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PROVISIONAL URBAN COUNCIL
MR. SUEN KAI-CHEONG, CHAIRMAN OF THE ADMINISTRATION SELECT COMMITTEE, replied (in Cantonese): -With regard to the arrangements of the Regional Services Department (RSD), the Department had written to the RSD to seek detailed information and their reply was just received yesterday. RSD does not consider that the introduction of the principle of fair wage to their cleansing contracts is tantamount to the adoption of the 'minimum wage' concept. The reply from RSD and the provisions of the relevant contract are tabled for Members' reference.
As regards the arrangements of USD, the Administration Select Committee had discussed in detail whether there should be a rigid requirement for a 'minimum wage' to be laid down in the tender documents when examining the report submitted by the Department on the review of Mechanism for Contracting-out of Services at its meeting on 18.5.1998. Finally, the Administration Select Committee endorsed the recommendations of the report and agreed that the following improvement measures should be introduced into the new tender documents and contracts so as to prevent, by means of more comprehensive and flexible arrangements, contractors from paying their employees rates of wages which are less favourable than the general market wages of the trade.
(1) The tender documents would state clearly that tenderers are required to employ their employees at fair wages and that this would be one of the main criteria adopted by the Council in assessing the tenders;
(2) To enable tenderers to better understand the so-called fair wages, the Department would provide for their reference the average wages of similar job categories as provided in the latest 'Half-yearly Report of Wage Statistics' published by the Census and Statistics Department;
(3) The tenderer has to provide particulars such as the wages to be paid, the working hours and the general conditions of service etc. for the Department's information. In assessing the tenders, the Department would examine whether the wages stated therein are comparable to the market rates by making reference to the statistics published by the Census and Statistics Department;
(4) On supervision, the contractor has to submit documentary proof of wages paid to staff for checking by the Department on a monthly basis;
(5) The wages paid by the contractor could be adjusted in the light of market rates. The Department would refer to the latest statistics released provided by the Census and Statistics Department in considering whether the wages paid deviated from the market level;
(6) If the wages paid to the employees were found to be far below market rates, the Department would require the contractor to explain and improve. If no improvement has been made, warning will be issued to the contractor to remind him that his performance in this aspect will be put in record and will become one of the main factors to be considered when the Council assesses the contractor's tender for similar service contracts in future.
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