HIGHER COSTS FEARED

Press, Volume LXXII, Issue 21941, 16 November 1936, Page 11

HIGHER COSTS FEARED

HOURS AND WAGES OF FREEZING WORKERS

EMPLOYERS STATE THEIR CASE

[THE PRESS Special Serrice.] WELLINGTON, November 14. The hearing cf the Dominion freezing workers’ industrial dispute wacontinued in the Arbitration Court today when the case for the employer was submitted to the court. Messrs C. G. Wilkins. Christchurch, and J. J. Evans. Wellington, represented the employers, while the workers’ case was conducted by Messrs W Sill. Auckland, and A. McLeod and W, T. Young, Auckland. , An application by the to exempt the Nelson Freezing Com nanv from the provisions of the awaru fn so far as the handling of fruit was concerned was opposed by the worker on the ground that no exemptions of that nature had been claimed by the Auckland Farmers’ Freezing Company, which also handled fruit. ld The court intimated that it would consider the application. In outlining the general case for th employers, Mr Wilkins said that t 40-hour week would be inimical to the Interests of the industry and the farning community generally. Parliament had recognised the special circumstances surrounding the industry in au its branches by granting it exemption from the hours provision of the factories Amendment Act, and the court had already granted extensions cl hours to certain other industries such •is bacon factories, tanners, and fe.Umongers. , , ... Already the industry was faced with heavy additional costs under the new industrial 1 relation in the payment of workers for statutory holidays, the reversion to the 1931 wage levels, the basic wage, and other factors. If the union’s claim foi; a 40-hour week were successful, the direct increase in wage costs would be upwards of £4so,ooo—equivalent on the yearly output to an inci-ease of as much as one farthing a pound on all meat. That was a direct cost and took no account of further relative intreased costs in relation to heavy purchases of material and transport charges. The increased costs would have to be met out of the value of New Zealanl’s frozen meat and by-products as realised on overseas markets. Effect on Killing of Lambs The 40-hour week would mean a delay in the killing of lambs In the rush season, and a loss of condition in the stock, especially fat lambs, and the loss would be a serious one. Mr Wilkins said any carry-over in pigs to be killed over a week-end would involve severe loss in weight and quality, and any shortening of the hours of labour would be detrimental to the chilled beef industry, which was a comparatively new development. A period of 35 days from the actual killing until the arrival of the beef in London was considered suitable, although the shorter the period the better, It followed, therefore, the actual killing of chilled beef in New Zealand was, as near as could be calculated, dated back from the date the overseas vessel could take it on board, allowing for two days for I chilling. Any reduction in the work-; ing hours at freezing works would | seriously embarrass the new industry, i The applicants’ wages claims ranged | from 16 per cent, to 68 per cent, over i the 1031 rate, and were apparently I made without any regard to the extra costs which the employers had to meet. Tie extra costs already imposed by recent legislation, plus the increase claimed by the applicants, were 433 per cent, above the wage costs in 1033-36. If the 40-hour week was added, the percentage above last year would be 56J per cent. The employers were offering the 1931 rates of pay except in one or two piecework processes in which new mechanical appliances had made the work much easier. Mr Sill said the onus was on the employers to prove that the 40-hqur week could not be worked in the industry. He submitted that the point had not been proved, as both the statement of Mr Wilkins and the supporting evidence showed that 40 hours was only exceeded for a few weeks

during the season._ If the 1931 wage rate was not applied to the industry it would be in danger of losing its position on ,the wages schedule' of the Dominion. The court reserved its decision.