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11.

At present, there are about 87 establishments known to have

some form of joint consultation. Although this number is low, it must

be realised that the absence of joint consultative committees in most

establishments in Hong Kong does not mean a lack of consultation between employers and employees. Many employers do consult their employees,

albeit informally, on a variety of matters affecting labour.

12.

At least one SE Asian country South Korea-is reported to have problems with compulsory labour-management councils.

It has

been observed, for example, that in many of these councils, the workers

are more likely to follow the employers in deciding what items to discuss and methods to be used. As a result, the councils amount to no more than a nominal venue for consultation.

Serial 9

Administrative efforts to

introduce profit-sharing schemes

13.

Many private establishments in the manufacturing, commercial

and services sectors are practising some form of profit-sharing schemes

for their employees and it is still a common practice amongst most Chinese-run establishments to pay a year-end bonus or year-end double- pay to employees. The Labour Advisory Board has considered the idea of profit-sharing schemes and has advised that workers would suffer

more than otherwise should a company, which operated such a scheme, run into financial trouble. Neither would it be appropriate to introduce any statutory profit-sharing scheme, since this would be a matter for agreement between employers and employees. Many employers also consider that a sound salary structure is preferable to a profit-sharing scheme for their employees, who may not understand the principle of it and would become dissatisfied. if profits decreased.

Serial 10

Employee Membership of Enterprise Councils to be a source of workers' representation on public, or consultative bodies generally

140

The Government welcomes more workers' representatives on various statutory and advisory bodies, but the difficulty here is that it needs, some degree of sophistication before workers' representatives can really contribute usefully. At present, such labour houdend une Tel. and they tend to be more in the public service sector than in vue private

sector.

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