ENG-1980 — Page 79

EMPLOYMENT

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Significant amendments were made to the Workmen's Compensation Ordinance to extend its coverage to all workers regardless of their earnings; to raise substantially the levels of compensation; and to require employers to pay for the cost of repair and renewal of prostheses and surgical appliances.

The Pneumoconiosis (Compensation) Ordinance was enacted, along with some sub- sidiary legislation, to provide compensation for people suffering from silicosis and asbestosis.

The Factories and Industrial Undertakings Ordinance was amended to enable the maximum fine under the regulations to be increased from $10,000 to $50,000, and to increase the penalty for failing to comply with a magistrate's order from a fine of $10,000 to $50,000 and six months imprisonment.

Minor amendments to the Apprenticeship Ordinance and its subsidiary legislation were also made.

As a dependent territory of the United Kingdom, Hong Kong is not a member of the International Labour Organisation and is not called upon to ratify any International Labour Conventions which set international labour standards. However, the United Kingdom Government makes declarations on behalf of Hong Kong with regard to the application of conventions it ratifies. This is done after full consultation with the Hong Kong Government.

As at December, 1980, Hong Kong had applied 44 ILO conventions, which exceeded the number ratified by most member nations.

Wages and Conditions of Work

There is no statutory minimum wage in Hong Kong. The wage level prevailing is essentially the result of an interplay of the economic forces of supply and demand.

Wages are usually calculated on a time basis such as hourly, daily or monthly, or alternatively, on an incentive basis depending on the volume of work performed. Wages are customarily paid once every 10 or 15 days. Most semi-skilled and unskilled workers in the manufacturing industries are piece-rated, although daily rates of pay are also common. Monthly-rated industrial workers are usually employed in the skilled trades or in technical and supervisory capacities. Men and women receive the same rate for piece- work, but women are generally paid less when working on a time basis.

Although wages of manufacturing workers continued to increase in money terms during 1980, real wages remained stagnant because of the increasing impact of immigration and the rapid increase in the cost of living. In fact, real wages had begun to decrease in the second half of 1979 when the impact of immigration on the labour sector became in- creasingly apparent. By September, 1980, average daily wages (excluding fringe benefits) had increased by 109 per cent on the base period of July, 1973, to June, 1974. During the same time, the cost-of-living index went up by 61 per cent, making an increase of 30 per cent for the index of real average daily wages.

A Consumer Price Index (A), based on a household expenditure survey conducted from July, 1973, to June, 1974, is compiled as an indication of the effect of price changes on households spending $400 to $1,499 a month. In December, 1980, this index stood at 168 (see Appendix 16). A Consumer Price Index (B) shows the effect of price changes on households spending $1,500 to $2,999 a month. These indices are now being revised and the new series will be published in April, 1981. Changes will be introduced in the expenditure brackets and in many other practical details.