The Dominion FRIDAY, OCTOBER 14, 1927. THE PROBLEMS OF INDUSTRY

Dominion, Volume 21, Issue 17, 14 October 1927, Page 10

The Dominion FRIDAY, OCTOBER 14, 1927. THE PROBLEMS OF INDUSTRY

The president of the New Zealand Employers’ Federation (the Hon. T. Shailer Weston), at the annual meeting of the Employers’ Federation yesterday, stressed the main difficulties with which industry in New Zealand is confronted to-day. Taking a broad view of his address, the main doctrine preached was self-help in industry. In emphasis of his appeal, he instanced the example of dairy farmers in adopting the very practical expedient of herd-testing as a means of increasing their production. By this system, cows which show a poor return for their keep are weeded out, and the production percentage raised by the substitution of better milkers. ’ This is p, homely method of demonstrating to. the captains of our secondary industries that increased production and profits are questions which must be solved by improved methods and increased efficiency. Whatever the apostles of Socialism may submit by way of argument, the fact remains that profits are an essential part of business programmes. It is only through the medium of profits that business can be extended and employment increased. Business must choose between stagnation and progress, and progress without profits is impossible. As soon as Labour realises the full truth of this fundamental proposition, so soon will active and profitable cooperation be possible. The trouble is that it is against the professed policy of political Labour to admit this. Q uot ? n g from the 1920 report of the Employers’ Federation, Mr. Weston said:

Trade unions were at one time illegal as being a breach of the law against conspiracy. They were legalised in order that workers might combine to protect "their members from oppressive action by employers and to improve their wages and working conditions. In this they have done excellent work. To-day, however, there is a strong tendency for trade unions to go much further. They are fast becoming political organisations. The more militant ones also are using the great power which combined labour in a key industry, such as coal-rhining, must inevitably possess, to enforce the granting of unreasonable demands at the expense of the' whole consuming community, and to the detriment of workers in other less important branches of industry. Finally, a small section of the community, but a dangerous section, are endeavouring through trade unionism to start a revolution on the lines of the Russians.

What is wanted, in the interests of all concerned, is a new view of the responsibility of those associated in industry, employers and workers alike, to the public. An obligation rests upon each party to the industrial question, and with equal force to render to the community in general the best service that- is in them to give. The welfare of an industry does not reside, in principle, so much upon what those concerned in it, employers or workers, can get out of it, but in what the community receives as a result. It is an established principle in industry that it pays to pay well for service efficiently rendered. The problem which faces this country to-day is how to get the efficient service to which, industry is entitled, when by Arbitration Court compulsion it has to pay well whether this service is rendered or not. The president of the Employers’ Federation declares that “so long as labour itself will co-operate with management in increasing production and improving methods of work,” he would not favour a reduction in money wages “except as a last resource.”

That is a sound, principle. It is not the amount of the wage but the return given for the wage that is the real factor. Our difficulty in this country, as it is in most British communities, is to secure the acceptance of this principle under the system of collective bargaining to which custom has committed us. The solution of the difficulty is a recasting of the general attitude of industry towards the community, and a recognition of the business axiom that service to the public, on the part of both workers and employers, is a sound and profitable working proposition.