CONFIDENTIAL

These increases have been combined with continuing full employment.

Hong Kong wages are the highest in the Far East with the exception

of Japan.

Government Action in the Labour Field

8. There has been a continuous improvement in working conditions

through legislative action. Thus, in the past five years, 65 items

of labour legislation have been enacted covering a wide range of

safeguards and benefits, such as protection of wages, a minimum

number of rest days, better compensation for industrial injuries;

reduction of the normal working hours of women and young persons; and

the establishment of a Labour Tribunal. On a non-statutory basis,

the Labour Department has encouraged the development of Joint

Consultation in the larger undertakings.

9. New industrial relations legislation is in course of

preparation which will give statutory backing to the Labour Relations

Services in the Department of Labour, and provide for the settlement

of disputes by voluntary arbitration and for courts of enquiry where

appropriate. This law will replace the Illegal Strikes and Lock-Out

Ordinance and the largely out-dated Trade Disputes Ordinance.

10. The labour inspection services are maintained at a high level

of efficiency. Some time ago the factory inspection service was

examined by two senior inspectors from the UK Department of

Employment and we have just been asked to obtain the services of an

experienced inspector on a 2 year contract to advise on the steps

necessary to maintain the inspectorate at a high level of efficiency.

A regular stream of officers from the Department of Labour come to

this Ministry for training.

CONFIDENTIAL

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