The government hoped the new occupationally-based salary structure

would allow individual occupations to be realigned without necessitating a

To this end the Pay Strcture Division was established general salary revision.

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in 1971. The PSD incorporated the PIU and the Pay Structure Unit (PSU) 10.

Its role was to continuously reassess the pay of particular occupations and

further obviate the need for salary commissions. 200 companies with

-suitable job analogues have been selected for this. The PIU provides data

for general salary revisions requested by unions whilst the PSU carries out

specific occupational investigations initiated by the government of its own

violition. In practice, the activities of the PIU and PSU tend to overlap

offering some support to union criticisms of the PIU's independence.

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The PSD

Given the government's emphasis on 'fair comparison' as the paramount

salary-fixing criteria, the activities of the PSD, and particularly the PIU

so critical to implementing this policy, are highly controversial.

adopts a paternalistic attitude to union submissions and feels its

-complicated calculations ('which take account of experience, promotion

prospects, hours worked, qualifications, fringe benefits and a host of other'

factors') should convince unions of its fairness. For general pay trend

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surveys, the mean external rate of pay increase is taken to be the guide

in discussions, while for specific pay level surveys it is the median rate

of pay amongst private sector-firms. There are disquieting aspects of

both surveys. The Hong Kong Productivity Centre recently conducted a pay

*.

trend survey of private-firus which suggested a mean rate of increase twice

that indicated by the PIU for the 1976/7 pay revision. Further, there is

some evidence that the government has 'fudged' pay level surveys for

particular groups so as not to disturb internal relativities in the civil

service.

While the government only recognises those relativities which it

regards as deliberate (1.e. not historical accidents), it is apparent that

10. There are now two lay Stricture Units. 11..

According to a set formula of "Summary of Quantifying Conditions of Service, including fringe benefits agreed to by the steering, committee (to be used for surveys reporting pay and conditions of service as at April 1, 1976) Pay Investigation Unit, March 1976

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