TNAG-1064-FCO40-1314-Labour-relations-in-Hong-Kong-Professor-H-A-F-Turner-s-stud-1981 — Page 5

CODE 18-77

Mr Clift HKGD K246

THE TURNER STUDY

RESTRICTED

Mr. Williman

Mos pl.

19

See 17

Стайни

R+&time fro:60/HB/3

Reference.

НК К

LA/HK/3

(...)

21211

cc : Mr Exeter ESID G71C/G RACEIVED HIBRARY NO. 51

10 JUN1981

DESI CARNAT

INDEX

Mo

PA

10.1

$173.8 | AGM 23/6

43.6

51

There

Please refer to your minute of 8 June paragraph 2. is probably little point at this time in my making further detailed comments on the Turner Study (I have really nothing more to say) or on the observations contained in the enclosure to Mr Ho's letter of 1 June.

-~

2. It is pleasing that the Hong Kong government is contemplating more effective consultative machinery in the Civil Service (paragraph 3 of the enclosure) and, on this point, the observations of the ILO's Committee of Experts may need to be taken into account once they have considered the complaint made by the Public Services International over an alleged contravention of International Labour Convention No 98 dealing with the Right to Organise and Collective Bargaining.

3.

•

But it is clear that with this one exception the Hong Kong government is contemplating little action in other key areas covered by Turner's proposals. The question is - can we rely on the arguments put forward by Hong Kong when we have to refute criticisms which may be raised here by MPs or trade unionists over what they see as a failure to implement proposals for the benefit of Hong Kong wage earners. (We can rely on the Turner Study itself to explain the general ineffectiveness of trade unions in Hong Kong, especially in the private sector).

4.

UK interest in the Turner Study has so far been limited but in time we may be questioned for example on the proposals for a statutory minimum wage or for a contributory unemployment and pension scheme. It seems to me that on both points Hong Kong is relying on the argument that if income is assessed on a household or family basis, sufficient latitude exists to cope with the problem of the unemployed relative (paragraph 8) or the poverty wage (paragraph 19(a)). In my view we should beware of adopting double standards especially when seeking to justify a situation in a territory for which our parliamentary and trade union critics will say we are constitutionally responsible. Thus we subscribe to a code of conduct adopted by the European Community under which we expect British firms in South Africa to subscribe to the principles that :

"Pay based on the absolute minimum necessary for a

family to survive cannot be considered as being sufficient. The minimum wage should initially exceed by at least 50% the minimum level required to satisfy the basic needs of an employee and his family." (In practice this is interpreted as meaning a family of at least five persons).

Unless therefore the principles adopted in respect of firms in South Africa can be shown to be invalid in the case of Hong Kong, and I doubt if this could be done, it would be unwise for us to

RESTRICTED

/seek