From May 1 Allowance to Be 65 Per Cent. of Basic Pay for Chinese, Foreign Employees Shanghai, May 30.
Chairman' report to the ratepayers' at the last annual general meeting, when there was passed the 50 per cent, surcharge on General Municipal Rates and Land Tax, forecast the need to adjust municipal salaries in relation to rising costs of living, states a report issued by the S.M.C, It was the hope of the out-going Council that this adjustment might be postponed until the recently appointed Economy Committee had had time to study the problem from all angles.
It has not, however; proved possible to delay this matter further.
There has been a continuous rise in the cost of living since last autumn, when the Council last fixed the scale of allowances for employees serving under letters of appointment.
Except for the Rice Allowance given to the lower-paid Chinese staff, the Council, unlike most commercial firms, has given no increased allowances since October, 1939, Letters testifying to the gravity of the employees' plight were received from both the Chinese and the For-feign Staff Associations, and, after exhaustive study by both the Staff and Finance Committee, led to the recommendations which' the Council has now adopted.
The Council's salaries had fallen considerably behind the salaries pald by the larger commercial organizations here, and the urgency of the matter was evidenced by the resignations and contemplated resignations of many employees whose services the Council wished to retain, The Council further felt it right to review the bases of the various allowances and adjustments given to employees. The lowest-paid em. ployees: not serving under letter of appointment are those living nearest to the margin. At the other end of the scale it is the employees with professional and technical qualifies tions who find it easiest to obtain fresh employment outside the Councls service and who are consequently most affected by a disparity between Council and commercial salaries, The price of rice affects primarily the large body of Chinese employees not serving under letter of appoint ment whose basic pay is below a certain level. Foreign employees and Chinese employees serving under let ter of appointment are more affected than others by the effect of a low exchange on the cost of imported commodities, All these factors have been taken into account in framing the Anal recommendations pasted by the Council, The Rice Allowance given to Chinese employees not serving under Letier of Appointment but on the monthly pay sheet, with basle salaries below $100.2 month, will remain unchanged, As from May 1, 1940, there will be given to all employees on the monthly pay-sheet and foreign, and whether or not serving under letter of appointment, a temporary high cost of living allowance Of GS per cent. of basic pay with a minimum allowance of $16, This al. ow ance of 65 per cent, will take the place of the present "temporary allowances of 30 per cent, and 40 per cent.
The effect of the $16 minimum will bbe to increase considerably the percentage of increase awarded to the lowest paid employees on the staff. In recognition of the fact that they are especially affected by the effect Jof exchange on the cost of imported commodities, there will further be given to all employees serving under fter of appointment a subsistence ow ance of 12 per cent, asia pay. In other words those now receiving an allowance of 30 per cent. of basic pay will receive an allowance of 65 per cent. of basic pay. Those now receiving an allowance of 40 per cent. of basic pay will receive an allowance of 77 per cent. of basic pay, "A Class foreign employees who receive exchange adjustment will Feceive the temporary high cost living allowance and the subsistence allowance on two-third of their basic pay only. Simultaneously, the limit of Gd. applicable to exchange adjustment granted to "A" Class employees in Fespect of one-third of their pay will be lowered from 62, to 4%4d, Total Cost The total cost of, these recommendations in a full year will amount to $4,450,000, For the remainder of this year the cost will be $2,970,000, In reaching its decision the Coun cil hes weighed up its duties to the ratepayers und to the rate~ payers' servants on the Council's pay-roll, In these days sacrifices must be' borne by all, but in decid {ing to lay this extra' charge on the ratepayers' pockets the Council considered that the municipal staff was carrying an unfair share of the burden, In the Couneit's view the increases now given are necessary if the efficiency of the municipal service is to be maintained, Ratepayers who assess the falr~ ness of this decision for themselves are asked to consider some of the {actors which influenced the Council, Those of primary Importance are the capacity of ratepayers to pay; the necessity of giving to all muni cipal employees such pay as will enable them to carry" out their duties without 109 great a strain of Ananelal anxiety, at the same time maintaining a "reasonable standard of living conforming to that of this International community and "tually the necessity of paying salaries suMlclently attractive to prevent those employees regarded as essential to the municipal service from seeking other employment,
Text read from the printed page and cleaned; old type leaves the occasional error.