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182.

To western eyes the present arrangements are clearly unsatisfactory but they have certain advantages from the point of view of the employers, the foremen and charge hands and to many of the workers. The number of complaints made about the extraction of "squeeze" by foremen is negligible despite the fact that it is said to be practised widely, and it would seem that resentment is only manifest if a foreman is greedy and expects more than a worker considers fair.

183.

It is clear that some action should be taken as soon as possible with a view to the gradual elimination of the defects inherent in the present system of labour engagements. The most satisfactory method of doing this is to establish an Employment Exchange service.

184.

In the early stages it may well be necessary to resort. to the British system of Class "B" placing arrangements which involve the nomination, by employers, of suitable individuals to fill existing vacancies. Efforts could then be made to achieve a reduction in such placings and the encouragement of the notification of "open orders. 11

In time employers would realise that a well conducted Ex- change is able to select the best worker available from a much wider field than is usually open to him.

185.

The greatest care would, of course, have to be taken to ensure that the receipt of "squeeze" was not merely transferred from the foremen to the vacancy staff at the Exchange and a high degree of honesty and integrity would have to be demanded of "vacancy officer's whose salary rates should not be much as to lead them into temptation.

166.

In order that the Exchange service, when established may operate effectively to the benefit of both employers and workers it is recommended that a "Local Employment Committee" be formed at each of the two Exchanges in order that the Commissioner of Labour may be advised of the conduct of the work of the office and on local employment problems generally.

187.

on

Such a Committee might usefully consist of an edqual number of employers and workers and independent persons appointed by the Commissioner so as to cover, as adequately as possible, all the

In so far as the principal industries in the area concerned. employers' and workers' representives were concerned the Commissioner would no doubt be prepared to consider nominations from duly regist-. ered trade unions and associations. The Exchange Managers would be ex officio Chairmen of those Committees.

188.

IX RELIEF WORKS

In view of the vulnerable industrial and commercial position of Hong Kong there is no doubt that the Department of Labour could be held to have failed in one of its duties and res- ponsibilities if it does not plan in advance to meet, as adequately as possible, any serious unemployment situation.

189.

The problem of appreciable unemployment is, of course not

The Government has an only a matter for the Department of Labour. overall responsibility and the accepted policy in many countries is :-

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