31

OVERTIME WORKED FROM 5,8E0 TO 1,898 AND A HALF SEMICOLON NUMBERS

13,583.

INVOLVED FROM 23,162 TO 13HTHE. THERE HAS ALSO BEEN SOME SLACKENING IN THE LABOUR MARKET SEMICOLON THERE IS ALSO THE QUESTION HOW FAR OUR OVERSEAS COMPETITIVE POSITION WILL ALLOW WAGE INCREASES SEMI· COLON LABOUR SHORTAGE IN RECENT YEARS HAS TENDED TO FORCE WAGES IN SOME INDUSTRIES UP TO MAXIMUM ECONOMICALLY VIABLE. THE SITUATION IS HOWEVER CLOUDED BECAUSE COST OF LIVING IS STILL UNSETTLED BY THE SUMMER DISTURBANCES AND HAS YET TO ADJUST TO THE DEVALUATION OF STERLING AND NEW EXCHANGE RATES OF HONG KONG DOLLAR. BUT SOME EMPLOYERS ARE CURRENTLY ABLE AND WILLING TO INCREASE

S

WAGES IN ANY CASE, AND IT IS POSIBLE THAT SUCH WAGE ADJUSTMENTS

A

AS ARE MADE WILL BE GEARED TO DISCOUNT TO SOME EXTENT THE

CONSEQUENCES OF 1967 LEGISLATION. AS THERE IS STILL A SHORTAGE

OF LABOUR IN SOME FIELDS OF INDUSTRY IT IS POSSIBLE THAT EMPLOYERS WILL BE GENERALLY WILLING AT PRESENT TO OFFER HIGHER RATES OR TO

MAINTAIN EARNINGS WHERE THEY CAN, BUT IT IS IMPOSSIBLE TO LOOK

FAR AHEAD, PARICULARLY AS THE DISTURBANCES HAVE MADE THE RATE OF

FUTURE INDUSTRIAL INVESTMENT RATHER OBSCURE. THE

INDEX OF OVERALL WAGE RATES FOR INDUSTRIAL WORKERS ROSE FROM

100 IN 1958 TO 203 THIS YEAR.

(C) THE 1959 OPERATION INVOLVED ONE STEP AFTER TWO MONTHS' NOTICE. THIS TIME FIVE STAGES OVER FOUR YEARS WILL RECEIVE TWO DAYS' PRIOR LEGAL NOTICE. INITIAL CONFUSION IS INEVITABLE, WITH CONCEIVABLY 10,000 FACTORIES APPLYING FOR EXERCISE OF TRANSITIONAL POWERS, AND CONSEQUENTIAL ADMINISTRATIVE DIFFICULTIES. I GUESS BY JANUARY SOME MANAGEMENTS WILL HAVE MADE PLANS, BUT MAY POSTPONE IMPLEMENTATION

TILL AFTER LUNAR NEW YEAR. BY FEBRUARY MORE PROGRESSIVE FIRMS WILL

BEGIN ADAPTING TO NEW CONDITIONS. MANY WILL DELAY TILL END OF MAY. BY THEN ACUTE PROBLEMS WILL EXIST OVER ENFORCEMENT, ESPECIALLY ON SMALLER FACTORIES. NEITHER MANAGEMENTS NOR WORKERS WILL BE KEEN ON INTRODUCING NEW WORKING SCHEDULES. SOME DISPUTES WILL CERTAINLY OCCUR WHERE MANAGEMENTS ARE UNWILLING OR UNABLE TO MAINTAIN

EARNINGS. WE MUST EXPECT INCREASED USE, WHERE PRACTICABLE, OF OUTWORKERS, PARTICULARLY TO START WITH IN GARMENTS, PLASTICS, WOOLLEN KNITWEAR, RUBBER SHOES, GLOVES AND RATTANWARE. IT IS NOW PARTICULARLY DIFFICULT TO FORECAST DEVELOPMENTS BEYOND THIS STAGE. 2. REGULATIONS EMBODYING THE PHASED PROGRAMME WERE MADE BY

COMMISSIONER OF LABOUR ON 21ST NOVEMBER ANDY WIL

DR

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