TNAG-0450-FCO40-515-Reports-of-Overseas-Labour-Adviser-on-visits-from-UK-to-Hong-1974 — Page 21

CONFIDENTIAL

- 3 -

Workmen's Compensation Ordinance (paras. 31- 32)

10.

The question of compulsory insurance under Part IV of the Workmen's Compensation Ordinance was originally raised by UMELCO. A paper on the matter will be presented to the Executive Council and will include the points made in para. 31. It is agreed that the Labour Tribunal should eventually deal with workmen's Compensation cases and firm proposals for this will be made in due course.

Industrial Diseases (para. 33)

11.

The points made in this paragraph are accepted and the Commissioner of Labour will enter into discussion with the Director of Medical and Health Services on the latter's return to Hong Kong in early May.

Silicosis (para. 34)

12.

The proposal of the Commissioner of Labour and the Accident Insurance Association at present under consideration is that Government should provide ex gratia grants at Workmen's Compensation Ordinance rates to the 340 or so previously identified cases. It is envisaged that future cases would be compensated through a pool insurance scheme which could also compensate the 100 or so cases expected to come to light in the initial medical examinations on the inception of the Scheme. Costs would be passed on to employers through insurance premia.

The Labour Tribunal (paras. 35 - 36)

13.

It is not the present intention that small money claims not specifically related to labour matters should fall within the jurisdiction of the Tribunal. With reference to the point made in paragraph 36, an appeal against a decision of the District Court is still pending and the need for legislative amendment will be considered when the final outcome is known.

Wages in Bankruptcy (paras. 37 - 40)

14.

The question of compulsory insurance against wages in bankruptcy is being examined by the Commissioner of Labour. However, as insurance against bankruptcy is a credit risk, it is considered that local insurance companies may well decline to accept it.

15.

The funds referred to by the Labour Adviser in paragraph 40 are too small to cover bankruptcies involving a number of workers. They are usually used to cover individual cases of hardship. Furthermore, the suggestion that the Social Welfare Department should be empowered to make advances of wages to workers affected by bankruptcy of the employer would in effect

CONFIDENTIAL