ENG-1958 — Page 54

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HONG KONG ANNUAL REPORT

factories on 11th July. The workers demanded a gratuity of two months' wages and a proportion of the annual bonus normally paid at Chinese New Year by the management. The employer, who was heavily in debt, refused these demands, and the workers then shut themselves up in the two factories and refused to let any of the goods and chattels be removed, including a quantity of finished cloth.

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The Labour Department was compelled to intervene and many long meetings were held with the employer and the workers' representatives. The employer claimed that he was unable to pay outstanding wages or refund apprentices' deposits or meet bills incurred for food supplied to the workers unless he was free to sell the cloth, while the workers were unwilling to release the cloth unless the employer was prepared to pay a gratuity in addition to arrears of wages. Relations between both sides became very strained and Police assistance was necessary on one occasion to escort the employer out of one factory when he was hemmed in by the workers. After the Labour Department had offered its good offices in ensuring that the employer honoured the promises he had made to turn over proceeds from the sale of the cloth to the workers, a settlement was reached whereby the employer agreed to increase his offer by providing a small gratuity in addition to arrears of wages. This was accepted by a majority of the workers and the cloth and other goods were handed over to their representatives for sale. Payment of arrears of wages, a refund of deposits and a gratuity of $74.90 per head were even- tually made from the proceeds under Labour Department supervi- sion on 30th and 31st August 1958. Both factories re-opened in October under new management and many of the workers obtained re-employment.

The National Carbon (Eastern) Ltd. and the Nam Jam Factory Ltd. These two concerns shared the same factory building, the Nam Jam Factory making torches under licence for National Carbon (Eastern) Ltd., which was responsible for marketing and sales. The former employed about 700 workers and the latter 125 workers. According to the management, business started to fall off in the autumn as sales in India, Burma and Indonesia became poor. Local sales were also affected by imports from China. National Carbon (Eastern) Ltd. decided therefore in October that