CO129-626-3 Labour Department- report to Labour Commissioner 1-3-1951 - 30-6-1952 — Page 75

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176.

It is therefore strongly recommended that early con- sideration be given to the setting up of an Employment Exchange in Kowloon, primarily as a placing agency statistical information office and training organisation. That in due course a further Exchange be opened in Hong Kong and that as soon as this service is in proper operation consideration be given to the institution of a contributory unemployment insurance scheme.

177.

It is also suggested that in view of the increasing pressure which is being exerted by a section of the workers for such a service that information as to the Government's long term plans along these lines be given to the press either by way of a press conference or by a Public Relations Office release. Public opinion in the Colony still appears to be rather ill informed as to the nature and importance of labour problems.

178.

One of the declared aims of the I. C.F. T.U. is "the immediate introduction of minimum measures of social security unemployment, sickness insurance, old age pensions and housing improvement all of which are practically unknown in Asia." There is therefore little doubt that at some future date there will be a good deal of external pressure for some form of social security against unemployment. lthough the I.C.F.T.U. will appre- ciate that such a scheme cannot be brought into operation for some time, it would be nice to be able to show that this problem had not been neglected in Hong Kong and to indicate what plans were in contemplation to meet legitimate demands for social security against unemployment which is always likely to be a very real risk in the Colony,

179.

On the question of an Employment Exchange service as such, it has been stressed that the majority of employers do not regard such a service as necessary and would not use it for the engagement of workers whose services could be easily obtained without assistance, In the case of European managed firms this attitude seems chiefly due to the existence of a substantial pool of unemployed labour and to their experience that workers engaged otherwise than through the foremen or charge hands, as is the custom, seldom remain in employ- ment long because their life is made very uncomfortable.

180.

There is little doubt that the majority of the foremen and charge hands responsible for engaging workers obtain some "squeeze" from the workers they engage, but the amount of this seems to be effectively controlled by public opinion and is not unduly high in the eyes of the workers desiring employment. The greatest advantage of the present system, from the point of view of the employer however, is that the foreman or charge hand who engages labour is regarded by the management as responsible for the efficiency and behaviour of the workers hc. engages.

181.

In the case of the smaller Chinese-owned establishments there is said to be an age old practice of recruiting relatives and friends of cxisting staffs or people from the same district or village as the majority of the workers. The employers feel, no doubt with some justification, that this method encourages loyalty and tends towards greater honesty and integrity on the part of his employees.