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Trades Unions are freely permitted to function in the Colony, but at the present time there are no orthodox unions in existence. During the year under review there were about eight industrial disputes. These were of a minor nature, and in each case an amicable settlement was reached through the Secretariat for Chinese Affairs. No bona fide trade union has ever been suppressed in the Colony, but certain guilds and associations have from time to time been declared unlawful under the Societies Ordinance of 1920, mainly on account of terrorist and political activities. No such suppression took place during 1938.
The new Ordinance, No. 18 of 1937, referred to above, consolidated the law relating to factories and workshops. Articles 2 and 4 of the Draft Convention fixing the minimum age for the admission of children to industrial employment, and Articles 2 and 3 of the Draft Convention concerning the employment of women during the night, were introduced in that Ordinance.
The Minimum Wage Ordinance, No. 28 of 1932, created machinery by which a minimum wage may be fixed for any occupation, in which, in the opinion of the Governor-in-Council, the wages paid are unreasonably low. No minimum wages for any industry have yet been prescribed.
There is no legislation providing for the establishment of conciliatory machinery for the amicable settlement of disputes between employers and their work people, nor is there factory legislation controlling compensation for accidents or enforcing provision for sickness, old age, etc. Several European owned and controlled industrial undertakings have their private schemes of insurance, compensation in case of accidents or death, sick benefits and provident funds.
A Labour Officer was appointed in November, 1938. The status of this officer is at present undefined and his work up to the end of the year under review was largely in the nature of a preliminary survey. He is at present considering the application to the Colony of workmen's compensation legislation.
Chapter IX.
WAGES AND THE COST OF LIVING.
The year 1938 showed a continued increase in trading activity until the Japanese invasion of South China in October resulted in the closure of the river and an interruption of the Colony's trade with the West River area. These conditions obtained during the remainder of the year. Prices remained remarkably steady throughout the year, with a general tendency to fall. There were exceptional price-movements, caused by temporary local conditions, but these were not maintained. The supply of labour increased considerably with the influx of refugees, but the general wage level was not depressed, the wage-rate of female workers in factories showing an increase over the 1937 level. This steady level was the result of the demand for labour increasing with the supply. Many small industries moved into the Colony from China during the year and a great trade was done in the manufacture of small appliances required in large quantities by the Chinese Government. Payment continued to be by piece-work in the lower grades of work in light industries and in all mass production work, and this system appeared to be satisfactory to employers and employees. Skilled male labour was employed on daily pay. In the case of refugee northern workers housing and food were usually provided by the employer.
The chief factor in the slight rise in the cost of living was a general increase in rents. This increase, stimulated by the continued entry of refugees into the Colony and the acute shortage of vacant tenements, assumed alarming proportions in the first few months of the year. In March a Commission was appointed to investigate the whole question of rentals, and, as a result of this Commission's recommendations, legislation was introduced providing for appeal to the Courts by persons evicted without adequate cause.