URGED BY EMPLOYERS

Evening Post, Volume CX, Issue 75, 25 September 1930, Page 10

URGED BY EMPLOYERS

DROP IN WORLD'S PRICESi

In introducing the deputation, Mr. A. C.' Mitchell, vice-president of the New Zealand. Employers'- Federation, said that it was representative of all the manufacturing, primary, and commercial interests in the Dominion,, and it - was firmly of the opinion after a careful ■survey of the-whole situation that •wages, especially those of unskilled •workers, would have to be reduced. Although certain individual members of the deputation were opposed to the Arbitration Court,, as. a body they werej in favour of ''compulsory arbitration and conciliation. '."'.- AN IJRGENT BEQUEST. "We are here'because the condition of trade in New Zealand calls for action in the interests of the Dominion as a whole," said Mr..T. O. Bishop, representing the Employers' Federation. ;'■' Having studied the problems confronting us as business men we have arrived . at certain'conclusions as to the proper steps to be- taken for their solution, and'we desire to put those conclusions before you with a most urgent request that the Government shall give us the special legislation without which we are tunable to carry them into effect. "You are fully informed upon, the subject of the Dominion's finance, and we therefore do not propose to deal at any length with that matter. It is sufficient to riall attention to the one out-, standing fact that the value of the exports from the Dominion for the year ended 30th June, 1930, was less than for the year ended 30th June, 1929, by nearly £9,000,000, in spite of substantially increased production. The prices of our exported produce for the season on which we have now entered are "lower than at the close of last seasqn', and .the most optimistic forecast holds out , • no hope .that they will improve as the season advances. In fact,- experience and convince us that when we reach the peak of production for the '■; season prices will be- still lower. .''.: AUSTRALIA'S POSITION. , •■'There can be no doubt."that our gross income from exports this year will lie less than that of last year. We have not yet reached the #tage when our exports. are insufficient to pay our overseas indebtedness in respect of loans, and for our imports, "as has happened in Australia; but we have gone dangerously, far in that direction. If low. prices continue for another two or three years, and if we do not bring our costs of production and distribution into line with our prices we shall be in precisely the same unenviable position as the Commonwealth. ' "We'are faced with one supreme duty to»day—to bring our expenditure with- • in our income. From the Government downwards we are all responsible for discharging that duty. A great deal has been done, and is being done to effect the necessary economies in the conduct of private business. SMALL FARMER'S PLIGHT. *^The farmers have increased their fyutput from year to year for some years jpast by scientific means, and to some extent offset the reduced prices therefay. If they had not done so the position of the Dominion would, have been 3nuch worse than it is to-day. But in spite of their efforts the position of farmers ■ now is such that there is a serious danger of more land going out of production. The average small far%a.er, after paying for the bare necessities of life and his working expenses, "has no surplus income whatever —he ia forking for a living—not for wages. In secondary industries also economies have been and are being effected in all directions. Salaries have been reduced in very. many cases, and unfortunately staffs have had to be curtailed also. I could fill a page with the economies made by the employers themselves on the reductions in their withdrawals from industry. ■ THE ALTERNATIVES. "In spite of these very difficult eirfcumstanees .being experienced by all industries the Government has found it accessary to impose increased taxation to balance its Budget, so that private ■enterprise suffers a still greater effect •from the shrinkage of £9,000,000 in the aational income. One result is that wot only in the primary industries but an the secondary industries also there is % reduced ggregate sum out of which . wages can be paid, and that means iniduatry generally is faced with two alternatives from which there is no possible escape. . These are: (1) A reduced scale of wages; (2) a reduced num.jber of persons employed. "We aro all agreed that when econojnies have to be effected in business •wages should be the last'expenditure jio be attacked, and we have as an organisation refrained from advocating any general reduction of wages until .vow. The time- has now come, however, when the necessity, to live within our income is the only fact to be fconsidered. We are not earning the money to enable us to continue paying the scale of wages of the last five years. We have, therefore, to curtail the number of our employees with a corresponding reduction of output, or ■we have to maintain our output at a less cost by paying wages on a lower scale. There can bo no question that it is better for the community that we adopt the lattflr policy. WORKERS' PURCHASING POWER. "A lower scale of money wages can be brought about -without reducing .the real wages or purchasing power of the workers. Prices of necessities have already fallen substantially, and rents have also come down. We are convinced that the results which would follow a general reduction of wage rates would be a lowering of production and distribution costs, a further reduction of'"internal'"prices in sympathy with s export prices, lower cost of- living, and increased employment. There .is, however, one'difficulty to be overcome, namely, that1 in many industries wages are fixed by Arbitration Court awards and cannot be varied r.-Tcepfc 'by the making of neiv awards

The employers of Nev\r Zealand are unanimous that the real solution of the present financial and industrial depression is a re-adjustment of wages in order to meet the general fall of prices on the world's markets, and these views were placed before the Acting-Prime Minister (the Hon. E. A. Ransom) and the Minister of Labour (the Hon..S. G. Smith) to-day by a large deputation representing the primary and secondary industries and financial interests of the Dominion. It was contended wages, as fixed by the Arbitration Court, did not correspond to the present-day prices for primary products, which were the source of the country's wealth, jand that it was only by a reduction of wages that employers would Be able to meet the new situation. The deputation reaffirmed the principle of compulsory conciliation and arbitration, but desired that the Arbitration Court should be given the power it had in 1921 to amend any award by general order. Mr. Ransom pointed out that the Government had to consider all sections of the community, but he would place the representations before the Cabinet.

as the current ones expire. In 1921, when we experienced, a similar position to: the present one, this difficulty was overcome by the passage of a special amendment of the Arbitration Act empowering the Court to revise wages under all awajds periodically by general orders. THE MAIN BEQUEST. We ask for the enactment of a similar amendment of the Arbitration Act before the end of the present session of Parliament, to provide that the Court of Arbitration may from time to time amend the , provisions of any award or of all ■ awards by general order in so far as. these affect the rates of remuneration paid to any worker, that the Court may'act in this respect; either .of its own motion or on the application of any party, that before amending any award, as provided the Court shall hear evidence as to the economic conditions affecting^ any particular trade or industry or trade and industry generally, and such other evidence as any party concerned may desire to submit, so long as the same is relevant to the matter before the Court. '■' '"'lt is our carefully considered opinion and that of the many sections of employers whom we represent that this action is most urgently necessary. It is not at the,moment a demand for a reduction of wages, but for the machinery by which a reduction may be obtained with the least dislocation and the maximum benefit after proper investigation and the consideration of evidence. We lay our request before you m the earnest hope that Cabinet will see fit to carry it into effect." .'■" ECONOMIC LAWS. _Mr. H. D. Aclaiid, representing the JNew Zealand Sheepowners' Federation said that one'of the greatest problems before the country was the statutory fixation of wages. Certain laws had been passed regardless of economic laws, and the position now was ■ that economic law: was up against Parliamentary law. A great many of the laws could be passed and operated successfully on a rising market, but now that there was a decline in' the prices for primary produce the position had to'be faced. Two or thee years ago the sheepowners got as much as Is 8d for their wool, but now they were getting 8d: they were getting 35s for theii- lambs, but had now, to be content with 10s and less; and the dairy farmer instead of getting Is 6d or Is 8d for his butter was realising only Is. These primary producers, when they went to pay for wages, rates, stores, and taxation did not pay in money but in produce. A BIG- DIFFERENCE. Thus the sheepowner had to pay today 2$ bales of wool where he formerly had to pay one, the dairy farmer had to pay 181b of butter for the services that he formerly obtained for 121b. The position was that the aggregate was not enough to pay for the services required, and if something was not done, economics would assert itself with disastrous consequences. New Zealand at present was a primary producing country, and if the primary producers were prosperous the whole country would be prosperous. If the primary producer was in a state of bankruptcy the whole country would suffer. The farmers had to depend on the world's parity and, as the world to-day was an economic unit, it was absolutely necessary that they should get away from the statutory fixation of wages.. If Parliament did not recognise' this, the country would find itself ia the same position as Australia. It was ,nolf a question of politics, it was a question of economics. They had to think in terms., of produce, and not in terms of money. /Mr. J. S. Jessep, of Gisborne, supported th© representations of previous speakers. He said it was impossible to expect men to work on farms when there were jobs available on relief works at Arbitration. Court wages rates. A REASONABLE COURSE. . Mr. W. Morrison, representing the New Zealand Farmers' Union, said that possibly the farmers were in a more serious position than any other section of employers. Other employers could pass increased costs on, but that the farmer was unable to do. There were many dairy farmers to-day who would be pleased if they were earning the wages paid to those engaged in sheltered industries. He was ..not suggesting that they should abolish the Arbitration Court; all they wanted was power for the Arbitration Court to take into account the ability of the industry to pay. He did not think anybody could reasonably object to that course. . ; ■ Mn C. Gj Wilkin, representing the freezing companies, quoted figures comparing to-rt"-'s values' of freezing works exjjoitM with values in - 1924. These showed, he said, the following declines:— , Lamb, 35 to 40 per cent. Mutton, 40 to 50 per cent. Beef, 5 per cent. Tats, 35 to 40 per cent ' ' ', Hides, 25 per cent. Wool, 70 per cent. Pelts, 35 to 40 per cent. Mr. Wilkin said that at the end of 1924, or from • the beginning of 1925, the basic rate of wages in the industry was 2s per hour, whereas to-day it was 2s Id, an increase of about 4 per I cent. Speaking on behalf of. the Associated Chambers of Commerce, Mr. C. A. L. Treadwell said that what they sought was a re-enactment of Section 9 of the I. O. and A. Act, 1921. That would be an easy way for the Government to solve the difficulty. It was obvious that there had been reductions in the cost of living,) and if "wages were reduce^ consistent with the reduced cost of living, there could be no lowering of the.standard of living. What tho wages should be could be determined by an impartial tribunal. / The Minister of Labour said he thought the deputation had made out a 1

very strong case in a very capable j manner, but as the matter was entirely I one for Cabinet he did not intend to discuss ' it. further tliau to say ho was anxious to give the closest and gravest consideration to anything that was likely to solve the present difficulties. MR. RANSOM'S REPLY. The Acting-Prime Minister said he greatly appreciated the views which had been placed before him, but he was sure they would recognise the nature of the difficulties which always confronted the Government when it set about to effect a radical change in regard to a policy matter. As a primary producer himself, ho was naturally looking for a means-of overcoming the difficulties which faced tho producers of the Dominion. He had listened to what had been said, but he had been unable to obtain any solution of the problem from the suggestions that had been made. The first suggestion was that we should depart from our present system of compulsory arbitration and adopt compulsory conciliation and optional arbitration. He was unable to see exactly what they meant by compulsory conciliation; to him it seemed like a. juggling of terms. Mr. Acland: "It means that the parties have to come together and thrash the.matter out." ADVANTAGES OF CONCILIATION. Mr. Bansom said he was well aware of the advantages of ."conciliation ss against arbitration. Arbitration, to his way of thinking, was the. last tiling that the employer or employee should have to resort to in order to settle his disputes. The difficulties through which New Zealand was passing were not nearly so great as those of other countries. Those who had had the privilege of coming into touch with Sir Otto Niemeyer realised that to the fullest, possible extent. His opinion certainly gave one great hope for the future. It was the duty of the Government to look at the questions raised by the deputation from the point of view of all sections of the .community. He was prepared to admit that an all-round reduction would/ be, a great relief to the primary producers, but it had to be remembered that wages were by 310 means the most serious handicap with which producers were faced. There had been a suggestion that wages should fluctuate according to the values received for the produce, but it was hardly .in the best interests of the country that the wages of the workers should go up and down to such an extent as, for instance, did the value of wool. A low wage standard should be the last thing which the primary producers advocated. If there were a low wage standard at Home, for instance, the working .people there would be unable to afford' to buy New Zealand products. Another suggestion was that a reduction in tl)£' cost of living • would automatically follow a reduction in wages, but what the workers were naturally concerned about was how they were going to fare while the readjustment was in progress. He was well aware of the fact that there were many workers at present who were disinclined to work on farms, owing to the fact that standard wages were paid .on relief works, and that was a (question which the Government would^ have to consider very in carefully. ■ The representations of tho be deputation would receive careful eon- lis sideration, and he sincerely hoped that w. the outcome Vould be of advantage not fo only to the members of the deputation, ht but to the Dominion as a whole. 01