THE UNIVERSITY OF HONG KONG LIBRARIES. Hong Kong Collection

Transcription

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2 THE UNIVERSITY OF HONG KONG LIBRARIES Hong Kong Collection

3 INTRODUCTION,~ -.' ~.--- For some years the Labour Department has given to all new trade unions, as well as to existing ones, model trade union rules to guide and help them. The rules of many trade unions contain sections taken from these models. In publishing a new edition the opportunity has been taken to revise and expand details in the text of the model rules and explanatory notes without materially changing the substance. As before, the method of presentation is to give model rules in the left-hand column and explanatory notes, where appropriate, in the right-hand column. The aim has been to keep rules simple and concise. They are intended as a comprehensive guide and trade unions do not have to adopt them in entirety. They can be re-worded or expanded to meet the particular requirements of each union. They are drawn up for trade unions without branches. It is hoped to produce shortly a further booklet for trade unions with branches. Trade unions with branches are advised, meanwhile, to consult the Trade Unions Section of the Labour Department. August, INTRODUCTION TO SECOND EDITION Since the first edition was published, a new ordinance, the Trade Union Registration Ordinance, has been promulgated. In consequence, a few changes in the text have been found necessary and one new model rule has been added. February, 1964.

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5 MODEL RULES FOR TRADE UNIONS Name Rale 1 Address MODEL RULES TITLE AND OFFICE (1) The name of the union shall be (hereinafter referred to as the union) (2) The registered office of the union shall be at or such other place as may be decided upon by the Executive Committee subject to the approval of the Annual or Extraordinary General Meeting of the union. (i) In deciding on the name of the union, the promoters of the union must make certain that the proposed name is not identical with or nearly resembling any other trade union's name. (ii) This office should be the address to which all union correspondence is sent and where the business of the union is conducted. (iii) The office can be removed to other premises at any time but the Registrar of Trade Unions must be informed. Objects Rule 2 OBJECTS The objects of the union shall be as follows; (1) To secure the complete organization in the union of all workers employed in (i). (2) To obtain and maintain just and proper rates of wages, hours of work, and other conditions of labour and, generally, to protect the interests of members. (3) To regulate the relations and to settle disputes between members and employers, (i) The nature of the industry, occupation, trade, or profession with which the union is connected should be added to the rule at (i).

6 between one member and another, and between members and other workers by amicable agreements whenever possible. (4) To promote a spirit of mutual respect and understanding between the employer and the union and to secure the establishment of recognized and permanent machinery for negotiation with the management. (5) To provide, for members and in certain circumstances their families, any or all of the following benefits and such others as the Annual or Extraordinary General Meeting may decide: (i) monetary relief, or such other benefits as may be decided, for sickness, accident, disablement, distress, unemployment, maternity, and retirement (ii) death gratuities and funeral expenses (iii) educational fees (iv) victimisation and trade dispute benefits (v) legal advice and legal assistance where necessary in connection with the employment of members. (6) Generally to promote the material, cultural, social, educational, and recreational welfare of the members and their families in any lawful manner by the provision of educational facilities, clinics, and other undertakings, industrial or otherwise, (ii) See UV A Guide To Trade Unions For The Preparation of Collective Agreements 1 " published by the Labour Dept. Trade Union Publication Series No. 5. (iii) The provision of this rule in the objects does not necessarily mean that the union has to provide all these benefits but, if the union decides to give certain benefits, provision must be made in the body of the rules for the necessary rules and regulations governing the payment of these benefits. See model rule 10 below and the Labour Department's publication "Model Rules for a Welfare Benefit Fund". (iv) It must be remembered that, even if the Annual or Extraordinary General Meeting decide to provide certain facilities for the members and/or their families, this does not mean that the union may go ahead and provide these facilities auto-

7 which the Annual or Extraordinary Genera! Meeting may from time to time deem expedient. (7) The furtherance, financial or otherwise, of the work or purpose of any lawful association or federal body having for its objects the promotion of the interests of labour, trade unionism, or trade unionists. (8) The establishment of, carrying on, or participation, financial or otherwise, in the business of the printing or publishing of a general newspaper or of journals, books, pamphlets, or publications, in the interests of and with the main purpose of furthering the interests of the union or of trade unionism generally. (9) The promotion of legislation in the interests of its members. matically without reference in some cases to the appropriate authorities. For example, when considering the provision of schools, the Education Department must be consulted. (v) If it is decided to set up a business or charitable, cultural, educational, or medical undertakings, provision should be made in the general body of the union's rules for the regulation of such undertakings. (vi) A union may affiliate to any lawful nonpolitical organization inside the colony. If it wishes to affiliate to an organization outside Hong Kong permission must be obtained through the Registrar of Trade Unions. (vii) If a trade union wishes to federate with any other trade union, the unions concerned should seek advice from the Trade Unions Section of the Labour Department (viii) Any trade union wishing to start a newspaper or a periodical should seek the advice of the Trade Unions Section of the Labour Department.

8 Membership Rule 3 MEMBERSHIP Membership of young person Honorary membership Entrance fee and monthly subscription (1) (i) The union is open to any persons of either sex employed as a (1) in the (2). (ii) Young persons of either sex and under the age of 16 years employed in the (2) may join the union. They shall not have the right to vote in any of the decisions taken by the union but they may participate in the benefits provided by the union. (iii) Members, reaching the age of years or on account of ill-health retiring from the (2), and not being fully employed elsewhere may, subject to the decision of the Executive Committee, be appointed honorary members. They shall not have the right to vote in any decisions of the union. They may, however, participate in the benefits provided by the union. (2) (i) The entrance fee to the union shall be $ and the monthly subscription $ (i) Enter the kind or type of work done by the member at (1) and the name of the industry, occupation, trade, or profession at (2). Members of trade unions must be- resident in Hong Kong and employed in the industry with which the union is concerned. (ii) A person under 16 cannot be a voting member and cannot be elected to office until reaching the age of 21. (iii) A union member retiring from his trade is ineligible to belong to a union as being a person not habitually employed in the trade with which the union is concerned. He can become an honorary and nonvoting member. (iv) A person making application to join a union should submit, with his application form for membership, the entrance fee and the first month's subscription.

9 Welfare Benefit Fund, entrance fee and monthly contribution Alteration of fee Unemployed members Members finding work elsewhere Unemployed members finding temporary work (ii) On joining the union, members must pay $. as entrance fee to the Welfare Benefit Fund and a monthly contribution of $ (ill) Honorary members shall be excused the payment of monthly subscriptions but shall continue to pay the monthly contribution to the Welfare Benefit Fund. (3) The Annual or Extraordinary General Meeting of the union have power to alter all fees, subscriptions, and contributions, and to impose additional fees, subscriptions, and contributions for the purpose of providing further benefits for members, (4) The Executive Committee is empowered, if the union's financial position permits, to reduce the monthly subscriptions of unemployed members or to exempt such members from payment of subscriptions. (5) (i) Members of the union leaving the (2) and finding work permanently in a different Industry, occupation, trade or profession, shall resign from the union. (ii) Unemployed members of the union, finding temporary work in a different industry, trade, or occupation, may be permitted to retain their membership, subject to the approval of the executive committee. (v) When a person has been accepted Into membership of a union, the Welfare Benefit Fund fees and first month's contribution should be paid. (vl) See the Labour Department's publication "Model Rules for a Welfare Benefit Fund 1 ' and note (ill) opposite model rule 3(1) (ill) above. (vii) Every change of rules, Including changes in fees, subscriptions, and contributions, must be registered with the Registrar of Trade Unions. (viii) As a matter of policy, Executive Committees should not reduce subscriptions or exempt members from payment of monthly contributions to the Welfare Benefit Fund. See the Labour Department's publication "Model Rules for a Welfare Benefit Fund". (ix) Enter the name of the industry at (2). Members of the union going to work In a different industry should join the union concerned with that other industry. (x) This rule is designed to safeguard an unemployed member going into a temporary job and to maintain his right to benefit.

10 Members breaking rules Arrears Annual Genera! Meeting (6) All members must abide by the rules of the union. Any member breaking the rules of the union may be liable to fine or expulsion by the Executive Committee (See rule 7(8)). Any member fined or expelled shall have the right to appeal to the- Annual or Extraordinary General Meeting, whose decision shall be final. (7) Members who are more than months in arrears of either monthly subscriptions, or contributions to the Welfare Benefit Fund, shall not be entitled to trade union or welfare benefits nor permitted to vote. Members who are more than months in arrears with either subscriptions or contributions shall cease to be members. Rule 4 CONSTITUTION AND GOVERNMENT The supreme authority of the union shall be vested in the Annual General Meeting and, subject to that authority, the union shall be governed by the Executive Committee. (xi) A member should not be entitled to trade union and welfare benefits if he is in arrears with welfare contributions for more than three months, even if not in arrears with monthly subscriptions. Similarly, a member in arrears of monthly subscriptions for more than three months even if not in arrears with welfare contributions should not be entitled to trade union and welfare benefits. See last sentence of note (ii) opposite model rule 5(2) below. (xii) The time limit should be decided by the members but it is suggested that a maximum of three months* arrears should cover loss of benefits and that a maximum of six months* arrears would lead to expulsion.

11 Date of Anneal General Meeting 5 ANNUAL GENERAL MEETING AND EXTRAORDINARY GENERAL MEETING (1) The Annual General Meeting shall be held in the month of in every year. Attendance (2) (i) All members are entitled to attend at the Annual the Annual General Meeting or the Genera! Extraordinary General Meeting provided they are not more than Meeting and Extraordinary months in arrears with either their General subscriptions or their contributions. Meeting (i) The Annual General Meeting should be held separately from the annual celebrations which usually Includes the swearingin of officers, followed by a dinner. See note (i) opposite model rule 7(1) below. There is no reason why the Annual General Meeting should not be held on the same day provided that the two events are kept entirely separate and nothing interferes with the business to be considered at the Annual General Meeting. (ii) Most unions in Hong Kong are small unions and have no branches. There should be no difficulty about members attending the Annual General Meeting or Extraordinary General Meeting, and they should be encouraged to do so. If, by reason of size or geographical difficulties, it is not possible for all members to attend, alternative arrangements can be made. For unions with branches see the Labour Department's publication "Model Rules for Trade Union Branches". If the Welfare Benefit Fund of a trade union is obligatory, non-payment of contributions to the Welfare Benefit Fund for more than months should penalise members from attending and voting at Annual and Extraordinary General Meetings. See model rule 3(7) above.

12 Calling of Extraordinaiy General Meeting Business of Annual General Meeting 10 (ii) Only members qualified by the rules of the union shall be entitled to vote at the Annual General Meeting or Extraordinary General Meeting. (3) Extraordinary General Meetings may be called by the Executive Committee or at the request of one-fifth of the total number of members of the union who are not more than months in arrears with either subscriptions, or contributions. (4) The business of the Annual General Meeting shall.be: (i) To receive reports from the Executive Committee, to review the past work of the union, and to plan future policy (ii) To elect by secret ballot the Chairman, Vice-Chairman, Secretary, Treasurer, and members of the Executive Committee (iii) The Annual General Meeting is the most important meeting of the union but it is sometimes necessary that all members should be called together to discuss urgent business in between Annual General Meetings. An Extraordinary General Meeting meets this need. The Executive Committee should only call an Extraordinary General Meeting for a really urgent and important matter which cannot wait until the next Annual General Meeting. (iv) See "Voting by Members of Trade Unions" Part IV, Trade Union Education Series: No. 3, published by the Labour Department. (v) All the members should be given the opportunity of voting for the principal officers, of the union and in many unions this can easily be done at the Annual General Meeting. A number of unions in Hong Kong, however, only elect at the Annual General Meeting the members of the Executive Committee and, at a later

13 meeting, the Executive Committee from amongst themselves elect the principal officers. This method is open to criticism as it can lead to abuse. See model rule 6 below. If a union wishes to add the names of other officers to the rule, such as Welfare Officer, etc., this can easily be done. All officers of the union should be habitually employed in the industry, occupation, trade, or profession which the union is concerned. A union member under 21 years of age cannot be a member of the Executive Committee. Amendment of rules Agenda of Annual General Meeting (iii) To receive the audited accounts for the previous financial year and to consider the financial position of the union (iv) To consider any other business. (5) The Annual General Meeting, subject to clauses (3) and (7) of this rule, shall be the only authority to rescind, alter, and add to any of these rules. (6) The Secretary, on the instructions of the Executive Committee, shall prepare an agenda of the Annual General Meeting and shall make it known to members in such manner as the Executive Committee shall decide. (vi) The Constitution of every trade union should contain a rule for the provision of audited accounts. (vii) Rules which have been rescinded, altered, or amended cannot be acted upon until the Registrar of Trade Unions has registered them. (viii) The Secretary should send out the agenda to members well in advance of the date of the Annual General Meeting so that they have time to send in nominations for election to the principal posts and motions for discussion. The Secretary should also, if possible, send to members at the same time as the notice of the Annual General Meeting a copy of the audited accounts of the union. II

14 Notice and agenda of Extraordinary General Meeting Quorum 12 (7) Not less than 14 days' notice shall be given to all qualified members for the calling of an Extraordinary General Meeting and an agenda showing the business shall accompany the notice. Discussion at the Extraordinary General Meeting shall be limited to those matters contained in the agenda. Decisions reached at the Extraordinary General Meeting shall have the same validity as decisions reached by the Annual Genera! Meeting provided that, where any change in the rules of the union is contemplated, such change shall be specifically stated in the agenda of the meeting. (8) The quorum for all Annual and Extraordinary General Meetings of the union shall be of the qualified members. With the exception of decisions regarding change of name of the union, federation or amalgamation with another union, all decisions taken at Annual or Extraordinary General Meeting will be valid if passed by a majority vote of all qualified members present. (ix) As the holding of an Extraordinary General Meeting is usually a matter of some urgency, it is necessary to lay down a period of notice. The members know from the rules the date of the Annual General Meeting and plenty of preparation can be given to this, but an Extraordinary General Meeting is different. Adequate notice is important to enable the members to make arrangements to attend and to come prepared to discuss the business on the agenda. (x) Difficulties may arise in the fixing of the number of members needed to constitute a quorum. If the number is fixed too high and many members are unable to be present the business of the union is not carried out and a further meeting must be called, often at additional expense. If the number for a quorum is too low the business of the union may fall into the hands of a few people and the members will not be fully represented. The figure decided upon should be one which the Executive Committee feel can reasonably be achieved by attendance. Once the figure is laid down in the rules the Executive Committee should do all in its power to persuade and educate members to attend Annual and Extraordinary General Meetings. (xi) See notes (iii) and (iv) opposite model rule 6(2) below.

15 Secret foassot held under the authority of the Executive Committee or Seb- Committee Matters to be decided by secret ballot Rule 6 ELECTIONS AND SECRET BALLOT (1) All elections or other matters for decision by secret ballot at the Annual or Extraordinary General Meeting of the union shall be held under the authority of the Executive Committee or under the authority of an Election Sub-Committee appointed specifically for the purpose by the Executive Committee. (2) All decisions in respect of the following items shall be taken by secret ballot: (i) election or dismissal of the officers of the union and the Executive Committee Members (ii) change in the name of the union (i) If the union is a large one and there are difficulties in accommodating all members wishing to attend the Annual or Extraordinary General Meeting for the purpose of recording their votes, alternative arrangements can be made. For example, two or three evenings before the Annual or Extraordinary General Meeting could be set aside at union premises for members to vote but these alternative arrangements must be laid down in the rules. Where the voting is spread over some days, care must be taken to safeguard the ballot box. Model rule 6(3), (4) and (5) below will still apply. (ii) In some countries trade unions use a postal ballot conducted by an independent person or body. In Hong Kong it would be very difficult to operate a postal ballot with adequate safeguards. (iii) A change of name cannot be registered with the Registrar of Trade Unions unless not less than two thirds of all qualified members give their consent. 13

16 (iii) amalgamation of the union with another trade union (iv) federation of the union with any other trade union or trade union federation. (3) The Secretary or other officer appointed for the purpose shall be responsible for issuing ballot forms. Ballot forms will be issued only to those members qualified by the rules of the union to exercise their vote. (4) All ballot forms must be filled in at the place provided. They must not be signed by the person filling them in. They must be placed in the sealed ballot box provided for the purpose only by the person filling in the ballot form. The Executive Committee or the Election Sub-Committee will appoint persons to supervise and safeguard the ballot box. (5) Two or more scrutineers shall be elected at the Annual or Extraordinary General Meeting from members. The scrutineers will be responsible under the Executive (iv) No amalgamation can be approved by the Registrar of Trade Unions unless 50% of all the qualified members record their vote and 60% of the votes recorded are in favour. (v) No trade union can amalgamate with another trade union established or connected in any way with any organization outside Hong Kong without permission to be obtained through the Registrar of Trade Unions. (vi) The Trade Unions Section of the Labour Department should be consulted for advice on federation, but trade unions cannot federate unless they are engaged in the same trade or industry. (vii) See model rules 3(l)(ii), 3(2)(iii), and 3(7) above. (viii) It is usual to provide a desk or a table set apart from the officials supervising the ballot so that the member exercising his vote can do so in secrecy without in any way being influenced or overlooked by others. (ix) The ballot box should be properly sealed or locked so that its contents cannot be tampered with. (x) The scrutineers can be elected by show of hands. All ballot forms incorrectly filled in, added to in any way, or signed should be declared invalid. If any abuses

17 Government of union vested in Executive Committee Composition of Executive Committee Rule 7 Committee or Election Sub-Committee for collecting ballot boxes and counting and checking ballot forms. EXECUTIVE COMMITTEE (1) The government of the union in the periods between Annual General Meetings and the conduct of its business shall be vested in an Executive Committee. (2) The Executive Committee shall consist of Chairman, Vice-Chairman, Secretary, and Treasurer and members who shall be elected annually by secret ballot at the Annual General Meeting. occur, such as the ballot box being tampered with, the Executive Committee or the Election Sub-Committee should immediately make a report to the Annual or Extraordinary General Meeting. If the abuses are serious enough to influence the outcome of the election, the Committee should recommend that a new ballot be held. (xi) For an explanation of the implications of model rule 6 and further information on the subject, see "Voting by Members of Trade Unions." Part IV, Trade Union Education Series: No. 3, published by the Labour Department. (i) As soon as the officers and Executive Committee members are elected at the Annual General Meeting they should immediately take over their duties. In Hong Kong most unions like to have a special occasion for the swearing-in of the new committee. Provided this takes place as soon as possible after the Annual General Meeting and provision is made for it in the rules, there can be little objection. (ii) The names of other officers can be added if necessary. The number of Executive Committee members should also be laid down in the rules. The names of all officers should be prominently displayed in the union office. 15

18 Meeting and quorum of Executive Committee Vacancies on the Executive Committee Protection of funds by Executive Committee Appointment and dismissal of staff (3) The Executive Committee shall meet at least once a month. One half of the total number of members shall form a quorum. (4) In the event of the death, resignation, or dismissal of any officer of the Executive Committee between two Annual General Meetings or when, during such period, any officer is unavoidably absent from Hong Kong and such absence is likely to be permanent or unduly prolonged, the candidate who secured the next highest number of votes in the ballot at the last Annual General Meeting shall fill the vacancy. If there is no such candidate the vacancy shall be filled by decision of the Executive Committee. (5) The Executive Committee shall pursue the objects of the union and shall protect its funds against extravagance or misappropriation. It shall give instructions as to the investment of the funds of the union subject to rule 9(4). (6) The Executive Committee shall give instructions to the Secretary and other officers for the conduct of the affairs of the union. It may appoint organizers and such clerical staff as it may consider necessary and dismiss such organizers and staff for reasons deemed good and sufficient. It shall appoint sub-committees where necessary to carry out the routine work of the union. 16

19 Dismissal of officers Fines to and expulsion of members Decisions of Executive Committee Interpretation of rules (7) The Executive Committee may suspend and recommend for dismissal any officer or Executive Committee member of the union for neglect of duty, dishonesty, incompetence, refusal to carry out the decisions of the Executive Committee, or for any other reason which it deems good and sufficient in the interests of the union. Any officer or Executive Committee member recommended for dismissal shall have the right of appeal to the Annual or Extraordinary General Meeting. (8) The Executive Committee may fine any member who is proved, to the satisfaction of the Committee, to have been guilty of conduct prejudicial to the interests of the union, a sum not exceeding $ or may suspend or expel such member from the union. Any member so fined, suspended, or expelled shall have the right of appeal to the Annual or Extraordinary General Meeting. (9) The decision of the Executive Committee shall be binding on all members of the union. (10) Between Annual General Meetings the Executive Committee shall interpret the rules, when necessary, and determine any point which the rules do not adequately cover. (iii) See model rule 6 above. (iv) If a member is guilty of conduct prejudicial to the interests of the union, but the offence is not very serious, a small fine imposed on the member should be sufficient. Suspension or expulsion can be imposed where the case is serious. It should be borne in mind that if a member is fined and the fine is paid, the member may continue to enjoy benefits to which he may be entitled, whereas, under suspension or expulsion, benefits should cease. (v) It is impossible for everything to be put into the rules and the Executive Committee may have to determine certain points on which the rules do not give a satisfactory explanation. If the point at issue is an important one the Executive Committee should, after consideration, re- 17

20 Fully paid subscriptions etc. Power to open branches Duties of Chairman 18 (11) All officers and members of the Executive Committee must be fully paid up with all subscriptions and contributions. (12) The Executive Committee shall have the power to open branches, subject to the approval of Annual or Extraordinary General Meeting. The Executive Committee shall have the power to decide the amount of money to be retained by branches or paid out of General Funds to branches. Rule 8 OFFICERS OF THE UNION (1) (i) The Chairman shall be elected annually by secret ballot at the Annual General Meeting, shall serve for one year, and shall be eligible for re-election. (ii) The Chairman shall preside at all Annual and Extraordinary General Meetings and Executive Committee Meetings and shall be responsible for the proper conduct of business. He shall have a casting vote. He shall sign the minutes of each meeting after they are approved. commend the desirability of a new rule or a change of an old rule at the next Annual General Meeting or at an Extraordinary General Meeting. (i) See "Duties of Officers", Part I, Trade Union Education Series: No. 3, published by the Labour Department. (ii) Some unions appoint in addition to their elected officers honorary officers, e.g. President, Advisers, etc. If these appointments are made, the method of appointment and the duties and responsibilities of these honorary officers should be laid down in the rules of the union. (iii) Some trade unions allow the Chairman to have his ordinary vote as a member of the Committee and a casting vote to be used as necessary. There is no objection to this if the Chairman is not a paid officer but, if he takes over the work of the Secretary and is paid for doing so, he should only be allowed a casting vote.

21 Duties of Vice Chairman (iii) With the assistance of the Secretary and Treasurer, he shall superintend the general administration of the affairs of the union and shall endeavour to secure the observance of the union rules by all concerned. (2) The Vice-Chairman shall be elected annually by secret ballot at the Annual General Meeting, shall serve for one year, and shall be eligible for re-election. His duties shall be defined by the Executive Committee. In the absence of the Chairman on union business or for any other reason he shall deputize until such time as the Chairman returns or the Executive Committee carry out the provisions of rule 7(4). Duties of Secretary (3) (i) The Secretary shall be elected by secret ballot at the Annual General Meeting, shall serve for one year, and shall be eligible for re-election. (ii) He shall conduct the business of the union in accordance with the rules and shall carry out the instructions of the Annual or Extraordinary General Meeting and of the Executive Committee. This should be provided for in the Standing Orders of the Executive Committee. All unions should have Standing Orders governing conduct and procedure at meetings. See "Conduct of Meetings", Part II, Trade Union Education Series: No. 3, published by the Labour Department. 19

22 (iii) He shall keep a register of all members. (iv) He shall attend all meetings of the Executive Committee and shall record the minutes. He shall have the right to speak but not to vote. (v) He shall prepare the Annual Report of the union for submission to the Annual General Meeting and any other reports necessary for the Extraordinary General Meetings. (vi) He shall, in conjunction with the Treasurer, sign cheques on behalf of the union. Duties of (4) (i) The Treasurer shall be elected Treasurer annually by secret ballot at the Annual General Meeting, shall serve for one year, and shall be eligible for re-election. (ii) He shall be responsible for the safety of all monies and the safeguarding of all investiments belonging to the (iv) Normally the Secretary, who is responsible for all the routine work of the union, should not be expected to vote, particularly if he is paid. His duties are, among others, to advise the Executive Committee as much as possible. If he is expected to exercise his vote in support of differing viewpoints on the Executive Committee, his usefulness as an adviser will be nullified. See model rule 8(l)(ii) above and note (ii) opposite this rule. (v) Every trade union in Hong Kong must send to the Registrar of Trade Unions before the 31st March of each year, the Annual Return, which shows the membership, names of officers, etc. This should be prepared and submitted by the Secretary although the Executive Committee is responsible for sending in the Return. See note (v) opposite model rule (8)(4)(ii) below. (vi) See "A Guide To Simple Trade Union Accounting", Trade Union Education Series: No. 2, published by the Labour Department. (vii) The Treasurer, or the Secretary, will also be responsible for submitting the audited statement of accounts and a copy of the 20

23 union and shall keep full and accurate accounts of all transactions conducted in the name of the union. He shall prepare a financial statement for each meeting of the Executive Committee and an annual statement of accounts for audit and for presentation to the Annual General Meeting. He shall have the right to speak and to vote on all matters except financial matters. (iii) He shall give to every member of the union requesting it a general statement of account of all the receipts and expenditure of the union free of charge. (iv) He shall, in conjunction with the Secretary, sign cheques on behalf of the union. (v) He shall deposit in the bank appointed by the Executive Committee all sums over $ retaining the remainder in a safe place. auditor's report to the Registrar of Trade Unions. (viii) If the auditor is not a member of the union the Treasurer should at the Annual General Meeting, besides dealing with the accounts of the union, also make known the auditors' report to the members. See model rule 12(3) below and note (v) opposite this rule. (ix) Model rule 8(4)(iii) opposite can be entered as a part of the Secretary's duties if desired. (x) The Executive Committee will have to decide the sum to be retained by the Treasurer. (5) Any officer whose duties call for fulltime services on behalf of the union may be paid a salary, such salary to be determined by the Executive Committee. (6) Any officer whose duties involve financial responsibility shall provide such security as the Executive Committee may require. 21

24 (7) Members nominated for the position of Chairman, Vice-Chairman, Secretary, Treasurer, or any other official position on the Executive Committee must be fully paid up with their subscriptions and contributions. Use of funds Uses of the Genera! Fund 22 Rule 9 USE OF FUNDS (1) The funds of the union shall be divided into two sections. (a) General Fund, which may be used by the Executive Committee for any lawful purpose approved at the Annual General Meeting or Extraordinary General Meeting of the union. (b) Welfare Fund, to be used solely for welfare purposes approved at the Annual General Meeting or Extraordinary General Meeting of the union. (2) General Fund. This shall be used for: (i) the payment of salaries, allowances, and expenses of officers of the union (ii) the payment of expenses for the administration of the union, including audit of the accounts of the funds of the union (i) This includes payment for all the general expenses of running the union, e.g., lighting and heating, rent, telephone, salaries of staff, cost of audits, etc.

25 (iii) the prosecution or defence of any legal proceedings to which the union or any member is a party, when such prosecution or defence is undertaken for the purpose of securing or protecting any rights of the union as such or any rights arising out of the relations of any member with his employer or with a person whom the member employs (iv) the conduct of trade disputes on behalf of the union or any member (v) compensation of members for loss arising out of trade disputes (vi) the payment of donations or grants to registered trade unions or other lawful bodies in Hong Kong and subscriptions, fees, and contributions necessary for affiliation to any trade union federation or other lawful trade union organization in Hong Kong. (ii) This would cover payments made to members affected by a strike or lockout. It is preferable for a union to make special preparation for such a fund and to have provision made in the body of the rules for the regulation of the fund. (iii) If any trade union wishes to affiliate with or make any donations or contributions to any organization outside Hong Kong permission must be obtained through the Registrar of Trade Unions. Funds of a trade union must not be used for political purposes inside or outside Hong Kong. (iv) If there is doubt as to what payments should be made, advice can be obtained from the Trade Unions Section of the Labour Department. Welfare Fund (3) Welfare Fund (i) provision of welfare benefits set out in rule 2(5)(i), (ii), and (iii) and rule 10 (i) Expenses incurred in the setting up of a committee or organization inside the union concerned with the administration of welfare benefits would come under 23

26 Investment of funds Financial year 24 (ii) payments of allowances to members or their dependants and/or their families on account of death, including funeral expenses, sickness, accident, disablement, distress, unemployment, maternity, retirement (iii) the payment of educational fees for members and their children (iv) payment of expenses incurred in the promotion of recreational, cultural, and social pursuits in the interests of members. (4) Investment of funds The funds of the union which are not required for current expenses may, on the direction of the Executive Committee, be invested in Government or such other securities, as the Executive Committee may think fit, subject to the approval of members at the Annual General Meeting or Extraordinary General Meeting. (5) Financial year The financial year of the union shall commence on the 1st day of (3) of each year and terminate on the 28th^ 29th/30th/31st of (3) the following year. this heading. See "Model Rules for a Welfare Benefit Fund", Trade Union Education Series: No. 1, published by the Labour Department. (ii) Regulation of these payments should be provided for under model rule 10 below. (iii) See note (iii) opposite model rule 2(6) above. (iv) If there is doubt as to what payments should be made, advice can be obtained from the Trade Unions Section of the Labour Department. The name of the month should be added at (3), The financial year should terminate a month or six weeks before the Annual General Meeting to give the Treasurer and auditor time to prepare the accounts which should, if possible, be sent to all members prior to the Annual General Meeting for consideration at the meeting.

27 Rule 10 ESTABLISHMENT OF WELFARE BENEFIT FUND The Executive Committee shall have the power to establish and/or administer a Welfare Benefit Fund or to appoint a sub-committee to administer the Fund. The Fund shall be open to all members and give benefits to members and/or their families in the event of death, accident, sickness, distress, unemployment, maternity or retirement in accordance with rule 2(5)(i), (ii), and (iii). (The rules of the Welfare Benefit Fund should follow). (i) Giving benefits to all members of the family could be difficult. It is suggested that members of the family should be restricted to dependants only, i.e. those who are entirely supported by the trade union member. (ii) For rules on this subject, see "Model Rules for a Welfare Benefit Fund", Trade Union Education Series: No. 1, published by the Labour Department. Rule 11 LEVIES Imposition (1) The Executive Committee may, if neces- f Sev y sary, impose a levy upon all members of the union and all members shall be required to pay such levy provided that, if members object to payment of the levy, they shall have the right to refer the matter to the Annual General Meeting or call for an Extraordinary General Meeting under rule 5(3). Failure to pay levy (2) If any member fails to pay a levy within months of its imposition, the amount shall be treated as arrears of subscription (see rule 3(7)). (i) It may be necessary in the event of a serious loss of income to impose a levy and this rule makes provision for such an emergency. If the matter is not too urgent it is better to raise it at the Annual General Meeting than to call an Extraordinary General Meeting. (ii) It is suggested that the time limit for the payment of levies should be three months, the same as for the payment of monthly subscription and welfare contribution. See model rule 3(7) below and note (xi) opposite this rule. 25

28 Auditors need mot be members Audit of accounts 26 Rule 12 AUDITORS (1) One or more auditors, who need not be members of the union, shall be appointed or elected at the Annual General Meeting. (2) The auditor shall audit all the accounts of the union, general and welfare, as soon after the close of each financial year as possible and at other times when necessary. All books and accounts of the union will be examined and a certification as to their correctness or otherwise be given by the auditor, A report by the (i) The union can appoint suitable persons who are not members but, in any case, they must be approved by the Registrar of Trade Unions. In a small union, if two or more members are nominated for the post of auditor, an election should be held. (ii) A union may appoint an authorized auditor or a professional accountant. This is generally more satisfactory than appointing a lay auditor. There is no necessity to appoint a member to be an auditor as well although in some cases it is useful to have a lay auditor, who can keep an eye on the monthly accounts, and to employ a professional auditor for the annual audit. All auditors, whether professional or lay, must be approved by the Registrar of Trade Unions. (iii) The person appointed should be independent of any policy making committee of the union. It is wrong in principle for a member of the Executive Committee to be appointed as auditor.

29 Copy of auditor's report inspect! of books Cessation of work Action for improved conditions auditor will be made to the members at the Annual General Meeting. (3) A copy of any auditor's report shall be conspicuously placed at the office of the union. Rule 13 INSPECTION OF BOOKS Any member not more than months in arrears of either subscriptions or contributions (See rule 3(7)) or any authorized agent of the member will be allowed to inspect the account books and the register of members. Applications must be made in advance to the Secretary or Treasurer, who will be allowed reasonable time to make the necessary documents available. Role 14 TRADE DISPUTES (1) In the event of any trade dispute arising, the members concerned shall make the same known to the Secretary of the union, who shall immediately report the same to the Executive Committee, but in no case shall a cessation of work be threatened or take place without the sanction of the Executive Committee. (2) Should any branch or body of members of the union desire steps to be taken for an increase of wages or improved con- (iv) If the auditors are not present, their report should be given by the Treasurer. (i) Any member who wishes to check his liability to the union is entitled to do so, provided he gives sufficient notice of his intention to inspect the books. If a member is unable to do this through sickness or for any other important reason, he is allowed to appoint a person to represent him, provided he informs the officer concerned. (ii) It is suggested that the time limit should be three months, the same as for arrears of subscriptions and contributions. See model rule 3(7) below and note (xi) opposite this rule. (i) In the event of a strike or lockout arising out of a trade dispute, see note (iii) opposite model rule 9(2)(v) above. 27

30 Legal advice or assistance Education Roles to be printed and made available 28 ditions of employment, the Secretary of the union shall report the claim to the Executive Committee, who shall determine what action shall be taken. Rule 15 LEGAL ASSISTANCE Consistently with the provisions of rule 2(5)(v) the Executive Committee shall have power to provide legal advice and assistance to any member on any matter connected with his employment, provided the member's subscriptions and contributions are no more than months in arrears, (See rule 3(7)), and further provided the Executive Committee are satisfied that the case is one on which it is advisable that legal advice or assistance shall be given and also provided that the necessity for legal assistance is not caused by drunkenness, wilful neglect of duty or by any criminal act on the part of the member. Rule 16 EDUCATIONAL WORK The union may undertake the education of its members through meetings or classes and a monthly bulletin reporting the activities of the union. It may publish literature and take such other action as will promote industrial, cultural, social, and political knowledge. Rule 17 RULE BOOK (1) A copy of these rules shall be given to every person accepted into membership of the union. (i) When a person's application for membership is accepted, he should be informed of this and his subscription and

31 Dissolution Debts and liabilities fully discharged Notice sent to Registrar of Trade Unions (2) A copy of these rules shall be readily available at the union premises for perusal by aay members. Rule 18 DISSOLUTION (1) The union shall not be dissolved, except with the consent of 5/6ths of the qualified membership of the union obtained by means of a secret ballot. (2) In the event of the union being dissolved all debts and liabilities legally incurred on behalf of the union shall be fully discharged and the remaining funds divided amongst all qualified members in equal proportions. (3) When the union is dissolved notice of such will be sent by the Secretary to the Registrar of Trade Unions. contribution card be given him. A copy of the rules should also be given him at the same time. A small fee can be charged but, if this is done, the fee should be stated in the rules. (ii) A copy of the rules should be displayed in the union office for every member to see. (iii) Officers of the union when attending meetings should always have a copy of the rules available for immediate reference. (i) Ail qualified members of most unions have a financial interest in their union, particularly if the union has substantial property and funds. Any resolution made to dissolve the union must be approved by the greatest possible number. Therefore 5/6ths is suggested as representing a substantial proportion of union members. (ii) Notice of dissolution should be sent to the Registrar of Trade Unions within 14 days. The notice must be signed by seven members and the secretary. 29

32 Rule 19 CONTRACT & COMMON SEAL (1) Contracts made by the Committee (Executive Committee, General Committee, Council or by whatever name the Committee of Management is called in the Union) on behalf of the Union shall bear the signatures of the Chairman and Secretary (or of such members who for the time being and under the rules of the Union, act as Chairman and Secretary) and such other member or members appointed by the Committee for such purpose. (2) The Union shall have a common seal and this common seal shall not be fixed to any instrument except by authority of the Committee in resolution, and shall be fixed in the presence of the Chairman and Secretary (or of such members who for the time being and under the rules of the Union, act as Chairman and Secretary). Under the Trade Unions and Trade Disputes Ordinance, trade unions did not have the power to own property. Section 13 of the new Trade Union Registration Ordinance changes this and confers upon a registered trade union corporate status, giving it power to hold property and enter into contracts. The model rule opposite suggests which officers should be responsible for signing contracts on behalf of the union. 30

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