12.

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Section 33 in the principal Ordinance also prescribes a fine of $500 for contravention of the Section. It makes it clear, in subsection (2), that a line under this Section may fall on a registered trade union, which is liable on summary .conviction. This liability is without prejudice to that of

the person or persons responsible for the offence, who under Section 49 of the principal Ordinance must effect restitution or, in case of default, become liable to imprisonment up to three months, for any misapplication of funds contrary to union rules.

13.

This corporate liability is unusual, and we presume it arises from Section 13 in the principal Ordinance, which renders a registered union a body corporate. This provision is exceptional in colonial legislation, and we would like to know why it has been included in Hong Kong, and what is its effect. If it is this provision which opens the way to fines falling on union funds, we suggest it be repealed. Unions in Hong Kong are not powerful, wealthy organisations, and even small fines could impair a union's services to its members or even result in its dissolution. Moreover, it is wrong in principle that subscriptions paid by ordinary members should be used to pay fines resulting from executive actions which are contrary to rule. Such liability can only result in unions keeping their funds as low as possible for fear of incurring it, or seeking other means to evade it.

14.

It is already provided in the Schedule to the principal Ordinance that union rules must specify the purposes to which the funds of the union may be applied, subject to the provisions in Section 33. This Section specifies 10 purposes and, in addition, any other purpose which the Governor-in-Council may approve. The 10 purposes do not include the payment of fines incurred by the union, and Clause 19 of the amending Bill would add this to the sanctioned expenditure. This amendment thus gives practical effect to the offensivo provision to which we have referred above.

15.

But Clause 19 would go further. The existing liability under Section 33 is for an offence against that Section, which deals only with application of funds. Clause 19 of the amending Bill would provide for expenditure of union funds to pay any fine incurred under any Section of this Ordinance or for any offence under any other Ordinance. The Hong Kong Trade Unions Ordinance already contains an unparalleled list of penalties for offences which amay be committed under it, and the proposed amendment can only be intended to extend union liability.

We urge

that this amendment should be abandoned, that Section 13 which renders a union a body corporate should be reviewed, and that any amendments which may be necessary to ensure that penalties fall only on persons who actually commit offences should be drafted.

Picketing and Intimidation

16.

It is proposed to amend Section 46 of the principal Ordinance by excluding from the provision for peaceful picketing attendance at or near a place where a person resides, and Clause 23 of the Bill would make a corresponding change in Section 47 (2). However the original proposal in Clause 23 which would have added blocking or causing an obstruction in any street or road to the list of picketing offences has been deleted. The deletion is appreciated, but the retention

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