WEDNESDAY, MARCH 14, 1984

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SEVERANCE PAY BILL SEEN AS 'REASONABLE COMPROMISE”

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THE COMMISSIONER FOR LABOUR, THE HON RON BRIDGE, EXPRESSED THE HOPE TODAY THAT THE PROPOSED LEGISLATIVE AMENDMENTS ON SEVERANCE PAY WOULD BE ACCEPTED BY BOTH EMPLOYERS AND EMPLOYEES AS A REASON ABLE COMPROMISE BETWEEN THEIR CONFLICTING INTERESTS.

MR BRIDGE WAS SPEAKING AT THE LEGISLATIVE COUNCIL TODAY (WEDNESDAY) IN MOVING THE SECOND READING OF THE EMPLOYMENT (AMENDMENT) BILL 1984.

THE BILL SEEKS TO INCREASE THE RATE OF SEVERANCE PAY FROM ONE- HALF TO TWO-THIRDS OF A MONTH'S WAGE FOR EVERY YEAR OF SERVICE FOR MONTHLY-RATED EMPLOYEES AND FROM 13 DAYS' TO 18 DAYS' WAGES FOR TIME AND PIECE-RATED EMPLOYEES, SUBJECT TO A QUALIFYING PERIOD OF TWO YEARS' SERVICE AND A MAXIMUM PAYMENT NOT EXCEEDING 12 MONTHS PAY.

IT ALSO SEEKS TO EXTEND THE LENGTH OF TIME ALLOWED FOR MAKING CLAIMS FROM ONE MONTH TO THREE MONTHS.

MR BRIDGE SAID THE PROPOSALS WOULD TAKE HONG KONG ANOTHER STEP FORWARD TOWARDS THE GOVERNMENT'S PUBLICLY STATED GOAL OF ACHIEVING A LEVEL OF LEGISLATION GOVERNING SAFETY, HEALTH AND CONDITIONS OF EMPLOYMENT AT LEAST BROADLY EQUIVALENT TO THE BEST IN NEIGHBOURING ASIAN COUNTRIES.

HE SAID ALTHOUGH THE PROPOSAL TO EXTEND THE TIME LIMIT FOR CLAIMS WAS UNANIMOUSLY SUPPORTED BY THE LABOUR ADVISORY BOARD, THE PROPOSAL TO INCREASE THE RATE OF SEVERANCE PAY HAD MET WITH MIXED REACTIONS.

+EMPLOYERS' REPRESENTATIVES WOULD PREFER TO SEE THE RATE REMAIN UNCHANGED. EMPLOYEES' REPRESENTATIVES NOT ONLY SUPPORT THE INCREASED RATES OF SEVERANCE PAY PROPOSED IN THE BILL, BUT WOULD LIKE TO SEE FURTHER CHANGES SO AS TO INCREASE THE NUMBER OF EMPLOYEES ENTITLED TO IT.+

MR BRIDGE SAID IT WOULD BE UNREALISTIC TO EXPECT THE PROPOSALS TO BE WELCOMED UNRESERVEDLY BY EITHER GROUP, BUT STRESSED THAT THE BILL +REPRESENTS A COMPROMISE BETWEEN THESE TWO SETS OF VIEWS.+

HE ADDED AS MR T.S. LO SAID IN THIS COUNCIL ON OCTOBER 12 LAST YEAR, IN THE LONGER TERM THE INTERESTS OF THE TWO GROUPS DO NOT CONFLICT BUT ARE IDENTICAL.+

DEBATE ON THE BILL WAS ADJOURNED TO APRIL 18.

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