particularly relevant for the wage policy of individual firms.
are three cost-of-living indices for different income groups (including
the unofficial Han Seng index). Of especial importance, we were
frequently told by private managements, are the Government's own annual
pay decisions. In theory, since 1968, the Government has accepted the
principle of "fair comparison" with "good" outside employers as a basis
for adjusting public service pay, and to aid discussions in the Senior
Civil Service Council has established a Pay Information Unit, which
surveys 68 firms annually. In practice, these are necessarily the
/larger