SINGAPORE TRACTION COMPANY STRIKE

Mr Lim Cher Kheng asked the Minister for Labour and Welfare whether he will give a detailed report on the present strike of the Singapore Traction Company employees; and state what steps have been taken by the Government to settle this dispute and relieve the public from this inconvenience.

Mr Lim Yew Hock: Mr Speaker, Sir, in July this year the Singapore Traction Company Employees Union submitted demands relating to increase in wages and improved conditions of service for all employees in the Company. The management replied that they were unable to entertain these demands from the Union, as they were in violation of an agreement signed between the management and the Union in February 1954. This agreement was binding on both parties and precluded either party from submitting or entertaining fresh demands relating to terms and conditions of employment for a period of two years.

On 12th September a 14-day strike notice was submitted by the Union to the management. During this period the Labour Department contacted both parties, who agreed to a joint meeting. At this meeting the management stated that they would be prepared within a week to begin negotiations on a new agreement to be effective from 1st January, 1956. The Union, however, stated that negotiations should commence immediately and that any revised wage rates should become effective from 14th July, 1955, the date on which the original demands were submitted. The management offered to refer the question of the validity of the agreement to the Attorney-General. This was rejected by the Union.

On 26th September the 14-day strike notice expired and resulted in a complete stoppage of buses run by the Singapore Traction Company. Since that date Government has maintained contact with both parties with a view to seeking a means of resuming negotiations on an effective basis so as to bring the dispute to an early settlement.

Following the arrival of the Chairman of the Singapore Traction Company, Sir Thomas Strangman, the parties met again yesterday in the Labour Ministry. The Union urged that the management should reconsider their stand on the previous agreement in view of the recent wage increases in other bus companies. The Union also contended that the Singapore Traction Company's wage policy tended to encourage corruption among conductors. The management, however, were not prepared to modify their stand on the sanctity of the agreement previously entered into by the Committee of the Union and endorsed by a general meeting of members. The meeting, Sir, therefore ended in a deadlock.

Mr Lee Kuan Yew: Mr Speaker, Sir, does the Government approve of agreements -

Mr Speaker: Order. Will the hon. Member address his supplementary question to the Minister?

Mr Lee Kuan Yew: As you please, Mr Speaker. Does the Minister for Labour approve of agreements in which unions are bound for an indefinite period regardless of drastic changes in surrounding circumstances?

Mr Lim Yew Hock: Sir, it is a question of freedom of contract. It was not the Government which advised the Union to enter into such an agreement.

Mr Lee Kuan Yew: But do you approve it?

Mr M. P. D. Nair: Mr Speaker, Sir, can the Minister say whether there is any truth in the Singapore Traction Company Employees Union's claim that the employers themselves have violated the agreement?

Mr Lim Yew Hock: Mr Speaker, Sir, according to my knowledge, the employers have denied that there has been that claim that they have violated the agreement themselves.

Mr Lee Kuan Yew: Is the Minister aware that subsequent to the signing of this agreement, there were, to use a neutral word, departures from the particular clause in this agreement prohibiting or preventing either party from varying the terms of the agreement?

Mr Lim Yew Hock: Sir, there have been one or two departures, but the Company maintained that it was a concession on their part.