RAILWAYS STAFF

Dominion, Volume 24, Issue 287, 31 August 1931, Page 5

RAILWAYS STAFF

Necessary Reductions POLICY EXPLAINED An elucidation of the policy that is ' being followed in staff reductions and reorganisation in the Railway Department was contained in the annual report of the general manager, sir. H. H. Sterling, presented’ to Parliament. “I do. not say that there are not any circumstances which would justify the •Railway Department carrying surplus staff for a limited period,” Mr. Sterling says. “For instance, humane considerations, coupled with the desirability of keeping a certain minimum organisation fairly intact, may well afford such a - justification, but this in turn must be subject to a reasonable prospect of the whole quantum of staff, including the surplus, bping again required within a reasonable time. If this condition is not present, then the position must be regarded as involving a more or. less permanent redupjion of the staff , establishment, and this is'a position which must cal! for adjustment. • “Even- in such a’ case"'considerations of ;humanity would justify ‘ spreading the process of adjustment over .a period •.rather ’ thaii throwing a large number . of men suddenly on to the labour market. This policy has been pursued as far as possible in connection with the staff adjustments which circumstances have shown to be necessary in the department, and wherever it was possible to avoid reductions 'or to take steps to minimise the hardships that were involved in the process of adjusting the staff every reasonable opportunity has been taken to act along this line. “One line of action that has been taken in this connection has involved the retirement of a number of employees On superannuation after they had completed 35 years’ service and before they had completed 40 years’ service, which latter term is that which entitled an employee to the maximum proportion of his rate of pay by way of pension. The basis of this action has been the conclusion that •it was much more humane to retire those employees who would have some income from the industry to sustain them rather than to throw out of employment employees who would be entirely dependent on the (at present) doubtful chance of what they could earn. • “Fears have been expressed that this ■ action might place an undue burden on the Superannuation Fund, but an examination of the position does not seem to afford any substantial basis for such fear. It must be remembered that the employees receive a smaller pension than they would have done had they completed forty years of service, and according as the period the employee continues on the fund lengthens the adverse effect on the fund is by comparison reduced. “Another phase of the retirement of employees at 35 years is the question of the efficient working of the department. This is being carefully watched in determining the retirement of employees, and while, of course, these retirements will inevitably involve some loss of valuable experience, it is assured in each case that suitable arrangements can he ■ made to carry on the work up to a satisfactory Standard of efficiency?”