124.933/11–1449: Telegram
The Second Secretary of Embassy in China (Bacon) to the Secretary of State
[Received November 13—9:39 p. m.]
2412. Prior to termination September 30 employment of American Embassy club workers, board governors offered to each worker 1 month’s pay in lieu of notice and 1 month’s separation pay. Board considered this reasonable and in accordance Shanghai labor regulations governing separation allowances, since club had been opened only December 1948, no employee had worked more than 10 months and some less than 6. Board dissolved early October. But Bacon as chairman has continued to keep offer open. Three employees have accepted offer and have been paid off. Majority employees, however, through their committee, originally demanded separation allowance amounting to approximate equivalent US $200 for each, regardless salary or length of service. On November 8 employees reduced demand to amounts ranging from equivalent US $50 to US $200, equal to approximately 6 months’ pay for each employee and in addition maintenance at full salary from October 1 to date dispute settled. Meantime Bacon has ascertained that board’s original offer was not only reasonable and in accordance with law but more generous than law requires. On October 5 Peking Labor Bureau mediated case of former USIS employees and decided that separation allowances should be paid in accordance with Shanghai regulations and that rate was to be one-half month’s pay for each 6 months of employment, maximum 3 months’ pay and that where no allowance had been offered maintenance should be paid during pendency dispute at rate of one-half former salary. It is presumed that this decision is known to labor and administrative authorities at Nanking. Yet to date Nanking general labor union has failed to intervene in Embassy club case despite requests from both sides; and Nanking Aliens Affairs Office has declined to act on formal request November 4 that Nanking Bureau of Labor proceed to mediate case. By insisting that direct negotiations with the employees be resumed, the Aliens Affairs Office has avoided assuming any responsibility for the expeditious settlement of the case. At same time Nanking Public Safety Bureau continues encourage employees to demand more than provided for in Shanghai [Page 849] regulations or Peking decision by continuing withhold Soule’s exist permit.
Pass Army Department.
Sent Department 2412, repeated Peiping 395.