QUESTION FOR COURT

Dominion, Volume 29, Issue 258, 28 July 1936, Page 2

QUESTION FOR COURT

Is Kelburn Power-house a Factory? TRAMWAY UNIONS APPLY FOR 40-HOUR WEEK The contention that the Kelburne and Karori Tramway Company’s powerhouse at the top of Kelburn hill was not a factory, amt therefore did not come within the scope of the Factories Amendment Act fixing the weekly working hours at -10, was made on behalf of the company by Mr. J. F. B. Stevenson in the Arbitration Court yesterday. After conferring with his colleagues on the bench, Mr W. Cecil Prime (employers’ representative) and Mr. A. L. Monteith (workers’ representative), his Honour, Mr. Justice Page, said the point was of some interest, and one that the court would take time to consider. Without prejudice to its contention that the power-house was not a factory, the company applied for an extension of working hours in the power-house to 41 a week. Hearing of the application was adjourned in view of the fact that the necessity for proceeding with the case or not will be determined by the court’s ruling. Inspection of Cars. Mr. Stevenson said there were employed in the power-house three engineers who watched and attended to the electrical engines. Once a year the company s curs were run into the upper floor of the building for annual inspection' and overhaul. Any woodwork or painting that was required was then done. This occupied usually about three or four weeks in the year, aud men who were usually employed on the line and outside work came in to do it. Any engineering adjustments necessaty would also be made to the cars. Some years ago, before the war, the company built some trailers in the power-house, and at the request of the Labour Department registered the power-house as a factoryon that account. Eaeh year since the re-'istration had been renewed as the aena'rtment contended the maintenance and repair work constituted the building a factory. The company paid its registration fee without question, as it was a small amount and registration caused no inconvenience. However, it the building were fixed with a 40-hour week then the engineers would be affected. Goods for Trade or Sale. It was contended the building was not a factory, said Mr. Stevenson. A factory was “any building, office, or place in 'which one or more persons are employed ... in any handicraft or in preparing or manufacturing goods for trade or sale.” It was submitted that no one in the power-house was engaged in a handicraft or in preparing or manufacturing goods for trade or sale. Ihe work of the engineers, it was contended, was not,a handicraft. No goods made in the power-house were, traded or sold. If the power-house were a factory then the engineers were affected and an extra engineer would have to be engaged who would have only a 14-hour week or at most a 20-hour week, and shifts would be difficult to arrange. The rest of the company's undertaking was not now affected by a 40-hour week, but he understood the union intended to apply for an award affecting the company, and that would raise the question with reference to the whole undertaking. The company had never made large profits, and for many years paid only 5 per cent, on its capital. A 40-hour week would mean an additional expenditure ot £721 a year, and with further adjustments and expenses the minimum extra charge would be £BOO. That would reduce the coinjiany’s dividend to less than . 2| per cent. His Honour: Would you like a ruling now- on the point as to whether the power-house is a factory? Mr. Stevenson: Yes. Point of ImjMirtance, Without leaving the bench his Honour conferred with his colleagues. He said the point was one of some interest, and that the court took the view that the matter might be looked into. If the building were not a factory it was hardly necessary to go into the merits of the case. Should the court decide the building was a factory then another fixture could be made for the continuation of the case. ' Mr. W. N. Broadley submitted the power-house was a factory. If the cars were not repaired in the power-house then the work would have to be done in a factory. A great deal of the repairs to the cars could not be done outside a factory. He understood there were lathes and power machines in the building, and if that were so he contended, it was a factory. His Honour said the court would take time to consider the point raised before giving a decision. Steps would also be taken to inspect the power-house. Applications by Unions. Applications were also submitted by tramway unions for the adoption of the 40-hour week for tramway workers at Christchurch, Dunedin, New Plymouth, Wanganui, and Invercargill. The Dun-edin-Kaikorai Tramway Company, Ltd., applied for an extension of hours to 44 a week. The manager of the Dunedin City Council's tramway service, Mr. W. H. McKenzie, said the Dunedin City Corporation consented to the 40-hour week. The only thing that was not agreed to was that car examiners and car cleaners should be exempt from Saturday work. It was felt that the services of examiners should be available on Saturday. The city council agreed that the men concerned should work a 40-hour week, but their services were required on Saturday mornings.

Mr. J. Robinson said he had been definitely instructed by the Tramways Union to oppose Saturday morning work for examiners. Air. McKenzie said it would not be possible to carry on the tramway service efficiently unless car examiners could be brought back to’ work on Saturday morning.

Evidence was given by Arthur Henry Cameron, car examiner, Dunedin. He said that car examiners had never been brought back to work on the occasions of holidays in the past. Even now the work done by examiners on Saturday mornings was confined in the main to cleaning-up duties. His Honour said the court would take time to consider the matter. Profits Wiped Out. Explaining the position of the DunedinKaikorai Tramway Company, Ltd., Mr. Stevenson said that if the company were compelled to adopt a 40-hour week il would be impossible to carry on the undertaking profitably. Increased wages and shorter hours would consume the company’s trading profit. The introduction of a 40-hour week and the employment of the extra hands necessary would involve the company in an additional £667 of expenditure. That would completely wipe out the profit, which averaged £642 a year. There would be nothing for shareholders at all.

It was all right for municipalities to agree to a 40-hour week, for they could increase the fares, while they also had the rates to fall back on. The fares charged by the Dunedin Kaikorai company were fixed by Order-in-Council, and could no t be put'up. Over the last few years the dividend was to some extent paid out of reserves.

Air. J. McTigue. on behalf of the workers, opposed the application. Evidence was given by Alexander Sligo, chairman of directors of the company. Decision wns reserved.

The court made orders fixing the 40hour week and adjusting the wages according to the Statute for tramway workers at Christchurch, Now Plymouth. Invercargill and Wanganui. The applications by the unions were not contested Mr. C. S. Morton appeared'in the Wanganui. Invercargill and New Plymouth ap-

plications, aud Mr. T. W. Smith in the Christchurch application.