THE COST OF WORK

Evening Post, Volume CVIII, Issue 83, 4 October 1929, Page 8

THE COST OF WORK

It is admitted by all who have given thought to the subject that unemployment is costly to any community. No country can afford to main' tain a large proportion of its people in idleness, even though the maintenance is reduced to the lowest level of subsistence. It is much more desirable that some work should be found for them. Relief works are better than charitable aid, both for the worker and for the c6mmunity. From^th'is point of view Sir Joseph Ward's endeavour to provide' work for all the unemployed is highly commendable. But it must not be assumed that all means of absorbing the unemployed are .equal in merit. The ultimate, as well as the immediate, effect must be considered. Work provision measures may be placed in three categories: (1) those which provide for the workers without loss to the community; (2) those which provide for the workers at a community loss which is yet less than the loss due to idleness; and (3) those whiph provide work at the expense of-a deferred loss (owing to the uneconomic quality of the work done), plus an immediate loss, (due to the diversion of workers from labour more profitable to the community) ..

In the first category may be'placed sound'public works enterprises which would be undertaken in any case and may be expected now to afford aid in an emergency. In the second class come works on which the return is hot assured—railway construction of improved worth in itself and loaded with the cost of workers not wellfitted for such employment. The third class is constituted not so much by the quality of the work as by the terms of engagement. For approved public works and competent workers full wages should undoubtedly^ be paid. To less efficient men on "relief works" some public subsidy on money actually earned may be necessary. But care must be exercised to guard against so heavy a public subsidy on earnings that men are attracted from other employment. We have conflicting evidence as to the actual facts bearing on this point The President of the Alliance of Labour states that pay dockets secured from men on relief works show them to be earning 8s to 13s a day, on which amount they cannot support their dependants. He wants to know if the new workers are to be engaged on terms covered by the Workers' Union Award. On the. other hand, the President of the Auckland Employers' Association asserts that the higher rate fixed by the present Government for relief works has induced men to leave other employment. This is a problem which must be thoroughly considered by the Government from the point of view of the ultimate effect on the community. When work is offered to all it is possible that there will be objection to the terms, and complaints, such as' have been heard already, of an "attack on the standard of living." We do not wish to see the workers' standard of living lowered. The Government, we are sure, desires to guard against that happening; but relief works cannot be carried out on terms which lead to the diversion of labour from other forms of employment. It is essential that these works should be regarded as temporary and workers encouraged to seek other engagements, where their service is more profitable to the community, at the first opportunity. v