ENG-1988 — Page 123

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EMPLOYMENT

Labour Legislation During the year, 14 items of labour legislation were enacted to provide for better standards of safety, health and welfare for the workforce. This brings the total number of items of labour legislation enacted in the last 11 years to 149 under the overall policy of achieving a level of legislation on safety, health and welfare broadly equivalent to Hong Kong's neighbouring countries at a similar stage of economic development. The more significant items of labour legislation which came into force during the year were the Occupational Safety and Health Council Ordinance, which established the Council to promote higher standards of safety and health for people at work, amendments to the Employment Ordinance to improve the provisions for long service payment, and amendments to the Factories and Industrial Undertakings (Dangerous Substances) Regulations concerning the labelling and safe use of such substances.

As a dependent territory of the United Kingdom, Hong Kong is not a member of the International Labour Organisation (ILO) 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 1988, Hong Kong has applied 29 conventions in full and 18 with modification, making a total of 47. This compares favourably with other member nations in the region.

During the year, there were 4 095 prosecutions for breaches of ordinances and regula- tions administered by the Labour Department. Fines totalling $12,662,935 were imposed.

Wages and Conditions of Work

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

Wage rates are usually calculated on a time basis, such as hourly, daily or monthly, or on an incentive basis depending on the volume of work performed. The pay period is normally 15 days for daily-rated and piece-rated workers and a month for monthly-rated workers. 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 skilled trades or in technical, supervisory, clerical and secretarial capacities. On the other hand, monthly rates of pay are most common for workers in the non- manufacturing industries. Men and women receive more or less the same rate for piece-work. Women on average are paid less when working on a time-basis, but there may not be strict job comparability.

Wage rates in the manufacturing sector continued to increase in money terms during the year while unemployment and underemployment remained at a low level due to the continued expansion of the service sector of the economy. However, after allowing for rises in consumer prices, the wage rates for all employees and workers decreased in real terms by 0.1 per cent and 0.8 per cent respectively between September 1987 and September 1988.

In September, 75 per cent of manual workers engaged in manufacturing industries received daily wage rates (including fringe benefits) of $111 or more (males $135 and females $105), and 25 per cent received $159 or more (males $193 and females $147). The overall average daily wage rate was $139 (males $169 and females $126).

Besides granting statutory holidays, annual leave, rest days and other entitlements under the Employment Ordinance, some employers in the manufacturing sector provide workers with various kinds of fringe benefits, including subsidised meals or food allowances,