XN000022-1994-12-14 — Page 30

- 7 -

Committee stage of Employment (Amendment) Bill

Following is the speech by the Secretary for Education and Manpower, Mr Michael Leung, at the committee stage of the Employment (Amendment) Bill 1994 in the Legislative Council today (Wednesday):

I shall explain here why the Administration feels unable to support the Committee Stage amendments moved by Mr Lau. Firstly, Members should recall that this is the second time that the present bill is debated in this Council following its defeat in July this year. Members should also be aware that this bill is already a substantial improvement over the previous bill, in that we now propose to recognise one half of an employee's service over and above 24 years accrued before the amendment bill comes into operation in the calculation of severance and long service payments, as compared with the reckoning of one half of an employee's service beyond 18 years in our previous proposal.

The possible financial impacts on the employers as a result of this improvement in retrospective reckoning of an employee's service, and that caused by the removal of 12 months' wage ceiling for severance and long service payment have been taken into account in formulating our proposals in the present Bill. It is out of this consideration that we now decide to maintain the existing ceiling of severance and long service payments at $180,000 at this stage.

Secondly, for the majority of workers who are receiving a median monthly wage at $8,000, the existing ceiling of $180,000 for severance and long service payments is in fact sufficient to cover up to 43.5 years of reckonable service. Moreover, we will review this ceiling regularly to make sure that it is in keeping with inflation and wage level. We therefore consider it not necessary to increase it further at this point in time.

Thirdly, all of our proposals in the present Bill have been fully considered and have the full support of the Labour Advisory Board which, as members know,comprises a balanced representation from both the employers and employees. The proposal to increase the ceiling to $230,000 has not been discussed in the Labour Advisory Board, nor has the public been given the chance to express their views on it. So as not to delay the passage of this Bill, we should therefore proceed with our proposals which have the broad consensus of LAB members, rather than holding it up, pending another new round of discussion and consultation on Mr Lau's amendment.

For these reasons, Mr Chairman, the Administration is unable to support the proposed amendments by Mr Lau. Regrettably, we will have no choice but to withdraw this Bill if the amendment were carried.

End/Wednesday, December 14, 1994

Page 30Page 31