XN000022-1973-05-09 — Page 6

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Wednesday, May 9, 1973

EMPLOYERS SHOULD ABSORB COSTS OF LABOUR LEGISLATION

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There is absolutely no excuse for employers to raise prices of their

products and services as a result of proposed new legislation which will

enable workers to obtain better fringe benefits under more lenient conditions.

Dr. the Hon. S.Y. Chung said this today during the resumed debate

on the Employment (Amendment) (No. 2) Bill 1973, which extends sickness allowance

and holiday pay to all manual workers irrespective of their earnings, and

to non-manual workers whose monthly earnings do not exceed $1,500.

He said the bill would impose an additional maximum financial liability

of about two per cent on the average annual wage payroll for industrial

employers and of about six per cent for non-industrial employers.

"However, these are only theoretical maximums and, according to information

available to me, the actual payout in industry for sickness allowance is very

much lower than the maximum liability," Dr. Chung said.

Furthermore, he added, many non-industrial employers were already

paying their employees by the month "and this bill should not cause these

employers any additional financial burden."

As he saw it, the bill had two major aims to remove the discrimination

against employees in non-industrial undertakings, such as retail shops and

restaurants, and to enable workers to obtain better fringe benefits under more

lenient conditions.

At present, said Dr. Chung, an industrial employee had to work for the

same employer for not less than six months before he became entitled to claim

holidays with pay and sickness allowance.

/He cannot