FRUIT PURCHASE IMPASSE

Dominion, Volume 35, Issue 59, 3 December 1941, Page 9

FRUIT PURCHASE IMPASSE

Viewpoint Of Growers OPPOSITION TO WAGES CONDITION Comment on the deadlock which has occurred between the Government and the New Zealand Fruitgrowers’ Federation concerning the terms of purchase for the ISM2 apple and pear crop is made in the official organ of the New Zealand Fruitgrowers’ Federation. Apart from an offer which represented a reduction on last year’s price, it says, the Government through the Minister of Marketing, wished to insist as a condition of the offer that the federation agree to a rise of 5 per cent, in the orchard workers’ wages. As this was an entirely new principle, and as there was already machinery in existence for the fixing of the orchard workers’ wages, the federation, on the growers’ behalf, declined to negotiate the offer. Condition of Purchase. Negotiations have been going on in Wellington for some time relative to the purchase by the Government of the 1942 crop of apples and pears. The terms offered by the'Government to a combined meeting of the Fruitgrowers’ Federation directors and the National Advisory Committee, included the following clause: “The overall average purchase price for apples and-pears to be '5/3. Workers under the Orchard Workers’ Agreement to be granted wages 5 per cent, above the rates specified in the present agreement.” “It will be observed that in the Government’s offer an entirely new principle has been included, namely, that, without any rise in. price, a condition of purchase is an increase in wages of 5 per cent, to orchard workers,” it is stated. "Actually, the terms offered mean a reduction in price, as the conditions provide that the net Dominion average must not-exceed 5/3. ' “During the past season the price to growers gave a Dominion average of 5/4J, and had this new condition been included in last season’s terms IJd. a case would have been deducted from the final payment in every case. This ' means that while a number would have realized 5/3 or over, many would have averaged less than 5/3. “Before these negotiations were instituted a conference had taken place between the Orchardists’ Union and the workers’ union, and, subject to the industry receiving the same price and conditions as for 1941, a reasonable basis of increase in wages had been agreed upon. A Heavy Loss. It is pointed out in the official organ of the Federation that the 1940 season’s operations showed a small profit to the Government, but it was revealed in the recent negotiations that oh the 1941 crop the Government sustained a loss of more than £420,000, which represents over 3/- for every case handled by the Internal Marketing Division. The growers did not benefit by this, as it is explained that the average pay-out to the grower last season was 5/4$ a case, but as {lacking charges amounted to approximately 2/9 a case, this left 2/7$ to cover production costs—a figure which no one with any knowledge of the industry would consider excessive. Actually the return to the grower through the scheme last year was less than the amount of the Government’s loss on the whole season's output. “Some of the loss,” it is stated, “could doubtless have been avoided by withholding fruit from the market, but as the destruction of foodstuffs is contrary to the Government’s policy—and justifiably so—it is clear that the greater part of the £400,000 odd deficit was absorbed in giving cheap fruit to the public and in the administrative costs of the scheme itself.

“The Orchardists’ Union have met and decided that they cannot offer any agreement relative to wages other than appears in the tentative agreement of which you have a copy,” states the president, Mr. T. C. Brash, in a letter to the Minister of Marketing. “This agrees upon a certain increase in wages, subject te the prices and conditions of sale of pip fruit to the Government for 1942 season, being the same as for the 1941 season. This is in line with the resolution of the Dominion conference of fruitgrowers, of August 6 and 7, 1941. You have indicated that unless an agreement relative to wages has been reached, then Clause 1 in the conditions submitted by you for Government purchase for 1942 must stand. This provides that workers must have an increase of 5 per Cent, on present rale of wages. Impossible to Negotiate. “My directors find it impossible to negotiate as to the further terms with such a clause included. It breaks entirely new ground in the purchase of primary products by the Government and institutes a principle which would detrimentally affect all such negotiations with other classes of primary producers. We have appreciated your courtesy and willingness to confer, but feel we would be wasting your time and be imposing upon your good nature to wait upou you under such circumstances. We will, of course, be submitting this matter to the growers so that they may know the position.”