TNAG-1519-FCO40-2080-Employment-in-Hong-Kong-1986 — Page 143

CONFIDENTIAL кка

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From: Date:

Cc:

Adrian Smith

29 January 1986 PS/Mr Renton

PS/Mr Eggar

Mr Derek Thomas. Pol.Dir.

Mr Masefield, FED

Mr Short, PUSD

Mr Lever, UND

Mr David, UKMIS, Geneva

Mr

alsworthy, HKD

HONG KONG: LABOUR ISSUES

1. I visited Hong Kong over the period 13/23 January 1986 and can now report on the various current and future labour issues of interest; I can of course, if you wish, augment any particular aspect. A summary appears at paragraph 18.

Employment

2. With a workforce of 2 1/2 million (10 per cent of UK) operating on a basic 6 day 48 hour week divided between 1.6 million male and 0.9 million female, Hong Kong is a not insignificant force numerically in world labour matters. Unemployment is low (3 per cent); this is now a particular feature with British colonies as compared with UK. It does however hide a labour shortage in certain areas eg: domestic staff which could give rise to problems in future with China (q.v.) There is little industrial unrest and the number of working days lost per man per year ranks with the world's lowest. This may be attributable in part to past quiescent trade unions, no unemployment benefit being payable and social welfare payments being on a strictly limited means test basis. There is also the Chinese tradition that the family looks after its unfortuante members and this could camouflage unemployment and poverty.

3. Employment legislation is governed by the Employment Ordinance 1975 and Trade Unions Ordinance 1972 which establish the general outlines for employment in Hong Kong. These are not untypical of such colonial legislation, but there is now some scope for updating.

Trade Unions

4. There are three groups of trade unions and one fringe body in Hong Kong:

(a) FTU (Federation of Trade Unions) which

owes its allegiance to China and is linked

to ACFTU (All China Federation of Trade Unions)

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CONFIDENTIAL

/in Peking.