TNAG-0573-FCO40-706-Monitoring-of-progress-made-on-planning-paper-on-Hong-Kong-1976 — Page 32

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

LABOUR REFORMS

-13-

T.T.Y.P.

11.12.76

Ex.

12.12.76

taito we

W.K.M.P.

13.12.76

W.K.M.P.

13.12.76

O.D.

10.12.76

The Government, in introducing amendments to labour legislation, has failed to consider the actual circumstances of Hong Kong. The implementation of

these changes will harm both the management and the labour and narrow the

scope of our export trade.

More paid holidays for workers

We believe the Government recently moved to amend the law to grant more holidays to workers because of pressure from London, for neither management nor labour support the idea.

The introduction of more holidays appears to be only the first step in the five-year plan announced by the British Prime Minister, Mr. James Callaghan, for introducing labour reforms in Hong Kong.

Local industrialists, burdened with this additional expenditure will face either a cut in their profits or the prospect of having to raise the prices of their products. The latter will blunt Hong Kong's competitive edge in world markets

and may stifle Hong Kong's export trade.

Workers only wish to have more job opportunities in order to earn more wages, and they will not want too much time off because that will mean they will have to spend more money. That is why the British system is not suitable for Hong Kong.

Unemployment Benefits

Social conditions in Hong Kong are different from those in Britain. The British enjoy the benefits from the Welfare State and regard unemployment as taking a holiday whereas the people of Hong Kong adhere to traditional Chinese concepts of conscientiousness and frugality and think of unemployment as shameful.

We support the setting up of an unemployment benefits scheme, but

we cannot agree to extending it to include youths.

Although the authorities say that the scheme will not lead to their dependency on welfare handouts, we still feel the authorities should reconsider including 15-year-old youths in the scheme.

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