CONFIDENTIAL #2
2
Policy
The first principle in setting Civil Service pay is that it should aim to follow broadly practice in the private sector.
2.
In February 1979, the Standing Commission on Civil Service Salaries and Conditions of Service was consulted on whether the 1979 Pay Trend Survey should be conducted and whether the results from this survey should form the basis for any overall pay adjustments for the Civil Service. The Commission said that since it was not yet in a position to advise on whether any changes should be made in the manner of conducting overall reviews of the Master Pay Scale, the 1979 exercise should proceed. However, it is hoped that the Commission will be able to advise on the future basis for overall pay reviews by about the end of 1979.
Background
3.
On 11th January 1979, in line with normal arrange- ments, the Senior Civil Service Council agreed that the PIU should carry out a survey to establish pay trends in the private sector in the 12 month period April 1978 to April 1979. The only change to previous procedure was that with the agreement of UMELCO and the Staff Side of the Senior Civil Service Council, the survey field was modified by the removal of the four utility companies, the removal of 12 companies where incremental or merit type elements could not be identified in overall pay awards, and the removal of one company which had ceased operation. Altogether 51 companies were used in this survey.
On 20th April 1979, the PIU produced its report, which was then analysed by a Steering Committee of the Senior Civil Service Council. Copies of the PIU Pay Trend Survey Report and the Steering Committee Report are available to Members on request.
5.
On 14th May 1979, at a meeting of the Senior Civil Service Council, the Staff Side submitted a pay claim for "an upward adjustment throughout the Master Pay Scale ranging from 9.67% at the lowest point to 7.70% at the top point, to be effective from the 1st April 1979". This was somewhat higher than the figures suggested by the private sector evidence on the grounds that inflation since April and the depreciation of the Hong Kong dollar ought also to be taken into account.
Pay Trend Survey Report
6.
The analysis agreed by the Steering Committee of the 1978-79 Pay Trend Survey Report indicated that private sector salaries had, in relation to the bottom band (less than $2,200), mid band ($2,200 $6,299) and top band ($6,300 $10,100) of the Master Pay Scale, moved upwards as follows -
CONFIDENTIAL *******