TNAG-0383-FCO40-429-Trade-unions-and-industrial-relations-in-Hong-Kong-1973 — Page 6

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is not, in our view - to answer the query in paragraph 4 of your letter in any sense a direct result of statutory requirements. No application for consent to hold office as a full time official has ever been refused. The reason for the T.U.C. unions poor performance lies not so much in shortages of funds or in any restrictions in the Ordinance or even in the comparative fall of Taiwan but rather in the lack of anything like the leadership, dedicated officers or effective organisation of the F.T.U. affiliates.

This is one of the main strengths of the F.T.U. unions.

They have a dedicated leadership and effective organisation. The increase in the paid-up membership itself testifies to the efficiency of their collection system (and the ability of their members to pay). They are also continuously mounting campaigns for recruits. Their success here seems to us however to lie principally in the fact that they are first class welfare and social organisations. We do not think their success can be directly attributed to achievements in labour negotiations. Indivi- dually many of them have not been recognised by managements since 1967 but neither have they come off with particular distinction in any of the recent disputes on wage claims or conditions of service; this is partly explained by their relative lack of experience but probably more significant has been their clear policy referred to above, no doubt under instructions from China, not to rock the boat. Their broad approach is thus a mix of increasing members and, they hope, influence but of maintaining a low profile.

It thus seems to us that more local factors are at work. No doubt the apparent political stability in China and its increasing international status vis-a-vis the relative decline of Taiwan support the trend; but they do not in our view explain it.

We shall obviously keep our eyes on developments, though, as I am sure you appreciate, our powers to influence this trend - particularly in any overt way are limited. The acid test, if the situation arose, would of course be, as to some extent shown in 1966-67, whether individual interests would in fact override other loyalties. However, with China in its present mood and continuing F.T.U.discipline we see no immediate cause for alarm. Overall union membership is not high in proportion to the workforce and unions do not anyway play a dominant part in trade disputes, which are more usually conducted through ad hoc committees of workers representatives. It will however continue to be our policy to try to encourage responsible trade unionism and the Commissioner of Labour is keen to try to put some backbone and impetus into the neutral unions. As you appreciate however, this is an uphill task.

Yours

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(David Lai)

Principal Assistant Colonjal Secretary (Social Services)

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