UNEMPLOYMENT.

Press, Volume LXVI, Issue 19851, 12 February 1930, Page 17

UNEMPLOYMENT.

REPRESENTATIVE CONFERENCE. DOMINION ROADING SCHEME SUGGESTED. The conference on unemployment, convened by the Mayor (Mr J. K. Archer) in response to a resolution arrived at by a recent meeting of the Christchurch unemployed, was held yesterday afternoon in the City Council Chamber. The Mayor presided. The following attended:—Messrs A. R. Galbraith, M. J. Burnett, A. *\ Stacey, A. E. Armstrong, Bishop Mvodie, Messrs J. AV. Hutton, F. R. Cooke, G. Kirby, G. E. King, Geo. I. AVeston, C. S. McCully, G. T. Thurston, J. S. Barn-ett, H. H. McCaw, E. Parlane, F. D. Muirson, Ernest Snow. M E. Lyons, Mrs A. E. Fraer, Messrs F. P. Smith, C. E. Jones, A. M. Burns, A. O. Wilkinson, Norton Francis, AV. J. Green, Mrs T Green, Rev P. Revell, Bishop AVest-AVatedn, Messrs G. A. Hayden, I. AA'oolf, AV. H. Nicholson, Hon. L. M. Isitt, M.L.C., Messrs K. T. Bailey, H. AVorralL E. H. Andrews, J. Parlane, E. J. Howard, M P R. J. Ecroyd, Staff Captain G. Day. Mr H. S. S. Kyle, M.P. Hon J. Barr, M.L.C., Messrs J. AA r ood J. AV. Toomey, AA r . T. Foster, Rev. L. B. Noale, Messrs J. G. Herdman, W. Hayward, H. Holland, M.P., D. G. Sullivan. M.P.. Dr. H. T. J. Thacker Mrs E. R. McCombs, and Rev. F. Rule. Object Stated. The Mayor said that the meeting was the outcome of tho GovernorGeneral's suggestion that the problem of unemployment should be seriously and unitedly tackled. The speaker thought his Excellency had in mind a national conference, but that would not prevent them giving the rest ot the Dominion a lead. The meeting had been called as the result of a resolution arrived at by a recent meeting of the unemployed. His Excellencv, he thought, had two ideas in his mind —immediate relief, and the taking of steps to prevent the recurrence of unemployment. In Christchurch, and he supposed in other centres relief works had been provided, borne people had suggested remedies. One was in the direction of raising money to acquire land on which to place members of the unemployed. Several Suggestions.

Or D. G. Sullivan, M.P., said it | was a question whether they should suggest that the Government should call a Dominion conference, or endeavour to do something in their own city. The unemployment problem was receiving attention all over the world,, but they were not getting near a solution. What was wanted were practical suggestions as to what work could be done, and where tho money for such work was to bo found. The question was too big for this or any municipality. One suggestion was a Dig highways scheme for the Dominion by devoting the petrol taxation to the payment of interest on the loan, lnis could be done without imposing any additional taxation. The Rev. L. B. Neale said he thought all would agree with the idea of a national conference. The time had arrived for the establishment of a compulsory insurance scheme, and for the appointment of relief or distress officers in each of the four centres. They ought also to consider the estaolishinent of a civic fund; the position was' so aciite that the beautification of the City should take second place. He thought they should urge on the ; Government the use of certain funds. He also suggested that existing relief organisations should be subsidised. Last year in St. Albans they had relieved 130 families weekly, and had to rely solely on the generosity or the public. , . Mr "VV. Price gave some of his experiences of endeavouring to get work, and said that for five weeks he went to the Labour Bureau, but never got any job. He suggested that men should be asked (1) provided that you are competent, will you take the first job offered?; (2) are you prepared to take a email pecuniary interest in a subdivisional scheme ? The Rev. P. Revell suggested that in connexion with each trad© there should be an Unemployment or Vigilance Committee to keep on the lookout for openings for men out of work. As to financing the extension of business, he suggested that the financial men might establish a committee to go into the question of providing the finance. A great deal of money that might be spent in extending business was being spent in relief; but the result was to breed bitterness and enfeeblement of character. Dr. H. T. J. Thacker said that, those who were wanting work done were as hard up as the unemployed. He thought that people who wanted their houses painted but could not afford it should be subsidised. The Mayor, however, told him that this would mean that they would be parasites. He referred to the work waiting to be done clearing gorse off some of the areas of Banks Peninsula. A big difficulty was to.classify labour. Efficiency was necessary, but it was requisite that men should be taught the best way to do the work. He did not think that money counted. If the country were at war the Government would, if necessary, take the money required. They were fighting unemployment And the same applied. He emphasised the necessity for labour troubles being reduced to a minimum. He urged that steps should be taken to relieve cases of immediate necessity, and that the Government should see to it that anyone willing" to work should get Work. One of "those present suggested as remedies: .Less production, with a high tariff walli cheaper money, compulsory superannuation, and a four hours' day. Cr. E. H. Andrews said that they bad had much talk and it seemed all futile. They had had nothing very "concrete that afternoon. The question was what could they do to meet, the present situation. He had been impressed with the idea of making provision for the bringing together of those who had labour to sell and those who wanted labour. He bol/'eved that if they went out and saw those connected with big institutions they would find that they could place quite a number of men. He knew that many businesses were employing as many men as possible; in some cases they were employing more than they were justified in keeping. He thought that the banks could put on an extra clerk or two, as also, could some other businesses He was thinking of the men who were not able to do pick and shovel work. The Mayor said that there were about 500 unemployed in the City at present, and the tendency at this time of the vear was for unemployment to increase. A Comprehensive Motion. Cr. Sullivan then moved: "That this conference, representing public bodies and institutions of Christchurch, called in accordance with the suggestion thrown out by the retiring GovernorGeneral, Sir Charles Fergusson, to consider the subject pf unemployment, resolves as follows: ro „.„ <'(1) That the problem should receive the immediate and continuous attention of the Government, local bodies, and citizens generally. , 1 "(2) That the Government be adI ffikUl Serene W «»tat>™ •*

the various community interests, to consider the problem in its national aspect. "(3) That the Government be recommended to consider the advisability of initiating a great permanent roading scheme, to be financed by using the proceeds of the petrol tax and other available funds for the purpose of paying interest and sinking funds on the loans necessary for the carrying out of the scheme. "(4) That this conference resolves itself into a committee to further the effort to find work where distress exists: and that an executive be appointed." The Mayor put the motion in sections.

No. 1 was agreed to. No. 2: Urging that a National Conference be called. Mr R. T. Bailey said that the committee appointed by thothen Government two years ago had just submitted its report, and it might be as well to await the publication of the report. The Hon. J. Barr flaid that the report had been referred to the various Ministers in conference, after which it would be made public. Tt was decided to hold part of the motion in abeyance. ' T is. 3 and 4 were agreed to. Those present were constituted a General Committee on Uilemployment. Executive Set TJp. The following executive was set up: Tlie Mayor, Messrs A. F. Stacev, D. G. Sullivan. M.P., A. O. AVilkinson, R. T. Bailey, H. T. Armstrong, M.P., T. AVoolf, J. S. Burnett, H. Worrall, H. S. S. Kyle, M.P. (Mayor of Riccarton), W. H. Nicholson (Mayor of Sumner), J. H. Shaw (Mayor of New Brighton), W. T. Foster (Mayor of Lyttelton), J. G. Herdman (or his successor as president of the Canterbury A. and P. Association), R. J. Ecroyd, A. M. Burns, Bishop West-Watson, Bishop Brodie, Rev. L. B. Neale, Captain G. Day (Salvation Army), Mrs A. E. Fraer, and Mrs T. Green. Mr A. O. AVilkinson was elected chairman of the executive, and the Rev. L. B. Nenlo secretary.

DISCUSSION OF PROBLEM.

SOME SUGGESTIONS. PUBLIC UTILITIES COMMITTEE'S REPORT. Towards the close of yesterday afternoon's conference regarding unemployment, the chairman (Mr J. K. Archer) said that he had just received from the City Engineer (Mr A. R. Galbraith) a report from the Public Utilities Committee—consisting of representatives of all the local authorities in and around the City—on the subject of unemployment. The report, in its introductory portions, dealt at some length with the contributory causes of unemployment. Following are some extracts from the report:— ' '.The most pernicious aspect of unemployment from the industrialists' point •of view is. that the longer unemployment continues the more the "" " the unemployed deteriorates, and the less able he becomes to give a full day's work either in quantity or quality. Unemployment is, therefore, not only a drain on the resources of the community while it continues, but a permanent loss in economic and moral value also results.''

Social Evils—Cases of early success and subsequent deterioration may be accounted for by a variety of causes, but probably drink and gambling are among the most fruitful. If these arc mentioned, the investigator with an economic turn of mind is inclined to adopt a superior smile, and claim that what is needed is a thoughtful economic analysis rather than sentimental reference to moral evils. Any attempt, however, at an economic analysis that fails to recognise tho contribution made to the ranks of unemployment by' these two factors is incomplete and limited. It is, therefore, submitted that any' methods for combating these would be towards reducing future unemployment. All endeavours to make men able to work, and to provide work for the men thus able, will not necessarily give them a desire for work. Every measure that can be adopted is dependent upon the will to work on the part of the worker. All the other needs may be met, but the desire to work may still be lacking. For this reason, though the economic factors may be important, the moral factor involving the possession of some degree of character and conscience is more important, and in the various atempts to deal with the problem this aspect is not often stressed. Any endeavour towards character training in youths must therefore be helpful towards preventing unemployment.

Seasonal Work. Steps appear to be necessary to prevent the individual from combining high rate seasonal work and subsequent winter relief work. Economically, the one is not intended to supplement the other, and if relief work attracts men from other avenues of employment it defeats its own end. Payment by Results. It may be contended that unionism has been developed as much by the unreasonableness of the employer as by the worker's desire for protection and gain. Similarly, the very desirable basis of payment by results is viewed with disfavour by the.worker not only because it reveals and penalises the slack or inefficient workman, but because in the past it has unquestionably been exploited by the employer If this method of payment for work done, or output produced, is not made a means of using the fastest worker to set the pace, but is fairly and justly arranged so that each man receives payment in accordance with his output, and a prearranged minimum, then there is no more satisfactory way/ from the view of both employer and employee. _ It has, however, its limitations, and is only applicable to certain types of work. Apprentices. It is evident that the apprenticeship system is in a stage of transition and in many cases is only partially suitable to various trades as they have developed' to-day. If unemployment of partly trained youths is to be avoided, apprentices should be protected against the possibility of being discharged before their apprenticeship is complete. The unwarranted use by some employers of the three months' probationary period is one of the causes of throwing into unemployment partly-trained youths. Trade Training. More education in trade training is mentioned as another and there can. be no doubt that it is from the ranks of the unskilled and those of limited education that much of the unemployment comes, but the success of trade training is dependent upon some degree of intelligence, and still leaves the problem in cases where this is deficient. Further, in fluctuating industries, increased activity in trade training may increase unemployment in slack seasons. .Trade training is therefore a remedy that ha* its definite limitations. Shorter Hours. " It is probably true that In the great majority of cases there is some defect of character or will, or mode of life, that has led to unemployment, and to

combat these causes is the surest step towards the remedy of the effects, but when all allowance has been made tor such cases and causes there remains the sad and difficult problem of the thoroughly worthy victim whose unemployment results from circumstances beyond his control. This type of case is really the fundamental one, and may be considered as almost a composite case produced by the combined operation of a number of causes.

In effect, it suggests that the increased productivity of human labour is such that the necessary activities of the world can be carried on by less labour than is available. If this is the case, it pointß to a remedy which has already been suggested by a number of authorities who have made pronouncements on the subject, viz., that increased human productivity not only implies, but permits, a shorter period of labour to meet human needs. The questions of wages and earning power would immediately arise, and there are, no doubt, other problems clustering thickly around any such proposal, but there appears to bo in this possibility something more di* rectly related to the real cause and an effective remedy than is the case with many other suggestions that havo been put forward. National Development. An important aspect of this matter is the fundamental question as to whether New Zealand will be primarily a pastoral country, and how far industrial development can be expected in such a country. The equipping of men for trades that cannot employ them will not help towards a solution of unemployment. Some recognition of this probable character and destiny of the country should bo included in any consideration C* iixo unemployment problem. What is required is a co-ordmation of all public works in such a manner that it will allow for seasonal variation, and so provide continuous work for all concerned on a more permanent basis throughout .the year than has hitherto been the case. At the same time no more migrants should bo permitted to enter the Dominion than can bo properly provided for in such manner. Especially does this refer to the married men with families. Interests of Empire demand there should be immigration, but more supervision is required. Nominated immigrants imposing some obligation on the nominator to houso and find work for tho newcomer was largely a failure. Immigrants should be carefully selected. It is foolish to send out labour of a highly specialised type for which work does not exist in New Zealand. Some attempt to establish and operate training farms, in which newcomers could be trained in New Zealand's primary industry, with some assurance or condition that they would subsequently seek employment in tho pursuit for which they have been trained, would be a practical aid towards absorbing immigration. Insurance. There appears to be some confusion as to the meaning of unemployment insurance. Any attempt to make provision for payment during unemployment is fraught with serious danger, and appears, to be fundamentally wrong. Thai type of insurance which aims at providing work for periods of possible unemployment is on tho right lines. For this reason tho unemployment insurance scheme submitted by his Worship the Mayor of Wellington commends itself to the committee. Such a scheme would distribute the responsibility, it would provide work and not a dole, and it would ensure that relief work was loss attractive than normal employment. While such a proposal is in one sense an insurance scheme,, it also includes what has been suggested earlier, viz., the classifying and allocating of prospective public works in such a way as to make them available when required for relief work. However effective any of the above proposals might be for assisting men to avoid unemployment when anxious to work, there will probably remain a residue of difficult cases where there is lacking the will to work. Such cases have been dealt with in other countries by labour camps, or labour farms, and in extreme cases of improvidence payment might be made to dependents in kind, rather than in cash.

Immediate Steps. The chief danger with any immediate steps seems to be the risk which they involve of intensifying and perpetuating, rather than relieving, the trouble. When a large amount of labour in the community cannot find employment, it is plain that the first step, from the point of view of the community, is to provide employment by some means, and possible measures towards this end appear to be: 1. A review of the community's activities, particularly the work of public utilities, with a view to ascertaining whether any work regularly recurring in .the summer could not in some way be made available in the winter, when unemployment is at its worst. 2. Whether any anticipated special non-recurring public w-k, such as construction or formation work of any kind, could be so arranged as to be held over for the period of greatest unemployment. 3. The possibility of some such arrangement as is suggested by Mr Henry Ford, in "which he advocates closer relation between industry and agriculture, so that the industrial activities could be concentrated on a time when agricultural activities are at their lowest.

4. Relief work. This appears to be a kind of last resource, viz.> work not always necessary, but found, if not actually framed, for the purpose. There is something of the artificial and unnatural about such relief work. The unemployed worker has a sense that it is being made for tile purpose. The community feels that it is a desperate measure from which no great result is necessarily secured, and economically it is difficult to justify. To ray for such work at regular , award rates _ appears to be economically indefensible. Without unfairness or lack of charity, it may be concluded that the unemployed labour is, in one sense, the residual that is least in demand. If so, it is obviously not first-grade labour. The work itself is often not needing to be done, and to that extent is unnecessary labour. If the highest rate of pay ib to be given for unnecessary work carried out by lower-grade labour, the economic unsoundness of the transaction cannot be evaded.

5. The most promising remedial mea sures seem to be:

(a) Rome form of unemployment insurance. This protect" the case where unemployment is pure misfortune. (b) Some basis. of payment by results. This would automatically grade the available labour. (c) Some form of compulsory and controlled labour, where payment was made partlv to the men and partly to their dependents, and preferably in necessaries rather than in money. This would deal with the worst cases.

The members of the committee are aware that much mature and able consideration has been given in many quarters to this problem. It is probable that the remedy will be a matter of evolution, rather than of any illuminating pronouncement from one source or another. Much of the foregoing reflects views already expressed, but it is felt that the observations and comments of a group such as this committee, if put on record, may not be without some value as a contribution towards an ultimate solution.