CO129-626-3 Labour Department- report to Labour Commissioner 1-3-1951 - 30-6-1952 — Page 72

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156.

A provision has been made for the compulsory rendering of returns by employers at quarterly intervals. The lack of reasonably accurate statistics relating to employment, hours of work and wage rates is considered to be a serious handicap to the Department of Labour. That some compulsion is necessary is evidenced by the failure of over 25% of the registered factories and workshops to render returns in respect of the last quarter of 1950.

157.

This draft bill, if enacted, would supersede certain existing law but it would render the labour law of the Colony more adequate and effective. Such proposals as are contained in the draft bill would give greater protection to both employers and workers until such time as matter of this kind can be settled by voluntary joint negotiation without intervention by the Govern- ment.

158:

VIII

EMPLOYMENT EXCHANGES & UNEMPLOYMENT INSURANCE.

Hong Kong is an entrepot and concentrated industrial Colony. Few raw materials are produced and as a result her industries, like her commerce, depend on a free flow of supplies from other countries. Her industrial foundation is weak and many of her industrial undertakings, being of recent origin and deve- loped on credit, possess limited working capital. Variations in the volume of supply of raw materials, abnormal price fluctuations or a tightening of credit policy by the banking houses can have a serious effect on most industries and appreciable unemployment is therefore a very real risk,

159.

In the past surplus labour has tended to return to village life in China and the "family system" has obviated the worst effects of substantial unemployment. Workers, however, are how much less willing to return to China and the reasons for this are well known. The new China no longer readily accepts workers returning to the country. In addition political developments in Communist China seem likely to have the effect of weakening the traditional family help system

160.

For some time now there has been increasing pressure for. some form of unemployment insurance to cover all workers in Hong Kong. This growing pressure has, of course, come from the workers who are well aware of what is being atempted in China by way of social security. Representative European Employers with whom this matter was discussed generally favoured the introduction, when practicable, of a full unemployment insurance scheme with contributions collected from workers and employers by means of stamps affixed to individual contribution cards and payments of benefit related to contributions paid.

161.

The more vocal trade unions want a scheme which would provide contributions at the rate of 5% for wages from the workers, 10% from the employers and a 10% contribution form the Government to cover an unemployment Insurance, Maternity Benefit and Retiring Gratuity Scheme to which is appended a kind of thrift and loan arrangement and a "no claim bonus" for women who make no claim for maternity benefit. This goes far beyond anything contemplated by Communist China. Alternatively they want to have a "flag day" in order to collect money for their own unemployment schemes.

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