OPINION OF THE COURT.

Auckland Star, Volume LII, Issue 214, 8 September 1921, Page 7

OPINION OF THE COURT.

PRESIDENT ALONE RESPONSIBLE. fßy TeleprapU.—Press Association.) WELLINGTON, Wednesday. In a memorandum accompanying the Arbitration Court's decision allowing a reduction of wages to shearers and shod hands his Honor Mr. Justice Frazer says:— "The Court has considered the evidence and the arguments placed before it at the' hearing of the dispute in Dunedin, Christchurch, and Wellington. In each centre the union's claim was for increased rates, while the owners' claim was for a reduction of the shearing rates from 00/ to 20/ pur 100, with corresponding reductions for shed hands. Tho members of the Court were divided in opinion. Mr. Scott considers that on account of the present financial stringency and the disastrous fall in the prii-cs of wool, skins, and mutton, no rates should be fixed for the ensuing season, thus leaving the matter to be adjusted between individual employers and their workers. Mr. McCullough, on the other hand, is of opinion that the present rates should be maintained for the ensuing season in view of the Court's pronouncement in regard to the May, 1921, bonus.

"I am therefore alone responsible for the decision of the Court. I do not think it .proper to leave wages unsettled in a time of depression, more especially in tho case of an industry suffering more severely than others from depression. The duty of the Court is to protect both employers and workers as far as it is able to do so, and the effect of omitting to provide for rates of wages would be to leave workers entirely in the hands of their employers. While most sheep farmers would, I have no doubt, treat their workers fairly, some of them, owing to the pressure of financial conditions, would take advantage of the eurplufl of labour to cut down rates to an unfair extent. That there will be a sur- ' plus of labour this season seems extremely probable, for the evidence given at tho hearings in the various centres indicates that a largo number of sheep owners will co-operate this year in the work of shearing. CANNOT CONTROL CONDITIONS. i "On the other hand it is out of tho question that the present rates should be maintained. The Court has indicated it will, wherever possible, maintain wages at the existing standard until April 30 next, but it has also intimated it can only state the principle that it wishes to follow and that it cannot control financial and economic conditions, It has recently refused an application to reduce rates for musterers during the currency of an existing award, but in the present case a new award was being applied for and the Court must view the matter from all sides and make its award in accordance with the conditions it finds to exist. "If it had been the ease that shearers and shed hands had received no more than the increases equivalent to those granted in other industries to meet tho general increase in the cost of living and tho improved standard of living over a period of years I would have found it very difficult to reduce their rates at the present time. In going through earlier awards of the Court, however, I find that shearers in 1904 were granted a rato of 15/ per 100. That rate has gradually risen until it is now 30/ per 100. To take a most conservative estimate, making generous allowances for wet weather and time, lost in travelling , between etatione, an average shearer shears 450 cheep a week. This, at 15/ per 100, works out at £3 7/0 a week; at 30/ per 100, it comes to £6 15/ a week. To each of these weekly estimates has to be Added an allowance for rations and accommodatioi. worth at present cay 28/ a week. Now, taking other awards made about 1904, when the shearers' rate was fixed at 15/ per 100,1 find that the average wages granted to workers of a similar grade were £2 a week lower than in 1921. These wages, furthermore, were 'dry' wages, without allowance for rations. The shearer, then, has benefits to the extent of £3 7/6 a week, apart from the increased cost 'of rations, while others have benefited to the extent of "The Explanation of the difference is not difficult to find. Prom 1900 the price of wool rose eteadily, and during the war tho commandeer price was based on a 55 per cent increase over 1913-14 rates. Sheep-farmers were prosperous and Bhearers' rates were increased from time to time in sympathy with tho increasing returns received by farmers. There was to all intents and purposes a system of profit-sharing. At the present time the gross return to the New Zealand sheep-farmer for his wool is below that of 1006, and his net return, owin» to increased costs, is far below that of 1006. Since May, 1921, he has experienced a disastrous fall in prices and quantities of wool of the lower grades are not now worth the cost of shipping and sale. The Australian farmer, with his finer wools, is not bo seriously affected by the fall in prices, but in New Zealand 89 per cent of the sheep are crossbred, and the greater part of the wool is medium and coarse in quality. The New Zealand sheepfarmer has carried on during tho 1920-21 season with vanishing profits, and in many cases at actual loss, and the present financial stringency has added to his diflictilties for the 1921-22 season. "There is no prospect of any material increase for some considerable time in the prices realised for New Zealand wools, and it is, in my opinion, just and reasonable that shearers and shed hands should bo awarded the 1914 rates, with an increase to meet the additional cost of livintr, and in accordance with the improved standard of living, similar to that granted to o+her wnrfc»r« of simitnr rrrnde between 1914 and 1021. and should relinquish the added amounts conceded by owners and awarded by the Court in times of prosneritv. Farm hands throughout the Dominion, who had benefited during- the prosperoui rents, have accepted reduced «'a« during the nre=ent year. at) r ' it must be rpeoanised thaf similar conditions nt etirl) a time *s the prp=cr>t. must f»nnlv to shearer* -ml sl><"l lin«fß that the Cotart limits the rnt.e of reduction in their case. "It i-= nuite erroneous to imneinr f'ftt +he slic-p firmer is i> wealthy iiin Tim avn-a'w fWk in l et i<> nunv hcrprT K"°. t> M in l«20 it numbered Wt, Tn ] on l 2 O(1 fm-rripra owtiP't f r "tn 10.000 t,o 20 "on ulippi) ponli. pnd lfiO own»d over 2 r,nr, o Tn I rtl, o. 130 owners wore in f'fi lO.ono t" ? n "in class, an* oniv 25 ;»i the ovpi' 2" WO oia«s. T*wH""«e "1 "-)« owners who nwnefl fpwer than nsnn cWnn sinincp in 19 n, \ nil prpsiiTiiblv <\'" } not in lrvninr'tv if nnwn<»e (tliniro'-B. there were in m°O T>M awtiP"* wi"' fl~-Va pnwiWW frnm •>*()() i n jjiwi nml ?*e with flocks nwnherinu , from S'W to innnO, na 'flp-oinot I'M owners whopo flooks evened"'' 10.000 in "limber. The ws>r profits of the smnliet aheep farmers I'M not leave a grpnt deal over after providins for increased costs and charges and the increase in their own cost of living. The larger ownera were compelled to pay increased tasa-

tion and to take tip war investment i stocks, which have now depreciated 17 per cent in value. 1 am not, however, specially concerned at the present with the larger sheepowners, though I recognise that the financial stringency renders it as difficulty for him to obtain ready ' money as for the smaller owner. I am I principally concerned with the average sheepowner, whose position to-day, in spite of comparative prosperity during the war, is exceedingly serious. I am satisfied that, the case" is one in which the circumstances are extraordinary, and that it is accordingly not one to which our stabilisation pronouncement applies. FINDING OF THE COURT. "During the currency of the last award the shearers did not apply to the Court for the cost-of-living bonus, though the shed hands applied for and were granted the usual bonuses. I propose now to add to the present shearers' rates (30/ per 100) the accumulated bonuses (2/2 per day), which in many cases were paid voluntarily in the pact, either as bonuses or as additions to the award shearing rates, and to deduct 20 per cent from the total (rates plus bonus), for shearers and shed hands alike. This will leave the average shearer or shed hand with his relative , increase on the same scale as workere in other industries, as well as giving him a reasonable allowance to meet the i increased cost of travelling and maintenance while travelling from station to station. The term of the award will be : shorter than usual—seven months—so , that the matter can be reviewed after the close of the ensuing shearing season. i "As it is necessary that two members of the Court should concur before a j decision can be given, Jii\ Scott has formnllv withdrawn his dissent. Mr. Mc- ,! Culloiigh, however, desires his dissent . to be recorded." It is stated authoritatively that, except for the matters mentioned in the memorandum, the old award will be renewed. It is estimated that, taking the average shearer's output as 450 a I week, the reduction in wages will be lfi/R per week—fa 18/6 per week instead ij of £6 15/.