EMPLOYMENT
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of Wages on Insolvency Fund to cover wages in lieu of notice and the amendments to the maternity provisions under the Employment Ordinance.
As a dependent territory of the United Kingdom, Hong Kong is not a member of the International Labour Organisation (ILO) and is not called upon to ratify any International Labour Conventions, which set international labour standards. However, the United Kingdom government makes declarations on behalf of Hong Kong with regard to the application of conventions it ratifies. This is done after full consultation with the Hong Kong government. As at December 1987, Hong Kong has applied 29 conventions in full and 19 with modification, making a total of 48. This compares favourably with most member nations in the region.
During the year, there were 3 962 prosecutions for breaches of ordinances and regula- tions administered by the Labour Department. Fines totalling $9,065,600 were imposed.
Wages and Conditions of Work
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There is no statutory minimum wage rate in Hong Kong. The wage levels prevailing are essentially the result of an interplay of the economic forces of supply and demand.
Wage rates are usually calculated on a time basis such as hourly, daily or monthly, or on an incentive basis depending on the volume of work performed. The pay period is normally 15 days for daily-rated and piece-rated workers and a month for monthly-rated workers. Most semi-skilled and unskilled workers in the manufacturing industries are piece-rated, although daily rates of pay are also common. Monthly-rated industrial workers are usually employed in skilled trades or in technical, supervisory, clerical and secretarial capacities. On the other hand, monthly rates of pay are most common for workers in the non- manufacturing industries. Men and women receive more or less the same rate for piece-work. Women on average are paid less when working on a time-basis, but there may not be strict job comparability.
Wage rates of manufacturing workers continued to increase in money terms during the year. After allowing for rises in consumer prices, there was an increase in wage rates of 3.6 per cent in real terms during the 12 months ending in September 1987. The rate of increase in
wages slowed down slightly compared with the previous year, while unemployment and underemployment remained stable at a low level due to the continued expansion of the service sectors of the economy.
In September, 75 per cent of manual workers engaged in manufacturing industries received daily wage rates (including fringe benefits) of $95 or more (males $118 and females $90), and 25 per cent received $143 or more (males $169 and females $128). The overall average daily wage rate was $121 (males $147 and females $109).
Besides granting statutory holidays, annual leave, rest days and other entitlements under the Employment Ordinance, some employers in the manufacturing sector provide workers with different kinds of fringe benefits, including subsidised meals or food allowances, attendance bonuses, free medical treatment and free or subsidised transport. Many employees also enjoy a year-end bonus of one month's pay or more under their employ- ment contract, which is usually paid during the Lunar New Year. In recent years, an increasing number of employers have introduced provident fund schemes to provide improved long term security for their employees.
The Employment of Children Regulations, made under the Employment Ordinance, prohibit the employment of children under the age of 15 in any industrial undertakings. Children who have attained the age of 13 and who have completed Form 3 may be employed in non-industrial establishments, subject to stringent conditions which aim