EMPLOYERS' REPLY TO MINERS' FEDERATION

Evening Post, Volume XCVI, Issue 22, 25 July 1918, Page 7

EMPLOYERS' REPLY TO MINERS' FEDERATION

WHY A CONFERENCE WAS

REFUSED

FEDERATION STRONGLY

CRITICISED,

NEED FOR INCREASED COAL

OUTPUT.

The coal mine owners to-day issued a •full reply to the recent statement published by the Miners' Federation in reference to the demand made by the latter for increased wages. The federation complained of the fact that the employers would not meet it in conference, and asserted that such a refusal was delaying a settlement of the dispute. The chief points in the long statement by the employers are here summarised :

A conference was refnsed on three grounds: (1) Because of the attitude adopted by the federation at last year/s conference; (2) because of current agreement with miners; (3) because the members of the federation are regarded as disturbers of industrial peace: , ■ . There is no dissatisfaction at the mines, which are working very well. The federation instructed the various unions not to accept the offer of the employers of a bonus for full time worked, proving that the object of the federation was not to obtain increased wages. Rather, the federation wanted to delay a settlement. The wages earned by miners reach a very'high average, miners being the best paid of any workers'- in the Ifominion. • If the miners worked full time they could increase the coal output by 200.----000 tons per annum—>a very important consideration just now. < Miners' wages have advanced to a greater extent than the cost of living. If the employers' offer of a bonus is accepted, miners' could increase their wages by from 12s 13 to 23s 5d per week; and truckers by from 8s 7d to 11s 9d per week. No worker at the mines receives less than £3 per week, and the average' wage it is possible for workers' to earn is nearly £7. Mine owners have no intention of "speeding up.". Coal output shows a decrease rather thflh an increase in the pre-war returns.

Mine owners have no control over the retail price of coal. Except in . the case, of one company, interest ceases when the coai is either trucked or shipped. Coalmining is not profitable. A return : covering nine cimpanies shows that the capital invested totals £1,----501.786. The average interest earned was 3.7 per cent. Tliere is no duty cast upon the Government to force a conference between the mine owners and the Miners' Federation. The m&}\ statement is as follows : — REFUSAL TO MEET FEDERATION. ". In order that the public may understand the position, it is necessary to refer., to the 1 protracted negotiations which took place in February and May last y«ar between the coal mine owners and the representatives vof the Miners' Federation. Towards the end of December, 1916, a demand was' received from the Miners' Federation for an all-round increase of 20 per«cent. on the rates of pay then being paid to mine workers. A conference between the pmployers and the Miners' Federation representatives was arranged for, and was held on Wednesday, 21st February, 1917, and lasted for seven days without settlement being reached. Under pressure from the Government, the employers agreed to again meet the federation on 10th May, 1917, and again the negotiations proved abortive. During the course of the latter conference the employers, in order to avert industrial trouble, offered to increase thj existing 10 per cent, war bonus by a further iO per cent, to shift workers and 7i per cent, to contract workers. This was absolutely refused by the representatives of the. Miners' Federation, but was afterwards accepted by practically th« whole of the miners' unions of the Dominion, and registered industrial agreements entered into or Arbitration Court awards made for a period of three years or until sis months after the declaration of peace, whichever is the earlier, and these agreements and awards are still in operation and equally binding on both parties. . PRESENT REFUSAL JUSTIFIED.

'The attitude of the Miners' Federation representatives in absolutely refusing the increases offered (which increases were promptly accepted by the - individual unions), and in persisting in demands which; if granted, would have enormously increased the price of coal, was so unreasonable, especially at the later conference, that the employers feel they are fully justified in refusing to again meet them to discuss'matters concerning what the federation designates "a readjustment of wages." Between these conferences there came the prosecution in Auckland arising out of the federation's "go-slow" policy, referred to in the federation official statement. The Miners' Federation admits the reliability oi the Crotoh Prosecutor's evidence, part of which was to the effect that the federation officials deliberately set themselves out to disturb industrial conditions; and following that a description of how the "go-slow" policy was carried out. He also quoted a tefogram from the secretary of the federation to another federation official, complaining that "things were quiet, the mines working every day, the men making good money, and that they would not take any interest in anything that don't disturb their pockets." In addition to this the Crown Prosecutor: put forward abundant evidence whicli showed that the federation's policy is fpl anything but industrial peace. DISTURBING EXISTING AGES®, MENTS. The attempt of the Federation to dia« turb existing and binding agreements and awards, under which unions havj been, amicably working, indicates that the same ibolicy is still being adopted, and, that being the- case, it is believed that the general public will support the coal mine owners, in their refusal to meet the Federation representatives. The New Zealand Coal Mine Owners Association is a national organisation/ representative ol practically the whole of the coal mmm? companies pf NtSw Zealand, ami will be prepared at any time to meet the representatives of' the workers' national organisation wher. it is: demonstrated be-, yond doubt that its officials have abandoned the policy of. creating industrial strife. The association is.further justified ■iii its attitude by the fact that the agreemens above referred to have still-;a lon,;] period of currency, and that the employ; ers are'entitled to insist they should b< parried out in their entirety by th(' unions, us the Federation, would uudoubfr edly insist they should bo earned out bj the companies. ... NO DISSATISFACTION IN MINES. ', ; The employers are strongly, of opinion *that up to 10th January last,.when thl secretary of the Minors' Federation wrot| to the president ol" the New Zealand Coal

Mine* Owners Association milking a de'man<l*for a further 20 per cent, increase in Qto rates of pay, there was no sign whatever of dissatisfaction amongst the min<> workers of the Dominion. As a matter of fact, the miners were working well,'.'giving a good, output, and there was''every indication that they were satisfied.; with their conditions. The mine ownjers feel confident that up to that date-no general request.from the miners had^been raacle.to^the Federation officials to''make a demand for the further increase in wages, and it would be interesting ;i,o learn on what authority it was ma<|e. In other words, the mine owners arc-strongly of opinion that the present dis^ftita was not originated by the unions, and* this furnishes a further strong reasonJf'or refusing .to meet the Federation. i^THE EMPLOYERS'. OFFER, The offer the mine owners have made to tlie miners', unions throughout the Dominion is to pay "an additional bonus of 5 per cent, to wages men and 2£ per cent.; to contract workers and pieoe workers Ho all such workers who attend and ■work the full available time during any fortnight. The bonus, however, not to nppjif to anv_special_coiitract or contracts for jwhich- £c riiiers have been called." In addition to ih'ewabove there was the offer to institute'' trucking on contract in place of the present day-wage system. Immediately on the federation representatives being made aware of the offer of a bonus for^full time worked they issued instructions to unions not to accept the mine owners' offer. They were evidently so afraid that the unions might, as before, agree to the made by the employers, ;and "thus" secure peace throughout; the coal mines of the Dominion, that they;; took upon themselves the responsibility of! preventing any chance of settlemejit b^ing reached. Surely this is not in -Keeping with tho: protestations of a body of men who profess to be doing everything to prevent trouble between employers and "workers, and "to avoid anything that might conceivably lead up to £ri industrial dislocation." EARNINGS OF MINE WORKERS. Uv order to remove "vagueness" as to the?Earnings,of.,workers which might be in tihe minds of Federation representativps orltho general public, the following schedule is published" for general information The rates shown fully bear Qut llm statements previously made, and also indicate that workers in coal mines are the; 'best-paid body of workers in the Dominion. I'SCHEDULE OF EARNINGS. For Twelve Months to 30th April, 1918. Under- Sur- " ground face ... Truckers Truckers shift- shiftCo.;' n,. Miners, (shift) (contract) men. men. I \- Per Shift. 1 * s. d. s. d. s. d. s. d. s. d. 1 .... 18 1\ 12 7 — 13 3 12 0 2 .-... -10 If 12 11 — 13 3 12 0 S 20 10 13 1 II 6 13 0' 12 5 •1 „.-. 25 D 12 5 15 1 13 0 12 0 5 "... 19 0 12 2 — 13 0 12 8 (!*;... 19 3 12 6J - 14 3 11 2 7 i... 19 10 .12 5 — 13 1 12 3 8!;.... 17 2 '•■■ — — 13 1 12 3 a.:.... 20 7 ; — — 13 8 12 4 10 .... 17 41 11 8 20 9 13 4 11 7 (hand) 19 If (machined) 'Number of miners truck their own coal. .'All miners do their own trucking. For Three Months to 30th April, 1918. Under- Surground face Truckers Truckers shift- shiftCo.; Miners, (shift) (contract) ben. men. Per "Shift. i. d. s. d. t. d. s. djh s> d. 1 .... 18 0J 12 7 — 13 SWI2 0 2 .... 20 0} 12 11 — 13 3 12 0 :: 26 2 12 7 X 17 2 13 2 12 0 4*.... 10 5 i-12 s■■ ■ — 13 10; ''12 S •'>*'.. . 20 5 '12 ,7 - '.i. .14 5-12 3 (ij..... 20 0 — , — 14 6" 12 :7 7 .... 18 7 11 8 — ' 13 4 11 71-------(hand) 21 .2{ ■" (machines) ' •All miners do their own trucking. Xote.—The miners' earnings as shown above are the net'amounts paid after deducting the tost of explosives. The« earnings for the three months ended 30th April, 1918, are higher thhn for the. twelve months ended 30th April, 1918, as the full bonuses were paid during the whole of the latter period and the rates ei^ned may ; . be taken as present ruling rates. lit has io be' further noted that the a^ove returns shows tlie net r average earnings of the workers in various mines. T|iat higher rates than those stated are being earned is evidenced by. the fact that recently a miner of over fifty years of! age: made an affidavit to the effect that his weekly average for the past two years was £9 14s 6d per week. Reference to the company's books proved that the worker's statement was correct. '.*■ TIME LOST BY WORKERS. In the previous statement on behalf of the Mine-owners' Association it was indicated that approximately 10 per cent, of the available working time in mines is not worked by mine employees. That statement is more than borne out by the following schedule, which shows the average number of shifts worked by a number of representative mines in the Dominion and the average number of shifts worked by each miner:— '- Ifo. of No. of shifts ? shifts per -worked by Percent. J, week worked each lost Ck>. by mine. miner. time. 3 5 4 20 p.c. '2 5 4 20 p.c. ■8 5 4 20 p.c. 74 S 4J 10 p.c. I" 5 4J 15 n.c. '« 5 41 ' 10 p.c. ,7 5 4J 10 p.c. £ 5J 4J 14 p.c. '"The foregoing shows that the percentage of lo3t time ranges from 10 per cent, to 20 per cent., so that after allowing for tfrne lost, owing to unavoidable reasons sjjch as sickness, accidents, etc., there is ample justification for the statement that oh the average 10 per cent, more time could be worked >by the coal-mine employees of the Dominion if they desired to do so. i Just here it should be pointed out that, only the days the mines are actually at work are.taken into account in the calculations of the association. Bays upon which the mines were not Worked by reason of the causes mentioned by the federation have been deducted, so that after allowance is made as demanded by the federation there still remains the fact that there is at least 10 p Ter cent, of avoidable absenteeism. The effect of such .absenteeism on the part of miners and trucJiers, and the results which would be attained by the acceptance of the employers' proposal, are set forth in the following statement:— LOSS OF EARNING POWER, 1917-1 ; ON PRESENT EARNINGS IF EM!

The above return indicates that if full available time had been worked during the 1917-18 period no worker would have earned less than £3 per week, while it would have been possible for miners to have earned on the average up to nearly £7 per week. Figures such as these fully justify the use of the words such as "very nigh wages earned by miners." When it is seen also that the employers present proposals which, if acted upon, would still further increase the earning power of mine workers by from 8s 7d per week to 23s 5d per week, the action of the federation officials in instructing unions not'to accept the offer indicates that the securing of increased wages is not the main object of the federation demand, because, as "shown above, if full available time is worked a considerable increase could be earned at present rates. INCREASE OF OUTPUT. As the federation admits, one of the greatest needs of New Zealand to-day is an increase in the output of coal. It is ! clearly demonstrated, above ii.that, after [allowing for all contingencies, such as sickness, accident, and mine stoppages of all kinds, mine workers could easily provide 10 per cent, more coal than is being produced" at the present time, in addition to increasing their own wages, and being paid a bonus for so doing, they could produce sufficient coal to provide at any rate for all essential requirements, besides rendering it unnecessary that residents, of Wellington and other places should be without fires in their homes in this wintry weather. The output of tte coal mines of New Zealand last year was tons. A 10 per cent, increase in output would therefore represent over 200,000 tons, which, if made available, would relieve the present shortage to a. very appreciable extent, and also reduce the working cost of the mines.' Yet when proposals are made for the purpose of meeting a crying need in the Dominion they are calmly brushed aside by the use of the term "speeding-up."

NO 'INTENTIONOF "SPEEDING-UP." This tennis entirely erroneous and misleading. There is no -suggestion of "speeding-up such as is repugnant to the mirier and the forerunner of increased accidents." It is, on the other hand, a proper suggestion at a time when the coal shortage; is so acute that miners should work full available time under the ordinary working conditions, and receive a bonus for co doing. Apart from humanitarian' considerations, it ■ would ;be no advantage; but, 1 on the contrary, a decided loss, to the companies to advocate conditions which would, be "likely to cause increased accidents."- The claim that "the miners are producing more coal per man than in any other time in'the of . the Dominion" is evidently made with the intention of misleading the public. ' The real position is shown in the Statement of -the Mines Department of 1916, where it is stated that "the increase in tonnage may be attributed to more regular work at the collieries." If the miner were producing more coal per shift then it, would be a matter for congratulation not only by the miner himself but by the coal-mme owner, and the general public as well. A' DECREASED OUTPUT. The Teal position is that the output per miner" per shift is less this year than in pre-war times. Returns received from two of the largest mines in the Dominion (which are probably representative of the whole) 6how :— ■: 'No. 1 Mine— 1913-14, 5.78 tons per man per shift 1917-18, 5.47 tons per man per shift ■No. 2 Mine— ' 1913-14, 5.95 tons per man per shift 1917-18, 5.6 tons per man per shift That does .'not rloqk very • much, "but it means' about 6cwt.'.per man per day less in the one case and about 7cwt. -in the other, which represents at least 75 tons per man per annum. ' PAY INCREASED ;. OUTPUT REDUCED. Indeed, the experience of mine owners in' New Zealand generally is that an increase in the rate of pay is frequently followed by a reduction in output, which is another strong jeofion for basing the payment of any further bonus on full time worked. It is admitted that the output of the New Zealand miner is higher than in many other countries, but that is accounted for by the better conditions of work, and the fact that the seama of coal in New Zealand mines are thicker and the coal softer than in most other countries, and are therefore much easier to work. The 'association does not suggest that the New Zealand miner is not as good as the miners of any other country; what it does say is that thp continual agitation which is promoted and the unending pin-pricks to which mine owners are subjected lead to a condition of unrest amongst the men which results in decreased output. HOLIDAYS AND TIME LOST. With an average of, say, one day per fortnight lost by the mines through unavoidable causes, in addition to the ordinary holidays, which include ten days or more at Christmas and New Year, it is suggested that at a time like the present mine workers should work full available time, seeing that'- they voluntarily lose one day. each fortnight— that is, "pay Saturday." This time off on pay Saturday il not reckoned in the average.of 10 per cent, of time lost, and so still further increases the loss of output. That being the case, the general public, as well as the coal mine owners, have some reason for suggesting that men who wilfully lose 10 per c.ent. of the available working time, and who decline to .work one whole day as welf in each fortnight, should not demand such an increase in wages as will inevitably result in a further increase in the price of coal to the consumer; as also to, ask why, if their present earnings are not sufficient for their reasonable requirements, do they not accept the work which' is available for ,them, aifid for which they are offered not only ordinary ■ wages but an additional bonus. Can the federation point to any other industry to which a bonus was ever offered for working full time ? The association knows of none. Mine workers are not only well paid, but they also obtain many more holidays in the course of the HB, AND ESTIMATED INCREASES 'LOVERS' OFFER IS ACCEPTED.

year than are enjoyed by any other class of workers. INCREASE IN COST OF LIV-MJG. The federation statement quotes the increase in the three food, groups only (excluding boots, clothing, rent, etc.), and then for the Dominion as a whole as 39.6 per cent. Unfortunately, however, for the federation's case, it is a fact that in the mining centres the increase is lower than for the Dominion as a whole. For instance, the Government Statistician's Abstract for June last shows that in Greymouth the increase for the three food groups is 28.45 per cent., but if rent arid other tilings were included the general increase, say, on the West Coast, from whence all this present trouble has arisen, would be ' found to be somewhere about 23 per cent, to 25 per cent, at the outside. We would suggest that the federation should request the Government Statistician to provide it with a return on that basis, and that it should be published for the benefit of all concerned. It would be interesting also to see the details compiled by the miners' wives in the various districts as mentioned by the federation i in its statement. As against the increase in the cost of living, however, the federation knows that the mine worker has already had his wages increased above all • other workers. At the least the rates have been increased by from 17£ per.cent, to 20 per cent., and then by reason of more steady employment in, the mines than ever before, many miners are earning 25 per cent., 30 per cent., and even in some cases up to 50 per cent, more than in pre-war times. price'of coal. The association has no control whatever over the retail price of coal. With, it is believed, the exception of one com-, pany which owns its own coal yards, tfcie interest of the coal mine owner ceases the coal is put either on the steamer or the railway truck. Therefore, to suggest that the coal mine owner, as fcuch, is responsible for the price charged to the consumer is unfair and misleading, especially as the federation officials know the position as well as the coal mine owners. • Every increase charged by the coal mine owners during the war period can be fully justified, and certainly the increases made are not nearly so high as might be supposed from the return published by the federation. RETAIL PRICES. The association is not" in a position to comment on retail prices, except, to say that, from the Southern mines at 'any; rate, the proportion of household coal to coal used and sold for other purposes ie comparatively small, and that while the State can arid does retail household coal at a Ices it is quite impossible for retail dealers' to do so, and the State charges at least as much as; private companies for the coal it sells for industrial, Government, and other purposes. Here again the federation has attempted to secure public sympathy by unfair representations, and thus once more exposes the weakness of its case. If, the federation is of the opinion that the retail prices charged for coal are too high, it should report the matter to the Board of Trade, which is an institution set .up to enquire into such circumstances. Certainly the federation has no right to lay the blame on the Coal Mine" Owners' Association, which in no way fixes retail prices, and the former's officials know sufficient about the business to be aware that it was misleading the public when it attempted to do so. PROFITS OF COAL-MINING. If the coal-mining companies were making the huge profits the federation desires to suggest are being made, the results would be shown in the balance-sheets, the dividends paid, and the interest on capital earned. A return recently prepared for the confidential information of the Government, and which for obvious reasons cannot-* be published, shows conclusively that coal-mining operations on the whole have been distinctly vnprofitable. The 1 return from nine representative companies shows, amongst other things, that-during the past three '. years four companies paid no dividends ; at all, only two pa.id dividends on each of the three years, and that while the average dividend paid by the five companies was about 6 per cent., *he aver- ■ age spread over, the whole nino companies was less than 4 per cent. . The statement shows that the capital invested in the nine companies, was £1,501,786, while the average interest earned on the capital invested was 3.7 per cent. ■CANNOT BEAR FURTHER BURDENS. Facts like the tibove speak for themselves, and indicate plainly to those who give careful consideration to them that the industry is not in a position to bear further burdens, arid that if the Miners' Federation succeeds in securing any further increases in wages for the mine workers of the Dominion the burden must He carried by the public, including all other classes of workers, thue still further increasing the cost of livirig. Such an inevitable increase in the price of coal does not square with' the statement made by the federation ■'that in the course which they'are pursuing the miners have been mainly influenced by the serious shortage of coal supplies at present existing, ar,o! the hardship that the shortage entails to the public in general, but more .particularly i to the poorer classes."

CONCLUSION.

In-thus lengthily stating the position, iheNew Zealand Coal Mine Owners' Association has endeavoured to. fUce the whole position before the public. If the psople generally, or the New Zealand Government in particular, decile that "a little coterie meeting in Wellington," us described by the Crown Prosecutor, is to be allowed to treat agreements as mere "ecraps of paper," then the coal mine owners must submit to what they feel to be an almost intolerable etate of tilings. The association is of the opinion that in justice to its own members and in the -interests of the general public it should not submit to demands which are not justified, and which in fairness to the general body of mine workers it ehould be said do not come from them, as tho certain result of doing so must be, as already indicated, to raise the price of coal, and thus further increase the cost of living. • The association is also of the opinion that there is no duty cast upon the Government to force a consultation between, the Coal Mine Owners' Aesora'ation and the Miners' Federation when the circumstances are such as we set forth above.

;; ■ Average Actual Amount Appro*. Est. aver. incr. net average which could weekly aver- per week for Co. Employee. earnings net have been ape under (nil time work per shift, weekly earned per mineowners' if employers' 1017-18. earnings. week. offer. otter accepted. «•• <1. £ s. d. £ s. d. £. ». d. s. d. «1. Miners IB 21 3 12 10 i 11 0 4 13 3 20 5 ; Truckers (shift) 12 7 3 211 302' 312 8 99 2. Miners 19 1J . 310 7 415 85 418 11 ■ 21 6 .; Truckers (shift) ' 12 11 34 7 310 10 314 4 9 0 "8. Miners ■; 20 10 ' 43 4 54 2 56 9 23 5 »' Truckers (shift) 13 1 3 5 5 311 11 315 0 10 1 ' Truckers (contract) , 18 6 il2 6 5 10 ,543 11 9 A. Miners "" 25 9 5 16 3 fi 14 6 (i 17 10 21 7 ■'■• Truckers (shift) • 12 5 3 2 1 3 8 2 311 G 9 5 Truckers (contract) 15 1 315 3 4 2 0' 4 4 10 9 7 >S. Miners It) 6 4 2 30* 417 C 5 0 3 * 17 5 ■',' Truckers (shift) 12 2 3 010 3 6'll 310 3 9 5 C. Miners - .V. i( 10 3 ' 4 0 7 4 10 3 4 18 8 12 1 ;, (Some do their own truckins) A Truckers (shift) 12 Cj 3 2 7 3 810 317 3 I) 8 :'7. -Miners'.: 19 10 4 0 3' 4 19 2 518 12 5 T Truckers (shift). , 12 5 • 3 2 1 3 8 2 311 6 9 5 •S. Miners '17 2 . 317 3 410 7 412 10 ■ 15 7 ; „ , . (Do their own trucking) '9 •Miner3"".".K..'::..■.*'....'.;.■'■'■ 20 7 . ' -No return of time worked. I Truciicfsf'fshift) .....' 12 i .818 37 9 ,311 1 96 10 .Miners - 17 4, No return of time worked. '„' Tnirkers (siiiff) V.:,r 11 3 '',2 18 3 . 31 10 34 10 8 7 r - Truckers (contract) 20 0 Ho return of time worked. ""•■Nov.—-The miners' earnings as ahown above are tlio net umountj patd after tlflductlng th« :oel ol eiplosiycE. , .