XN000022-1994-01-12 — Page 27

PAY ADJUSTMENT METHODOLOGY

6

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1

WEDNESDAY, JANUARY 12, 1994

ON

EXISTING DEDUCTION UNDULY

LAU WAH-SUM AND MR THE

OF METHODOLOGY, AS MR QUESTION MCGREGOR HAVE POINTED OUT THERE HAS BEEN CRITICISM THAT THE MECHANISM FOR PAY ADJUSTMENT, PARTICULARLY THE INCREMENT FORMULA

IS TREND INDICATORS, USED IN CALCULATING THE PAY FAVOURABLE TO CIVIL SERVANTS AND IS INFLATIONARY.

BY AN

GOVERNMENT AND VALUE OF

WHETHER WE LIKE IT OR NOT, THE FORMULA WAS RECOMMENDED INDEPENDENT COMMITTEE OF INQUIRY AND ACCEPTED BY THE THIS COUNCIL, IN 1988. THE COMMITTEE CONSIDERED THAT THE INCREMENTS COULD NOT BE EQUATED EXACTLY WITH MERIT PAY BECAUSE THE TWO THINGS SERVE DIFFERENT PURPOSES.

THE

FROM A PRACTICAL POINT OF VIEW, A DEGREE OF DISCOUNTING OF VALUE OF INCREMENTS WAS ALSO CONSIDERED NECESSARY BECAUSE OF THE LARGE NUMBER OF CIVIL SERVANTS, CURRENTLY JUST OVER 50%, WHO HAD REACHED THE MAXIMUM POINT OF THEIR PAY SCALES. SINCE THESE STAFF ARE NOT ELIGIBLE FOR ANNUAL INCREMENTS, THEY WOULD ARGUE THAT THERE SHOULD NOT BE TO SO THERE ARE AT LEAST TWO SIDES INCREMENT DEDUCTION AT ALL. METHODOLOGY QUESTION.

THE

COMMITTEE OF INQUIRY

THE

EXISTING AND THE

A

THE AGAINST

BACKGROUND WHICH I HAVE OUTLINED POLICY,

ABOUT THE SO-CALLED SHORTFALL THE MISCONCEPTIONS DISPUTES OVER METHODOLOGY THE ADMINISTRATION DOES NOT AGREE THAT

STAFF OF INQUIRY SHOULD BE APPOINTED TO REVIEW THE COMMITTEE PAY CLAIMS. IT WOULD NOT BE IN THE PUBLIC INTEREST, OR EVEN STAFF'S INTEREST, TO GO DOWN THAT ROAD. I CITE FIVE REASONS.

ONE,

ALREADY

TERMS

OF

SIDE'S IN THE

EXPLAINED THE EXISTING AS

THE 1968 FROM AGREEMENT SPECIFICALLY PRECLUDE MATTERS OF SETTLED PUBLIC POLICY CONSIDERATION BY A COMMITTEE OF INQUIRY. IT IS NOT IN DISPUTE THAT IT AN INDEPENDENT IS SETTLED PUBLIC POLICY THAT EACH PAY ADJUSTMENT IS EXERCISE. THERE IS THEREFORE NO QUESTION OF ANY SO-CALLED "SHORTFALL" IN PREVIOUS YEARS BEING MADE UP IN SUBSEQUENT YEARS.

THAT

PAY

то

SUPPORT

EXISTING TWO,

POLICY ON CIVIL SERVICE PAY AIMS FOR BROAD COMPARABILITY WITH THE PRIVATE SECTOR AND, I BELIEVE, WE HAVE ACHIEVED

OBJECTIVE. THE MAJORITY OF CIVIL SERVANTS ARE CONTENT WITH ADJUSTMENTS IN RECENT YEARS AND STATISTICS SHOW THAT WE ARE

IS RECRUIT AND

THE PEOPLE WE WANT. RETAIN

NEITHER

THERE

COMMUNITY

FOR THE VIEW THAT CIVIL SERVANTS HAVE BEEN INADEQUATELY REMUNERATED OR UNFAIRLY TREATED.

THE

ABLE ANY

FOR

DETERMINING STANDING AND THE

OF FOR

THREE, THERE IS ALREADY AN ELABORATE PROCESS THE ANNUAL CIVIL SERVICE PAY ADJUSTMENT, INVOLVING THE COMMISSION, THE CIVIL SERVICE UNIONS, THE EXECUTIVE COUNCIL FINANCE COMMITTEE. THERE ARE ADEQUATE CHANNELS FOR REPRESENTATION VIEWS TO ENABLE A BALANCED DECISION TO BE TAKEN, WITH DUE REGARD

A THE

OF BOTH CIVIL SERVANTS AND THE COMMUNITY AS INTERESTS ONCE A DECISION IS MADE, AFTER A LONG AND PAINSTAKING PROCESS, WE MUST STAND BY IT.

WHOLE.

/FOUR, A