COST OF OVERTIME

Evening Post, Issue 15, 17 July 1936, Page 5

COST OF OVERTIME

Important reports were made to the City Council last night by the tramways committee and by the general manager of the tramways department as to the probable effect upon tramway finance of the introduction of the 40-hour week. The reports were that the additional wages cost would be £31,000 per annum in the traffic branch alone, and a recommendation, was made that the question of overtime, upon which representatives of the employees and the committee could not agree when they met in conference, should be referred to the Arbitration Court for decision, and that application should be made for the adoption of a .44-hour week until the end of the,year. It was decided that as the issue was so wide it should be discussed at a special meeting next Tuesday evening, when representatives of the employees should be present to state their views.

. The committee reported that it had discussed the question of the 40-hour week with a deputation from the Tramway Employees' Union, and after full consideration recommended that the decision of the Arbitration Court should be obtained with respect to the question of payment for overtime.

"The committee is satisfied," stated the report, "that the adoption of the 40-hour week involves additional wages costs for the traffic branch alone of £31,000 per annum and that the adoption of the 40-hour week necessitates a minimum increase in the fare charges of Is for eight rides in lieu of Is for ten rides, and to 4s in lieu of 3s 6d for the 'universal' fare.- This view is based upon the assumption that the volume of traffic under the increased fare will remain the same as voder the present lower fare, which assumption the committee does not think to be sound, v .

"In order, therefore, to avoid such sudden additional burden on the community by this large increase in fares the committee recommends that application be made to the Court for the adoption of an average 44-hour week in lieu pf the existing 48-hour week, with the right to either party to apply for a variation at any time after December 31, '1936, it being understood that this application to the Court is made in order to ascertain how' the proposed changes will operate in actual practice. "The. committee is satisfied that the adoption of the 44-hour week can be met by the adoption of only one-half of the increase in fares above referred to."' GENERAL MANAGER'S REPORT. Attached to the report of the committee was a more detailed report from the general manager of the tramway department, Mr. M. Cable, who stated that in the case of the men employed at the Kilbirnie workshops, car-sheds, power-house, and Cable Street depot, the department's proposals regarding the introduction of the. 40-hour week were acceptable to the union's representatives, with the exception of the matter of the rate of overtime to be paid to certain employees. Of a'total extra cost per annum of £41,698 .involved in introducing a 40----hour; week,/£31;148 represented .extra cost. of i wages to motormen aiid conductors. ■> To meet the' extra cost, of £■41,698 per annum the'only avenues available to the council-were increased fares and a' reduction in the charge for electricity. - The utmost possible reduction irf the latter without penalising the electricity department would be to reduce; the present charge per unit from-.75d to .65d, a saving to the tramways of £4000 per annum. To obtain the additional revenue required, it would be'necessary to reduce the number of rides; available on the Is one-section. ticket from ten to eight, 'and'to increase the. price of the 3s 6d ticket to 4s, in addition to various adjustments in other tram and bus tickets. ' "' The enforcement of these large fare increases would be a most regrettable step, particularly in view of the fact that the undertaking was able to carjry on though the depression with the present attractive fare concession and in the interests of the travelling public. "We considered that the council should endeavour to obtain some relief from the full application of the 40----hour week so far as the traffic branch of the service was concerned, until it could be shown that the full application could be introduced without resort to; such a large increase in the fare systenv HOURS OF SERVICE. In order to meet the requirements of the public the tramway department was compelled to give, an 18-hour day service on week days—a. total of 108 hours on week days—and 10 hours from noon on Sundays, Mr. Cable reported.' To provide this service with men working not more than 40 hours on week days would involve, as already indicated,' the major portion of the additional wages costs. The drop from'4B to 40 hours per week was the main factor responsible for the large increase in costs, the reduction' in hours in the majority of other branches of the service being 4 hours per man, as against eight in the traffic department. In order to secure some relief from the large increase in working expenses, the officers of the department submitted a modified scheme to the union representatives whereby the men would work an average of 44 hours per week, working one week 40 hours and 48 hours the following week, without loss of earning power. The proposal would reduce the extra, cost of traffic branch wages from £31,148 to £12,584 per annum, and lower the total extra cost per annum from £41,698 to £22,500. If the modifications proposed could be secured from the Court the additional increase in operating expenses should be met by withdrawing one ride from the one-section concession ticket and by increasing the 3s 6d ticket to 3s Sd, providing a reasonable increase in travelling occurred. SUNDAY OVERTIME RATES. All time worked on Sundays by the tramway staff is paid at overtime rates, stated Mr. Cable. In addition to Sunday working there is a certain amount of overtime by the traffic employees on week days. If the overtime rate was to be based on the new hourly rate the weekly earnings of traffic and certain other employees when working the 40----hour week would be higher than when they worked 48 hours.

If overtime was to be based on the new hourly rates as contended by the union's representatives, the following would be the position of the earnings of several classes of employees: Motormen, after first year, 48-hour week, £5 17s; 40-hour week, £6 2s Id; conductors, two to five years, 48, £5 7s 3d; 40, £5 11s Gd; conductors, over five years, 48, £5 9s 8d; 40, £5 13s; emergency linesmen, 48, £6 Is 6d; 40,

The union's representatives admitted that the question of overtime was one for the consideration of the Court and he was strongly of the opinion that the council should authorise the department to obtain a decision from the Court upon the point. TRAINING OF NEW EMPLOYEES. Mr. Cable added that the difficulties in connection with the selection and training of sufficient new conductors before September 1 were not insurmountable, but the problem of providing sufficient new motormen competent to operate on all routes was a matter presenting serious difficulties. In the interest of public safety the introduction of the large number of new motormen should be spread over a period of at least five months. If all the additional men were engaged before September these men would re^ quire to be given 48-hours weekly in accordance with the provisions of the agreement,. although their services would not be required for the running of the service until the hours per week were reduced. "Irrespective of all other considerations the ruling of the Court should be sought regarding an extension of time, for. the full application of the 40-hour provision to the traffic branch," stated Mr.' Cable. The men, said the Mayor (Mr. T. C. A. Hislop), taking into account the question of overtime, would earn more when the working week was reduced to ,40 hours, than they had. with a 48----hour week. INTENTION OF GOVERNMENT. Councillor M. F. Luckie said that the intention of; the Government was to increase' the ■ number of men employed. The Mayor: The amount of overtime is going to be considerably more than before. ■•■,.' Taking the increase over 500 men, said the Mayor, the sum was considerable and therefore the Court's opinion on what would be equitable overtime payment under the new conditions should bo obtained. Mr. C. H. Chapman, M.P., said it appeared that a rescinding motion was necessary.. •• At its last meeting the committee had decided that the men and management should decide the question. He was not sure that the decisions arrived at by the council ■were-sound. ■ Referring the matter to the Court would immediately raise the whole question again. Legislation fixed the overtime rate, unless the men agreed to any variation. '■ FIXED BY ACT. The assumption that the men would earn more was evidently made on the idea that the old hours of overtime would be worked, whereas with 100 more men on the overtime would be reduced. The purpose of the 40-hour week was to speed work. He did not believe the motormen would be called on to work on Sunday., more than one week in eight. The Court's hands were bound by the fact that double time for Sunday work was fixed by the I.C. and A. Act. Councillor Luckie thought the matter. important enough to warrant a special meeting, before a vote was taken. Those whowere not members of the committee did not know its reasons. Many new issues had been raised by the committee's decisions. HOSTILE TO UNION? Councillor A.. Black suggested that a deputation from the union, which had put forward some useful suggestions, should be heard. He understood that the ' attitude adopted' towards the union had been .hostile. A statement had been brought down, but it, was not a report of the conference which had been held with the men, and councillors did not know what had been dealt with. Councillor R. A. Wright,-M.P., said that the men had received every consideration by the committee. At present there seemed to be no way out but the imposition of higher fares. He welcomed the opportunity of further full discussion. The Mayor said in reference to Councillor Black's remarks, that he had put the matter frankly to the men, stating that there were technical difficulties. The council would have to take over between 80 and 90 new conductors and drivers, but that could be got over. He had stressed the financial side, that a 40-hour week forthwith would mean £31,000 additional expenditure. He had expressed concern to the men that raising the fares would mean a loss of patronage if imposed to give the full finance needed. If it were done gradually by coming to a 44-hour week for a period, accustoming the public to it, then if at the end of six months this were found not to effect finance seriously the 40-hour week could be brought in. He had doubted the men's contention that the great general improvement in the public's conditions would suffice to offset the immediate inauguration of the 40-hour week. 40-HOUR WEEK ALL ROUND. Councillor W. Appleton said that he had contended .aU along that the 40----hour week should apply to molormen and conductors, more especially as it was purposed to give it to the outside men, the men in the sheds, and on the permanent way. After hearing the men he was satisfied of the justice of their claims. To him there seemed a good deal of propaganda in the report. Councillor Luckie moved that at the conclusion of the meeting the council should adjourn until Tuesday. The Mayor said it had been ' suggested that a lot of propaganda had been embodied in the report: that was not so. It had been considered necessary to show the whole grounds on which the committee came to its decisions. As regarded the question of the difference in hours, Councillors Appleton and Huggins might long ago have, drawn attention to the fact that tramwaymen had always worked longer hours than other employees ot'

the council. However, they had not done so. THE PREVIOUS DECISION. Councillor P. M. Butler said he thought that the whole question had already been decided and that the council had approved of the principle of the 40-hour week. If that was so. then the whole discussion was out oX order. Mr. Hislop said that the previous decision of the council was that each j department should negotiate with the workers' organisation "with the object of effect to the principle of the 40-hour week." Naturally, if it was found impracticable to do so or that any of the activities of the council would be endangered, the committees concerned would have to refer the matter back to the council. propaganda; Councillor H. A. Huggins said that he objected to the recommendations brought down. None of the resolutions of the report had been put to the committee as they appeared' in the report, and some of the recommendations had not even been discussed. The propaganda in the report was certainly not agreed to by himself and Councillor Appleton. As a matter of fact the report was- merely that of three men. The Mayor: It was carried by a majority of three to two. Councillor Huggins: All the same, it is the report- of three men only. The question has been raised that the men have always worked longer hours than others in the council service, but doe's the fact that a wrong has been done over years justify its continuance? To my mind that is the weakest argument put forward tonight. Councillor Huggins added that he thought that the City Solicitor should be asked for an opinion whether the Court could in any case make the order suggested. If not, the application would be simply a waste of time. Councillor Butler said that the council had already had figures before it, but.the horse that the department had started had been stopped at the barrier. Now the department wanted to start another horse, with amended figures, not quite so serious as in the first instance.

On a vote being taken it was decided to defer discussion till Tuesday evening.