CONFIDENTIAL
105205
MDLIAN 0337
DISCRIMINATION. STATISTICAL ANALYSIS HAS REVEALED THAT MALE WORKERS ARE PAID ON AVERAGE 34 PER CENT HIGHER THAN THEIR FEMALE COUNTERPARTS. THIS FACT HAS BEEN PICKED UP BY WOMEN'S GROUPS. THE FACTORS CONTRIBUTING TO THIS DISPARITY ARE NOT CLEAR, BUT THERE IS LITTLE EVIDENCE TO SHOW THAT THE DIFFERENTIAL IS DUE TO SEX DISCRIMINATION. OUR LINE HAS BEEN THAT THE DIFFERENCE IS GENERALLY DUE TO THE DIFFERENT NATURE AND CONTENT OF JOBS. WE COULD NOT, THOUGH, CLAIM THAT THERE IS DEFINITELY NO DISCRIMINATORY ELEMENT INVOLVED. THERE ARE, HOWEVER, STRONG ARGUMENT AGAINST ENACTING EQUAL PAY LEGISLATION BASED ON ECONOMIC AND LABOUR RELATIONS CONSIDERATIONS.
8.
FROM THE ECONOMIC POINT OF VIEW, HONG KONG CURRENTLY HAS GREAT FLEXIBILITY IN THE EMPLOYMENT MARKET. WOMEN ARE GENERALLY WELL INFORMED ABOUT AVAILABILITY OF JOBS AND LABOUR MOBILITY IS HIGH. THERE ARE NO RESTRICTIONS ON WAGE RATES, WHICH ARE ENTIRELY MARKET DETERMINED. THIS FLEXIBILITY HAS CONTRIBUTED GREATLY TO HONG KONG'S ECONOMIC SUCCESS. THE INTRODUCTION OF EQUAL PAY LEGISLATION WOULD INCREASE RIGIDITIES IN EMPLOYMENT PRACTICES AND LABOUR COST WOULD BE RAISED UNNECESSARILY. ALTHOUGH THE PRECISE EFFECT ON THE OVERALL WAGE LEVEL IS DIFFICULT TO ASSESS SINCE MANY INDUSTRIAL WORKERS ARE PAID ON A PIECE RATE BASIS, AND MOST EXECUTIVES IN THE PRIVATE SECTOR ARE ON PERSONAL SALARIES WITHOUT FIXED SCALES, THERE WOULD CERTAINLY BE SOME INCREASE IN AVERAGE WAGES, WHICH WOULD PUSH UP THE COSTS OF PRODUCTION, AND AFFECT THE COMPETITIVENESS OF HONG KONG GOODS IN EXPORT MARKETS. THIS WOULD IN TURN HAVE A DETRIMENTAL EFFECT ON THE HONG KONG ECONOMY, AND MAY EVEN JEOPARDISE JOBS IN CERTAIN SECTORS.
9. ON THE LABOUR RELATIONS SIDE, EMPLOYERS ARE EXPECTED TO OBJECT VERY STRONGLY TO THE INTRODUCTION OF EQUAL PAY LEGISLATION AS INAPPROPRIATE FOR HONG KONG'S QUOTE LAISSEZ FAIR UNQUOTE ECONOMY. IT IS DOUBTFUL THAT A PROPOSAL TO ENACT SUCH LEGISLATION WOULD BE APPROVED BY THE LABOUR ADVISORY BOARD, AND WITHOUT THEIR APPROVAL INTRODUCTION TO EXCO AND LEGCO WOULD BE DIFFICULT. EMPLOYERS MAY REACT TO EQUAL PAY BY SEEKING TO EMPLOY MORE MEN RATHER THAN WOMEN. THERE WOULD THEREFORE NEED TO BE BACK UP LEGISLATION COVERING RECRUITMENT, AND AN EFFECTIVE REDRESS MECHANISM. THIS WOULD INVOLVE FURTHER ECONOMIC COSTS, AND WOULD HAVE SERIOUS IMPLICATIONS FOR CONFRONTATION BETWEEN TRADE UNION AND EMPLOYERS. ALTERNATIVELY, EMPLOYERS MIGHT SLOW DOWN SALARY INCREASES FOR MALE WORKERS TO OFFSET THE FINANCIAL BURDEN OF EQUAL PAY FOR FEMALE WORKERS. THIS WOULD CAUSE DISSATISFACTION AMONG THE MALE WORKERS.
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