XN000022-1977-06-01 — Page 6

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UUNE 11 IT

HE URGED THAT HONG KONG SHOULD NOT SLAVISHLY IMITATE THE PRACTICE OF OTHER COUNTRIES IN LEGISLATING FOR DAILY-RATED WORKERS ON THE BASIS OF A 26-DAY MONTH.

+1 AM AWARE THAT THERE IS A QUESTION OF TWO UNPAID REST DAYS INCLUDED IN THE HALF MONTH, BUT I WOULD POINT OUT THAT THE SAME REST DAYS APPLY TO THE MONTHLY RATED ALSO, HE SAID.

HE DREW THE ATTENTION OF EMPLOYERS AND EMPLOYEES TO A PROVISO IN THE ORDINANCE WHICH ENABLES WORKERS TO ELECT TO HAVE THEIR WAGES AVERAGED OVER THE PRECEDING 12 MONTHS.

+USE OF THIS PROVISO MAY WELL BE A BETTER METHOD THAN COUNTING DAYS IN THE DYING MONTH OF A FIRM GOING OUT OF BUSINESS, HE SAID.

THE HON. HILTON CHEONG-LEEN SUPPORTED THE BILL AND NOTED THAT THE GOVERNMENT'S SOCIAL POLICY TO RAISE THE STANDARD OF LIVING AND THE CONDITIONS OF LABOUR IN A BALANCED AND STEADY MANNER WAS MOST LAUDABLE AND DESERVED THE UNWAVERING SUPPORT OF ALL SECTIONS OF THE COMMUNITY, +PROVIDING OF COURSE GOVERNMENT DOES NOT GIVE TOO MUCH OF AN IMPRESSION THAT IT IS FORCE-PACING THE RATE OF LABOUR LEGISLATION.+

HE WARNED THAT THE SIGNALS WERE UP THAT LABOUR LEGISLATION WOULD FROM NOW ON COME UNDER SHARPER SCRUTINY BY INDUSTRIAL ISTS, INVESTORS, AND BUSINESSMEN ALIKE, WITH A VIEW TO ASSESSING THE LONG-TERM CONSEQUENCES EMANATING FROM SUCH LABOUR LEGISLATION. +

+ IT WOULD BE USEFUL TO KNOW IF GOVERNMENT WILL BE MORE SYSTEMATICALLY MONITORING THE LEVELS OF WAGE INCREASES AND LABOUR BENEFITS, AND RELATE OR LINK THEM TO THE ANNUAL RISE

IN G.D.P. SO AS TO ENSURE PARALLEL INCREASES IN PRODUCTIVITY AND ECONOMIC COMPETITIVENESS, HE SAID.

THE HON. JAMES WU SUPPORTED THE BILL +WITH THE GREATEST RELUCTANCE+.

HE REFERRED TO A SPEECH BY THE THEN ACTING SECRETARY FOR SOCIAL SERVICES ON JULY 3, 1974 WHEN PROPOSING A RATE OF SEVERANCE PAY OF 10 DAYS PER YEAR OF SERVICE DATING BACK FIVE YEARS.

HE QUOTED THE SECRETARY AS SAYING THE RATE OF SEVERANCE PAY SHOULD PROVIDE ADEQUATE RELIEF TO A REDUNDANT WORKER BUT MUST NOT BE SUCH AS TO OVERSTRAIN THE SMALLER EMPLOYER WHO WOULD BE UNABLE TO MEET THE IR RESULTANT LEGAL OBLIGATIONS AND WOULD BE DRIVEN OUT OF BUSINESS. THIS IN TURN WOULD CREATE FURTHER REDUNDANCY AND DEFEAT THE OBJECT OF THIS LEGISLATION.+

MR. WU SAID: +1 DO NOT KNOW WHETHER THE THEN ACTING SECRETARY OF SOCIAL SERVICES WOULD NOW SAY THAT THE SMALLER EMPLOYER COULD FACE UP TO THIS ALMOST SEVEN-FOLD INCREASE IN CONTINGENT LIABILITY WITHIN THREE YEARS AND NOT BE DRIVEN OUT OF BUSINESS AND THUS AVOID CREATING FURTHER REDUNDANCY AND DEFEAT THE OBJECT OF THE LEGISLATION. IT WOULD OTHERWISE SHOW THE INCONSISTANCY OF GOVERNMENT THINKING.+

/HE NOTED