FACTORY WORKERS

Dominion, Volume 29, Issue 195, 15 May 1936, Page 12

FACTORY WORKERS

Second Reading of Bill in House CAN EMPLOYERS STAND ADDED COST? The second reading of the Factories Amendment Bill in the House of Representatives was agreed to without a division yesterday afternoon, and the House then went into committee on the Bill. The contention that industry, properly organised, should be able to stand up to all the charges ptoposed in the Bill was put forward by Mr. A. S. Richards (Government, Roskill). The arguments of Opposition members, he said, proved that they knew nothing of New Zealand’s industrial history. The Opposition’s main theme was whether the employers could stand the cost. However, the theme was developed in different ways. One speaker said that the effect of the legislation would be to close factories, aud another said that increased costs would be passed on to the consumer. In 1934-35 statistics showed that 90 per cent, of the wage and salary-earners in New Zealand were iu receipt of incomes under £3 a week, and that 72 per cent, earned less than £4/7/6 a week. On the other hand, according to returns for income tax assessments, there was a little group of 5800 jieople who earned between them over £60,000,000, amounting to 30 per cent, of the total assessable, income for the year. There was also the disparity between costs and prices. In the boot and shoe industry alone the cost of a years material was £562,000 and the value of production was £1.102,000. Mages amounted to only £344,500 or, 3- per cent, of the total value of production. ‘'Opposition members do not mention how machinery can tie used to reduce costs,” Mt’. Richards added. ••Actually, this Bill will protect the just and considerate employer against these limited liability companies which will stop at nothing to reduce costs.” Temporary Benefit Only. •'The legislation passed this session is in keejjjng with that introduced in New South Wales by Mr. .1. T. Lang,” said Mr. S. G. Smith (Opposition, New Plymouth), “I said two years ago that a s soon as the time was opportune we had a duty to the people of this country to make a complete revision of our labour laws. The time is opportune today, and I want to see I he conditions of the workers improved. But I do not want to vote for something that will mean only a temporary benefit with a subsequent access of unemployment because industry will not be able to carry the increased load.” Mr. >Sniith said the Bill was merely writing into the Statute Book conditions anti terms that trade unions had tried for years to have included in awards. In his opinion the Bill was going too quickly at a time when industry was just emerging from four years of depression. The Bill would make it harder for industry to carry on and would make it. more difficult for the workers to secure steady employment. Difficult les facing the Otago and Southland beech industry owing to the Government's industrial legislation were emphasised by Mr. J. Hargest (Opposition, Awarua). He said that even now the industry could only carry on by concessions it received from the Railway Department and the Unemployment Board, and ho expressed the hope that the Government, would be able to grant assistance by way of subsidy so that the millers would not: be precluded by the shorter working week and higher wages from continuing the overseas beech trade they had developed. Factory-owners from one end of the Dominion to the other, said Mr. Ilargest. were perturbed about the proposals in the Bill and the effect they would have on their industries. The Bill would seriously affect the profits of in dustry, and during the period of readjustment extending over the next year or co, some factories would go out of existence. Higher Cost of Living. it went without saying that the Bill would increase the cost of living. Mr. Hargest said. Industries' supplying the domestic market were in a position to pass on their added cost, but industries that relied upon the overseas markets were unable to do that. The frozen meat industry, the dairying industry, the timber industry, and the flax Industry, were in that category. The timber industry provided partly for the domestic market and partly for the overseas market. Wages costs were a big factor in the timber industry, and upon it the proposals in the Bill would press particularly heavy. The claim that employees had been intimidated into accepting unsatisfactory wages and conditions during tiie depression was made by Mr. W. J. Lyon (Government, Waitemata). "There has been some objection from the other side of the House to rhe clause in the Bill which prohibits the dismissal of workers because of the introduction of the shorter working week.” Mr. Lyon said. "The Bill does take away, to some extent, the power of the unscrupulous employer who would use Intimidation tactics with his staff. At the same time I think that the clause will have the effect of raising to a higher standard the understanding of the problems which exist between employer and employee.” Mr. L. G. Lowry (Government. Otaki) said that if the better wages and better conditions brought about a better demand and a higher purchasing powe.. there was no need to view this legislation with alarm. It had been stated that the additional holidays were going to cost £200,000: if that were so the workers had a great deal of back pay. He was looking forward to the lime when industry would be so organised that the worker would share with the employer reasonable leasiire. If conditions were made amenable for lhe worker his output would be greater. There was no ruthiictaforship about the Bill. Holiday Provisions. The contention that (he holiday provisions in the Bill had always been in Arbitration Court awards was made by the Minister of Labour. Hou. 11. T. Armstrong, when replying Io Opposition criticism during lhe committee . stages last night. He said that if a person were entitled to a holiday <m full-pay lie received that for doing nothing. Therefore, if an individual were asked to work on such a holiday he should receive double pay in addition for it. for if someone else had to be engaged to do the work double pay would have to be paid. Referring to the clause prescribing service in any factory a continuous service for the purpose of fixing wage rates, Mr. Armstrong said that up to recently that had been the recognised

position ever since the Factories Act was established. About two years ago the Supreme Court had disturbed that ruling aud held that service in a particular factory only counted. The Bill simply restored the old state of affairs. Rising Prices. "Every one of us would like to see the people of New Zealand living like millionaires, as the Minister of Labour suggested, but that is impossible because if everyone was a millionaire there would be millionaires sweeping the streets.” said the Leader of the Opposition, Rt. Hon. G. W. Forbes. He said the result of the Government's policy, as outlined in the Bill, would be tliat all the advantage which the workers would apparently receive would be taken up in the increased cost of the articles they required. Wages would never keep pace with the rising prices. The Minister of Public Works, Hon. R. Semple, said it was true that prices would go up if the Government was stupid enough to allow t hem to go up. But it was not stupid enough to allow the exploiter to the law that were being brought in. That sort of thing was not going to be permitted. Mr. Forbes: If extra costs are placed on industry is it not natural that the pri-ws of goods should iiici . Mr. Semple: If there are industries which cannot function ami give their employees a decent livelihood then tliev are better closed. Mr. $. G. Holland (Opposition. Christchurch North) referred to the provision for treble time for work done on holidays. "It means,” be said, "that when a man works on a holiday he must be paid three times the amount he would get on an ordinary day.” Mr. Armstrong: That is what I have been trying to explain to some of you "boneheads” all day. Mr. S. G. Smith (Opposition, New Plymouth) : Mr. Chairman, surely the Minister is not to be permitted to use language like tha,t. Has he no dignity.' Mr. F. W. Schramm (Government, Auckland East) : Is the member for New Plymouth in order in saying that the Minister is without dignity? The Chairman of Committees (Mr. E. J. Howard) : Order! I must ask the Minister to return to the Bill. “We cannot all be American millionaires living on champagne and turkey,’ said Mr. W. P. Entlean (Opposition Parnell). “We must not forget that we are not isolated economically from the rest of the world, but this Bill goes economically berserk.” As Mr. Endean resumed his seat lhe Prime Minister moved the closure. Mr. Broadfoot: Tiie worst has happened. Members of the Opposition called for a division on the closure motion, and this was carried by 48 votes to 17. The short title was then allowed to go th rough on the voices. An indication that the Government, if it thought it necessary, would extend (he date on which its three major industrial measures will come into forc 6 was given by Mr. Armstrong. The Minister stall'd that whatever change was made would apply to all three measures. Mr. Armstrong mentioned that Opposition s'lieakers imil referred to the inconvenience which might be caused by the different dates on which the 40-hour week clause would come into operation in tne Dominion The Industrial Conciliation and Arbitration Amendment Bill, lie said, had stipulated that the provision would come into force on June 1, but the Factories Amendment Bill had come before the Government at a later date and its operation had been fixed later, for July 1. There was a third Bill to come down, and it would enabody Hie same provisions for shorter hours. "I have it in mind that even July 1 may be too soon to bring into operation that particular clause of the three Bills. But the date of the operation for lhe three of them can be fixed for lhe same date in another place. In tiie meantime it has to be considered that these Bills have been discussed at different periods. I can assure the House I hat if we do anything at all it will be to extend the date of operation. What, applies to the one Bill will apply to the three of them.” Amendments Rejected. As an amendment to the clause dealing with the shorter week, the Hon. Adam Hamilton (Opposition, Wallace) moved that certain words be struck out which would have the effect of leaving entirely to the Aribtration Court the decision whether the 40-hour week would be practicable in certain industries. He claimed that with the present wording of the clause there was a direction to the court which prevented it from having absolute discretion. Mr. F. W. Schramm (Government, Auckland East) opposed the amendment on the grounds that it would completely nullify tiie intention of the Bill to impose a 40-hour week. Mr. W. J. Polson (Opposition, Stratford), supporting the amendment, claimed that it was a compromise which should be welcome to the Minister. The Minister said that tiie Arbitration Court was given three months alter lhe passing of the Industrial Conciliation and Arbitration Amendment Bill to fix the basic wage. The same provision would be made regarding tiie 40-hour week. Opposition members: That’s fair. The Minister said that if the court deemed it absolutely impossible to hear ah the protests within the time the employers concerned would be allowed to carry on until their protests were heard. The amendment was defeated by 48 to 20. Mr. Polson moved a further amendment to reduce the payment of over time to 1/- an hour instead of 1/6. This was lost on the voices. Progress was reported. Before the House adjourned at 10.30 p.m the Prime Minister expressed a wish that the House should to-day discuss the report of the New Zealand delegate to Geneva, as he was anxious to have the opinion of the Opposition on the League of Nations. He also said that if time permitted lie would like the House to discuss the report of the Director of Education on his recent mission overseas.

SOME AMENDMENTS

Small Dairy Companies Exempted The promise imide by the Minister of Labour. Hon. H. T. Armstrong, that small dairy factories would be exempted from the provision in the Factories Amendment Bill applying a six-da.v week to dairy factories and creameries was redeemed in a list of amendments to the Bill circulated in the House of Representatives last night. It is stated that the six-da.v week is not to apply Io any dairy factory or creamery in which not more than two workers are regularly employed Workers in such factories who are required to work more than six days in any week are to be entitled to a whole holiday for every additional day

worked or to be paid at the ordinary rate for the additional time worked. All holidays are to be given within a month of the close of the season and payment for extra time worked is to be made not later than the close of the season. If a worker is employed on statutory holidays he is to receive either double pay or double time off in cacordance with the same time stipulations. Another amendment provides that male workers employed in freezing works, I'ellmongeries and pelt works, fish-curing or preserving works, jam factories during the small fruit season, bacon factories and sausage-casing factories shall not come within the scope of the 40-hour week and other limitations of hours in the ill. Previously (his clause referred to any worker in the factories mentioned The trades exempted from the limitation of hours are added to by the inclusion in « ”e'v clause of wool dumping on any wharf. Another amended Clause deals with overtime for employees in bush sawmills. Previously they could claim overtime for any hours in excess of IS n week. The new clause restricts die maximum number of hours to 40. and although it recognises the right of the court to extend the hours on appeal f rom the employers, it states that 44 must lie the absolute weekly maximum and that overtime must be paid for any hours worked iu excess of the hours fixed by the court.

As the Bill was originally drafted treble Huie for Sundays or. statutory holidays was to have been subject to the prvoisions of any award or industrial agreement. That provision Is to be deleted, and the treble time will be made general in its application.