2.

In the ordinary way, one would expect overtime payment to keep down the amount of overtime worked, but of course a great many textile and garment workers, in particular, are on piece work so that extra hours worked are in effect at standard rate. The trade unions are weak and ineffective and in the absence of any legislative provision about overtime, such as is contained in Singapore law, the payment or otherwise of overtime at additional rates must depend on the scarcity of labour and the individual bargaining power of the worker. I would not rate the latter very highly in relation to women and young persons.

3.

As you know, I criticised the decision of Executive Council in Hong Kong in deleting the agreed provision for overtime payment for those workers required by an employer to work on their rest day. I understand that the Financial Secretary| in moving the amendment, said in effect that it was wrong in principle that matters of this kind should be governed by legislation! But the principle had already been accepted by all the main employer groups and the Labour Advisory Board in Hong Kong.

4. One final point, we are now able to defend conditions in Hong Kong with a great deal more confidence than at any time in the past. This is largely due to pressure from here. But the relaxation on night work for women has attracted a number of critical eyes towards Hong Kong, and we do not want a potential scandal in relation to overtime worked by women and young persons to further muddy the waters. That is why I think we must keep ourselves fully informed to show our concern about what seems to me to be a less than satisfactory situation. The visit of the factory inspectors gives us an opportunity to have an independent view of the overtime situation; we must look very carefully at the inspectors' findings.

(G. Foggon)

15 May 1970.

K

34.22/6/

B.U. When factory Infectors

Refort is recevred

Kul

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