MAN-POWER AND COST BALANCE

Evening Post, Volume CXL, Issue 55, 3 September 1945, Page 4

MAN-POWER AND COST BALANCE

During the Hospital Board discussion on difficulties created by the shortage of staff, Mr. O'Shea made reference to one factor that undoubtedly has an important bearing on the problem. Mr. O'Shea said he did not think the board could compete with other industries in the high rates th.ey paid. If it increased the pay of its girls it would have to increase the rates for nurses and everyone else. The fact was that the economic structure of the country had got out of gear, and it was no"t a fair thing to blame the National Service Department. Arising out of the discussion, the Controller of Manpower (Mr. Bockett) has made public a letter which he recently addressed to the board and in which he discusses the possibility of the board's having to rely in the near future on non-directed labour. After stating that it appeared that the board is relying entirely on the Department to satisfy its staffing requirements by compulsory direction, Mr. Bockett says: "As you are aware, man-power controls have recently been relaxed to a considerable degree, and while it will be necessary to retain the present controls for a further period if hospitals and other vital services are to be adequately staffed, you will no doubt agree that the time has arrived when your board should give serious consideration to the matter of securing staff on a voluntary basis." In principle there can be no objection to this attitude, as complete freedom from man-power controls at the earliest possible moment is greatly to be desired. The point of concern to those administering hospitals and other social services, however, is whether they will be in a position to compete on a satisfactory basis with the wages now paid in private industry. If they are not, then there appears to be little prospect of overcoming the present serious shortage of staff; indeed, the position may well become even more acute.

That social services should be in a position to compete with other forms of employment is undoubted, but to assist them in securing staff on a voluntary basis there must be action to correct the lack of balance in the general economic structure. In this connection Government action is the most important factor. Hospital boards and other social services are subject to stabilisation regulations. Even if they had the will and the means to increase the wages paid to their staffs to bring them into line with ruling outside rates, they would be debarred from doing so without authority. They are not in the fortunate position of certain industries in which increases can apparently be granted without any reference to the stabilisation authorities. When Mr. O'Shea said that the economic structure of the country had got out of gear, he was on the soundest ground. While the rates of pay to some sections of workers were pegged, others were allowed to soar until the position became so unbalanced and so inequitable that the Government was forced to take action. It empowered the Court of Arbitration to fix new-standards and at the same time increased the wages and salaries of State employees. But no sooner was that done than workers whose rates of remuneration had been a main contributing cause to the lack of balance sought and obtained increases which maintained their relative position and at the same time perpetuated the lack of balance. Until steps are taken to restore a balance in industry difficulties such as those being experienced by the Hospital Board will continue and may even be accentuated.