40-HOUR WEEK FOR WELLINGTON TRAMWAYMEN

Dominion, Volume 29, Issue 253, 22 July 1936, Page 11

40-HOUR WEEK FOR WELLINGTON TRAMWAYMEN

City Council Decision INCREASE IN FARES NECESSARY Move For Postponement Defeated After hearing and questioning for over an hour and a half a (deputation from the Tramway Employees’ Union, the Wellington City Council last night decided, at the end of a discussion covering another two hours, to introduce the 40-honr week for tramway motormen and conductors, and to pay extra overtime rates, motions that these questions bo referred to the Arbitration Court for consideration being defeated by eight votes to five. A report presented to a previous meeting by the tramway committee estimated that additional wage costs for the traffic branch alone amounted to £31,000, and the 40-hour week would mean an increase in the fare charges to !/• for eight one-section rides in place of 10 rides, and to 4/- instead of 3/6 for the universal ticket Extra overtime payments would be £5OOO a year- „ , - Cr. C- H. Chapman, M.P.,. the leading speaker for the Labour section of the council, suggested at the meeting last night that much of the extra cost could be met by having concession cards with nine rides for 1/- and 11 rides for 3/6. , The Mayor, Mr. T. C. A. Hislop, advocating application to the Arbitration Court for permission to work the 44hour week till December ,31, said the council should have three or four months in which to get into the running of the shorter working week and prepare to meet the increased costs. The council should look on the trams as a business undertaking run to stand on its own feet, because once the trams went on the rates the council would be on a slippery slope leading to acute financial difficulty. The council should not jump in the dark on the vague expectation of extra revenue through more prosperity, but should move gradually according to the revenue developments. Cr. W. Appleton said some councillors were too gloomy and it would probably never be necessary to put the trams on the rates. Case for the Employees.

A deputation consisting of Messrs. C. S. Morton (president),'!. N. Tankard (vice-president), and W. N. Broadley (secretary), representing the Tramway Employees’ Union, waited on the council to put the views of the men. The union produced a long statement, which set out that the extra cost to the traffic department of the 40-hour . eek, would be not £31,000, as estimated by the council’s tramway committee, but £21,490. Dealing with the report of the tramway committee, the union’s statement said• “Fare Raising Premature.” “The union is of the opinion that the immediate raising of fares to provide for extra costs of the 40-hour week is premature, as no account is given to the undoubted fact that revenue is increasing rapidly with a return to more normal conditions. The restoration of cuts, increased wages in factories, shops, etc., will have a beneficial effect on industry generally and must be reflected in increased patronage of the trams, which immediate increases in fares would tend to check. The cost to be carried until the end of the financial year March 31, 1937, based on the estimated cost in the report, viz., £31,148, would be £18,169/13/4, which ic approximately £6OOO lower than the amount applied to the reserve account for one year, 1935. The council could quite well await the result of the year’s trading before making any increase in fares, without in any way jeopardising the financial stability of the tramway undertaking. ' “The report assesses the total cost to the department at £41,698, of which £31.148 aFe costs of extra wages for motormen and conductors. We are of the opinion that the figures quoted are incorrect as regards the increases for wages. The number of extra men required to work a forty-hour week is onefifth of the present traflic strength, approximately 90 men who will receive a wage of £4/6/-, giving £20,124. “The existing staff will not receive any Increase in wages due to the shorter week except that at the expiry of 12 months the 45 men who will be promoted to motormen will then receive an increase of 6/- per week, a total of £B5B. At the same time the 90 men will get an increase of 2/- per week, £468. The position is, therefore, that the total extra cost of adopting the 40-hour week in traffic will be: 90 new men, £20,124: after 12 months, 90 new men, £468; after 12 months, 45 motormen, £858; total cost involved, £21,490. Lower Earnings for Men.

“The report deals with the difficulty 0; reducing the working hours from 48 to 40, but only on account of its effect in increasing costs to a greater extent than a drop of four hours would bring about There is no question that such is the case, but. in view of the fact that the manage meat has met the position in regard to the departments covered by clause 1, we contend that the same principle ean be ap plied right through. The employees to whom the 40-hour week has been granted in the tramway department are as follows: Permanent way and overhead em ployees, 66; car shed employees on nighi shift, 51; power-house employees, 14 ; total number of men, 131. Of the above the existing hours are ae follows: Overhead, 48 a week; permanent way, 46J a week; power-house, 48 a week. The general manager’s figures for earnings in a 48-hour week with seven hours’ overtime and Sunday work were: Motormen, after first year, £5/17/-; conductor!; two to five years, £5/7/3; conductors, after five yeans. £5/9/8; emergency linesmen, £6/1/6; car examiners, £6/3/3. Under the 40-hour week, with five and a quarter hours’ overtime, the union had computed the rates would be: Motormen after first year, £5/15/8, a loss to each man of 1/4; conductors, two to five years, £5/5/9, a loss of 1/6; conductors, after five years, fo/ 7 / 7 * a ., loss 9. f 2 / 7 • emergency linesmen, £o/3/4, witn an overtime rate of 3/10J an hour; car examiners, £5, with an overtime rate of 3/0. Training New .Motormen. “A statement such as the one contained in the general manager’s report relevant to earnings, combined with the threatened increase in fares, has created in the public mind the belief that tramwaymen are receiving abnormally large earnings for a normal working week," a.nd that increased fares are an imposition placed on the shoulders of the travelling public for the benefit of the employees,” the union continued. “We wish to draw attention to the fact that when the council had the estimates before then relating to the cost ef the 40-hour week throughout the council’s services—£Bo/500 —such estimates included the cost for the tramway depart-

ment, aud as the council approved of the principle being applied throughout with full knowledge of the cost entailed, we submit that a reversal of their previous decision would be contrary to justice and equity. The largest portion pt the cost was inevitably to be incurred m the tramway department, as it is the largest employing department of the city council. “The points raised in the report in relation to the safeguarding of the public from inexperienced motormen operating the trams is one that has always been present since the inception of the service. Men’have held motormens certificates for varying periods of times, and when required to take up motormen s duties have been put in charge of -rams without any refresher course. The union recently made representations to tne management in connection with the attendant risks, and at its request the management made the requisite arrangements for a period of driving to be given under a competent motorman prior to taauig up their duties as motormen. If this procedure is intensified immediately the requisite 45 men (who are already in possession of their Government certificates) would be fully qualified to take up such duties on September 1, 1936. Of this number 30 arc already acting in dual capacity of motormen and conductors. “The union contends that the question of overtime rates to be paid is governed by the agreement, which lays down that all overtime-earning power shall e paid at time and a half rates. The suggestion that earning power will be increased by payment at the increased rates would only apply if more overtime were performed by the existing staff. Just the reverse will apply, as the amount of overtime at present being worked will be spread over a larger number of employees (90 extra), who will, therefore, take from the existing men a proportion of such work. The union takes strong exception to the manner in wmeh the table of earnings was submitted, as it conveys an impression that the amounts stated therein are earnings for a 48 and 40-hour week respectively. Motormen Available. Mr. Broadley said motormen and conductors worked long hours. Their duties were onerous and arduous and surely they were entitled to the consideration shown other workers. The men did not admit that overtime was a question for the court. At the present time there were 60 condnctors possessing motormen's tickets. All that they required was a refresher course and the job was done. There was approximately six weeks left to train these men. Each individual member would lose money if the new proposal were adopted. The men had been working long hours for years. They also wished to see unemployed citizens given work. They claimed that the 40-hour week was quite practicable. In answer to Cr. R. A. Wright, M.P., Mr. Broadley eaid the men did not admit that the adoption of the 40-hour week would mean increasing the fares. He was hopeful that the extra money paid to workers in the various industries would mean that the council’s receipts would go up by leaps and bounds. He had spoken against raising the fares. They felt that the necessity was not there. It was possible that the trams might be run on the same ticket cost as at present without showing any appreciable loss. The men did not feel so alarmed as the council. Men, women and families would have more money and more leisure to travel. Basis of Increased Costs. The Mayor, Mr. T. C. A. Hislop, said that the union’s figure of £21,000 for extra cost covered only the new men, who would have to be engaged with a shorter week, Whereas the management’s figure of £31,000 covered not only the wages of the 90 new men, but also the extra overtime rate over the whole staff, old and new. To Cr. H. A. R. Huggins, Mr. Morton said the existing volume of overtime would be spread over more men, but the aggregate would be the same. Cr. M. M. F. Buckle said the men provided for a similar number of hours of overtime to be paid to a larger number of men. Mr. Morton agreed that that overtime would be paid at onesixth above present rates. Mr. Broadley said if at the end of the year they were £lO,OOO out, that would be the time to go into the question of raising fares. The men appreciated the fact that all the council proposed was that 44 hours be tried out for three months with a view to introducing the 40-hour week at that time. The council, he said, was refusing to allow the men in the traffic section of the tram service concessions which had been granted the men in other departments. The men wanted to know why the discrimination. The men had to suffer and carry the bur-, den. Cr. Buckie said all the council was trying to do was to feel its way before introducing the 40-hour week. Training New Motormen. Replying to - Cr. W. Appleton, Mr. Morton said he could give an assurance that there were men available with tickets as motormen able to take over trams with complete safety to the public. The average man could pick up a conductor’s duties in a week.

To Cr. A. Black, Mr. Broadley said the Auckland Transport Board and Tramway Union had come to an agreement to work the 40-hour week, with an extension of time till September 6 to tram men.

Mr. Hislop said they were prepared in Auckland to go on the rates if necessary. They had a deficit last year. To Cr. A. Parlane, Mr. Morton said that the gross revenue in 1929 was £440,000 and in 1935 £350,000, and it was fair to assume that with a greater volume of spending power for passengers the revenue for the next year would be greater than in 1929. Cr. Burns said that the general manager said that there would be considerable difficulty in securing the new motormen and the union secretary said there was no difficulty. Both statements could not be right. Mr. Morton said there were 60 men with certificates as motormen, but not employed as motormen at present, To the Mayor, Mr. Broadley said he was speaking from observations since he became secretary of the union, and on instructions. The members of the union, he said, took the view that there was going to be such an increase in prosperity that the additional cost would be absorbed. If there was a deficit it was his persor/1 view that it would be a proper thing to put that on the rates. That was not the union’s view. The union had not been asked to express an opinion on that question. His own view was that there were a large number of citizens running motorcars and that meant a loss in tram fares. Discussion of Reports. The Mayor moved the adoption of the report of the committee and general'manager tabled at the last meeting. Discussing overtime, he said that as a result of the reduction of hours the rate of pay an hour went up and overtime also rose, the average earnings to each man being greater under the reduced hour system than at present, according to the figures of the management, The extra cost of extra overtime -would be £5OOO a year, by the estimate of the management.

The council was in the position that without a substantial increase in fares and the maintenance of the volume of traffic it could not meet the bill. Ths

very fact that there was a divergence in the estimates of the increased cost prepared by the union and those prepared by the management was the very best argument for referring the matter for decision to an independent and impartial tribunal which could hear expert evidence and inspect reliable records, like the Arbitration Court. “We want to do the fair thing by the men and the fair thing by the community, and the proper way to do that is to have the whole thing carefully weighed and decided by the statutory authority, the court,” he said, moving that the decision of the court be sought as to the rate of overtime to be paid. Cr. Luckie seconded the motion. He felt that if the management’s figures were not right then they ought to be right. . Cr. C. H. Chapman, opposed the motion. The finances of the tramway department were in a most buoyant and satisfactory condition, he said. The vast sums in reserve could be called upon if sonic extreme circumstance made that necessary. There must be a sum of £600,000 to £700,000 of reserves. He was not advocating that these funds should be drawn on indiscriminately, but the council coulo run the risk of the loss the department said might eventuate. At the end o. 12 months the council would have experience to guide it. These funds had accumulated in the past because tht men had not received the wages ana conditions they were entitled to. Piobably the deficit would be £30,000. The total credit of the electricity department was £68,000 last year. There was a fund which could, if necessary, be used to meet the increased expenditure in the tramway service. About £4OOO could be taken from that surplus Then he did not think anybody wouid complain at having to pay a shilling for nine rides That would mean £12,000. Reducing the rides on the universal ticket to 11 would mean another £5OOO. The people would have more money to spend on tram fares and other things. Cr. Chapman said he felt this was a comparatively easy question. They would be justified in assuming that the revenue would increase to such an extent that they would have no difficulty in meeting the extra cost. Extra Revenue Expected.

Cr. Burns advocated further discussion of the problem with a committee of the union. “If we go to the court we will probably be defeated,” he said, opposing the motion. “The court should be only a last resort.” Cr. W. Duncan considered that most passengers, enjoying shorter hours and higher wages, would not object to slightly higher fares. “At the end of six months we will probably find out we are not nearly so badly off as we seem to think now,” he said. Cr. W. Appleton said they were apt to take too gloomy a picture. A fair assumption was that tramway revenue must go up in proportion with the trade of the city. If two or three councillors met the men he thought they could reach an amicable settlement without going to the court. Cr. R A. Wright, M.P., as a trustee of public money, supported going to the court. The overtime rate was to be 3/74 an hour. If anyone came to him and asked him why he voted for that he wanted to be able to say the court decided it „ , ... Cr. Duncan (smilingly) : He s a bit scared of it. Cr. Burns: Anyone would think you were a politician. Cr. Black: I thought you were here to take responsibility. Cr. Wright: It is not a question of getting from under, but having the thing decided by the proper tribunal as provided by the law. Cr. Black said they were only wasting their time if they went to the Arbitration Court Overtime must be paid in accordance with the rate of pay. Revenue was bound to rise. Cr. McKenzie said he would like to see an amicable agreement with the union. He admired the stand that had been taken up by the Labour councillors. The point was that they had got to find the money, and the general public had got to pay that money. Cr. T. Brindle, M.L.C., opposed going to the court, though he said the men would get the usual time and a’half for overtime if the case did go to the court. The Mayor, in reply, said that if there was no doubt about the decision of tne court those who wanted to see increased overtime should have no fear in going to the court, because they would merely have confirmed by an independent tribunal their own desires. Discussing possible increases in revenue, he said many businesses were showing increased turnovers, but not profits, because expenses had gone up. Cr. Chapman's figures of how extra revenue could be secured did not take into account the losses that were made despite high revenue. Reserve funds could not be used for revenue purposes because every penny of the money was tied up by law for definite purposes and could not be touched for other purposes. Cr. Chapman’s budget would not stand proper examination. The council had only £42 more in its revenue account this year at June than last year. The motion to refer the overtime question to the court was lost by eight votes to five. , , The Mayor then moved clause 2 of the report, that application be made to the court for the adoption of a 44-hour week, with the right to either party to apply for a variation at any time after December 31, 1936. They were taking up. the attitude in no antagonism to the principle of

the 40-hour week, Mr. Hislop said. They had no definite assurance of an increase in revenue. He was suggesting the hours should be reduced to 44 for four months. By then they would know whether they could go straight into the 40-hour week? But what if there was a deficit? He was not going to put himself into the position of going straight into the 40-hour week without being able to see how they would meet it. They should look upon the trams as a business undertaking. If they got on to the rates to run them they would be on a slippery slope. That would be deplorable. If the revenue came up as it had been said it would, then he pledged himself that he would use that revenue to bring in the 40-hour week. He was not a waverer. The tramwaymen had no time for wobblers and trimmers, The motion was seconded by Cr. Luckie. It had always been the pride of the city that they had kept the trams off the rates, he said. It would be a fatal thing for the city to put them on the rates. . , , x , -1 Cr. Appleton said it was absolutely illogical to bring in a set of conditions for some employees and not grant them to the men of other departments. He was quite satisfied that there was nothing in the public safety argument. The statements of the union representatives had satisfied him of that. They could also meet the position without going on the rates. Mr. Hislop said that if they did not go to the court then the 40-hour week would automatically follow. The motion to seek exemption from the 40-hour week till December 31 was also lost by eight votes to five. The division list on both motions was: Ayes: The Mayor and Crs. Gaudin, Luckie, McKenzie, Wright. . Noes: Crs. Appleton, Black, Brindle, Burns, Chapman, Duncan, Huggins and Parlane. , , . Cr. P. M. Butler was absent from the meeting.