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10/26/1948 - Organized Labor (Shanghai) by A. Doak Barnett

FOR PUBLICATION INSTITUTE OF CURRENT WORLD AFFAIRS AD NalCer Rogers Ina Curren World Affairs Shaugbal China Oclber FilCh Avenue Nee York N Y Dear Rogers EConomic pressures laboring groups Shanghai rapidly creating si1aation Cension Chis confused hectic If Chese pressures relieved labor unres Che silaaCion become explosive The presen economic crisis Shanghai worse I years One local manufaclrer His opinion extremeone anypeopleaall economiclevelsbelieveha present economic chaos Shanghai within memory forward iamre increasing apprehension The position Sbanghai laboring force crisis becomes unfavorable daily All wages frozen level Augas Theoretically prices frozen Au level Bin aclal despie energetic aemps control markes reappeared prices commodities gradually climbing YurChermore goods disappeared counters cannot found average purchaser The materials ineror dropped fraclion normal Farmers producers either holding goods anticipaon ofhcollapse price control selling places outside Shanghai where controls rigid stocks commodilies almos completely cleaned fromh counters panic stricken byers conversion silver foreign currenCies monetary flooded marke capal which oules As confi deuce GY evaporated average citizen frantically convered money commodities In addiCion remaining stocks goods underground vigorous crack agains boarders because merchants relucan stocks prices which canno repleoed Wages however remained rigidly frozen prices because easily controlled As result average working findsidifficul baefood andohernecessities which quires purchasing value dropping every Unemploymen increasing mainly because faclrers stocks materials dwindling disappeared faccorle_sare conCinuin oeraions Ulare looks black ecause maeraAs oecomng scarce daily Unemploymen C2 andidlenessareaddingo helaborers difficulties Las example ofhestimated85 000tex1eorkersn Shanghai roughly curtailed ducion There reliable estimates number unemployed presen unofficial 10000 If nabiliy manufacturers maials continues number unemployed increase rapidly Jae fUare increase An addiional element nsability whole remendous number wreched flooded No knows because although refugee camps large numbers cared friends relatives floating popula destitutes sleep doorsteps Iis mystery survive In June estimated influx refuKees Shanghai amounted aesses concernin6 heonumber refu6ees million mtllon These refugees prevailing confusion uneasiness The processo oceleraed economic deterioration which presau smaon Snghat Ically hefirs econoc dfncirocaredout byheCneCr 8ncehedofhe On Angus Central Governmen draloally announoed issuance currency yuano The overnmn backed porcen reser 8lver foreign exchange bonds securities overnmen ownod properieso All silver foreign currency called conversion noeSo Definite conversion exchange rates esablished 000000 CC Chinese currency US GY foroo dollars A legalliiforCentral Banknoeissuanceassea2billion Imed reisr frein exchange asses abroad ordered A program financial refor designed balance national international balance ymens outlined All prices froen rikes hoarding speculaion black markeeerln6 forbidden And economic controls The defending enforcing ontrols E_hekeyeconomiccenerinChina fello D9year Russlan educa Ma Gen Chiang Chin eneraissimo As SES Shanghai Economic Supervisory Office immediate began cracking violaions regulations A expanded Economic ollce Yoree stared searching black markets combn6 Shanhai warehouses boarded Every wasde peounylowox8wchedntplave pracces dtheycludsdpwlde soweln slprcedled elons chcly The webods Chian deacrbed reforw pistol His energy fearlessness honesty adored became pparen mebods onizn 6roups whose cooperation absolutely necessary success pro6raw Businessmen rebelled a6ains ubborness Government unwillin6ness adusnens regulations Lack discriminaTlon authorities crack leiTAwae ille6ilmate businesso I became apparent program lacked plannin6 which would necessary ensure success sweeping reforms No provisions establish adequate ionin6 cessities ensure continued materials absorb capital creaed onversion carry price adjustments Inilall public reaced enhsiasically refora neasures reforms worked month heuconfidence crackedo In addition economic forces underwinin pro6Taw Tsinan struck tellin public confidence Government ability surviveo The downhill process began rapidly ebole economy ver6e fallin apart Chtan Chin6 conTAnues explosive situation pistol point discussions process concernn6 establishment rationing exendin6 control cover interior areas effective increasin Serial supplies price levels difficult whether these Seps successfully carried retrieve uaTono Some people belie economic disnteraAon already inevitable Au proTam collapse cowpletely There quarter correc measures completely successful ai1de leaders organized labor Shanghai presen somehow improved undermining reform control program whole They concen raing pressing immediate complete rationing necessities asked general adjusaens return Auus system wages according cost_of livin index They sysZem control resul euonoc heCvemen hepressionofwch issyabes Itisnar heybitsconcern becauseyofhelarlders inSgveas ssdals oftharesll unquestionablyp Cr According H Yo Si Chief Director Shanghai General Labor Union industrial labor force which includes handicraf factory laborers women unionized The labor union movemen currently includes differeu unions members offlclally sponsore organlzaion which heads This constitutes largest imporm cenraion or6anized labor China Organize labor short history China labor movemen undoubtedly I become force which canno inored ignored economic political major industrial ceners Shanghai Chinese laborleaders hemselves divide history labor movemen country several definite sages Prior first haling oward organization In cases mutual welfare societies uilds convered organizations resembling unions In modern industries unions As industrialism nationalism developed between consciousness organize labor increased Railway workers miners seamen mechanics among organize effectively The labor movemen gained momentum specacular The Commuiss spearheaded movemen organized China Labor Organlzalon Secrearia which directed widespread srike movement Workers returned Norld War I Labor Corps experience France sVadens relrned study France projec prominent leaders organizing activities During early srikes place China The imporan these Honkong Seamen STrike numerous railway srikes engineered Communislled Firs Labor Congress which Srikes place Hankow Changsha Shanghai industrial ceners srkes andinfachewholelabormovemenahaime characterized srong foreignism From repression Peklng Hankow ailwa Srike early unTAl labor ovemen largely underground Organiza ional activity inued owever aemps suppression worried governmen officials Second Labor Congress Canton formed All China Labor Federation Te Kuomintang ineres organizing using labor groups increased greatly since reorganization Communis advice Kuomintang labor organizers ecame active along Comuniss A exile workers srike Shanghai May Incident demonstrations workers students agains British accompanied violence This inciden resulted rising resenmen increased naonalism country labor organizing activity increased From until labor movement really merged Wih became integral revolutionary which Kuominang power Nanking In January Nank workers occupied BriZish Concession before Naionalis armies In general srike calledn Shanghai workers seized police station arsenal garrison llved people 80vernmen proclaimed In effect Worker Commune captured hecityandturnediover toheapproachingNationalistroops The Kuomintang Comaunist split April again changed labor picture radically In preceding period paries organized labor labor organizations lutionary purposes After paries competed control labor movement Kuomintang power wlile Communists revolutionary TheKuomintanghadhebeerposition foriwasincontrol major industrial ciies prolelria located She Comunsl continued agitating among laborers tough inlueuce power declined The Comanlss forced areas shifted emphasis concentrated ararian reform peasan suppor degree which respects unique Commanls parles never entirely underground acivily among urban labor greups hewever within erritory pushed forms organized labor whereveri possible Apparently lacking confidence complete political reliability labor fearing Communis infiltration Kuomintan eneraily followed policy surveillance supervision control labor organizations During certain periods suppressed unions concentrated rooing Coms elements Aoher periods fostered develop government sponsored supervised unionism These policies mlaneous labor movemen Naionalis China during decades canno herefore described comple labor movemen Hone heless unionism labor Organzaion grown numerical impor sreng Shanghai difficul sweeping general izaions existing labor unions leaders because unions possess varying degrees dependence action On unions pos1l workers elepbone workers unions which fairly degree independence Because workers skilled lierae because leaders aware favorable bargaining position unions exercise independence making decisions following policies The leaders unions although members Kuomin actually elected union members represen interests membership Oer unions rickshaw pullers union exile workers unions plans reliably reported appointed direc Kuoming party headquarers alleance ofSen She raher union members nflico ereslm Between extremes unions which represen varying degrees either independence control A bottom parcularly among Pooling prolearia making coolies wharf workers onsruclton workers notorious Ta Yueh dominan poser amon6 Shanghai labor considerable influence poser exends labor groups conrollin6 force which organizational srucure unions Shanghai varies There branches large national unions including workers posmen communications workers seamen ohers Apar naonal unions however ohers locals Some oranzed indusral vertical basis include workers large factory industry Ohers organized basis In unions however individual unions confined branches single establishment united union including members craft The righSs duties labor unions Haionalis China defined Labor Ac June legislation The Labor Union Ac enacted revised The organization unions factories industrial establishments certain compulsory union membership compulsory unions In Shanghai unions under officially sponsored General Labor Union In Shanghai leadership union consists directors conrollers elected general labor conference every years Seven sanding direcors elected entire board directors every weeks conducmosofhe unlon simporanbsiness ThisGeneralLabor supervised Shanghai Social Affairs Bureau SAB which supervised inisry Social Affairs anking Raions between SAB General Labor Union close personal basis according union SAB leaders The setups whichheunions susceptibleto aledeeeofcontroldinecebyhe vnmrles Therearenyfresoflairpractice dorzalon inadion tserdydescribe fliar aovin S orinesepe eleaders inyof hewuons foraapleeseced byheKuong bytherdfileoftheunion sabersp alstnoneofheuonldersve aficiallylndepdt Accorng istinglawsdrelaons connue rvewages fromrployerswlegedinlon cartingouonacesheyesimplyon fahrrelarjo Unionndsusually rspesteleed inheformof wages andsesdehmedover heuons Llyno srikes arelowedinlair disputesringanicoolingoff piodwhconciliaonaeds ofselen areployed thepari resort aerationhsrikes arehreicly iryforbidd TheSABes acveparineherniation ofiaraebetwe lairdagdsis oneseoforsputes In labor unions puppe organizations SAB means A responsible local newspaper edior quite ephaically opinion nobody really control unions One manufacturer sates union factory certainly conrolled Government ohers agree The siaaion seems degree overnmen control varies differen unions close landred percent close percent Perhaps relationship between labor organizations general Governmen described leader employer representative ofheSA interdependence Liberal union leaders recognize complete independencebpoinouhatheliabilityofofficial super vision balanced advantages oficial suppor cases where unions mcintain degre independence action adequate sources independn union income leader On their workers probably wouldn suppor srong union wihou governmen sponsors union would suding aains anagemen hough relations managemenapresenareveryood Asiis wecanaZleas continue existence welfare workers wiZhin framework presen Upo The Governmen seems extremely possibility anaonizin This limits which control presen Governmen labor policy summed spokesman Shanghai SAB aimeda promoting labor management eooperaion Ts Witou SAB objectives official labor policy seems include following object prevent labor movemen strong byfracionalizinglabor ratherhan allowingioo organse similar basis exercise fluence degree feasible control labor movement hrough cially sponsored general unions Shanghai General Labor Union pacify satisfy labor concessions various which menion Generally speaking labor unions fairly bargain position Vi Governmen primarily because Zheir peZenial political importance people forgotten events Vis managemen unions skilled laborers excellen position because scarcity skilled workers China oZner unions Governmen suppor dealing employers In vaguebnonetheless Zhe posiZion unions supported impressiveness remendous numberofpeople directlyorindirectly connectedwhhelabor movemen One foreign observer estimates Sha union members ogeher families dependents hangers include aloeher almost population Shanhaio Compared before working conditions among industrial laborers improved considerably until beginning presen oward economic deterioration anyway spread unionis helps explain improvemeno A survey SAB indicates example average industrial laborers increased between Some persons reliability figure saisical sdies indicate definite hasskenplace Workinghoursaresilllong bheabove enioned surveysaesaheaveragenumberof hours worked Per declinea between 1946o Child labor almos eliminated modern factories oeher apprentice system persists handicraf industries Female labor almos iporan before presen accounts roughly industrial labor force bconditions women laborers enerally conditions before discrimination agains decreased hougi eliminated Te contrac system hiring workers nearly common previously presen found mainl where common unskilled laborers quired EvenouShanghai remains cheap labor marke comparedw osndusralces abroad workerst wages workn conditions mproedo ncreased enlhen hesde muagenenus receiveparo credi organized labor governmen policies formulated o6nlzed labor responsible As enioned already Governmen pacify satisfy labor granting concessions various So One imporu concessions regard policy For period after touch control Shanghai would established Couniss Central Governnen Comuns C Comunis leaders including labor leaderssereeorknghardlhinhecy Theallegianceof labor negasdoubtful forbohheConnissandhe Central Govern carried under round during Inbauncertainpos aosphereheCral Governmen srong labor suppor pegng wages living CL index sages level Using SAB basic unskilled laborersaa level comparable skilled laborer scaled sages upward accordinly Pegng sages DL index furthermore proeced workers parialiy agains inflaionary spiral This respects undoubtedly nporan factor satisfying labor groups obaining cooper Govern aeped freeze sages early serious labor disrbances Ray COL formula The abandon again Auus creaed parallel situation shich critical because Since Govern coured labor favor For example governmental represenave bodies incial national levels siabl direc represen labor occupaion group provided In opinion observers SAB Shanghai deiniel ended favor labor unions settlement labor managemen dlspues And Governmen riedinvariouswaysoproechecolleci pockebookof working class measures subsidizing utilities ransporaion A present direc indlrec subsidies coapanes Shanghai estimated million Y authorities prefer T subsidies raher permi increases htchouldre hecopae suppor erpre quarters direc concession labor presaureo Governmen policies played imporan roleinkeepinglabor pacified blaborunions haveno entirely docile AS various periods since srikes numerous srikes which would called wildca U S Sos apparen economic rasher political ivatiOno In She majoriSy cases recorded She SAB issues dispu discharge specify worker months wages depending length service being discharged bonmseS wages In minority political undoubSedly factor The SAB aashat She labor disorders January February stirred agitators Shey In January cabare dancers mobbed SAB headquarters February sSrike Sung Sing Co which resulted inaleashreealies wasquelledonlyafterarmorecars Even since strike Auus eildca srikes place handled warily moderation authoriieSo other indications entirely passive Foreign observersahemeenginNanking April ofhis which creation China Federalon Labor anation widebasis example hahelaborleaders assembled soeed considerable iniiaie independence discussing labor problems criicizing G0vernmen policies making suggestions One largess imporlm queslon marks reard tohelabors1aa1ion inSgiday thestrghofhe Comsundund nooverCosacybecse lssrieyfordddagswescovededlss ofwitutch asdbepec doubt underund doesesdis someimrce Fewpplewre ieisacstreng lingopinionse iisnoa1parofhe lairpicreaspularmt ghbecome iartinheevof serioustubleddisorders Conisclam theirliswihlairupsugu Cnaesstn aCneCois arcieblishedinhessl Neemes inJuneofsyr tring1947heCousinSni Cn oeinced workers srike sepae fibreisubl theclmissiific There ndicaons recently Comniss planning place increased emphasis activities among laborroups perhapsinanticipationoaelmewhenheyp takeoverindustrialcies InJuneofhisyearawell publicized Sixth Plenary Session All China Labor Congress Harbin claimed represent O00 organized workers eployees Naionalis Co erriory A Congress asserted oruizaion direc lineal desceudan China Associa Labor naion welfare socle which became deffor practical purposes leader disareein Cen Govenmen labor policies after China evenually CO erriory These indica highly possible Chinese Comunis reempasize morance labor unions urban prolearia general program Tk large ciies where indus orkers concen In presen economic crisis Shanghai leaders organized labor cooperation Govern eration canno defini economic condi presen downward plunge Thee union leaders members Kuoning independen presen Central Government cerInl revolutionary leader willing whole along collapse umblings already being heard growing louder Addresses prominen Euoinang leaders union representatives during rumblings unless conditions iprove The general demoralization which seems ripped everyone In Shanghai unpreceden skipped labor union leaders improveen situation place pressure below expec force leaders action designed express popular feelings deands If union leaders respond pressures below pressu explode leadership The lemen presen Food allowed dangerous placed officials express fears remedial Taken lmmedla preven disorders violence because serious almos unavoidable If violence place probably disoranized If develops or6nied action which possible since unionlmaTlon rained workers oraniza coalec implica eould serious deree Governmen I seems predic reach rapid widespread alienation laorin probable GoYernmen roupS Shanhal would faedih spectre 1927o economic aspects crisis facing Sanghai primarily In rural areas supplies gathered during harvest The shortage commodities resuled reform program played overnmen cards misplayed because plannin bmbling This helped creae presen complete demoralization people feeling cynicism despair people before presen Central Governmen approaching complete bankruptcy I contex under pressures labor siaion Sughai becomin explosive Sincerely yours Iak Receive New York