EMPLOYMENT
108
Labour Legislation
To further improve the standards of safety, health and welfare for the workforce, nine items of labour legislation were enacted in 1990. This brings the total number of items of labour legislation enacted in the past 10 years to 134 under a 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 Employment Ordinance which removed the distinction between manual and non-manual employees, an increase in the number of days of paid annual leave and amendments to the Factories and Industrial Undertakings Ordinance to extend its coverage to the catering trade.
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 1990, Hong Kong has applied a total of 47 conventions, of which 29 were applied in full and 18 with modification. This compares favourably with other member nations in the region.
During the year, there were 3 249 prosecutions for breaches of ordinances and regula- tions administered by the Labour Department. Fines totalling $13,213,150 were 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 2.3 per cent and 2.2 per cent respectively between September 1989 and September 1990.
In September, 75 per cent of semi-skilled and unskilled workers in manufacturing industries received a daily wage, including fringe benefits, of $142 or more, and 25 per cent received $216 or more. The overall average daily wage was $184.
The Employment Ordinance provides for benefits including statutory holidays, annual leave, rest days, maternity leave, sickness allowance, severance payment, long service payment and other entitlements for employees. Besides giving entitlements under the Employment Ordinance, some employers provide workers with various kinds of fringe benefits which include 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 employment contracts, usually paid just