SOUND PRINCIPLE.

Auckland Star, Volume LXX, Issue 116, 19 May 1939, Page 8

SOUND PRINCIPLE.

VIEW OF EMPLOYERS.

BUT OBSTACLES ARE SEEN.

HOURLY PAY DIFFICULTIES.

Approval, with a number of reservations, of the principle »>f a paid annual holiday for workers w widely held anion;; employer*, from a number of whom opinions were sought to-day on the Covernmcnt's newest legislative scheme. Indications were given that I lie chief obstacles to the proposal were a s follows : — The ditliculty and even impracticability of granting holidays 011 full pay to manv workers engaged at hourly rates; and The limit to which the concession can lie borne by industries already burdened by increased wage costs and hampered a 1 the same time l>y a shortage of skilled labour. .\n opiniou widely expressed was thai there should be no particular difficulty in arranging the holiday for those paid on a weekly basis, although this naturally depended on the ability of industry to stand the payment of existing wages without productive return. "Casual" Work Basis. The. real dillieultv. however, lay with the many workers in trades and industry who were paid hourly rates, fixed nil the basis that their work was not continuous and that they were liable to temporary periods of idleness f<>i" a number of reasons.

On account of the possibility of these gaps in employment, hourly, or so-called casual workers, were paid at a higher rate than they would receive if their work was permanent and paid for weekly. The important thing, however, was that a great deal of the work paid for in this way on an hourly basis was really permanent and regular employment. and this meant that while the worker v.as safeguarded, through his high hourly rate, against periods of idlcne.-s, those periods were not actually experienced. It therefore seemed hardly justifiable to expect employers to provide a paid holiday for men working under those conditions.

"Most of us will agree with the principle of an annual holiday," eaid one of the employers who explained the position, "but the only practicable basis for that holiday is a weekly rate of pay. The solution of the difficulty would he a recognition that, in the main, employment is not casual, and that the majority of those workers who are paid by the hour are really in permanent employment and on that account should be paid weekly. Many trades are already on a weekly rate, and that principle should be extended."

It was added, however, that all employers might not be able even then to liear the cost of extra paid holidays unless that cost was spread over the rest of the year by means of an adjustment in wages.

How far industry would be able to stand the extra cost without an adjustment was hohl as a matter for individual experience. It was learned that several factories were simply "swamped" with orders, and that while this might be expected to bo a matter for gratification, it only meant another crop of difficulties in some cases. They were doing their utmost to fill the orders, but they were hampered hv the shortage of labour, which forced them tio the uneconomic course of engaging untrained hands, who for some time at least would have to be paid wages which thejrtreally did not earn. Two weeks' holiday added to that would make the way more difficult still. "Onwards and Upwards Too Fast." "I approve of the principle of an annual paid holiday for workers, but T think that making the period a fortnight is going onwards and upward* too fast." said another employer. "The scheme naturally have an effect right throughout industry and increase costs, which the Covcrnmcnt in recent times has shown itself to be anxious to stabilise.','

This employer contended that hourly wages in certain industries had been increased to coin penmate workers for non-payment for holidays, both annua-] and statutory, and the hill, if it became law. would have the effect of appreciating the worth of such wages. For instance, men on a 40-hour week, with the addition of statutory holidays and a fortnight's annual leave, would he working for only 4H of the <>2 weeks in the year. The payment for holidays could be assessed as aliout onetwelfth of the total wage, and it was estimated that this would work out on the a vera fro at about 2d an hour extra.