ARBITRATION ACT

Evening Post, Volume CVII, Issue 72, 28 March 1929, Page 14

ARBITRATION ACT

AN OPTIONAL SYSTEM

EMPLOYERS' ADVOCACY

A plea for a system of optional arbitration, in place of tho present compulsory system, was ,mado by Mr. T. O. Bishop, secretary of the New Zealand Employers' Federation, at the annual meeting of tho Wanganui Employers' Association this week. Reviewing what led up to tho work flono at the National Industrial oCni'erenetj last ye&r, which he characterised ns "tho biggest job tho federation has handled for quite a long time," Mr. Bishop said:—• "The conference was unique in tho history of Now Zealand in that it brought together for the first time representatives of tho Farmers' Union, tho National Dairy Association, the Sheepfarmers' i Union of Employers, ' tho Manufacturers' Association, the Chambers of Commerce, tho New Zealand Employers' Federation, and the Alliance of Labour. From '-the outset the workers' representatives were working in close co-operation, and spoke with one united voice. On the employers' side, however, there was pronounced conflict of opinion between employers in the so-called primary and employers in the so-called secondary industries. Our first task, therefore, and not the easiest one, was to reconcile that conflict.

; "Tho Employers' Federation was defending the arbitration system, although it approved of certain alterations to the sj'stem as it then existed. Tho primary producers were straightout abolitionists of arbitration. The discussion between those two bodies finally,resulted in. a compromise acceptable to both, that compromise being a substitution of a, system of optional arbitration for the so-called compulsory system. Upon this compromise the several 'sections of employers' representatives found a common meetingground, and worked whole-heartedly together with tho object of securing legislation to carry it into effect.

"In brief, the proposal was that tho whole of the existing machinery for bringing workers and employers together in Conciliation Council should be preserved, but that if a Conciliation Council failed to reach an agreement, tho dispute should be referred to the Arbitration Court for settlement 'only with the consent of- the assessors on both sides. There was one exception to this agreed to by the employers' representatives, and that was that compulsory reference to -the Court should obtain in all cases where the membership of the workers' union concerned in the dispute comprised 60 per cent, of females. This was done because it was conceded by the employers that women workers have less ability to fight their own battles than male workers, and they are therefore entitled to a form of legal protection.''

"FAULTS INGRAINED." .Dealing with the faults and weaknesses, of the present system, Mr. Bishop stated that, while ho was not convinced that they were inherent in the system, thiyhad nevertheless become so ingrained in it, that only a "radical alteration of the system itself was likely to correct them. "If (ho added) we had been successful in securing the substitution of optional arbitration, or if in future we may be successful, those engaged in industry will still not be compelled to accept the responsibility of finding a solution, of their own problems if they desire to evade it, but the position will be improved because such evasion will require tho; mutual agreement of the contending parties. Otherwise, the Arbitration Court will not be called upon'to function. Either side willbe able to insist that every possible effort to reach a satisfactory settlement shall be exhaused. The acceptanco of responsibility will gradually become general nnr'l practical and useful agreements inr.y be expected to result in place of the present awards of the Court of Arbitration, which in many cases are far from practical but show abundant evidence of compromise. Initial mistakes will undoubtedly be mado until we acquire experience of responsibility, but. by those mistakes we shall profit and develop. At present we cannot even make our own mistakes because when we come up against a difficulty we pass it on tohis Honour the Judyu of the Arbitration Court. '

' "It the Arbitration Act is altered as a result of our recommendations, the. first and most important lesson we shall learn will be tho value of organisation, and the fact that an organisation can be successful only if it works on sound principles of economics and of justice, and while all its members are not only loyal but also active in their' co-opera-tion and support. When wo have learned that lesson I haVe no fear that the employers' and workers' organisations of New Zealand will failj to come together in earnest co-operation to secure Continued progress in the industrial development of our country.

"SHELVING NOT JUSTIFIED." "I think tho Beforin Government was justified in declining to pass legislation giving effect to the recommendations of any one party interested in the Arbitration Act," continued Mr. Bishop. "It was wise to call all parties together and endeavour to bring them into agreement. Ido not think, however, that the present Government is justified in shelving the problem, as it appears -they are doing from the fact that they have decided to cancel the calling together again of the Industrial Conference this year, as had been promised by the Eeform Government. The problem still Temains to be settled. It cannot be settled satisfactorily without an agreement of the parties. The Government must face the responsilibity of bringing the parties together to secure that agreement, or it must accept a continuance of agiation from one side or the other which is dissatisfied with the defects of tho existing system. ' "Although tho last conference dicl not result in a complete agreement upon •the difficult question of the amendment of the arbitration system, it did show valuable,results in other matters. An agreement was reached on certain other phases of the industrial problem, and ono direct result of tho big conference was the satisfactory settlement of a basis of wages adjustment for shearers for a term of three years. That settlement gives ground for a confidence that industrial problems in New Zealand can be effectively dealt with by direct negotiations between the parties without the intervention of a legal tribunal. If the Government fails to bring the parties together for further consideration, it is to be hoped that the'mutual feeling of trust in each other which the former conference engendered will lead them to come together without Government intervention for a discussion of any important industrial dispute which may arise in the future."