XN000022-1985-10-04 — Page 6

FRIDAY, OCTOBER 4, 1985

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FUND HELPING TO EASE LABOUR-MANAGEMENT TENSION

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THE PROTECTION OF WAGES ON INSOLVENCY FUND HELPS EASE LABOUR-MANAGEMENT TENSIONS CAUSED BY COMPANY INSOLVENCIES AND FACTORY CLOSURES AND CONTRIBUTES TO ECONOMIC AND SOCIAL STABILITY, THE CHAIRMAN OF THE FUND BOARD, MR CHAN KAM-CHUEN, SAID IN A LUNCHEON SPEECH TODAY (FRIDAY).

WHEN EMPLOYEES LOST THEIR JOBS AND WERE OWED WAGES THERE WERE BOUND TO BE ANXIETIES AND ANGER, AND PAYMENTS FROM THE FUND WOULD AT LEAST SOLVE SOME OF THE IR PROBLEMS, MR CHAN SAID.

IN MOST CASES, PAYMENTS FROM THE FUND COULD BE MADE WITHIN FOUR TO SIX WEEKS, AS WAS THE CASE INVOLVING ABOUT 300 WORKERS WHEN RESTAURANTS CLOSED DOWN IN JULY THIS YEAR.

+WHEN THESE WORKERS CAME TO COLLECT THE IR PAYMENTS, WE WERE TOLD THAT MOST OF THEM HAD FOUND NEW JOBS THIS WAS POSSIBLE BECAUSE THE WORKERS NO LONGER HAD TO WASTE THEIR TIME IN CLAIMING WAGES FROM THE IR EMPLOYER, MR CHAN SAID.

SINCE THE FUND BEGAN IN APRIL THIS YEAR, PAYMENTS AMOUNTING TO $2.72 MILLIONS HAD BEEN MADE TO 1 500 APPLICANTS WHO WERE OWED WAGES BY EMPLOYERS.

ON THE WORK OF THE FUND BOARD, MR CHAN SAID THE BOARD HAD MET THREE TIMES DURING THE PAST SIX MONTHS TO DISCUSS THE FINANCING AND ADMINISTRATION OF THE FUND.

MEMBERS OF THE BOARD INCLUDE TWO EMPLOYEE REPRESENTATIVES, TWO EMPLOYER REPRESENTATIVES AND FOUR GOVERNMENT OFFICIALS REPRESENTING THE SECRETARY FOR EDUCATION AND MANPOWER,

COMMISSIONER FOR LABOUR, DIRECTOR OF LEGAL AID AND THE REGISTRAR GENERAL.

AS CHAIRMAN OF THE BOARD, MR CHAN SAID HE WAS CERTAIN THAT THE TRIPARTITE EFFORTS COULD SOLVE ANY PROBLEMS THAT THE FUND SCHEME MIGHT ENCOUNTER.

HE RECALLED THAT THE WORKING GROUP HAD CONSIDERED VARIOUS ALTERNATIVES BEFORE RECOMMENDING THE COLLECTION OF A LEVY FROM BUSINESS REGISTRATION CERTIFICATES TO FINANCE THE FUND.

THE PRESENT METHOD SEEMED TO BE MOST EFFECTIVE BECAUSE OF ITS SIMPLICITY AND THE LOW COST OF ADMINISTRATION.

THE $100 A YEAR CONTRIBUTION TO THE FUND BY HOLDERS OF BUSINESS REGISTRATION CERTIFICATES HAD NOT ONLY HELPED TO PROTECT THE WAGES OF WORKERS BUT ALSO CONTRIBUTED TO A MORE STABLE ECONOMY, HE ADDED.

AT THE END OF SEPTEMBER, THE FUND HAD A TOTAL INCOME OF $36 MILLION.

/MR CHAN