CONFIDENKÄÄL
will be making under existing arrangements in respect of its own employees in Class 1.
14. In the long term either trade unions will become stronger in Hong Kong and better able to intervene effectively in wage bargain- ing, or the Government must take steps to establish machinery for the fixing of minimum wages in particular industrics or occupation:
or perhaps better in Hong Kong circumstances - a general minimum wage below which an adult working a normal day may not be paid.
Industrial Relations Bill
15. There has been much discussion in the past about legislation to replace the outdated and unused 'Illegal Strikes and Lock-outs Ordinance'. Arising from discussions during my visit to Hong Kong in November 1971 it was recommended that an Industrial Relations Bill should be prepared based on the following principles: -
(a)
(b)
Any new legislation should replace both the Illegal Strikes and Lock-outs Ordinance and the few remaining sections of the much amended Trade Unions and Trade Disputes Ordinance 1948.
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.
16.
(c)
Powers should be provided in the legislation for the Governor to intervene in strikes (or lock-outs) gravely injurious to the Hong Kong economy or the welfare of its people. Essential services should not be listed.
There has been much delay unfortunately in implementing these recommendations and the first draft of a Bill prepared immediately before my visit will need a good deal of modification. The draft has been discussed in detail with the Commissioner of Labour and in general terms with the Attorney-General. and the way should be clear for the early preparation of the Bill in a revised and acceptable form. There is however an important outstanding point to be resolved. The question has been raised whether there might be dangers to the standing and prestige of the Governor arising from the exercise of his proposed powers under (c) above, since any refusal to obey a direction issued by him in the event of a serious strike could lead to contempt proceedings, thus bringing the Governor into the arena of public controversy. This is indeed a danger and the powers in question were only included because it was the considered view in Hong Kong that if the Illegal Strikes and Lock-outs Ordinance were to be repealed, then some stand-by powers should be retained for use in serious industrial disputes (falling short of circumstances justifyin; declaration of a state of emergency). The essential safeguard off the Governor's position would of course rest on the judgment of his advisers with regard to the use of these powers. It would be perfectly proper, for example, for advice to be tendered that the Governor,
in a particular emergency, should do nothing - either because the
/circumstances
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