TNAG-0647-FCO40-795-Study-of-labour-relations-in-Hong-Kong-by-Professor-H-A-Turn-1977 — Page 273

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(c) of fundamental importance to the functioning of the labour market is the co-existence with large scale business of a proliferating small scale sector, composed of everything from machine shops down to streethawkers. This sector is an important safety valve for furstrated ambitions thworted bureaucrats can turn to independent enterprise, skilled men can become their own bosses. Redundant or poorly-paid workers can take up self- employment in hawking or, more commonly, they can supplement wage earnings with part time self-employment. If they go bust, there is a reasonable chance of finding work for wages. This sector also allows larger-scale manufacturing firms to stabilise production

putting out in times of boom and relying on their own workers in recessions. Employees in the small-scale sector would seem to have the worst of it, but it may be that small employers compensate longer-established workers with good wages and some measure of personal security. Certainly work relations are less disciplined, more egalitarian and easygoing in small business and it is more likely that ties of kinship, common origin etc. would mitigate the worst effects of market forces.

In general we have found no evidence to refute the view that the most common resolution of industrial conflict takes the form of individual workers moving on to different jobs. For young people with no concern for the future mobility is easy; and the system of giving notice is not always observed. Casual workers of all ages must be mobile in order to maintain steady employment. Commitment to making money encourages self-employment. These arguments apply to a sizable part of the labour force, but it is located in fairly well-sealed comportments and there are many sectors of employment where turnover is extremely low and workers cannot easily resolve their difficulties by moving from one job to another.

6. Elements of stability in the labour force :

the

To some extent this is the workers' side of issues raised in section 4 (on employers' attempts to 'commit' personnel). Points raised there need not be repeated. In brief, male workers with families to raise need security of employment; this leads many men to acquire skills tying them to stable industries which are dominated by one or two big employers (e.g. government, utilities). Labour market freedom often carries with it the costs of foregone promotion opportunities and/or lost particularistic relationships which can serve to cushion the worst blows that the market has to offer. In any case, the refugee population is predisposed to trade off some degree of freedom for continuity of employment. Hence the success of paternalistic employers in introducing short-time working during the recession. There may be major differences in this respect between HK-born young people and those with direct experience of events on the mainland, The collective experience of downward mobility which most refugees suffered in the 1948-50 period has had a lasting effect on labour relations in HK and serves to stabilize the labour force to some extent. Finally, choice is much reduced by age, given the present pattern of labour demand in K olá people have to take whatever work they can get, at the lowest wages. There are many rigidities inlibiting labour mobility in HK and the 1974-75 recession must have enhanced them, by injecting greater uncertainty into the minds of workers.