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Mr Crowson

HONG KONG : TRADE UNION AFFAIRS AND MR CLIVE JENKINS

1. I have sent you separately today Mr Jenkins' letter to Mir Royle and a draft reply. I think it might be useful if I make some preliminary comments on the substance of Mr Jenkins' proposals.

2.

You may recall that in my report on my visit to Hong Kong in December 1971 I put forward a number of proposals concerned with industrial relations legislation (paras. 5 to 8). I would draw attention in particular to the recommendations contained in my para.7, which can be briefly summarised as follows:-

(a) The new Ordinance should provide a statutory basis for conciliation and voluntary arbitration and make provision for the setting up, where appropriate, of Boards of Inquiry in connection with trade disputes.

(b)

Improvements in industrial relations machinery in the principal essential services.

(c) The repeal of both the Illegal Strikes and Lockouts Ordinance and what remains of the Trade Unions and Trade Disputes Ordinance 1948.

3. Progress in Hong Kong, however, has been slow. The Secretariat comments on my report accept that there would be advantage in enacting comprehensive industrial relations legislation of the kind I proposed but goes on to say that "it has not yet been possible to settle detailed drafting instructions". (Colonial Secretariat Commentary dated 15 February 1973).

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4. Even when adopted, however, my proposals would not meet all the points raised by ir Jenkins. example, my proposals envisage voluntary arbitration, whereas Mr Jenkins refers to "the capacity for a recognised bargaining agent to make a unilateral reference" which implies compulsory arbitration i.e. one party can force the other to the Industrial Court. My proposals are also silent on the subject of determining the recognition of a trade union for bargaining purposes. Indeed no such provisions have existed in British trade union law until the enactment of the Industrial Relations Act in 1971. The same could be said about the proposal that the law should provide for "an obligation upon an employer to bargain in good faith". It is surprising that Mr Jenkins, who has joined those who attack the Industrial Relations Act, should be suggesting that certain aspects of it should be adopted in Hong Kong!

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DD 897152 154596 500M 2/72 GM 3643/2

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