CO129-626-3 Labour Department- report to Labour Commissioner 1-3-1951 - 30-6-1952 — Page 79

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202.

In the United Kingdom the first "fair wages resolution" of the House of Commons was passed in February 1891. It was couched in very broad terms and provided, inter alia, for the payment of current rates of wages. Its object was to protect contractors against undercutting by bad employers and to ensure that work- people employed on Government contract work received wages not less favourable than those paid by good employers in the trade.

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Another resolution of a similar character but more definite in terms was passed 1909 but still concerned itself with Government Contracts. The principles of this legislation however were later embodied in a number of cts which involved assistance to industries or Public authorities by way of grant, loan, guarantee or licence. Examples of this were the British Sugar (Subsidy) Act 1925 the Road Traffic Act 1930. The London Passenger Transport (Agreement) Act 1935 and the Bacon Industry Act of 1938.

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There would seem to be no reason why the Government of Hong Kong should not consider a resolution of this kind based on the model rules provided by the Colonial Office with modifications, if necessary to meet the difficult problems of sub-contractors and the onus of deciding whether the terms and conditions of employment observed by a Government Contractor are in conformity with the Resolution.

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The Commissioner of Labour should I think be able to arbitrate in all wage rate cases and in regard to the responsibility of contractors for their sub-contractors the following wording is suggested for inclusion in the resolution:-

"Where the immediate employer of any worker is himself in the employment of some other person (hereinafter called the superior employer) in the course of or for the purpose of that persons trade or business and that worker is employed on work for which the superior employer is responsible, the superior employer shall be deemed to be the employer of that worker jointly with the immediate employer, provided that the supe.ior employer shall not be regarded as having greater responsibility than that of ensuring that the immediate employer is fully aware of his obligations under the fair wages resolution of the Legislative Council and obtaining from him an undertaking that the terms and conditions thereof will be properly observed"

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The passing of a suitable resolution of this kind would appear to be a matter of some urgency is the Colonial Office regard such action as an essential prerequisite of any further assistance under the Colonial Development and Welfare Act.

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XI.

WAGE RATES AND COST OF LIVING.

It seems quite clear from Hong Kong Blue Books and Administrative Reports from year to year that average wage rates in the Colony rose steadily and progressively from 1901 to 1915, remained comparatively stable during the period of the First World War and increased appreciably between 1918 and 1927. There was a downward trend during the years of wold depression, i.c. 1930 to 1935 but again wore stable from 1936 to 1939. In 1940 there was an upward revision which reached the levels shown below in comparison with current monthly earnings which are also shown.