THE 40-HOUR WEEK

Evening Post, Volume CXXI, Issue 144, 19 June 1936, Page 10

THE 40-HOUR WEEK

LONG COUNCIL DISCUSSION

NO CLAIM FOR EXEMPTION

SHORTER HOURS MUST COME

The City Council at a special meeting today discussed for two hours the question of the introduction of the 40-hour week into Corporation services, and decided, without a division, that application should not be made to the Arbitration Court for exemption from the provisions of the Factories Act. Figures placed before the council indicated that the additional amount which would be involved by the introduction of the 40-hour week throughout the services would be £80,500 per annum, or approximately £47,000 for the remaining seven months of the current financial year.

CALM APPROACH

ANALYSING THE EFFECT

DETAILS OF THE COS

The Mayor, Mr. T. C. A. Hislop, said that he had called a special meeting following the general discussion at the last meeting of the council, to consider the question in the light of figures now available from the several departments. The question was one of the most important which had arisen for a very considerable time, and was one to approach calmly in an endeavour to see what was the best course in the interests of all citizens. It was the duty of the council as a local body to fall in as far as it possibly could with the legislation of the country, but at the same time it had to examine in full the effects of the legislation upon the city. The immediate question to be dealt with by the Court en Monday was that of the 40-hour ■week as far as it was affected by the amendments to the Factories Act, but consideration had to be given to the effect upon all employees of the Corporation—those who came under awards as well as those who came under the Factories Act—for all must be placed uaon the same footing.

ESTIMATE OF ADDITIONAL COST.

The Town Clerk submitted a report •etting out the estimated additional costs which would bs involved by the introduction of the 40-hour week, this cost being made up by the wages of extra' men required, the extra overtime, and the extra pay for Sundays and holidays for the workers in the factories listed, no allowance being made for the extra cost of materials, etc. ' In the City Engineer's department, stai2d the. report, approximately 16 extra men would be required, and the extra annual cost would be £4000. In the Milk Department, 13 extra men, at an additional cost of £3350; in the Electricity Department, 12 extra men at an additional cost of £4000; in the Tramways Department, 11 extra men at an additional cost of £4770; and in the Abattoirs Department an additional cost of £1000 must bs anticipated ■when existing contracts ran out on M*rch 31, 1937. . The above instances are included in fhe following summary of additional ■wages costs due to the reduction of working hours to 40 per week and extra payment for Sundays and holidays,' assuming that the full normal programme is carried out:—City Engineers Department, £17,800; reserves and general, £3940; Milk Department, £5300; Electricity Department, £9220; Tramways Department. £41,640; abattoirs. £'1100; total, £80,500.

STANDARD OF SERVICES. It was clear, said the Mayor, .that if; the 40-hour week came in heavier costs would have to be met unless the standard of city services was to be allowed to go back, and that could I not be contemplated for a moment, for j outside the trading departments tne| provision made was only barely sufficient to maintain a proper standard and the trading departments could not be" cut without interfering with the amenities of the city. As the figures showed, the additional cost would be £80 500 per annum. The actual amount involved in regard to those employees who came under the provisions of the Factories Act amendment was £2067U, but, as he had stated, the problem could not be met piecemeal, but the position as it affected all employees had to be considered: that was, the additional costs were estimated to be £80 500 per annum, and personally he ■thought that £80.500 was a burden that the city could not bear at the present StcL££C ■ ' The additional cost to the tramways department would be £41,640 per year, which could be met only in two ways, either by an increase in fares or by putting the department upon the rates., The necessary increase in fares would j be 15 per cent., but it was doubtful, whether increased fares would mean increased revenue: experience in the] past suggested the contrary. To place tramways upon the rates, he thouaht, would be a deplorable step. The annual additional cost to the milk department would be £6800 per year, which would have to be met by an increased price or by retaining the winter price for a longer period, which •would come to the same thing. Outside the trading departments, the additional costs would have to be met by an increased rate levy, and actually to be safe the council would have to make provision by rate levy to meet the position should the tramway revenue fail to meet the new position.

APPLICATION UNDER ACT. Mr. Hislop said that he thought that Ihe correct course was for the council to let the applications for exemption go before the Court, in accordance with the provision made in Jhe Act, and that an endeavour should be made to obtain a variation of hours up to 44 per week, in which case the additional costs v/ould amount to probably £15,000 per annum. At present different sections of employees worked different hours, 45iin the City Engineer's department, 46 and 44 in the tramways department . Councillor P. M. Butler; And m the offices 38J hours per week.

Mr. Hislop continued that to his mind it was quite impossible to find the enormous additional amount which would be involved by the 40-hour week, but it did not follow that that wouW be so for all time. Whenever changes of a drastic nature were made difficulties arose in the transition period, and he thought that an adjustment period should be allowed, during which the 44-hour week sho.uld be observed.

Councillor C. H. Chapman pointed out that the figure of £80,500 was for a full year, but the amount which ■would be involved during the coming year would be only about one half of that, £45,000 or so. It was much easier to find £45,000 than £80,000, and the figure brought down should be looked at in its proper light. He expressed doubts about the accuracy of the figures uopn which that estimate was

made, and called attention to one item where no men had been employed for years, yet three men were shown in the report

STILL AMPLE TIME. ' Councillor M. F. Luckie- seconded the Mayor's motion, remarking that there would still be ample time for the figures to be fully examined by councillors as there was little likelihood that the matter could come before the Court for some weeks. He agreed that it xvould be a retrograde step to place tramways upon the rates, and he, too, doubted whether an increase in fares would result in increased revenue. Possibly the electricity department could meet the position. The duty lay on the council of putting the position clearly before the Court. . Councillor Butler questioned the basis of the estimated cost and said that in the past costs had been overestimated when a proposal was not desired and under-estimated when something was desired.

INSIDE AND OUTSEDE WORKERS. Councillor Butler said that if a census of all Corporation employees were taken it would be found that at present a very large proportion were already working only 38 hours weekly; there was too marked a line between those who actually did the work and those who kept the records, and it was time that those who did the work should have the opportunity of enjoying the reward for their labour If an adjustment was to be made, let the council take something away from those who had too much and give it to those who had too little. It was from officers who worked short hours today that figures came down showing that the 4<Miour week was impossible and supporting the proposal' that a claim for exemption should be made.

COURT SHOULD DECIDE. Councillor K. A. Wright said that he had always supported the Arbitration Court as a court of appeal in disputes between employers and employees.

It was r.'ght and proper that the council should refer the matter for the decision of the Court, which would be in a better position than councillors to inquire into the figures. If the Court decided that there should bs a 40-hour week in the tramway or any other department, then the council would have to find the money and carry the deciIsion into effect.

AN AMENDMENT MOVED. Councillor A. Parlane disagreed with the Mayor's motion, and proposed the following amendment:— That each department of the council negotiate with the workers' organisations concerned, with the object of giving effect to the principle of the 40-hour week. The 40-hour week proposed, he said, was brought down by the Government as a means of reducing unemployment, and the return placed before the council showed that the reduced hours would find employment for sixty-five more men. It was wrong to look at the matter from the point of view of "spending" money: the correct view was of the "circulation" of money. A point which was overlooked'by other speakers was that the 10 par cent, wages and salary cuts were to be returned from July 1, and more money would be placed in circulation at once.

"SCARING THEMSELVES AND THE PUBLIC." Councillor W. Duncan seconded Councillor Parlaue's amendrr-vnt. He thought that the holding of the meeting was "to scare themselves and to scare the public." He was positive that with the increased spending power that would be given in the near future it would not be difficult to get in the additional revenue. Shorter hours were on the right lines. Councillor A. Black said that to suggest that the 40-hour week had been sprung, upon the council did not carry any weight at all, for it had been discussed at international conferences for the last fifteen • years. Many municipalities and employers had already agreed to the 40-hour week, and cabled news from Europe stated that European countries had recognised the justice and reasonableness of a 40-hour week in an order of things where machinery was increasingly replacing labour. The council would be taking up an altogether wrong attitude were it to make an attack upon the Government.

ULTIMATELY HAD TO COME. Councillor J. Burns said it would be agreed that the 40-hour week would have to come, but he did think that the decision of the Government was a little premature, for large bodies which had had to make their financial arrangements a year ahead were placed in a very awkward position. What, however, would be the effect of the City Council making application to the Court for exemption? Councillor Burns continued. Personally, he thought that, the effect would be bad. After all, the Government had been returned by an overwhelming majority, and they had the right to bring down legislation.

That legislation was ill the right direction and it would have a bad effect on other local authorities were the Wellington City Council to make application for exemption. If it was going to cost £80,000, still the council could do it and use its best endeavours to meet the position.

Mr. Hislop remarked that the council was quite within its rights in making application, for the Act provided for it.

LEGITIMATE RESPONSIBILITY. Councillor Burns agreed that that was so, but he did not think that it would be right for a body like the City Council "to try to wangle out of a legitimate responsibility." At the same time, he could not help thinking that a mistake had been made in not providing for large bodies which had to make financial provision for twelve months ahead a longer period in which to make adjustments and he 1 hought that as far as local bodies were concerned the application of the legislation should be postponed.

Mr. Hislop: That is all we arc asking for. Councillor Burns: Then lot us make

a united effort, through the Municipal Association, and not act as one council. Councillor W. J. Gaudin supported the motion that application should be made for exemption. He believed that ultimately a forty-hour week would come to the benefit of everyone, but the Government had recognised that at' the moment there might bs difficulty and had made provision whereby exemption might be claimed. Were it the beginning of the financinl year j tha position would be somawhat different, but the council was in the middle of its year, with full commitments made. The proposals of the | Government were going to cost the; tramway department £24,000 per year. For some years past an annual loss •had been made: where was an additional £24,000 to come from? "I am quite in favour of lower working hours," said Councillor Gaudin, "but | the Court should take into considera- j tion that the council has made its full commitments and is caught in the middle of its financial year." The council should take into con- j sideration that it represented the | whole of the citizens of Wellington; and not merely the ratepayers, said i Councillor H. A. Huggins. Machinery replaced many man. It was absurd to think that machinery should be

scrapped; were men to be scrappsd he believed that the small amount which would bs involved could be met and it would not bs furthering the welfare of the ppople of Wellington to make application to the Court for exernntion There was no question that the 40-hour week must come, said Councillor L. McKenzie, but if that was undeniable there was nevertheless the problem of how the additional cost was to be met, and he would support the Mayor's motion that the council could have a longer period in which to make adjustments. If a period of marking time was granted the position could easily be met. Councillor Black: We have been marking time now for twenty years. Councillor McKenzie said that were the whole of the hospital system nationalised a great measure of relief would Vip pivpn thp ritv. There was a con-

siderable source of revenue from charges for car parking in the streets. Though he was whole-heartedly in support of the 40-hour week he did think that the council required a longer period to adjust itself to the changed conditions. TIME FOR NEW IDEAS. When regard was taken of the fact ;hat purchasing power was to be increased the.great difficulty foreseen by some speakers would be recognised not Lo be great, said Councillor T. Brindle. He considered that the time had come Cor a revision of ideas of city finance by the establishment of the principle of a consolidation of funds. The funds of the and Electricity Departments should at once be mads one. Any change must bring difficulty, but he was convinced that the Government's proposal would work out to general advantage. A start had to be made at some time and the start should be mads at once. Councillor Butler returned to the question of the accuracy of the figures placed before the council, and referred to previous figures showing what would be the effect of a restoration of cuts. Those figures had forecast a most serious effect upon city finances and the placing of trading departments upon the rates. Actually nothing of the kind had happened but, on the contrary, a beneficial effect had followed. Again "carefully-compiled figures" had been placed before the council forecasting disasters that would not folilow. The arguments against the 40hour week were simply a repetition 'qi the arguments brought forward when it was proposed to abolish the working of children for ten hours a day and again when it was proposed that the 48-hour week should be mtro- , duced.

INCONVENIENT, BUT NOT IMPRACTICABLE.

Councillor Chapman said that the ground on which' application lor exemption must be made was that it was "impracticable" to introduce the 40-hour week, but he failed to see that it would be impracticable to the council, though perhaps it would be inconvenient; however, that was not sufficient. One result of the shorter week would be the absorption of men now unemployed and here a distinct gain would be obtained by the council The actual amount which would have to be found for the remainder of the year would be £46,900, and that, spread over the whole of the council s activities, could easily be met, having regard to the restoration of cuts and the greater circulation of money l. the near future. It would be a mistake to ask for exemption, simply an endeavour to put a sprag in the wheel.

A SUPPLEMENTARY BATE. Speaking to the amendment, Councillor M. F. Luckie said that the matter came up at a time when the council had struck its rate, without making provision for additional expenditure. The general body of the services was not in a position to meet it. It would be necessary for local bodies to obtain permission to strike a supplementary rate to meet the new commitments. I "I should like to make it clear that my object was to let us have a breathing space up to the end of the financial year," said the Mayor. "I am not, and never have been, in opposition to the 40-hour week principle. ... I think that a breathing space is necessary, but I see that it is not the will of the general body of the council that that should be."

Councillor Chapman suggested that, as the majority of the council was opposed to applying to the Court, the Mayor should withdraw his motion.

The Mayor: The amendment automatically closes the door. The amendment was put and carried on the voices.