FORTY-HOUR WEEK

Dominion, Volume 29, Issue 195, 15 May 1936, Page 17

FORTY-HOUR WEEK

Employers’ Point of View GREAT CARE NEEDED “Some radical changes are expected, and it is felt that, unless great care is exercised by those responsible, the conditions in New Zealand will be made worse instead of better,” stated the report presented to the annual meeting of the Wellington Employers’ Association last night in reference to the legislation of the Government. With proposed reductions in the ■working hours and increases in wages to be paid, production cost must be greatly increased. In turn the effect of increases in the purchase price of commodities and house rents, etc., would most likely reduce the purchase value of the pound, and instead of being better off it would be found that workers, although securing more money for their labour, would be unable to purchase as much as hitherto. Effect on Contracts. Many large contracts at present under way in New Zealand would not be completed for a considerable time. The tenders when submitted were made up on the then ruling rates of wages. It was assumed that the shortening of the working week by four hours would result in demands for increased wages rates to compensate workers ter loss of four hours' work per week, and would in turn mean increased cost of work. Under such circumstances it was wondered who would compensate the employer and undertake to make up the difference in cost brought about by such a change. Unless universally adopted, the 40-hour week wotjld confer a competitive advantage upon employers (particularly in manufacturing trades) in other countries, and it would, therefore, seem essential to be assured of having uniformity by international legislation or agreement. Drastic Changes. Never in the history of New Zealand had the employers been faced with such drastic changes as were now receiving the consideration of the Government. The Government had taken office with many election promises to fulfil, such as the 40hour week and the restoration of cuts in wagejujind it would appear they were compelled to give, full effect to. their promises irrespective of whether they were in the best interests of the Dominion as a whole or not. An unexpected and economically unwarranted rise in labour costs might have very serious consequences, not to the profits of employers only, but to the very existence of industry and to all those who depend upon it for their livelihood. Unless workers could do as much work in 40 hours as in forty-four or forty-eight hours, which appeared in most cases impossible, it would be necessary to increase staff or decrease output, either of which would increase the coots pe. unit of production. With the small margin of profit available, the employer and manufacturer would have to increase the cost of his wares, replace labour with machinery, or go out of business. It was hoped that such drastic proposals would not be carried to such a length as to make the position even worse.