Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time." In the speech of the Yang di-Pertuan Negara which outlined the policy of this Government, it was stated that the Government would also cancel registration of splinter and yellow unions after due investigation. Mr Speaker, Sir, this statement of policy merely repeats the stand of the People's Action Party on labour and trade unions, which was stated to the people of Singapore in a speech delivered by the Prime Minister at a mass rally at Geylang Serai on the 1st March this year. In his speech the Prime Minister said (I will quote him): "No legislation for minimum wages or benefits or working conditions can be as effective and efficient in protecting the workers from exploitation by bad employers as a good union. It is the right of the workers to protect and strengthen their position by organising themselves into unions. And a P.A.P. government will do its utmost to facilitate the workers to organise themselves into unions. The primary burden of pressing the just claims of workers must be that of the unions. In this they will receive the full help of the machinery of the State. We shall legislate regarding the compulsory recognition of unions, the cancellation of registration of yellow unions after due investigation to establish the truth or after secret ballot has shown that a majority of the workers support or oppose, as the case may be, a union in their sector of employment." We have stated, Mr Speaker, Sir, the methods that we will use in no uncertain terms. This Bill seeks to implement the declared policy of the Government. It will, as stated in the Explanatory Statement, enable the Registrar of Trade Unions to cancel the registration of yellow and splinter unions, and also to refuse to register such unions. Mr Speaker, Sir, it is my duty now to point out the trends which appear to have been overlooked by the previous Government. For years there has been a continuous increase in the number of small unions of employees or rival unions of employees, with the result that we have reached an unhealthy state of affairs: too many small unions of employees in this small island State of Singapore. Whilst the number of small unions was increasing, the total membership was decreasing. Mr Speaker, Sir, I will now refer to extracts from the Labour Department Reports which were published year by year from 1955 to 1958. These reports were published by the previous Government, and it appears to me, as I shall show later, Mr Speaker, that the same Government that was producing these reports never took the trouble to know what they contained. Now, the position as given in the 1954 Report was that there were 136 unions in that year with a total membership of 76,452. If we turn to page 10 of the 1955 Labour Department Report, we see this reference: "The growth of trade unions in the Colony during the year was marked in the number of unions, in union membership and in union activities. More small unions of clerical as well as manual workers came into existence to heighten further rivalry among themselves and with general unions." According to that report, the number of registered unions of employees in that year increased from 136 to 187, while their membership increased from 76,452 to 139,317. Table XXXI of that same report shows the breakdown. There were 20 unions in 1955 with a membership of under 50. There were 71 unions with a membership ranging from 50 and under 250; 68 with a membership ranging from 250 and under 1,000; 25 with a membership ranging from 1,000 and under 5,000; one union with a membership ranging from 5,000 and under 10,000; and 2 unions with a membership ranging from 10,000 or more, making the total for 1955, 187 unions with a membership of 139,317, an increase over the figures for 1954. Now, if we turn to pages 12 and 13 of the Labour Department Report for 1956, we see this note: "The general tendency to form small unions continued to prevail. All the unions registered during the year, with one exception, were small unions with memberships ranging from 10 to 250. The move to federate by the bus workers' unions proved abortive and the attempt at amalgamation by certain Harbour Board unions had yet to materialise." During that year, the number of registered unions of employees increased from 187 to 205, and the membership rose from 139,317 to 157,216. On Table XXXII of that report the breakdown is shown: 22 unions in 1956 with a membership of under 50; 75 with a membership ranging from 50 to 250; 73 with a membership ranging from 250 to 1,000; 32 with a membership ranging from 1,000 to 5,000; one with a membership of over 5,000 and under 10,000, and 2 unions with a membership of over 10,000, making the total - 205 unions with a total membership of more than 157,000. Now, let me refer you, Sir, to the 1957 Labour Department Report, at pages 17 and 18. This is what the report says: "The number of small unions in Singapore continued to rise. The general pattern of union development closely followed that of previous years. Most of the newly established unions were small ones, and no serious moves were made towards either forming larger unions or merging existing ones. The attempts at amalgamation begun in 1956 by the bus and Harbour Board workers unions fizzled out during that year. The number of employees unions in that year rose from 205 to 216, but the aggregate membership fell from 157,216 to 140,710." Table XXXIV of the 1957 Report gives the breakdown for that year: 20 unions with under 50 (there were 22 in the previous year); 81 with memberships ranging from 50 to 250; 85 with memberships ranging from 250 to 1,000; 27 with memberships ranging from 1,000 to 5,000; 2 with memberships ranging from 5,000 and under 10,000; and one with a membership ranging from 10,000 and above, so that the position was: 216 unions with a membership of 140,710. That means a membership of 17,000 less than the year before. Mr Speaker, I would like to refer you now to the 1958 Labour Department Annual Report, at pages 17 and 18: "The tendency to form small unions continued in 1958. Out of the 18 unions of employees registered during the year, 11 had a membership of 50 or less, while the rest varied from 68 to 350. One more union of general employees came into existence, thereby increasing the number of such unions to 6 in the Colony. Although there were reports that several unions were considering amalgamation, by the end of the year only one application for amalgamation of two unions was received. In that year the number of unions of employees increased from 216 to 218, but their aggregate membership fell from 140,710 to 129,159." You see the drop, Mr Speaker, Sir. From 157,000 to 140,000 to 129,000 and the numbers of unions increased from. 205 to 216 to 218. The breakdown is also given for that year: 24 unions with a membership of under 50; 84 unions with a membership ranging from 50 to 250; 83 unions with a membership ranging from 250 to 1,000; 24 unions with a membership ranging from 1,000 to 5,000; 2 unions with a membership ranging from 5,000 to 10,000; and one union with a membership ranging from 10,000 and more. We now come to 1959. According to the Labour Department monthly report there were on the register on the 31st May this year, 226 unions of employees, with a total membership of 134,650. There were also in the hands of the Registrar of Trade Unions as on the 31st May this year, 11 applications for the registration of new unions of employees as on that date. Of these, one has since withdrawn its application. The membership of each of the remaining 10 unions as stated in their respective applications is as follows: one union claimed a membership of 10 members; one union claimed a membership of 11 members; two unions said they had not more than 30 members each; one union had a membership of 32; one claimed a membership of 45 members; one a membership of 50, one a membership of 80, and two unions said their membership did not exceed 154 each. Mr Speaker, Sir, I have given you a very detailed statement regarding the position in all these unions. This information gives a clear picture based on figures and facts of the continuous growth of the number of small unions of employees during the last 4� years, causing rivalry among the registered unions and acting, therefore, against the general interest of workmen. I will now, Mr Speaker, Sir, come to the case of splinter unions. I shall now proceed to prove, again giving figures and stating facts, that a large number of these unions are splinter unions, i.e. the unions that I have just been referring to. Let me give the House a few illustrations. Since 1947, there has been in existence a registered trade union which caters for coffee-shop employees. At the beginning of 1956, a small union also claiming to cater for employees of coffee shops suddenly sprang into existence. It is interesting to note that the title of the small union closely followed that of the employers' association, which the coffee-shop employers themselves had just formed less than a month before. Among the seven persons who made the application for registration of the small union was the ex-president of the registered coffee-shop union. At the time of its registration, the small union claimed to have a membership of 100, whilst the registered union had a membership of 1,280. A number of the ex-officers of the larger union, probably because they were not re-elected to office, have since joined this splinter union and are now its president, vice-president, secretary and treasurer. It has been pointed out to me that if the Registrar had the power to examine the books of some of their employers, he would most probably discover that many of these union officials in one way or another have some interest in their employers' shops. Even today, the membership of the larger union is many times more than that of the splinter union. Sometime in 1949, one of the officers of a certain registered Chinese Seamen's Union was convicted and sentenced to six months' rigorous imprisonment on a charge of criminal breach of trust of union funds. Some years later, this same man formed yet another Chinese seafarers' union and had it registered. He is now the registered secretary of this union. Under the existing Trade Unions Ordinance, the Registrar has no power to refuse to register a union with such an undesirable person as an official. Again in 1956, a Chinese union claiming to cater for hair-dressers with only 40 members came into existence. There was at that time already in existence a registered trade union of many years' standing catering for the same class of workers. Three of the seven persons who made the application for registration of the splinter union were former officials of the registered union who were not reelected to office. Even today, the membership of this splinter union is less than 100, while that of the older established union is over 800. As a direct result of the ease with which splinter unions could be formed and registered, there is today in existence in Singapore a total of eight registered trade unions claiming to cater for the workers in the food catering service alone. It is interesting to note that a number of splinter unions have their registered offices at the same address. There are many such unions which have been formed on similar lines at the expense of the strength of the bargaining power of the existing unions. But I do not think it necessary to waste the time of this House by giving more details. I will now come to the case of seamen's unions. Members of this House may be interested to know that among the 10 applications for the registration of new unions which I refered to earlier, and which are still pending, two of them, one with a membership of 50 and another with 30, are applications to form unions to cater for seamen and maritime officers. These applications to register new seamen's unions have been made in spite of the fact that there are already on the register a total of 10 registered seamen's unions, two of which are exclusively for maritime officers and the remainder for seamen. The 10 seamen's unions at present on the register do not include the three seamen's unions and two maritime officers' unions, the certificates of registration of which have already been cancelled by the Registrar. Let me come now, Mr Speaker, to the case of the teachers' unions. Of the remaining eight applications this year, three are to form unions to cater for teachers of one category or other. The first application is to form a union for 10 teachers, the second for 30 and the third for 11 teachers. Meanwhile, there are already on the register 18 registered trade unions catering for teachers of various categories. This number of 18 registered teachers' unions does not include a registered trade union, which although it caters for other employees, has rules permitting it to enrol teachers as members. Of the three applications to form new teachers' unions, one openly admitted that it was to be a splinter union for teachers. Now, let me come, Mr Speaker, to the position of general unions. As on the 27th of May, 1959, there was on the register a total of eight unions catering for general workers. With the exception of two, which could claim to have some thousands of members each, the rest have only a few members each. Mind you, they call themselves general unions. One of these general unions can claim to have only 12 members, and another only 11. Most of these general unions were registered between June 1955 and February this year. Among the 10 new applications for registration this year, there is one applying for registration of yet another general union. From its proposed rules, a person holding an administrative or managerial post in a shop can also be enrolled as a member of this general union. This general union is too obviously a yellow union to deceive anybody. Now, Mr Speaker, Sir, in my association with Government unions, I found that there are splinter unions amongst Government employees as well. I remember a time when the head teachers got disgruntled. They broke away from the teachers' union and formed themselves into a head teachers' association and had it registered as a trade union. We had to do something about it, Sir. The Whitley Council decided that they were not going to allow any splinter union to participate in Whitley Council procedure, and it passed a resolution excluding the splinter union from participation in the Whitley system. Mr Speaker, Sir, I will pass now from splinter unions to the case of yellow unions. The undesirability and, in fact, the danger of the existence of yellow unions was fully revealed by the events of the Hock Lee Bus incident in early 1955, which was sparked off by the formation by the management of a yellow union known as the Hock Lee Bus Employees Union. Thank God, on the recommendations of the arbitrator of the Hock Lee Bus dispute, this yellow union dissolved itself voluntarily, though after much harm had been done. Mr Speaker, Sir, I will quote again now from paragraphs 1 and 2 of page 2 of the Labour Department's monthly report for May, 1955. This is what the Report says about the Hock Lee Bus dispute: 'Industrial unrest during the month reached its climax on the night of May 12, when violence and rioting which had been worked up over the Hock Lee bus dispute broke out. A full report of the industrial aspect of this dispute is as follows: "The Singapore Bus Workers' Union for many years limited to the employees of the Green Bus Company began to extend its activities among other Chinese bus companies in the Colony in the latter half of 1954. Towards the end of February, 1955, a branch of the union was established at the Hock Lee Bus Company, and it seemed to be generally known that it would find great difficulty in gaining recognition from the management of this company. Simultaneous with the establishment of the union branch, two of the branch officials were dismissed from the company for reasons, according to the management, unconnected with trade union activities. This blithe assurance was of course never accepted by the Singapore Bus Workers' Union. Simultaneously, another union was formed known as the Hock Lee Bus Employees' Union. The Singapore Bus Workers' Union branded this rival union as an employers' or yellow union in disguise; whereas the management insisted that it was a spontaneous creation by a group of their own workers who viewed with some alarm the irresponsible leadership of the Singapore Bus Workers' Union. A fact, however, that supported the suspicions of employer sponsorship of the Hock Lee Bus Company Employees' Union was the remarkable speed with which demands were submitted and agreed to shortly after its formation. On the 4th of March this union wrote to request a revision of pay and conditions of employment. On the 5th of March a board of directors' meeting was held to consider these demands, and on the 6th a reply satisfactory to both sides was given. The new conditions of service were made effective from the following day, the 7th of March."' Mr Speaker, Sir, since my assumption of office, numerous complaints have been received by my Ministry from trade unionists regarding the existence of yellow unions. One such union has for years had an undisputed employer as its president. We traced the records. He has been signing records which declare him as an employer. This man, who is an undisputed employer, and several other agents of employees as members, have decided that they would pull themselves out of this union and allow this union to reorganise itself. The employer and the agents of employees who used to control this union have now expressed their willingness to relinquish their control over the union, and a general meeting has been called recently to elect a new committee from an entirely new membership of workers hitherto uncatered for by this union. In the case of another union of employees of restaurants, some of the officials and members of which have openly admitted being shareholders of employers' restaurants, appropriate action to cleanse this union is now proceeding. There is yet another union, the president of which is also an employer. He has, however, recently resigned his office and many of the members of this union have abandoned their membership and joined another union, the membership of which is strictly confined to employees. Now, Mr Speaker, Sir, I come to a clause of the Bill which might be criticised by Members of the Opposition today. And that is clause 5 of the Bill, Sir, which states: '"(2) The decision of the Minister on an appeal under section 16 of this Ordinance shall be final and shall not be called into question in any court.".' Mr Speaker, Sir, this provision in the Bill that appeals from the decisions of the Registrar shall be heard by the Minister whose decision shall be final and shall not be questioned in any court, may be argued to be an infringement of Article 4 of Convention No. 87, which is The Freedom of Association and of The Right to Organise Convention, 1948. This Article provides that workers and employers' organisations shall not be liable to be dissolved or suspended by administrative authority. Mr Speaker, Sir, a few months ago the Secretary of State sought confirmation from the previous Government whether the law in practice here with regard to trade unions conformed with the provisions of this Convention and with the provisions of Convention No. 98, which is The Right to Organise and Collective Bargaining Convention, 1949. In a reply to the Secretary of State, the last Government pointed out that there were many sections of the present Trade Unions Ordinance which infringed Articles 2, 3 and 4 of The Freedom of Association and of The Right to Organise Convention 1948, but that the law in practice here with regard to trade unions was in conformity with The Right to Organise and Collective Bargaining Convention, 1949. The previous Government replied that its full legislative programme had unfortunately prevented it from giving early consideration to measures to bring the Trade Unions Ordinance into conformity with The Freedom of Association and of The Right to Organise Convention, 1948. In fact, Mr Speaker, Sir, in their reply, the previous Government set out the various sections of the present Ordinance - I am not referring to the Amendment Bill - which conflicted with the provisions of that Convention. The previous Government stated that the present sections 14, 15, 26, 28 and 29 conflicted with Article 2 of the Convention and that the Schedule under section 32, and sections 38, 39, 40, 41, 42 and 46 conflicted with the provisions of Article 3 of the Convention and that sections 16, 17 and 29 (5) conflicted with Article 4 of the Convention. Now for the benefit of the House, Sir, I will proceed to read the texts of these various Articles. Article 2 provides: "that workers and employers without distinction whatsoever shall have the right to establish and subject only to the rules of the organisation concerned to join organisations of their own choosing without previous authorisation." Article 3 is in two parts. Part I provides: "that workers and employers' organisations shall have the right to draw up their constitutions and rules, to elect their representatives in full freedom, to organise their administrations and activities and to formulate their programmes." Part II of Article 3 provides: "that the public authorities shall refrain from any interference which would restrict this right or impede the lawful exercise thereof." And Article 4 provides: "that workers and employers' organisations shall not be liable to be dissolved or suspended by administrative authority." In their reply to the Secretary of State, Mr Speaker, Sir, they also said that conditions were not suitable for any change to be made in the present Ordinance because of the Government's fear of subversion and infiltration by subversive elements into the union organisations. Mr Speaker, Sir, section 16 of the Trade Unions Ordinance provides that appeals from the decision of the Registrar should go to the Minister. I would submit, Sir, that this is rightly so because the question of whether the registration of a trade union should be cancelled or withdrawn is an essentially executive act. The new power of cancelling the registration of yellow or splinter unions is one, I submit, Sir, that can only be exercised by an executive body. I submit that the machinery of the courts is quite unsuitable to deal with such matters which hinge so much on questions of policy and executive action. The Bill therefore, Sir, seeks to retain the provision for appeals to be heard by the Minister but it seeks to provide, as is usual in other Ordinances, that the decision of the Minister should be final. The purpose, Sir, is frankly to shut out any appeals to the court, for the Government believes that such matters cannot be resolved in a court and that such decisions can only be made by a Minister responsible to the Legislative Assembly and to the electorate. I am informed, Mr Speaker, Sir, that although under the amendment to section 17 of the Ordinance appeals to the court will be shut out, this amendment however will not shut out proceedings by way of certiorari. In a recent case where the registration of the Malayan National Seamen's Union was cancelled on the grounds that the union had contravened section 44 of the Ordinance by failing to furnish within the prescribed period annual returns in certiorari proceedings, the order of the Registrar cancelling the union's registration was quashed on the grounds that the notice required for these proceedings fell short by one day of the period of two months stipulated in the Ordinance. Mr Speaker, Sir, I have extracted precedents from other Ordinances to show that there is nothing improper in the Government seeking powers to shut out appeals to the High Court on the question of the cancellation of registration or the refusal to register a trade union which is either a splinter or a yellow union. In fact, the last Government took similar powers when dealing with other matters; and I shall now proceed to refer to a few of the similar powers which the former Government took with regard to other matters. Mr Speaker, Sir, in Ordinance No. 40 of 1958 the Public Entertainments Ordinance where there is a forfeiture of security, aggrieved persons have a right of appeal to the Minister whose decision thereon shall be final. That is the provision of section 11(5) of Ordinance No. 40 of 1958. Similarly, section 13 (3) of the same Ordinance provides that an applicant aggrieved by the refusal of his application by the licensing officer may appeal in writing to the Minister whose decision thereon shall be final. Similarly, with regard to the cancellation of a licence under the same Ordinance - the Public Entertainments Ordinance - the decision of the Minister shall be final. Again, Mr Speaker, Sir, I refer you to the Nursing Homes and Maternity Homes Registration Ordinance (No. 5 of 1959) on the question of the refusal of an application and the cancellation of an application for registration. Section 5 (4) of that Ordinance provides that the Minister's decision shall be final. Similarly, Mr Speaker, Sir, I refer you to the Planning Ordinance (No. 12 of 1959) to section 13 (2) which deals with the enforcement of planning control. That section provides for an appeal and the Minister's decision thereon shall be final. Similarly, in the case of development of land under the same Planning Ordinance, there is provision for an appeal. Section 14 (3) provides that the Minister's decision shall be final. And I would refer lastly to the Control of Manufacture Ordinance (No. 14 of 1958) in respect of the registration of goods. Section 5 (6) provides for an appeal and the Minister's decision on the appeal shall be final. Mr Speaker, Sir, the P.A.P. Government has taken the stand that the plurality of small trade unions would work to the detriment of the trade union movement as a whole. The Government knows that trade unions have been fostered by employers - I have produced all the evidence before this House - in order that they may split the workers and that these unions are used not to strengthen the cause of workers but to make it easier for the bad employers to exploit the workers. The P.A.P. Government, as has been said before by our Prime Minister, does not believe in the maintenance of the outward forms of democracy, or in this case the outward forms of trade union freedom, if the effect is to undermine the real essence of democracy or of trade union freedom. The Government does not believe in trade union freedom if it is used to kill the trade union movement itself. Mr Speaker, Sir, I beg to move. Question proposed. 6.10 p.m.