ENG-1950 — Page 32

Early negotiations were inconclusive mainly because the demands were not supported by evidence which the management was prepared to accept. In January 1950 the suggestion of arbitration was agreed to by both parties and, as stated earlier, arbitration proceedings resulted in an award of $30 a month. This award was adopted by the public utility companies and the transport companies mentioned earlier, and was accepted by their workers. After the award was published the two large commercial dockyards, H.M. Naval Yard, two departments of the Government, and the Hong Kong & Shanghai Hotels received similar demands to which they were unable to accede.

The Fung Keong Rubber Factory

On the evening of the 9th August the Fung Keong Rubber Manufactory, one of the oldest factories in the Colony, employing at that time some 1,200 workers, announced that it would close the following day. There was no prior notice given to the employees, the great majority of whom were employed on a daily or piece-rate basis. The Labour Department immediately initiated discussions between the management and the workers, who belonged to two separate unions. This factory has its head office in Kuala Lumpur, Malaya, and it was apparent early in the discussions that the local management had acted under direct orders from their head office. The reason given for the closure was that the factory could not carry on owing to the great increase in the cost of rubber. This explanation was not considered satisfactory by the employees, who alleged that the whole incident was a subterfuge designed to reduce wages, an allegation which subsequent investigation by the Labour Department failed to support. Suggestions were made that the factory might reopen on a part-time basis. The management maintained, however, that the economic situation which had brought about the closure precluded any solution on these lines. The Labour Department continued, nevertheless, to seek every means to bring about a satisfactory solution.

When the factory had been closed about five months the Immigration Officer made an offer to the unions to repatriate those of the workers who came from China. This offer was conveyed to the head office of the concern in Malaya. Before any arrange- ments were made to put it into effect, however, the Managing Director in Malaya notified the local factory management that the position had improved enough to allow for the reopening of the factory on a part-time basis. The workers were content to resume work on this understanding and at the end of the year preparations were in progress which would enable workers to return to work on 2nd January 1951. The management undertook that work would be resumed at the same rates as obtained before the closure.

In addition to the disputes mentioned above, the Labour Department dealt with seventeen industrial disputes which however do not warrant detailed mention in this Report.

Cost of Living

The abnormally high prices of staple commodities prevailing at the end of 1949 continued into the early part of 1950. In the first quarter of the year the rehabilitation allowance, which is a cost of

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