40
EMPLOYMENT
The bulk of the manufacturing work-force is concentrated in the urban areas of Hong Kong Island, Kowloon and New Kowloon. But industrial development in the New Territories is increasing and about one-quarter of the total manufacturing work- force is now employed there. Although most workers are engaged in modern manu- facturing processes, traditional village industries still provide some employment.
Wages and Conditions of Work
There is no legal minimum wage in Hong Kong and the wage level prevailing is essentially the result of an interplay of the economic forces of supply and demand. Wages are usually calculated on an hourly, daily or monthly basis or, alternatively, on piece-rates which are customarily paid every 10 or 15 days. Most semi-skilled and unskilled workers in the manufacturing industries are piece-rated, although daily rates of pay also are common. Monthly-rated industrial workers are usually employed in the skilled trades or in technical and supervisory capacities. Men and women receive the same rates for piece-work, but women are generally paid less when working on a time basis.
Wages of industrial workers continued to increase during 1978. By September, average daily wages (excluding fringe benefits) had increased by 56 per cent on the base period of July, 1973, to June, 1974. During the same time, the cost-of-living index went up by 25 per cent, thereby giving an increase of 25 per cent for the index of real average daily wages.
Daily wages in the manufacturing industries in September, 1978, ranged from $26.10 to $76.80 for skilled workers; $19 to $52.60 for semi-skilled workers; and $18 to $37.10 for unskilled workers. Many employers provide workers with sub- sidised meals or food allowances, good attendance bonuses, paid rest days, free medical treatment, and a Lunar New Year bonus of one month's pay or more. Some employers provide, in addition, free or subsidised accommodation and transport.
A consumer price index (A), based on a household expenditure survey conducted during the period July, 1973, to June, 1974, is compiled as an indication of the effect of price changes on households spending $400 to $1,499 a month. In December, 1978, this index stood at 127 (see Appendix 16). A consumer price index (B) is also compiled to show the effect of price changes on households spending $1,500 to $2,999 a month. On January 1, 1978, the Employment (Amendment) (No. 3) Ordinance 1977 came into effect, providing for all employees covered by the ordinance to have seven days' annual leave with pay after 12 months' employment under a 'continuous contract' with the same employer. Compliance with the new legislation was, on the whole, satisfactory. In the light of practical experience, a review of the legislation was conducted towards the end of the year, with a view to introducing certain minor amendments to improve its operation.
Under the Factories and Industrial Undertakings Ordinance and its regulations, women and young people aged 14 to 17 are permitted to work a maximum of eight hours a day and 48 hours a week. They cannot be employed for more than five hours continuously without a meal or rest break. In the case of women and young people aged 16 and 17, this break must be at least 30 minutes and in the case of young people aged 14 and 15, it must not be less than one hour. Neither group can work more than six days a week. In addition, the regulations limit overtime employment