INDUSTRIAL TRUCE

Dominion, Volume 20, Issue 78, 27 December 1926, Page 14

INDUSTRIAL TRUCE

HON. T. S. WESTON’S PROPOSAL

FAVOURABLY RECEIVED IN AUSTRALIA

The proposal for a five years’ industrial truce by mutual agreement between employers and wage earners emanated from New Zealand (states “Liberty and Progress," the official organ of the Victorian Employers’ Federation). The Hon. T. Shailer Weston, M.L.C., president of the New Zealand Employers' Federation, made the suggestion at the annual meeting of that organisation about 12 months ago, and since then it has been favourably commented upon by Mr. Havelock Wilson (secretary of the British Seamen's Union), and warmly advocated by Messrs. Gammell, Laird and Company, in connection with shipbuilding on the Clyde. The possibility of such a desirable consummation is thought arresting and suggestive of the millennium. The Hon. Mr. Weston evidently gave the whole question very careful consideration, and his conclusion was that the contracting parties and the whole community would gain enormously by the experiment. His idea was that the truce should be based on existing wages and conditions of labour, and he declared that such an arrangement would be a real concession on the part of employers. With the return of the gold standard all economists agreed that an era of diminishing prices had been entered upon. This could only be met by (1) a cut in wages., (2) an increase in the Customs tariff, or (3) by improvement in plant, organisation and distribution. An industrial truce would nullify the first method, the second would (in his opinion) prove futile, and disappointing. Therefore, employers would be compelled to adopt the third method, and rely upon their own ingenuity and resource in improving their plants, and subsequent operations to cope with a fall in prices. They would, however, benefit by the absence of industrial strife and from that uncertainty which inevitably gives rise to increased cost. This was a vry important factor, especially in large contracts extending over a considerable period. In his opinion tho gain effected would compensate employers • for whatever the fall in prices might be during the ensuing five years. In advocating this scheme to the various trade unions, the head of Messrs. Gammell, Laird and Company laid the greatest stress on getting continuity of employment, free from trouble and strikes. This would be one of the strongest factors in enabling British shipbuilding firms to compete successfully against their Continental rivals. Everyone realised the enormous losses due to strikes and labour troubles, and the supreme importance of endeavouring to secure industrial peace. The worker also would gain substantially. With an era of falling prices, the cost-of-living rates must come down. A reduction in the cost-of-living figures (now 165) in New Zealand by 16£ points would mean the equivalent of a 10 per cent, increase in wages to every man and woman employed in the. country. Taking the number employed in New Zealand as at least a quarter of a million men and women, and taking £-1 as the average wage earned, an increase of 10 per cent, or Bs. per week, this would mean an equivalent gain of £5,000,000 in real wages bv the workers, and the employers would not suffer very much. The certain result of a fiveyears’ industrial peace and truce would be a reduction in the cost of living of at least 10 per cent.—perhaps more. Trade union leaders, instead of discussing how far they can stampede the Arbitration Court into granting small increases in the money wages of employees, would be very much better occupied in endeavouring to unite with employers in a friendly way to bring about such a truce. . There were men in the ranks of the unions who prided themselves on keeping abreast of the times on economics and social matters, and he appealed to thinkers on the Labour side to join hands with those whom they had been trained to consider their natural enemies, and see whether an industrial truce was not the best remedy for the present state of affairs in New Zealand. Referring to an increase of Customs duties as a way out, the hon. gentleman said that ho was a shareholder and director in concerns carrying on secondary industries, but he did not think that an increase in the Customs tariff was going to do much for such, industries. New Zealand was mainly a primary producing country. Every man, woman, and child was affected by any misfortune in the dairying, wool, or meat industries, whereas Comparatively few were affected if an industry such as the boot trade was hit. . f lhe result of any tariff increase was higher wages, higher prices following, and increased cost of living. Thus the vicious circle was formed. To rely on the Customs meant relying on something that would not benefit them much in the long run. He was satisfied that there was no country in the world where the conditions of life to all sorts in the community were as easy as in New Zealand, and if they were to maintain those conditions tney must learn to come together—both employees and employers. They must arrange for an industrial truce for five years. If they did so, he believed there was a good chance of it growing into ten years, then fifteen and twenty, but the industrial truce would have to be carefully observed by every one.