CO129-623-1 Rubber Industry- report and correspondence on the labour situation 1-4-1950 - 31-1-1951 — Page 35

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2.

Before attempting to deal with these allegations in detail it will be helpful to give a summary of the facts of this case which have been brought out by official investigation.

3.

The Fung Keong Rubber Manufactory Limited

is a limited liability company with factories in Hong Kong and Kuala Lumpur. The Managing Director, Fung Keong, resides in Malaya. The Hong Kong factory is under the control of a General Manager, Fung Che Yee (son of Fung Keong) and a Factory Manager, Au Kai Ming. Both Fung Che Yee and Au Kai Ming are stated to be Directors of the firm, but it is doubtful whether the latter has any say in policy.

A

The Hong Kong factory has been established about 30 years, during which time it has never been known to close down, even temporarily. The factory suffered considerable damage during the war years and after the liberation of the Colony much rehabilitation work had to be carried out which was not completed until 1949. Up to March, 1950, the factory was employing between 1,500 and 1,600 persons, but between March and August this number was reduced to between 1,100 and 1,200. About 80% of the workers are employed on a piece-work basis, while 20% are on daily wages. None of the workers are on monthly terms.

5.

This factory has always been noted for the high standard of its products and for the business-like way in which it has been run. Piece-work rates and daily wages have usually been higher and have never been lower than the average of the industry, and the management has always shown an interest in the welfare of its workers, many of whom have been working with the factory for a long time.

6.

It is stated that 90% of the trade of the factory was composed of exports to the United Kingdom. Local sales and export to other parts of the world were very limited. While I am not in a position to guarantee the complete accuracy of these statements, there is no doubt that the bulk of the business done by the Hong-Kong factory was made up of export orders to the United Fung Keory Kingdom.

7.

The normal working day in the factory was nine hours; overtime at the rate of time and a half was paid to daily-paid workers for work in excess of this period. Piece-workers did not receive special rates for overtime.

8.

Since March, 1950, there has been a steady decline in business. The management attribute this to two causes:

(a)

the increase in the cost of rubber, and

(b) under selling by United Kingdom competitors

resulting in a gradual loss of the United Kingdom market.