THREE-SHIFT SYSTEM FOR INDUSTRY

Dominion, Volume 31, Issue 34, 4 November 1937, Page 10

THREE-SHIFT SYSTEM FOR INDUSTRY

Compensation For Shorter

Hours Of Work

PRODUCTION BY CAPITAL

MUST INCREASE

Dominion Special Service. Timaru, November 3. Practical steps should be taken to ensure that loss of production by labour, due to reduced hours, was compensated for by increased production on the part of capital, said the president of the Asosciated Chambers of Commerce of New Zealand, Mr. M. G. C. McCaul, in his address to the annual conference at Timaru to-day. He advocated the introduction of a three-shift system in all industries requiring a large investment of capital for buildings and plant. By this means, he said, three times as many men would draw wages for every pound of capital. “Modern production is achieved by the combination of capital and labour,” he said. “In the term labour, I include both brain and hand-workers. Capital is the product of the savings of those people who in time past consumed less than they produced and saved the balance.

“If capital absorbs a greater share of the product of industry than is desirable, it is because it is not used with sufficient economy. Let me place before you a striking example of lack of economy and efficiency in the use of capital that definitely lowers the proportion of the product of industry that can be allotted to labour, as compared with capital. “New Zealand has recently introduced a forty-hour week for workers, without taking practical steps to ensure that the loss of production by labour shall be compensated for by increased production on the part of capital. Could there be greater folly? The value of the product of industry is all that there is to divide. If man wishes to work shorter hours, well and good, providing he ordains that machines shall work longer hours to make up for it. “In the six-day week there are 144 hours. Man decides to work 40 hours. The factory, is idle for 104 hours. For forty hours’ work the man requires sufficient to support him for 144 hours, plus Sunday. The capital represented by factory buildings and machinery also works only 40 hours, and is paid for 144 hours, plus Sunday. "Why not introduce a three-shift system in all industries requiring a large investment of capital for buildings and plant; then three times as many men will draw wages as compared with every pound of capital than heretofore. I am convinced that only by the adoption of some such system can labour receive a large share of the product of Industry than now obtains. “Consider the capital value of oversea ships, the capital value of the b'erths they occupy, and the expensive equipment they use when in port. If the chief ports of New Zealand worked a 24-hour day, the saving made in interest charges would permit of shorter hours and higher wages for the workers, and still leave an extra profit to be divided between the ships and the harbour authority. Prosperity and a high standard of living, to be secure, must be firmly based upon economy and efficiency in the use of both capital and labour.”