Overtime Subsidy Payments To Sawmills Resumed

Greymouth Evening Star, 27 September 1949, Page 4

Overtime Subsidy Payments To Sawmills Resumed

Although the elimination of the Government subsidy on overtime wages in the sawmills was announced last month and caused considerable concern on the West Coast, subsequent events have shown that the Government is prepared to continue the subsidy until the end of March next, in cases where the State Forest Service is satisfied that the need for overtime is genuine. Already eight sawmills on the West Coast have received advice of the restoration of the subsidy, these being cases where the State Forest Service has proved on investigation that there were satisfactory explanations for apparent absenteeism among the employees during the first five days of the week. Absenteeism Investigated

It has become obvious that the decision to cancel the subsidy payments was largely based on the assumption that the overtime system, was being abused; that a small percentage of the employees were taking time off for frivolous reasons early in the week and then invariably reporting for work, at overtime rates oh the Saturdays. 7 . . Where absenteeism has been proved to be genuine, through illness and similar causes, the mills which have made application for temporary restoration of the subsidy have generally been successful. Eight have already received authority to continue operations on a 44-hour week basis (a full day every second Saturday) with overtime subsidy payments,' while three or four mills are awaiting the result of the investigations into their operations. The overtime payments are at the rate of time and a-half for four hours and double time for four hours each fortnight, and thus make a considerable difference to the take-home pay of the mill employees affected. Not all of the mills on the West Coast worked on Saturdays, even before. the cancellation of the. subsidy payments and the position has become even more involved over the past month, there being no hard and fast rule as to Saturday work in-the district,.. Further Extension Unlikely? Where the sawmills do desire to work overtime to keep up output, however, the decision to continue the subsidy has been welcomed. It is considered in the industry, however, that it is most unlikely that there will be any further extension of overtime subsidy payments after March 31 next.