40-HOUR WEEK

Evening Post, Volume CXXI, Issue 78, 1 April 1936, Page 12

40-HOUR WEEK

PRODUCTION COSTS

MANUFACTURERS' VIEWS

DOMINION GOODS

The Government's 40-hour week proposal from the point of view o£ its possible effects on production costs and the market for New Zealand-made goods was discussed at a general meeting of the Wellington Manufacturers' Association last night. Various suggestions were made as to the wisest course for the association to pursue, but no definite action was decided upon. The president (Mr. Lan Matheson) said that as a general statement he felt they could enter the field of experimenting in a shorter working week with equanimity provided the Government would do what was necessary in order to retain the market for New Zealand factories and their workers. He stressed this point, and contended that it was the manufacturer himself who was the best judge as to how production costs would be affected. Naturally, said Mr. Matheson, there was a wide divergence of opinion as to the wisdom of shortening the working week. Whether one agreed or disagreed, the facts had to be faced, and the facts were that the 40----hour week, increased benefits under the Workers' Compensation Act,,, and increased wages must inevitably increase the cost of production of New Zealand goods. It was true of course that Cabinet's policy envisaged also the safeguarding of New Zealand industries as had been pointed out by the Prime Minister, but the chief concern of manufacturers at the moment was that the desired adjustments might follow after an appreciable lapse of time beyond the increase in costs, and in the meantime the importer would re-establish himself in the New Zealand market. "A DESIRABLE IDEAL IF—" Mr. Matheson said he thought there could be no doubt about the shorter working week being a desirable ideal if made world-wide. As to how far the 40-hour week proposal would go to provide work for people now unemployed was a question that was viewed with very varied degrees of optimism. He believed the results obtained in Italy and America, the only two countries where hours had been, reduced to approximately 40, were admitted by both workers and employers to be very disappointing. Nevertheless, he was of the opinion that it should be tried, particularly as the present balance of our social system seemed to carry a permanent weight of people who were not required to work in order to produce the goods the community could consume in its present circumstances. As to that question no doubt the Government had its own views and in any case the Government might easily obtain plenty from many sources, many of which were undoubtedly, well worthy of the most careful consideration. "The point that is vital to us," continued Mr. Matheson, "is the resultant increased costs. Even here there are divergent views. I have no doubt that there are industries where the result will not be an increase to the full proportionate percentage of the reduction in hours and there will likewise be those whose increased costs will be greater than the 4r44ths. There seems to be no doubt -that on the average the increased cost will be consistent with that ratio. If the Government receives suggestions that there would be no increase in-the costs, I do say that the estimates of manufacturers are the ones that should be relied upon. This is a question on which no one could be so competent a judge as the manufacturer himself. As a general statement I feel that we can enter the field of experimenting in a shorter working week with equanimity provided the Government will do what is necessary in order to retain the market for New Zealand factories and their workers." NO "BLANKET" LEGISLATION. Mr. F. Campbell said he did naf think "blanket" legislation would be introduced covering all manufacturing industries. In his opinion legislation would be brought down giving the Arbitration Court power to impose a 40-hour week and it would, be for the manufacturers to make their representations. He. thought a great work could be done by the association by providing facilities to trade groups when they were cited for a iiew award and went before the Court, to be assisted by competent men to, estimate what the costs would be in a particular industry. If it could be shown tc the Court that the price of goods would be increased so much that the tariff would have to.go up, and the cost to the consumer would be so much greater, then, he thought, there would be little chance of the 40-hour week being introduced in that industry. "I think we should be surveying our own industries and looking inside to see just what this would mean to us," he added. ' Mr J T. Spears said he thought they could rely on a 40-hour week being imposed wherever possible, and that meant that they had to face an increase in costs. The Prime Minister had' stated that New Zealand _ industries would be afforded protection and in this connection it was important that there should be no time lag ot six or seven months, otherwise markeMr.WMatheson said he had gathered the impression that it was the Government's intention to bring down a Bill that would instruct the Arbitration Court to make a ruling within three months that the 40-hour week apply to- all industries but that that order would not become applicable for some months after that action—probably some time before the end of the year Industries which felt they were definitely going to be very seriously upset by the introduction of the shorter week would have the opportunity of placing their views before the Court and they would then, he suggested,have the opportunity "of perhaps a little postponement or an alternative in the way of giving their employees extra holidays instead of adopting a shorter working week. That was only an impression he had gained. He agreed with Mr. Campbell that each trade should get together and study very carefully and as far as possible the effects as they estimated them. LABOUR CONDITIONS.Mr. C. Cathie expressed the view that until the I.C. and A. Act was passed and until" some awards had been made under the remodelled Act they would not know what was to be loaded on to industries in the way of holidays, high overtime charges, and probably other things which would be worked in wherever and whenever it was favourable to the employee. He diU not think they could deal with the matter until they knew more about labour conditions, apart from the 40----hour week and the advance in wages, which it was rumoured was to be given. Another member, Mr. Livingstone, said that black spots had been found in the 40-hour week proposal and he suggested that they should try and find some bright spots, which he contended were to be found* There was,

he thought, something to be said in favour of a shorter week. Anything that was going to keep stocks within control was an asset to the manufacturer and the retailer. • The discussion shortly ■- afterward* lapsed.