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12
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Wednesday, October 31, 1973
CONCERN OVER RISING LIVING COSTS
Employers Urged To Keep Wages In Line With Prices
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All employers, including the government, were today urged to
do some "radical re-thinking" on the problem of rising living costs to
keep wages and salaries in line with prices.
The appeal came from Mr. P.C. Woo, Senior Unofficial Member of
the Legislative Council, while supporting a motion of thanks for the
Governor's opening address.
He noted with concern the alarming rise of 26.5 per cent in the
general consumer price index during the past nine months, and emphasised
that for people in the lower income bracket - below $3,000 a month - it
was not sufficient to make wage awards after price increases had taken place.
He recommended an early extension of the system of cost of living
allowances as a flexible mechanism for adjusting income to living cost as
and when the prices of essential goods shoot quickly upwards.
"These allowances, which are already in existence in the lowest
sectors, should vary on a monthly basis with the cost of living and need
not immediately be incorporated into basic salary," he said.
An annual review would later form the basis of a decision on
what portion of the increases awarded during the year should be permanently
incorporated into basic salary, he added.
Mr. Woo pointed out that the community could not afford to underwrite
the whole of the 26.5 per cent increase in living costs for all employees,
but stressed that those in greatest need could wait no longer for immediate
relief.
This allowance