COSTS PROBLEM

Dominion, Volume 26, Issue 31, 31 October 1932, Page 10

COSTS PROBLEM

Engineering Trade Dispute CONFERENCE FAILS Objection to Wage Reduction NO OTHER ALTERNATIVE No agreement was reached in Conciliation Council on Saturday when the hearing of the dispute in the engineering industry was continued. Expressing regret that the negotiations had failed for the present, Mr. T. O. Bishop, the employers’ advocate, said that the only thing for the parties to <«o was to continue as best they could without an award. In most districts satisfactory agreements had been entered into, and although some trouble had occurred in Wellington, the work was there if the men wanted it. In view of the progress made on Friday both sides were confident when proceedings were resumed on Saturday morning that it would be possible to. arrive at a settlement. However, a deadlock resulted when the employees refused to waive a proposal to insert in the new award a clause classifying the workers into the various sections of the industry and preventing a member of one section doing the work of another section. The employers claimed that this would raise manufacturing costs in the Dominion. Instancing the vital factor wages played in all standing costs, Mr. G A. Pascoe, Christchurch, said-that his firm had submitted the lowest New Zealand tender for a Government contract, but had been underbid by a British firm, and many thousands of pounds’ worth of work had gone out of the Dominion. Had it not been for the wages his firm was compelled to pay it would have been able to secure the contract. “A Concrete Wall.

An assessor for the employees said that the workers in Britain were able to accept lower wages because their cost of living was lower. The employers, he contended, should help to reduce standing costs. •’Every time we try to do it you put a concrete wall up against it.” said Mr. Bishop. “Wages play a very big part in all standing costs, and you always fight against wages being brought down. A point you entirely overlook is that we are not a self-supporting community. We are the least self-supporting community in the world. We are exporting and importing a larger proportion of our goods than any other country. Our principal market is In the very country where you say wages are too low. We cannot only buy more there, btit we have to sell our goods there. “If you were lending money to someone who was living more expensively than you were, you would begin to wonder whether you were going to get your money back, and that is what this country has been doing,” said Mr. Bishop. “We have been able to carry on in the past because we have borrowed to make up the difference, but it does not seem to me practicable or possible to maintain a higher standard than the country to which we sell our products. “If we all work together the adjustment can be brought about with less hardship than would otherwise l>e the case, but don’t think it can be avoided.”

Mr. A. Black, Wellington, one of the employees’ assessors, said he did not agree with Mr. Bishop’s theory. If wages had been reduced in Britain New Zealand would stiU be securing good prices for its products. “I am quite prepared to admit there is something wrong with the social system which has brought about the present state of affairs, but that does not alter the domestic position in New Zealand,” said Mr. Bishop. “New Zealand is absolutely dependent upon overseas markets for the consumption of a large proportion of its products. “If prices do not rise within tiie next twelve months we are done. We are all hoping, as you are, that there will be a rise in prices, but unfortunately there is no reason to believe that it is coming quickly. I had been hoping that when the new export season commenced things would improve, but apparently there is not much to be hoped for this year.” Deadlock Reached.

Mr. Bishop pointed out that wool had fallen Id per pound as compared with this time last year, and fat lambs, which had been the onlj- source of profit to many farmers, had dropped from 8 l-8d per pound to 4 7-8 d and 5d per pound.

There were just enough bright spots on the horizon, however, to encourage the employers to carry on. No progress having been made on the major questions, the commissioner, Mr. W. Newton, suggested an adjournment to enable the parties to consider the proposals. Upon resuming, Mr. G. T. Thurston, Christchurch, said the employees would like to hear what concessions, if any, the other side was preferred to offer. Mr. Bishop: Whaf is tlie good of sparring for a win? There is nothing in it. We are not trying to do that. You seem frightened to open your minds to us. There is no need to- be frightened. Anything you say is without prejudice. We are here to make a deal with you if we can. Is there any hope of success? You are still frightened to tell us. You say, “Show us your hand.” We haven’t got a hand to show you. If you tell us you are prepared to pursue a certain line then we can proceed to discuss it, otherwise we may as well pack up now and go home. Mr. Thurston said that under no circumstances were the workers prepared to accept 1/10} an hour for skilled work.

Mr. Bishop: Well, gentleman, all I have to say is thank you for coming here, and thank you, Mr. Commissioner, for presiding. The Commissioner said he had great hopes that an agreement would have been arrived at. However, that was not possible. Both parties had made an honest attempt to meet each other. Making the Best of It.

Mr. Bishop said he believed an agreement would have been to their mutual advantage. However, they were getting along at present without an award, and the workers were still receiving a good deni of protection. “The situation in Wellington was a little different from that in other centres. Some of the men were unnecessarily out of work. The work was there if they liked to take it. On the whole, the parties were getting along without an agreement almost as well as with one. He thought everybody was making an honest attempt to meet the situation. Mr. Thurston said the employees were just as anxious as the employers to come to an agreement, but were not prepared to agree to any old thing. The situation in Wellington had not been determined by the union; it had been determined by the men themselves.