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October, 1960

(cont.)

November, 1960

December, 1960

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January, 1961

February, 1961

March, 1961

May, 1961

June, 1961

CONFIDENTIAL

At a meeting on 28th October with unofficial members of Executive and Legislative Councils Lord Perth referred to the intention to enact an amended Industrial ployment Bill and intimated that it would be in Hong Kong's own interest if it could be seen to be moving forward gradually towards improved conditions.

The Governor in a letter to Mr. Wallace dated 10th November confirmed that a short-term programme had been agreed in principle which would require the enactment of an amended Industrial Employment Bill in February 1961 and the introduction in the autumn of that year of amending regulations restricting the hours of work of women to 9 hours a day as from 1st January 1962. The intention was to base the amended Bill on the existing draft but excluding the provisions for maternity benefits for women workers, but proposed a departure from the arrangement agreed in principle with Lord Perth on the grounds that an alternative discussed between the Labour Commissioner (Mr. Sedgwick) and the Secretary of State's Labour Adviser (Mr. Foggon) whilst the former was on leave in the U.K. during Lord Perth's visit to Hong Kong. This was that a scheme of paid annual leave should be substituted for both the sick leave provisions and the statutory holidays with pay, leaving it to the worker to decide whether any absence on aick leave should be debited against annual leave entitle- ment or be regarded as sick leave without pay,

Colonial Office view was that new proposals arose from misunder- standing and that sick leave provisions originally proposed should be adhered to.

Governoy confirmed that drafting of legislation was proceeding on basis of interim programme agreed with Lord Perth but asked that employers might be given fresh alternative, subject to suitable safe- guarda, of granting regular paid annual leave in place of statutory holidays and sick leave.

Colonial Office rejected Governor's proposal for alternative.

Short-term legislative programme agreed with Lord Perth considered by Hong Kong Executive Council. After opposition from employers, Commissioner of Labour authorised to resume discussions on revised stop-gap Bill and Executive Council agreed in principle that Labour Advisory Board be asked about July 1961 to consider a reduction in the maximum hours of work of women and young persons from,

from 10 to 2 day to take effect from 1st January 1962.

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Colonial Office (Mr. Melville) in semi-official letter to Governor recognised that difficulties in Executive Council and need for further /consultation made enactment in February unlikely but asked whether

enactment by end of March would be possible. To avoid further delay Colonial Office asked to see draft legislation as early as possible and to know likely date when proposals would go to Labour Advisory Board.

Governor in reply suggested Bill would go to L.A.B. early April and might be introduced into Legislative Council in May. Forecast enactment end of June but promised every endeavour to spasd up processes.

Governor reported that employer opposition had necessitated re- draft and suggested that some relaxation of the prohibition on the employment of women and young persons on holidays would facilitate

■ further reduction in hours proposed for the beginning of 1962.

Colonial Office expressed disappointment that timetable had slipped back and hoped that end of June would stand as date when anactment would be achieved.

Governor expressed views sick leave proposals unworkable and pressed earlier alternative of paid leave.

CONFIDENTIAL

/July, 1961

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