CAPITAL AND LABOUR.

Press, Volume LXIV, Issue 19451, 26 October 1928, Page 17

CAPITAL AND LABOUR.

PEACE ESSENTIAL TO PROSPERITY. MR SHAILER WESTON'S OPINIONS. [THE PEE3S Special Service.] WELLINGTON, October 25. "There is one condition which is essential if our returning prosperity is to grow, and that is industrial peace and mutual co-operation between labour, management, and capital," said tho Hon. Mr Shailer Weston, president of the New Zealand Employers' Federation, in his address to members to-day. "Three years ago the economic outlook | for New Zealand was decidedly promising. Then the maritime strike in overseas vessels was followed by the general strike, and the six months' coal strike in England. The effects of these strikes wero world-wide, and brought heavy loss to all countries supplying the English markets. It is difficult to estimate exactly what those strikes cost New Zealand. The first one threw the regularity of our shipments of produce into disorder, and the other two seriously impoverished the resources of our consumers. It has been calculated 'that over the two seasons 1925-26 and 1926-27, these strikes by their effect upon the prices I obtained for our wool, meat, butter, and cheese, cost this country in the neighbourhood of £3,000,000. i "Unemployment relief in New Zealand during the Jast two years must have cost tho State, local authorities, and private individuals about £1,500,000. If the £3,000,000 lost to our producers through these disastrous strikes had been in their pockets available to be spent in improvements and other directions, how much less unemployment there would have been, and what a saving of public funds. We have here a very striking instance of the disastrous effect of labour troubles. Personally, throughout the last ten years I have always argued the necessity of 'tting in the closest touch with trade union leaders, and therefore welcomed the calling of the Industrial Conference.- It was ..one of the great achievements of the present Prime Minister. We must at the same time recognise the efforts of those trade union leaders who worked to makc.it a success. Not only did the conference result in a better mutual appreciation of the intentions and views of employees and employers, but it brought the town and country interests into closer touch. You have in the annual report a review of the remedies suggested by the employers—compulsory conciliation and optio .1 arbitration. Labour's remedy, an industrial council representing the workers in every class of industry was strongly urged. Given right leadership of Labour and a recognition by both parties that the prosperity of an industry is dependent on both labour and capital there is a great deal to be said for the scheme. A Possible Danger. "The danger, however, is that under the scheme immense powerß would be invested in a few trade union leaders. With one big union it is not easy for tho rank and file to control promptly the actions of their leaders, or to oust them when the policy, they, are advocating is dangerous and uneconomical. Those powors might be used for political or oven for revolutionary purposes. In Australia, where big unions are more the voguo than in New Zealand, arbitration has been a failure. The big militant unions have had no respect for arbitration awards. One of the reasons suggested during the conference for this was that in Australia trade union leaders had relied upon political action rather than npon the proper organisation of and consideration for the prosperity of industries. Whatever the reason the results in Australia make ono hesitate to give legislative sanction to tho scheme of one big labour union, whose leaders could, if they so desired, dictate to industry. A benevolent tyrant is one of the best of rulers, but what if he is not benevolent? Peace Worth Trying For. - "At the same time, so important to this country, and indeed, to the British Empire, is industrial peace, that personally I would be glad to co-operate with the trade union leaders in bringing about all the' results of such a scheme by yoluntary arrangement. In this way the feasibility of the scheme would be tested, and its advantages and' disadvantages weighed out. Already since the conference some good • work has been done in the prevention of industrial disputes along these lines. Industrial peace is all-important, and team work between workers' and employers' organisations in each industry most essential. Certainly, looking back ten years, there has.been a great.and welcome change in the outlook of Labour leaders. Ten years ago both ,in England and New Zealand the establishment of a Soviet republic was dreamed of as a practical possibility. "For some years Moscow was looked upon by many Labour leaders as a spiritual home. In England this view crashed with the failure of the general strike and subsequent coal strike. The sturdy common-sense of the majority of British workmen was shocked at the sight of Moscow more or less openly intervening with financial and'other assistance in an economic dispute between English workers and employers. The coal strike paved the way" to the successful Mond Conference. In Australia a majority of the Labour leaders today object to, and are fighting against, Moscow influence. It is strange to think that Russia has an office in Australia from which is available financial assistance and help in propaganda to those whose political views run on Russian lines. In the end Australian good sense must surely revolt against the economic waste which strike after strike has brought upon the whole community and the strikers themselves. In New Zealand even more than in Australia this conviction has been brought home. There are few responsible • Labour leaders now who retain the views as regards Moscow they may have expressed ten years ago. After all, New Zealand labour conditions are better than any in the world. "Why not therefore do as Mr Gompers did in .the United States; fashion trade union policy upon the actual conditions in New Zealand rather than borrow a policy which is based upon and has arisen out of conditions in Russia and the Continent of Europe which have never existed in New Zealand, and are never likely to exist here?"