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circumstances. We believe that proviso to be important and, after very careful consideration, take the view that Government should not consciously set out to lead the private sector in pay for any level of employee. At the same time we consider that the remuneration of the lowest paid in the civil service should not be governed solely by market forces. The short term fluctuations in private sector pay should not be reflected in the civil service and the general level of remuneration should be maintained. Furthermore, in following the lead of the private sector, we consider that Government should set an acceptable standard and be among the better paying employers in relation to the lowest paid. We have received figures to show that this is not the case at present, and that government salaries for the lowest paid are below those offered by the better paying employers in the private sector.
29.
Since it has been raised with us, we feel obliged to refer to the suggestion that the pay of the lowest paid workers in government should be set having regard to some form of "minimum" or "living wage". Insofar as statutory minimum wages are concerned, this is far outside our terms of reference. We have nevertheless considered the arguments advanced for the government adopting a minimum wage policy in respect of its own staff but take the view that any attempt at minimum wage fixing would be highly undesirable.
The Pay Investigation Unit
30.
Implementation of the principle of fair comparison depends to a large extent on the work of the Pay Investigation Unit. This Unit, which was established in 1969, collects and presents information on private sector pay and conditions from which decisions are taken on whether adjustments to civil service pay are required. The Unit has a considerable degree of independence in its operations and administratively forms part of the Civil Service Branch which is involved both in the planning of the Unit's work programme and the implementation of its findings. However, in conducting the annual pay trend surveys the Unit is commissioned by a steering committee of the Senior Civil Service Council.
31.
Many of the representations which we have received regarding the Pay Investigation Unit have been highly critical of its work. To some extent this is due to a lack of knowledge of how the Unit operates. For example, a number of staff suggested that the Unit was unfair in that it failed to take account of private sector fringe benefits such as Lunar New Year and other bonuses, discounts, etc. In fact, the Unit does take account of any quantifiable private sector fringe benefits. We would repeat, therefore, the view which we expressed in the Consultative Document, that there is an early requirement for staff to be provided with more and better information on the Unit's method of operation.
/In