TNAG-0125-FCO40-161-Labour-force-working-conditions-1969 — Page 53

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many of the major employers are now on a computer basis for wage calcula- tions. The computers appear to be operated not directly by the employers but commercially by firms of accountants and similar organisations which provide services for the employers according to planned programmes. Individual employers will not be free to change the basis of their wage payments at will even if they wish to do so. We had some difficulty over this with the enforcement of Section 13 of the Employment Ordinance which requires wages to be paid within seven days of the termination of the wage period. The British-American Tobacco Co. Ltd., for instance, had been paying wages about a fortnight in arrears. To comply with the law and at the same time continue their computerised system of wage calculations they would have had to change the dates of the wage periods. In this case it happened that the workers themselves were firmly opposed to any change in the existing wage practice and in deference to their wishes it is still continued although in order to comply with the law any employee who so requests can obtain his wages by asking for payment within the stipulated seven-day period.

5.

Lord Shepherd gave the indebtedness of workers as a reason for wishing to establish weekly wage periods for the lower paid categories of workers but as far as I am aware this indebtedness is not in Hong Kong the serious endemic problem which it is in so many territories which have grown out of agricultural economies. The very real mobility of labour here inhibits employers from making advances to employees except for such purposes as the purchase of property for which they can obtain collateral security and for much the same reason shopkeepers are less inclined to give credit for the ordinary necessities of life. In any case Hong Kong workers are very price conscious and prefer to take advantage of the highly competitive markets which are open to them. In short chronic indebtedness among lower paid employees is not a serious social problem here.

6.

Even so I have little doubt that as a matter of social policy it is desirable to encourage more frequent wage payments for all the lower paid categories of employees, whether industrial or non-industrial. The longer the wage period the more difficult it is to budget from one pay-day to the next. There is, however, no strong tradition among the Chinese for regulating their lives on a weekly basis. The Chinese tradition is for a lunar month and the idea of a week is an extraneous conception which they are coming to accept only slowly. I believe that it would be wrong to seek to enforce uniform weekly paid periods by legislation or other compulsory methods. Repercussions might well be violent. I consider that the impetus for change must come from the employers and their employees jointly. Government can certainly encourage in many ways the process of progressive change to shorter wage periods, particularly by setting a good example, but what amounts to a major social change is unlikely to be achieved at the stroke of the pen. There is scope for improvisation to meet peculiar needs and I believe that it will be sufficient to urge the principle but leave those concerned to achieve it in their own ways.

(Sgd.)

(D.I. Goodwin) Labour Adviser Labour Legislation

9.6.69.

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