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28 May 2002
Dear Colleagues,
Civil Service Pay Adjustment 2002
Further to my letter of 22 May, I am writing to inform you that having considered the views submitted by the staff sides on the pay offer and other relevant factors, the Chief Executive in Council has decided today that civil service pay should be reduced by 4.42% for the directorate and the upper salary band, 1.64% for the middle salary band and 1.58% for the lower pay band, as originally offered to the staff sides. The pay reduction will take effect from 1 October 2002. The Chief Executive in Council has also decided that the pay reduction should be implemented by legislation. For this purpose, the Administration will introduce the Public Officers Pay Adjustment Bill into the Legislative Council. It is our intention to seek the enactment of the said legislation within the current Legislative Session.
In my last letter, I have explained to you why it is necessary to implement a civil service pay reduction by legislation. This subject has been a focus of discussion both within the civil service and among members of the public during the past week. To address the various legal points raised, Law Officer (Civil Law) wrote an article last week, which was published in a number of newspapers, to clarify the matter. I attach a copy of the article for your information.
Without attempting to repeat all the legal arguments which Law Officer (Civil Law) has clearly set out in his article, suffice for me to say that we have thought long and hard on this matter and have come to the conclusion that legislation is the only viable means to implement with certainty a justified decision of a modest pay reduction made strictly in accordance with the established mechanism for civil service pay adjustment. Based on legal advice, since many of the contractual arrangements between the Government and serving civil servants do not contain an express authority for the Government to reduce pay, there is a serious risk that implementation of a civil service pay reduction without legislation would be subject to a successful legal challenge. In such an eventuality, considerable uncertainties will ensue, and the good governance of the HKSAR and the stability of the civil service will be seriously affected. As a responsible Government, we clearly cannot allow this to happen.
The Government is committed, and the staff sides have hitherto urged the Government, to follow the established mechanism in handling this year's civil service pay adjustment exercise. This we have done. If the general consensus is that the pay reduction now decided under the established mechanism is reasonable and fairly modest, we should accept the legislative measures to implement with certainty the adjustment decision for this year.
I well appreciate that some of our colleagues' concerns about the adjustment decision for this year are somewhat influenced by their concerns about other civil service reform initiatives and certain institutional changes in the Government. I can assure you that the Government attaches great importance to the contributions of the civil service and, just like members of the public, we take pride in having an outstanding and clean civil service. I hope that with explanation, colleagues' concerns will subside. To this end, we shall step up our efforts in reaching out to colleagues in all departments in the days ahead so that you will all have a better understanding of the various policies concerning the civil service.
Before I close, I appeal to you all to uphold the fine traditions of the civil service and to continue to serve the community with dedication and to the best of your ability.
Yours sincerely,
(Joseph W P Wong)
Secretary for the Civil Service
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