WEDNESDAY, JANUARY 7, 1981
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LABOUR LAW WAGE CEILING TO BE FURTHER RAISED
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IT IS STILL THE GOVERNMENT'S LONG-TERM OBJECTIVE TO REMOVE THE WAGE CEILING FOR NON-MANUAL EMPLOYEES IN THE EMPLOYMENT ORDINANCE SO THAT ALL EMPLOYEES, WHETHER MANUAL OR NON-MANUAL, WILL BE BROUGHT UNDER THE PROTECTION OF THE ORDINANCE.
THIS WAS STATED BY THE COMMISSIONER FOR LABOUR, THE HON J.N. HENDERSON, AT THE LEGISLATIVE COUNCIL TODAY WHEN HE MOVED THE SECOND READING OF THE EMPLOYMENT (AMENDMENT) BILL 1981, WHICH PROPOSES TO RAISE THE WAGE CEILING FOR NON-MANUAL EMPLOYEES FROM $3 500 TO $6 000.
HE RECALLED THAT AT THE LAST REVISION OF THE WAGE CEILING IN APRIL 1979 (FROM $2 000 TO $3 500) HE TOLD THE COUNCIL THAT THE INCREASE WAS AN INTERIM MEASURE, AND UNDERTOOK TO REVIEW THE POSSIBILITY OF THE REMOVAL OF THE WAGE CEILING FOR NON-MANUAL EMPLOYEES FOR MOST, IF NOT ALL, PARTS OF THE ORDINANCE.
HE SAID, HOWEVER, THAT THIS PROPOSAL MET WITH CERTAIN OBJECTIONS FROM THE MAJOR EMPLOYERS' ASSOCIATIONS AS WELL AS SOME PROFESSIONAL MANAGEMENT ORGANISATIONS, WHO FELT THAT IT MIGHT HAVE THE UNDESIRABLE EFFECT OF SETTING STANDARDS BELOW THE CURRENT NORM FOR HIGHER PAID EXECUTIVES AS WELL AS IMPOSING HEAVY FINANCIAL CONSTRAINTS UPON SMALLER EMPLOYERS.
THE COMMISSIONER SAID THAT WHILE IT WAS STILL THE GOVERNMENT'S LONG-TERM OBJECTIVE TO REMOVE THE WAGE CEILING FOR NON-MANUAL EMPLOYEES, IN VIEW OF THE FAIRLY SMALL NUMBER INVOLVED, HE WAS PREPARED TO ACCEPT THIS POSITION.
HE ESTIMATED THAT AFTER THE WAGE CEILING IS RAISED TO
$6 000, ABOUT 35 000 EMPLOYEES OR JUST UNDER TWO PER CENT OF THE TOTAL NUMBER OF EMPLOYEES, WOULD REMAIN OUTSIDE THE PROTECTION OF THE EMPLOYMENT ORDINANCE.
HE POINTED OUT THAT SINCE THE EMPLOYMENT ORDINANCE WAS ENACTED IN SEPTEMBER 1968, THE WAGE CEILING FOR NON-MANUAL EMPLOYEES IN THE ORDINANCE HAD BEEN AMENDED TWICE TO $2 000 IN MARCH 1974 AND TO $3 500 IN APRIL 1979 TO KEEP IT GENERALLY IN LINE WITH RISES IN WAGES AND WITH INCREASES IN THE COST OF LIVING. THE CURRENT REVISION IS BEING MADE FOR THE SAME REASON.
BETWEEN SEPTEMBER 1968 AND MARCH 1980, THE PERCENTAGE INCREASE IN THE INDEX OF NOMINAL AVERAGE DAILY WAGES FOR WORKERS IN INDUSTRY WAS 378.6. IT IS THEREFORE CONSIDERED TO BE APPROPRIATE NOW TO RAISE THE WAGE CEILING FOR NON-MANUAL EMPLOYEES TO SIX THOUSAND DOLLARS A MONTH.
+AS THE COST OF LIVING CONTINUES TO CHANGE, THE BILL ALSO PROPOSES THAT THE WAGE CEILING COULD BE REVISED, IF NECESSARY, IN THE FUTURE BY RESOLUTION OF THE COUNCIL, MR HENDERSON ADDED.
DEBATE ON THE BILL WAS ADJOURNED.
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