LABOUR VIEWPOINT

Ashburton Guardian, Volume 48, Issue 144, 29 March 1928, Page 7

LABOUR VIEWPOINT

THE INDUSTRIAL CONFERENCE. A REPORT PRESENTED. /Per Press Association.) WELLINGTON, March 28 The employees' section ot the Industrial Conference presented a report stating what it considered should be the objective of the-conference. An adjustment calculated to give better results than were at present obtained, said the report, could only be brought about by a greater degree ot co-operation between all the parties who contributed anything essential to the national well-being than had hitherto prevailed • ' "Having said that," the report pioceeded, "we wish also to state that in our opinion trade unionism can never make peace with capitalism m any sense of acquiescing in that system. This, however, does not imply a blind, destructive fury against the, existing economic order. The conference should aim at using the organised powers ot the employers and workers to promote effective co-operation in developing better methods of production, eliminating unnecessary waste, friction and causes of conflict in order to increase the national wealth and provide for a steadily rising standard of social lite, and continuously improving the conditions of employment for all workers. While the total elimination of such waste, friction and causes of conflict may be quite impossible, as we believe it is, so long as the wages system lasts, the hope of the immediate future undoubtedly lies in the intimate and continuous association of both management and labour for the purposes ot promoting the progressive improvement of those industrial services from which alone national prosperity can be derived. "If the conference will regard its task as part of the permanent necessity to adjust the economic and development policies of the country to meet the condition of the rapidly changing world, then this representative gathering, and the help which its discussions can give in getting at the facts, may well be regarded as one of the most important events in recent years. AVe think, however, that it must not be regarded as an isolated event, but rather as one which must lead to and show the need for permanent machinery to carry on the continuous work of collaboration on the part of the parties to this conference who are also parties to production and distribution, in the work of influencing and educating public opinion and in assisting the Government to give effect to the proved needs,, not merely of any one section of agriculture, commerce or industry, "but to the needs of the country as a wholei "The Labour, section of this conference is anxious to help to restore prosperity to this country. It can only do this effectively if it is assured that those whom it represents will, with other sections, share in the results of this prosperity." Labour Costs. Summing up his address, Professor Tocker pointed out that in recent vears there had been a steady drift from unsheltered to sheltered industries, which was disturbing the normal balance of industry. Farming was not expanding as it should and the numbers seeking empi ovment in sheltered industries were greater than could be absorbed in production for the limited local market. The result was the unemployment of the last two years. The remedy lay in the restoration of the economic balance. It was only the formers' demand for sheltered goods which could expand the local market appreciably and cause the labour sup; ply to be fully absorbed. 'Labour costs were beyond the present capacity of the local market and the local demand, and to right the situation labour costs must be reduced. Two ways were open, by reducing wages or by inereavsing production, and so reducing the labour cost per unit of output. The former method might involve the lowering of the standard of living of the workers, hence it was undesirable. The latter method would almost certainly mean an improvement of the workers' standard of 'living, but increased production at a lower cost per unit of output appeared impracticable in tho sheltered industries under the present regulated conditions. It was' difficult to see how industrial conditions essential to increasing production, fuller employment and the raising of the standards of living, could bo developed if the traditions built up by our arbitration system; were maintained. Drastic modifications of the present system were needed ; and ho .suggested that the modification should be recommended to proceed as far as possible in the direction of restoring voluntary conciliation and collective bargaining, which might enable employers and employees to co-operate for their 1 mutual benefit, and as far as possible away from State fixation of wages and from the rigidity of the standardised minimum and the cost of increasing regulations which, had brought so much regimentation and stagnation in industry.

A Negligible Part. r The functions of the Arbitration Court were dealt with by Professor Fisher, of Otago. The prevention of sweating had apparently been attained, he said, but if the Court wore abolished some other means could be devised, for that purpose. He said that the fact that •he was assured by intelligent, sincere partisans on either side that the judge always gave unions what they asked for', and employers what they asked for encouraged him to believe that the judge had succeeded, broadly speaking, in fixing wages very near the level to which they would be directed by the operations of economic forces, but that this had been done with a great deal less friction than would be accompanied by any alternative mode of regulation* The present difficulties of farmers were not to any important extent due to the actions of the Arbitration Court, and if the Court were to be abolished, or its constitution greatly altered, farmers would be greatly disappointed to find how little difference was made in their situation. Compared with the influence of currency changes the part played by the Court was quite negligible. The change in price level was a direct consequence of currenoy inflation. It was impossible to lay down any formula for the guidance of Arbitration Court judges. The most that could be said was that wages should be fixed at the highest point consistent with tho avoidance of an undue amount of unemployment.