TNAG-0647-FCO40-795-Study-of-labour-relations-in-Hong-Kong-by-Professor-H-A-Turn-1977 — Page 235

CODE 18 - 17

Mr Milton

Mr Stewart

TURNER STUDY

Introduction

1.

CONFIDENTIAL

Reference MKK 212/548/1 (414)

Presul-sledy 2/ Clewis, CHIC, minishes de

Extersich

Professor Turner points out that this Report should be considered an interim one only and indeed he entitles it "An Interim and Provisional Review". In the first part of the Report (paragraphs 1-12) Professor Turner describes the differences between Hong Kong and undeveloped or developing economies, and points to other peculiarities of Hong Kong, eg the lack of social and political development and the fact that it is very much a private enterprise economy. He also stresses that many issues were raised during the study but that time did not permit these to be explored.

2. The Report concentrates on three questions:-

(1) Why trade unionism remains weak;

(2) Why there is little pressure from employees themselves for

improvement in social provisions; and

(3)

Whether anything should be done to change matters in each of these respects.

Trade Unions and Collective Bargaining

3. The Professor in paragraphs 13-26 examines the state of trade unions and collective bargaining in Hong Kong. He shows that, although nominal trade union membership is increasing (it nearly doubled between 1970 and 1975) and now covers a quarter of employees, paid up membership is in fact declining and the figures for nominal membership are also suspect since many employees belong to more than one union. Furthermore, unions are fragmented, with the average size being only 1,200 in nominal terms and less than 1,000 in paid up membership. Collective agreements are very rare and, such as they are, are of an ad hoc character. Although left wing unions have far more members than right wing unions, it is the right wing unions with which managements deal.

4. The Professor points out the extraordinary situation in the public service where three associations representing the upper grade of the Civil Service discuss annually possible salary reviews which affect the whole of the public service whilst 80 other trade unions of public servants, some of which have memberships larger than the three main staff associations, are not represented.

Explanations of Union Weakness

5. In paragraphs 27-32 Professor Turner seeks to explain the weakness of trade unions and the lack of pressure from workers for social pro- gress. He describes two explanations given to him in Hong Kong. The first is the argument that collective organisation and social protection are not necessary to the Hong Kong worker because he operates effectively in a rational and competitive market and gains

/from the

CONFIDENTIAL