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4.

As no similar aribitration proceedings had been previously instituted in

Hong Kong, the nominees of the parties were, at first, not certain as to

the principles on which they should act when deciding the issues before

them. The Chairman rightly directed then that in law "each arbitrator

is bound to act fairly towards both parties, and that he contracts a duty

to each. The Board held six meetings, at which the views of both parties

H

were fully considered, and issued their award, a copy of which is attached,

on the 2nd September, 1946.

9.

The main question settled by the award was the very complex one

of wages.

The lower grades of employees were assimilated to similar grades

in the employ of other Public Utility Companies, but it was difficult to fit coxswains and engineers into the general scheme. It was recognised that

these latter had special responsibilities and, in the case of cross-harbour navigation, experience has shown that special skill and knowledge are also

requisite.

any permanent alteration in basic wages.

To meet

In view of these considerations the Board concluded that the

wages paid in 1941, to which it was sought to relate the men's current

At the same time it was not considered demands, were in fact too low. desirable in present circumstances, when prices are much inflated, to make

Any additional remuneration,

therefore, would have to take the form of bonuses or allowances. the special position of coxswains and engineers the companies offered to pay a Safe Navigation Bonus. This was objected to in principle by the men. Eventually a form of compromise was adopted which left the basic pay for these two classes practically unaltered but gave an additional Ferry Passenger Carrying Allowance, which brought their wages generally into line with those paid to coxswains and pilots of River Steamers and launches

operating in this Colony.

10.

I am satisfied that,in the main, the award has been accepted by both parties. In the case of the Hong Kong & Yaumati Ferry Company,Ltd., which is a purely Chinese concern, there are still some remnants of dissatisfaction on the part of the men at the way in which the award is being put into effect, but there is good reason to expect that these difficulties in the interpretation of the award will be overcome.

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