XN000022-1989-05-05 — Page 8

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FRIDAY, MAY 5, 1989

PAY TREND INDICATORS METHODOLOGY EXPLAINED

FOLLOWING THE RELEASE OF THE 1988-89 PAY TREND INDICATORS BY THE PAY TREND SURVEY COMMITTEE, A GOVERNMENT SPOKESMAN TODAY (FRIDAY) EXPLAINED THE NEW BASIS TO BE USED THIS YEAR FOR CONSIDERING THE 1989 CIVIL SERVICE PAY ADJUSTMENT.

"THE COMMITTEE OF INQUIRY INTO THE 1988 CIVIL SERVICE PAY ADJUSTMENT AND RELATED MATTERS HAD EARLIER RECOMMENDED THAT, BEGINNING FROM THIS YEAR, THE PAY TREND SURVEY SHOULD TAKE INTO ACCOUNT MERIT PAYMENTS AND INSCALE INCREMENTS IN THE PRIVATE SECTOR IN ADDITION TO INCREASES RELATED TO THE COST OF LIVING, COMPANY PERFORMANCE AND GENERAL CHANGES IN MARKET RATES.

"THIS RECOMMENDATION HAS BEEN ACCEPTED BY THE GOVERNOR IN COUNCIL. HE SAID.

USING THIS SYSTEM, THIS YEAR'S PAY TREND SURVEY INDICATED THAT THE FOLLOWING AVERAGE PAY INCREASES HAD BEEN AWARDED BY THE SURVEYED

COMPANIES:

16.04 PER CENT FOR EMPLOYEES EARNING LESS THAN $5,700 PER MONTH;

16.07 PER CENT FOR EMPLOYEES EARNING BETWEEN $5,700 AND $17,999 PER MONTH; AND

14.60 PER CENT FOR EMPLOYEES EARNING BETWEEN $18,000 AND $35,890 PER MONTH.

THE SPOKESMAN POINTED OUT THAT THE COMMITTEE OF INQUIRY HAD ALSO RECOMMENDED THAT THE VALUE OF NORMAL INCREMENTS IN THE CIVIL SERVICE SHOULD BE DEDUCTED, BUT AT A DISCOUNTED RATE, FROM THE PAY TREND INDICATORS ARRIVED AT UNDER THE NEW SURVEY SYSTEM.

"THE COMMITTEE OF INQUIRY FELT THAT THIS DISCOUNTED RATE SHOULD BE ACHIEVED BY TAKING THE VALUE OF CIVIL SERVICE INCREMENTS AT THEIR PAYROLL COSTS, THAT IS THEIR COST TO GOVERNMENT IN THE SURVEY YEAR, BROKEN DOWN INTO DIFFERENT PAY BANDS, RATHER THAN THEIR AVERAGE PERCENTAGE VALUE.

"THESE RECOMMENDATIONS HAVE ALSO BEEN ACCEPTED BY THE GOVERNOR IN COUNCIL, HE SAID.

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THE VALUE OF CIVIL SERVICE INCREMENTS AT THEIR PAYROLL COST THIS SURVEY YEAR IS AS FOLLOWS:

1.38 PER CENT FOR THE LOWER BAND (CIVIL SERVANTS EARNING LESS THAN $5,700 PER MONTH}

1.26 PER CENT FOR THE MIDDLE BAND (CIVIL SERVANTS EARNING BETWEEN $5,700 AND $17,999 PER MONTH)

1.17 PER CENT FOR THE UPPER BAND (CIVIL SERVANTS EARNING BETWEEN $18,000 AND $35,890 PER MONTH).

/AFTER THE