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In January, a dispute arose in the Nam Yang Spinning Factory, which had recently been established with capital, The dispute which had a machinery, etc., from Shanghai. variety of causes concerned Cantonese women apprentices only, and terminated with the discharge of a number of the apprentices, and a general curtailment of the scheme for training Cantonese. The dispute itself was not of great importance, but is indicative of the unrest that is likely to occur where Shanghai employers and workers are brought into contact with Cantonese workers.

A dispute in the Min Hing Weaving Factory during March illustrates a common source of trouble in the textile industry where remuneration is on a piece work basis and wages are fixed on so much per bolt of cloth. Competition with India and Japan, whose industries have been expanding during the earlier part of this

of this year, resulted in manufacturers in Hong Kong having to reduce costs in general or work at a loss. Unfortunately, reduce in many cases, the managements, instead of trying to costs by increasing efficiency, modernising the factory, machinery, lighting, etc., almost always take the easiest and quickest way by reducing workers' wages. This is of course a short-sighted policy and happily there are signs that among the bigger factories it is being realised that whatever the labour costs the factory must be organised efficiently if it is to take its place as an exporter other parts of the world. In the case of the Min. Hing Factory, the management reduced rates for piece work and as a result 80 workers went on strike for approximately one month.

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In April a dispute arose in the Texas Oil Co. Installation The at Tsun Wan, a small town in the New Territories. workers, who numbered some 300, were urged not to strike until discussions between the management and their represen- tatives had taken place, so that steps could be taken to settle their grievances. Unfortunately, the men appear to have been advised otherwise by a newly-formed so-called Federation of Unions, and two days after the matter had been reported to the Labour Office it was found that nearly all the men were on the strike. After the strike had been on for a week or so,

engage company decided that it would be necessary to staff in order to prevent a disruption of their distribution arrange- ments, and in spite of considerable picketing, about 150 new men were engaged.

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Not unnaturally after 3 weeks the workers, who lived in a small town where there was no alternative employment, began to feel the economic pinch. Approaches were therefore made to the Labour Office, but the men were still under the

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