EMPLOYMENT
100
Labour Legislation
To provide better standards of safety, health and welfare for the workforce, 10 items of labour legislation were enacted in 1989. This brings the total number of items of labour legislation enacted in the last 10 years to 139 under the broad policy of achieving a level of legislation on safety, health and welfare broadly equivalent to Hong Kong's neighbouring countries at a similar stage of economic development. The more significant items of labour legislation enacted during the year included amendments to the Protection of Wages on Insolvency Ordinance which extended its coverage to severance payments, and amend- ments to the Factories and Industrial Undertakings Ordinance which imposed general responsibilities on employers and employees in respect of work safety at industrial undertakings and construction sites.
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 1989, Hong Kong has applied a total of 47 conven- tions, of which 29 were in full and 18 with modification. This compares favourably with other member nations in the region.
There has been an increase in the number of prosecutions under the various ordinances and regulations administered by the Labour Department. During the year, 4 120 cases were heard in the courts with total fines of $15,274,925 imposed on offenders.
Wages and Conditions of Work
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.
Wage rates in the manufacturing sector continued to increase in money terms during the year, while unemployment and underemployment remained at a low level due to continued expansion of the service sector of the economy. After allowing for rises in consumer prices, the wage rates for all employees and workers increased in real terms by 1.8 per cent and 1.2 per cent respectively between September 1988 and September 1989.
In September, 75 per cent of manual workers engaged in manufacturing industries received daily wage rates, including fringe benefits, of $129 or more, and 25 per cent received $191 or more. The overall average daily wage rate was $163.
Besides granting statutory holidays, annual leave, rest days and other entitlements under the Employment Ordinance, some employers in the manufacturing sector provide workers with various 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 em- ployment contract, usually paid just before 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.