THE DISPUTE IN THE CHINA
NAVIGATION COMPANY.
STRIKE ON JUNE 30TH REGARDED AS CERTAIN.
OFFICIAL STATEMENT BY THE
UILDS.
THEIR DECLARATION TO STAND BY THE 1916 AGREEMENT.
The following statement dealing with the salary reduction dis- pute between the China Navigation Company, Ltd,, and its Officers. has been sent to us for publicution by the China Const Officers Guild and the Marine Engineers' Guild of China. Copies have also been sent to Messrs. Butterfield & Swire, the CN, Co.'s agents.
As will be seen the Guilds take their stand upon an agree- iment made in 1930 which established, in the last resort, compulsory Arbitration as a means of settling any point at issue.
In December, 1017, the Company wrote to the Guilds giving nutice that in future arbitration must be by mutual consent.!! They stated that they could not submit any and all questions which may possibly arise to arbitration and be bound by the result."
This was regarded as, in offect, an abrogation of the agree ment but the Guilds took no helion except to enter a protest.
The position now is that the Company regard the ten per cent. reduction in wages as absolutely essential and as a matter which concerns themailves and their officers alone. They do not regard themselves bound' either morally of legally by the agreement of 1910 and will not consent to arbitration by outside parties.
Thus a deadlock arises, and unless some way out is quickly found it is stated that the officers and engineers of the China Navigation Company will suspend service at midnight on June goth. The trouble does not effect other companies. The Guilds "anticipate that all of the CN.C. officers will leave their ships: In other quarters doubt is expressed on this point. It is said that many of the senior officers of the Company are against a strike.
The statement of the Guilds is as follows:-
So much has appeared in the local ress in recent months concerning the dispute between the China Navi gation Company and its foreign floating staff (represented by these Quilds) in regard to the reduction of the salaries of masters and deck and engineer officera by 10 per cent. as from 186 April Inst, that the public will be generally an fait with the main points of the dis- pute. In view of the apparent. imminence of a serious rupture, however, and of the manner in which it inevitably will affect the public, we are instructed by the Management Committees of our respective Guilds to make known the following facts, as showing the un- doubted right of the Guilds in their insistence on the matter being re- ferred to an adjustment board and, possibly, arbitration.
These Guilds, as representative of the masters and navigating and engineer officers CA the China Coast, had on numerous occasions, previous to the year 1910, approach- ed the principal Companies, which includes the China Navigation Com- pany, for recognition as such but without success and as a result a stoppage of coastal vessels occurred in May of that year. During the disputó negotiations between the. Company and the Guilds were con- ducted through the medium of the late Sir Everard Fraser, who was at the time H.B.M Consul-General in Shanghai.
On 2nd May, 1910, the following letter from Sir Everard Fraser, was received by these Guilds:-
the
THE HONG KONG DAILY PRESS, MONDAY, JUNE 27th, 1927.
letter by the following on Novem ber 6th, 1920:-
Guild and the British Shipping The Company acknowledged this Vice-Consul (as Chairman)," A stenographer to record proceed. | ings of Adjustment Board if re quired by either side.
**In caso the Adjustment Board fails to adjust the question, the matter to go bofore an Arbitra- tion Board composed of one arbite rator appointed by each side and & third by these two.
"It is understood that the find- ing of the Adjustment Board is only binding on both sides, if usagimona; the finding, however, of the Arbitration Board is bind ing on both parties. The members of the Adjustment Board will
"We havo to acknowledge re- ceipt of your letter dated Novtm ber sth and we enclose copies of our letters to the China Coast Officers' Guild dated December 11th, 1917, and January 26th, 1018, which define the Company's posi
·tion."
THE PEAK CLIMBED.
INTERESTING FEAT BY ARMY LORRY,
STEPS SUCCESSFULLY NEGOTIATED.
(Sgd.) BUTTERFIELD & SWIRL" Company and the Guilds is, then, fent was accomplished on Saturday The present dispute between the A remarkable and interesting the first that has existed for the morning, when for the first time in past seven years and exercising their prerogative under the Agree the history of the Colony a motor ment of May 1916, the Guilde ap sittings will be adjourned for this Consul with the request that the refer to their principale, and its ached H.B.M. Shipping Vic vehicle climbed Peak Road. purpose, as often as may be re
Adjustment Board convened to quired."
adjudiente and determine the die pute and he
The foregoing clearly shows that the Agreement which the Chine Navigation Co., Ltd., now seeks to document demanded by them before abrogate, was, in fact, the very
they would concedo recognition of to Guilds.
The first attempt of this Com pany evade the Agreement is shown. by the following letter which was addressed to the Guilds on 11th Des cember, 1917-
All the outstanding questions in the settlement of 12th May, 1916, between the Captains and Officers' representatives having now been settled, our Principals have instructed na to advise you that so far as they are concerned any future proposals to refer to arbitration must be by mutual consent,
At the same time they desir
it to be made perfectly clear that this is by no means to be inken As an indication that the China Navigation Company is opposed to arbitration; it means only that the Company cannot hold itself found itself bound to submit any and all questions which may pos aible arise to arbitration and be bound by the result."
Sgd. BUTTEDFIELD & SIRE." to which the China Const Officers' arbitration ADY such question, Guild replied as follows on 4th subject in their case to the proJanuary, 1918- visions of the Merchant Shipping At na to discipline.
The arbitrators should if pos sibly be agreed upon by both sides as a permanent conciliation board of three, each side to select one indifferent, that is independent, person, and these two to select the other
In this way the Companies will be free from any danger of unreasonable or petty demands being frequently put forward and their employees would be nasured of fair treatment of any substan- tial grievance.'
Sgd E. H. FRASER,
Consul-General."
The following extracts, covering proposals by the Companies with regard to recognition are taken froin a communication received by the Guilds on 10th May, 1916, from Sir Everard Fraser —
They (the Companies) are pre- pared in reply to demand No. 1 to submit to an Adjustment Board, formed as hereinafter described with the object of creat; ing a neutral meeting ground and in case of disagreement, to arbit ration as suggested by me in my identie letter of the 2nd inst Similarly all future questions in dispute between your Guild and themselves shall be submitted and decided in the same way.
The Adjustment Board would be summoned at any time by either party to any dispute by communicating with the Shipping Vice-Consul
The Companies offer this counter. proposal to demand No. 1 made by your Guild, L., its recognition. Through the Adjust ment Board they recognise that your Guild is representative of the officers of their Companies and its right to represent them collectively, via-a-pie themselves. At the same time they are safe guarded against abuse of the power of Guild and against such constant friction as has arisen in other parts of the world."
This achievement was by one of the army six-wheeler lorrios of the kind that carried out the demon-
as willing to expressed himself utration in the New Territories last
not as Chairman in accordance with the terme of the able to the Company and the Guilds Agreement as soon as a date sul could be arranged.
The Company was notified of the desire of these Guilds under dates April 29th and May 3rd, 1927, rc- spectively but as no definite anewer had been received from them agree- ing to submit the dispute to the Adjustment Board the Guilds were obliged to address the Company under date ay 24th last request ing, inter alia:--
(a) Its consent to submit the dispute to the Adjustment Board in accordance with the terms of the Agreement of May 1910;
or alternatively,
(b) Its decision to restore the salaries to the level prevail- ing previous to the reduction, as well as to refund to all ranks the salary percontage deducted since April Jat, 1927."
week. During this demonstration, Clementi, K.C.M.G.), who was an H.E. the Governor. (Sir Ceeil
interested spectator, wondered whe- ther one of these lorries could climb Peak Rond.
It was order to see whether this could be done that Saturday's successful attempt was made.
The route taken by the larry was from the Star Ferry to Beth's Corner, from whence it climbed the steep gradients right up to the top Peak Tramway Station. The lorry successfully negotiated four hair pin bends, and gear had to be reversed on two occasions before the turning was made. The journey accomplished in twenty minutes, and when the trip was finished it. was found that there was no over-heating,
was
On the return journey, which was also successful, a flight of 88 steps were climbed at Arbuthnot Road, and after the descent, the Captain- Supt. of Police (the Hon. Mr. E. D. C. Wolfe) joined the party and the trip was concluded by the lorry going down the long flight of steps which comprise Pottinger Street.
The driver of the lorry was Capt. L. J. H. Gardiner.
ent. THE FEAST OF THE SACRED
HEART.
In other words the Guilds have simply requested the Company to prove the justification for the re- duction through the medium of the Adjustment or Arbitration Board as the Company specifically contracted to do when it affixed its signature "I am instructed by the Man to the Agreement of May 1916, or, agement Committer to inform you alternatively, if the Company is not in reply to your letter of 11th prepared to carry out what is the December, that this Guild cannot clear intention of the Agreement. consent to the breaking of the the matter may be satisfactorily Agreement of 12th May, 1910, adjusted by the restoration of the which establishes compulsory salaries to their former level, to- arbitration on all future differ-gether with refund of the percent- ences which cannot be adjusted by age already deducted. By adhering correspondence or the Adjustment to the Agreement "the Company Board."
is safeguarded against abuse of the power of a Guild," and "their ent ployees would be assured of fair treatment of any substantial grier auce." (Vide the late Sir Everard Fraser's letters of May 2nd and May 10th, 1916).
Sgd. L. D'OLIVÈYRA,
73 Scoretary.' A communication of identic tenor was addressed to the Company by the Marine Engineers Guild of China on January 8th, 1918.
The Company again wrote the Guilds on January 20th, 1918:
"We have submitted our letter to you of the 11th ultimo and your reply of the 4th instant to our legal advisors and are now advised that the attitude taken up by our principals and referred to in our letter to you of the 11th is correct. We have therefore only to confrm what we have already written, namely, that any further proposals to refer to arbitration must be by
+
“mutual consent.
(Sgd.) BUTTERFIELD & SWIRE. As no dispute thén existed be tween the Company and the Guilde no reply was made to this letter..
In the Autumn of 1920 certain were placed before the Company by adjustments to service conditions these Guilds for, consideration and us it looked as though a recurrence of the disaster in 1916 was imunin- ent owing to the attitude adopted at that time by the Company the mattor of the agreement had been represented to Sir Everard Fraser who, in a letter addressed to the China Coast Officers' Guild under date October 14th, 1920, expressed himself with regard thereto as fol- lows:-
The Agreement which bears my signature as a witness was intended according to my opinion and clear recollection to be per- manent."
In a letter dated May 13th, 1927, received from Messrs. John Swire & Sons, London, the Company's attitude is reiterated in that it paintains, "that the letters ad dressed by the Company to the Guilds on December lith, 1917, and January 26th, 1918, also to the Guild's legal advisers under date November 6th, 1920, free us legally from the Agreement and they cer- tainly do morally,"
The following is taken from a letter sent to these Guilde by the local agents of the Company under date, 4th inst. :-
"Our Loudon Principals in- struct us to inform you that we are prepared always to meet our Staff and/or the C.N. Co. mem. bers on the Management Com-- wittes, and the Secretaries of the Guilds, either with or without H.B.M. B Shipping Vice-Consul, in order to discuss any construc- tive suggestions from them but without prejudice to our letter. dated December 11th, 1917, as regarde arbitration."
SHANGHAI, June 24th, 1927, This letter was brought to tho notice of a Combined Meeting of these Guilds on the 8th inst., an any meeting between the Company's representatives, Floating Staff and the Secretaries is clearly provided for in the Agreement of 1916 and further that the Company still adheres to its attitude on repudiat- In the meantime the Companying the Agreement, vide Liceurs. had made certain concessions which John Swire's letter dated May 13th, were accepted by the Guilds, and 1927, the letter was unanimously re therefore, as matters had been jected by the Mecting with the re satisfactorily dealt with by corresult that in a communication to the spondence the necessity for the Ad- Company on the 7th inst, the Guilds justment Board did not enter but have advised, inter alia: as a result of Sir Everard
Fraser's
The dispute between masters and officers and their employers upon the question of The proposals of the Companies, recognising the Guilds of which as above, being accepted by the the very great majority are mein-
Guilds the settlement Agreement bers, appears to me to be so grave drafted by Sir Everard Fraser on misfortune at this time that I 19th May, 1918, in the case of the feel bound to offor a possible China Coast Officers Guild and on solution.
15th May in the case of the Marine opinion the following communica The Companies are lath to Engineers' Guild of China. Totion was addressed to the Com- recognise the Guilds because they there Agreements was subscribed the pany by the Guilds legal advisers
under date November 8th, 1920:- apprehend that recognition would signatures of Sir Everard Fraser,
The China Coast expose them to constant demands H. B. M. Consul-General, Mesura
Officers backed by the threat of a strike, Butterfield & Swire, Agents, China Guild have shown us the recent such demands being possibly put Navigation Co., Ltd., and the then correspondence which has passed between you and them. We have forward by a few members who Secretary of each Guild and in so
also seen the correspondence may not even be all their em- far as the members of the Guilds
which led up to the Arbitration ployees.
wore concerned the Agreement was
in 1918. The masters and officers de-viewed with the fullest satisfaction sire recognition because the in that it provided for permanent nature of their employment pre- peace on the Coast as any subse vents the bulk of them being atquent dispatce between the Com one time in Shanghai and because panies, and the Guilds which could they apprehend that individual not be mutually settled by corros- complaints may prejudice compondence could be referred by either plainants,
party to the Boards as provided in
At the meeting yesterday it the Agreement. was evident to me that all the prosent demands of the members of the Guilds were capable of amicable adjustment and that, therefore, the recognition question is in fact, the sole cause of the contracting parties reads as
·lamentable blow to China coast trade,
My suggestion is that as a cón, dition precedent to recognition of the Guilds the members thereof All bind themselves to submit to arbitration any question, whereon thore is disagreement between the Companies and the Guilds or any member or members thereof and that the Companies likewise bind themselves to submit to
The Clauso in the Agreement re- forring to the Adjustment Board, and, if necessary, a Board of Arbit ration in cases of dispute between
follows:-
#The Companies agree to re cognise the Guild as follows:-- The Guild to write and receive lettera from the Companies and matters dealt with may be refer- red by other party to & Board of Adjustment composed of one member of each fleet concerned or a permanent representative, one representative of each Company concerned, the Secretary of the
Wo understand that you ra fuse to recognise the right of the Guild to call the Adjustment Board into operation to decide the present dispute between them and yourselves, although the cor respondence which passed prior to that
clearly Arbitration
dis closes to our minds that the ex- pressed intention of all parties at the time was the inauguration.
of a tribunal of
s permanent charac- ter to which all future disputes
be compulsorily referred, We are instructed say that to that con tention and, that if the Company is not
at this present juncture prepared to
out what was the obvious intention of H.B.M.' Consul-General's letter, May
19th, 1910, and the spirit of the ar cangement then arrived at, the members of the Guild, on their part, intend still to maintain for the future their full rights there- under.
the
LOCAL CATHOLICS
CELEBRATIONS.
The Catholics of Hong Kong celebrated the feast of the Sacred Heart of Jesus on Friday, Inst. Services were held in the Cathedral of the Immaculate Conception both in the morning and, evening,,
An al Fronco concert, was given by members of the Catholic Union Club in the Cathedral compound.
There was a large gathering pre- sent, including His Lordship Bishop Henry Valtorta, the clergy of the Cathedral, and representatives of the French, Spanish and American Catholic Missions in Hong Kong.
C.N. Co. members on the Man agement Committee and the Secretaries of the Guilds, either with or without H.B.M.'s Shipping Vice-Con sul..
We are to point out that whilst these Guilds are perfectly willing to meet the Company's. representatives on any matter in diapute in accordance with the provisions specifically made in the Agreement of May, 1916, any such meeting must be strictly in accord- ance with the said Agreement by which the Company and these Guilds are bound. Any meeting. between the Company's represch- tativos, Floating Staff and the Secretaries of the Guilds, is clearly provided for in the Agree ment both as regards composition and procedure and any movement to arrange a meeting on a basie ather than in strict line with the Agreement can only regarded as an attempt to invalidate the whole Agreement and would, in any case, be a departure from ite spirit which might prejudice the position of the Guilds in the event of future exigencies."
It will thus be seen that an ab- solution deadlock has arisen in the "These Guilds, therefore, deter negotiations between the Company mined to maintain inviolate the and the Guilds in that the Company 1910 Agreement, afirm the resolu- has set out to jettison an Agreement. tions passed at Shanghai stoppage which was designed solely and ex- on all the Company's vessels ob pressly by the late Sir Everard 30th June, 1927, and hereby in Fraser for the purpose of avoid- structs the Secretaries to addressing, by means of an Adjustment or forthwith a communication to the
Arbitration Board, any open rap Company in reply to their letter,ture between the Company and the advising that the Guilds' letter of Guilds and a system which, were it 24th May, 1927, clearly defined the more universally in vogue, could decision of the Guilds, to which only be to the mutual benefit of communication there is nothing to employer and employee. add excopt the point out to the
In conclusion we leave it to the Company that any suspension of public to consider what would have the services on the 30th inst, will been the attitude of the Company be solely to their attitude in re had the position been reversed and pudiating the Agreement of Muy the Guilds been the offenders 1916, which bears the signature against the integrity of the Agree of the Company as a party there- ment in question. As these Guilds to, and that the responsibility.fur view it, the onus is on the Com such stoppage must, therefore,
rest cutirely with the Company Pany and the only equitable way To a letter received from the local indicated by the Agreement to which out of the present impasse is clearly Agents of the Company the Guilds the Company set its hande in May,
1916. replied on the 17th inst, as follows:
We are, in receipt of your under date 16th inst
"With référence to the first paragraph of yours of June 4th and the third paragraph of yours now under feply, which are prác- tically identical in tenor und which record-
"We are prepared always tó méóð ön? Staff and/or the (Continuer on hel Column.)
A copy of this statement has been sent to H.B.M. Consul-General în. Shanghai, and to Messrs. Butter- Bold & Swire.
For and behalf of the Man agement Committees, W. E. KIRBY, Secretary, Chine Coast Officers' Guild. ...|J. WATSON, Becretazy," Marine Engineers' Guild of China.
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