CO129-623-1 Rubber Industry- report and correspondence on the labour situation 1-4-1950 - 31-1-1951 — Page 36

3

1

36

Undoubtedly both these causes have been operative, though as you will see later I am now doubtful whether they were themselves the immediate cause of the factory being closed. Examination of the factory's books proves that between March and August, 1950, there was a steady decline in the number of workers employed, so that between 300 and 400 workers had left the factory by July. Thirty to forty workers were laid off in May, but apart from this there is no evidence of any substantial laying-off and there is no reason to doubt the statement of the management that those who left did so of their own free will because the decline in the volume of business reduced the amount which could be earned on a piece-work basis, although the rates for piece-work remained un- altered. The management admit that between March and July they did make some attempts to reduce the number of workers so as to give fuller employment to the remainder. These attempts were resisted by the workers who preferred to accept lower earnings so as to maintain continuous employment for all. By the end of July the position was such that the majority of the piece-workers was only working about 3 hours a day.

9.

Prior to March, 1950, the wages of daily- paid workers ranged from 89 a day to $2.50. In March these wages were increased to $9.30 and 83.10 respectively with parallel increases in the intermediate grades. When the factory closed daily-paid workers were still being paid at these increased rates.

10.

The workers are divided between two unions the Hong Kong Rubber Shoe Workers' Union and the Hong Kong and Kowloon Rubber & Plastic Workers' General Union. The first of these, which claims a membership in the factory of 700 workers, is one of the unions affiliated to the Hong Kong & Kowloon Trades Union Council (right- wing). The second, which claims 400 workers, is affiliated to the Hong Kong Federation of Trade Unions, which is left-wing. There has been considerable rivalry between these unions, though the difference in political outlook has not been prominent.

11.

In July the Chairman and the Secretary of the I.C.F.T.U. delegation (Mr. Dalley and Mr. Krane) visited this factory at the suggestion of Fung Hoi Chiu, the signatory of the letter under reference, who is the Secretary of the Council. They were accompanied by a Labour Officer who, on occasions, acted as interpreter. The management gave all facilities for the visit, which was carried out in a thoroughly friendly atmosphere. In one or two cases piece-workers were asked what they were earning. They gave figures of 80 cents or 90 cents a day, explaining that business was very poor and there was very little work to be divided amongst all of the workers. So far as is known, the I.C.F.T.U. delegates did not take up the question of earnings with either the management or the workers.

12.

Late in the evening of Tuesday, August 8th, the management announced the closure of the factory and posted notices to this effect outside the head office and the factory gates. This notice announced that all