As an alternative to reduction of staff, some managements have introduced systems of rotational work. It is doubtful whether this can be more than a temporary solution since only a restricted number of trades can work such a system, and a further decline in business might reduce wages below the minimum necessary for subsistence.
Collective Agreements
A number of collective agreements were negotiated and signed in the Labour Department during the year. The agreements generally contain details of wage rates, hours of work and holidays as well as providing for revision or settlement of difficulties arising from the terms of the agreement.
The rattan furniture-making trade, which produces chiefly for export to the North American market suffered from bad business in the last summer season. As a result there was a sharp reduction in piece- rates and much dissatisfaction amongst the workers, who are mainly Hakka. A group of exporters, manufacturers and two workers' unions tried to negotiate new piece rates. Little progress was made until the unions approached the Labour Department for mediation.
By that time many of the several thousands of workers in the trade had stopped work, because they claimed they could not earn a living wage. Frequent meetings were held and after much hard work a new agreement was drawn up which provided a new scale of piece rates. The workers went back to work at the new rates but at the last moment the exporters refused to sign the agreement,
refused to sign the agreement, unless two of their competitors would also sign. As the two competitors have refused to sign, despite persuasion by all parties, negotiations have now broken down completely although the new rates are still in force. It is to be feared that any decline in business may produce fresh disputes in the coming year.
A total of over twenty disputes and stoppages was dealt with in the course of 1951.
Minor Wage Disputes
In view of bad trade many small and undercapitalized firms have run into difficulties and the Labour Department has had to devote more and more time to settling by mediation numerous small disputes over arrears of wages and dismissals without proper notice.
Cost of Living
There has been a gradual increase in the price of most staple commodities, after a brief period of relative stability in 1950. The rehabilitation allowance which is a cost of living allowance for manual
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