WILL MEAN CUT IN TAKEHOME PAY Overtime Work In Coast Sawmills To Cease

Greymouth Evening Star, 22 August 1949, Page 4

WILL MEAN CUT IN TAKEHOME PAY Overtime Work In Coast Sawmills To Cease

Unless an investigation now being carried out by the State Forest Service on behalf of the Government results in a further change of policy, Saturday was the last day' upon which overtime will be worked in West Coast sawmills, although bush operations on Saturdays may continue. At short notice, the Government decided to withdraw entirely the subsidy which has been paid for Saturday work in the. mills throughout New Zealand since the beginning of the war and, as the industry itself cannot meet the overtime wages bill, a general return to the 40-hour week is indicated. There are some provisos, however, and as far as many West Coast units are concerned the future position is obscure. In the meantime, however, it is understood that none of the mill'own-? ers will work overtime in the mills, as distinct from the bush, as they feel that they cannot take the risk that they might qualify for a continuation of subsidy as a result of the departmental investigation. As a result, mill employees throughout the district have been notified that no more overtime will be worked. Second Reduction A few mills on the West Coast have voluntarily eliminated all Saturday work for some considerable time, but the great majority have continued the war-time practice of working overtime on Saturday. Until a few months ago most of them worked every Saturday, but then the Government cut the subsidy by half and the weekly hours of work, in the mills but not in the bush, were cut from 48 to 44 hours.

Some mill owners are concerned at the implications of the total elimination of the subsidy but possibly the most widely felt effect will be on the earnings of the sawmill workers. As an approximate average, a day’s work every second Saturday meant £3 to the mill workers, so that there will be an automatic reduction in their gross earnings of between £1 10s and £1 15s per week.' In some cases, the elimination of overtime may be welcomed by the men, but in others, the reduction in

take-home pay will mean financial difficulties, at least temporarily. In these days of high prices it is not easy to. reduce the household’budget by 30s a week at short notice. Many of the men affected have been accustomed to this overtime addition on their earnings since early in'the war years. 80 Per Cent Payment The subsidy, which was introduced to boost timber production during the war when every stick of timber was needed for defence works and was continued to meet the civilian demand after the war, amounted to 80 per cent of the overtime wages paid, but no figures are available of the actual cost to the Government.

The greatly expanded production of timber* in the past two years, principally. of exotic timber, has resulted in a better balance between supply and demand and this is probably the greatest factor’ in the Government’s decision to eliminate subsidies, except on bush work in the indigenous mills. It is believed, however, that another factor has entered into the general picture—the fact that, in some cases, perhaps isolated, there has been absenteeism in the mills early in the week and the men have returned '-o work to reap the benefit of the overtime on Saturday. “Saver” For Some Wills

The investigation to be carried out by the State Forest Service will, it is thought, cover this aspect of the matter and where absenteeism has occurred it is considered most unlikely that the subsidy will be reinstated. •The continuation of the subsidy in regard to bush operations is, however, a “saver” for some of the West Coast mills, particularly those working difficult country. It is impossible for some of these mills to secure sufficient logs in five days to keep the mill cutting five days and .overtime work in the bush becomes essential. Where it is possible for a mill to keep up its log supply in five days work in the bush, however, the State Forest Service may recommend the suspension of all overtime payments. Comment Withheld In view of the fact that the Government has promised an “investigation” into the question of reinstating the subsidy in some instances, no official comment on the altered situation could be obtained today. The chairman of the West Coast Sawmillers’ Association (Mr A. L. McKay) confirmed that the association had had official advice of the cessation of -subsidy payments as from last Saturday and that it had circularised its members accordingly. However, the whole situation had yet to be discussed by the association,after consultations with the Domin- I ion Federation, which had had direct conversations with the Government, j The secretary of the Westland Timber Workers’ Union, Mr F. L. Turley, had no comment to make’, stating that he had had no official advice of the changed situation.