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CONFIDENTIAL
SIR Y K PAO'S CHEVENING WEEKEND
V. HONG KONG CIVIL SERVICE PAY
Background
-
15-16 MARCH 1986
1.
Service
Unions
have
been
pay
Since late last year Hong Kong
negotiating
levels by up to 6%. This
Kong Government and main Civil
over
latter's
pay
claim
to
increase non-directorate
result of a
of a Government pay award to the directorate late last year of between 6% and 13%, linked to private sector pay trends.
claim was
a
2.
Hong Kong
have
offered
the unions
2.7%
increase,
as
an
sector
interim award pending further study of comparable private
a
pay levels this year. It
is not yet clear whether the Unions will
accept this.
3.
Government
echoed his
Sir YK Pao advocated concern.
the
vis
Sir Y K Pa o recently expressed concern to senior Hong Kong
officials about officials about this dispute. Chinese officials present
a compromise; but
likely basis of his,
his, and Chinese
and Chinese concern, i s that Hong Kong Civil
whous that their ewe may Servants may be becoming too highly paid, and be establishing a more powerful and aggressive position vis a their employer. The Chinese would then be concerned that they would
in 1997
unionised Civil large and militantly a absorbing a disproportionate share of Hong Kong's wealth. Chinese officials have not yet raised this with HMG or Hong Kong
take the
inherit
formal
way,
officials in
Sir Y K Pao any opportunity to fire an early warning shot.
may
Service
Although
present
CONFIDENTIAL
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