XN000022-1989-03-07 — Page 4

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TUESDAY, MARCH 7, 1989

FOR FUTURE PAY DETERMINATION, THE COMMITTEE PROPOSES A SYSTEM WHICH FEATURES A COMBINATION OF BOTH PAY LEVEL SURVEYS AND PAY TREND SURVEYS. UNDER THIS PROPOSAL, PAY LEVEL SURVEYS WOULD BE THE FOUNDATION OF THE PAY SYSTEM AND WOULD BE CONDUCTED AT INTERVALS OF ABOUT EVERY THREE YEARS, WITH PAY TREND SURVEYS PROVIDING THE BASIS FOR PAY ADJUSTMENTS IN THE YEARS BETWEEN PAY LEVEL SURVEYS.

"THE PAY LEVEL SURVEYS SHOULD BE BASED ON JOB-FOR-JOB COMPARISONS. A NUMBER OF MARKER GRADES WITH IDENTIFIABLE FUNCTIONAL COUNTERPARTS IN THE PRIVATE SECTOR SHOULD BE USED AS COMPARATORS. THE SURVEY INDICATORS FOR THE MARKER GRADES SHOULD THEN BE USED TO EXTRAPOLATE RATES FOR GROUPS OF STAFF NOT COVERED BY THE SURVEY ON THE BASIS OF INTERNAL RELATIVITIES," MR BURRETT EXPLAINED.

IN VALUING FRINGE BENEFITS, THE COMMITTER FULLY ENDORSED THE VIEW THAT PAY LEVEL SURVEYS SHOULD INVOLVE A COMPARISON OF CIVIL SERVICE AND PRIVATE SECTOR TOTAL PAY PACKAGES.

"BUT WE THINK THAT IN CERTAIN CIRCUMSTANCES, THE ASSESSMENT FRINGE BENEFITS SHOULD BE BASED ON THE REPLACEMENT COST TO EMPLOYEE AND ON ACTUAL UTILISATION."

OF

THE

"FOR EXAMPLE, HOUSING BENEFITS FOR BOTH THE CIVIL SERVICE AND THE PRIVATE SECTOR SHOULD BE VALUED EITHER ON THE BASIS OF THE REPLACEMENT VALUE OF ACCOMMODATION PROVIDED OR, IN THE CASE OF THE CIVIL SERVICE, BY REFERENCE TO THE BENEFITS THEY WOULD DERIVE FROM THE NEW HOME PURCHASE SCHEME, THE LATTER BEING OUR PREFERRED METHOD, HE SAID.

"CIVIL SERVICE PENSIONS SHOULD BE ASSESSED AT THEIR ACTUARIAL VALUE, BUT DUE WEIGHT SHOULD BE GIVEN TO THE ARGUMENTS FOR DISCOUNTING THEM IN THE IMPLEMENTATION OF PAY LEVEL SURVEY HE ADDED.

FINDINGS,"

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ACCORDING TO THE PROPOSALS, THE FIRST PAY LEVEL SURVEY WOULD BE CONDUCTED IN THE 1990-91 SURVEY YEAR FOR IMPLEMENTATION WITH EFFECT FROM APRIL 1, 1991.

"THERE SHOULD BE FULL CONSULTATION BETWEEN THE OFFICIAL AND STAFF SIDES TO ENSURE CONFIDENCE IN THE PAY LEVEL SURVEY METHODOLOGY AND ITS EXECUTION," MR BURRETT STRESSED.

AS REGARDS PAY TREND SURVEYS, THE FORMULA RECOMMENDED BY THE COMMITTEE FOR CALCULATING FUTURE CIVIL SERVICE ANNUAL PAY ADJUSTMENTS WAS TO INCLUDE THE PERCENTAGE VALUES OF PRIVATE SECTOR MERIT PAY AND INCREMENTS IN THE PAY TREND INDICATORS, FROM WHICH THE VALUES OF CIVIL SERVICE INCREMENTS FOR INDIVIDUAL SALARY BANDS WOULD BE DEDUCTED AT THEIR PAYROLL COST.

"WHERE THE RESULTING INDICATOR FOR THE LOWER PAY BAND IS BELOW THAT FOR THE MIDDLE BAND. IT SHOULD BE BROUGHT UP TO THE SAME LEVEL, MR BURRETT SAID.

/PAY INCREASES