CO129-629-11 Manufacture of shirts 1-1-1950 - 30-11-1950 — Page 10

(flagged 'X'

air 122-53/12)

In July, 1949, the Acting Commissioner of Labour reported :-

"The post-war wages position has been generally satisfactory, collective agreements being concluded in almost all local trades. Such agreements would not necessarily preclude the application of the Ordinance, but to obviate such a course by earlier remedial action is obviously preferable. It is with this end in view that surveys of labour conditions (including wages) are now being made by officers of the Labour Department in a number of industries in which women are extensively employed.

As a possible exception to the generally satisfactory post-war postion described above, it may be necessary to set up a Trade Board to deal with wages in the weaving industry, of which women form the major part of the labour force. Prior to the war, an economic balance existed between Japan, Hong Kong and other parts of the world concerned. Since the war however, and before Japan was able to start production, Hong Kong's weaving industry experienced a boom, due largely to the then general world shortage of consumer goods. Whereas in general wages for artisans in Hong Kong are now around three to four times those obtaining pre-war, the boom in the weaving industry resulted in employers paying up to five and six, and even more, times the pre-war wage, which was admittedly low as a result of fierce competi- tion. Female labour in the industry now regard their greatly bettered standard of living as their right, and efforts by manufacturers to reduce wages to meet Japanese competition have met with sharp resistance. An agreement on wages was concluded during the period of the boom. With the increase in competition, some employers have unilaterally abrogated it and have been paying wages which are, judging by other standards in the Colony, too low. Furthermore, the agreement which was fixed shortly after the war, was in force generally for a year only, and has long since lapsed. Efforts to persuade manufacturers to enter into a new agreement have so far proved unavailing. If no voluntary agreement can be reached and if wages remain low, it may be necessary to set up a Trade Board.

No representations have been received from organisations of employers or workers concerning the application of the Convention."

3. There is little doubt that one of the principal difficulties in the way of statutory minimum wages in Hong Kong is the problem of inspection, and the large number of cases where apparently wages are paid partly in kind, i.e. free lodgings and food.

It seems fairly clear however that only through minimum wage fixing machinery can the general level of wages be raised in this industry. I think it must be remembered however that the effect of any action which we take will not be felt for some time and that even a considerable increase of wages in the industry, e.g. 50%, could not diminish the competitive power of the Hong Kong textile industry to any appreciable extent. On the other hand, it is clearly desirable that we should be able to show that same thing positive is being done

(G. FÖGGON) 17/3/50.

13750

will be losser pl see para 2 (1) of the Sowell Rames min of 8/3 Xof the 5f5', min of 10/3. when we love further information but the poublety of divesting these shirts to other belonies, are con comeder the prepastion of

10

Page 10Page 11