OUR ARBITRATION SYSTEM.

Auckland Star, Volume LX, Issue 244, 15 October 1929, Page 6

OUR ARBITRATION SYSTEM.

At the conference of the Associated Chambers of Commerce which opened yesterday in the Town Hall, the president, Mr. C. P. Agar, advocated the abolition of the Arbitration Court. He- argued that "co-operation between Capital and Labour," coupled with "payment by results," would do more than the Arbitration system to stabilise industry and to stimulate production. Mr. Agar insisted that the employer must ' recognise that "sweating" or lowering the workers' standard of living must not be attempted. But he maintained that, outside those limits, the country would get along better without Arbitration, in regard to the expansion of its productivity and the maintenance of industrial peace. Now, there is nothing in the Arbitration system which'prevents "co-operation" between employers and wage-earners. . Indeed, the Conciliation system on which the Arbitration Courts were originally based is built up on the assumption that Capital and Labour should "get together" to discuss their differences in an amicable way.' Mr. Agar's assurance that the employer "would have to recognise" that "sweating" is not to be tolerated and does not pay is hardly a sufficient guarantee for a poorly-paid worker. The primary purpose of the Arbitration system was to abolish "sweating," arid it served that purpose admirably. As to "payment by results," Mr. Agar must know that from the wage-earner's point of view there are very serious objections to any method of remuneration which tends to throw an undue strain upon the worker or to sacrifice the weak to the strong. And in view of our past industrial history, the worker may well be excused for suspecting that the attack on the Arbitration Court is a covert blow at the minimum wage and the standard*of living.

It may be that Mr. Agar will regard our arguments in favour of the Arbitration, system as biased, and therefore unimpressive. But he should be prepared to accept as unprejudiced testimony the statement submitted to the National Industrial Conference by the New Zealand Employers' Federation last year in defence of Arbitration. Though the Federation recognised certain defects in the system— its rigidity, the lack of compulsion, and the! difficulty of-enforcing pointed to several important benefits • which it has conferred upon the country and which justify its maintenance. The Arbitration Act "has given ijs a greater measure of industrial peace than has been enjoyed by any other British community during the period of its operation." The Arbitration system "has broken down the old hostility of employers to trade unions, and produced a. friendly atmosphere of collective bargaining." The Arbitration Court "has acted as a governing factor over wages," venting excessive fluctuations in either direction, and thus checking that "national evil," a frequent and rapid movement in prices. Possibly if Mr., Agar will reflect upon the conclusions reached by the . New Zealand Employers' Federation in favour of the Arbitration Court he may be induced to modify his condemnation of the system.