FREEZING INDUSTRY

Gisborne Times, Volume LXXI, Issue 11327, 3 October 1930, Page 2

FREEZING INDUSTRY

HAMPERED BY AWARD ILANDK ARS. ILLUMINATING ADDRI-.sk BY MR. J ESS El 1 AT WAI H/ >A. WTIAT IF WAGES ARK MIT RF.DFCED:HIGHER GOST'S OR LOWER RETURNS FUR GROWERS. (Special to the Times.) UAIKOA. Oet. 2. In presenting the sixteenth annual report and ha la nee-sheet of the W'atroa 'Farmers’ Co-op. .Meat Go. Ltd., Mr. .J. S. Jessep, ehairman of directors, stated that the "year had been a trying one for the industry, farm,ers, and the country generally. .. continued:—

“The drop in the value of meat, wool, pelts, hides, tallow, casings .and in fact everything connected with, the freezing industry, lias been unprecedented, varying " from 40 to 60 per cent., whilst almost without exception the value of the Dominion’s exports has fallen tremendously. There has actually teen an increase in the cost of production. Ihe xliortage of money created by toe drop in the total value of New Zealand’s exports ibid meant increased interest. From a finance point ot view the one advantage to the producer was that exchange on London was. in his favor. The present rate of exchange meant a net increase ot 2\ per cent, on the value of our exports. Taking our total exports at forty millions the exchange was, therefore, in the producers’ favor to tlie extent of £1,600,060. STABILITY OF THE BANKS. “In times of crisis banks and bankers come in for some severe criticism, hut, at the present- time. New Zealand has reason to he thiiiiklui that our hanks and financial institutions have so conservatively conducted their affairs that they can stand up to the shock of such a tremendous drop in the value of our exports. It appears to me that, wn.,. the fall in the value of N.Z.’s exports, not sufficient money will tie available to meet the-country’s obligations and maintain the present standard of living, if speh standard of living is to be calculated only upon a money basis. “After all, what is the standard of living? It is not having so many metal discs or pieces of paper money, but being able to live at a certain standard of comfort, with ample supplies of the necessaries of life. The world to-day presents a most extraordinary, spectacle; .on every hand we read of over-production of the necessities of life. Wheat, wool, meat, metals, oolfee, sugar—-over-production on . every hand, and yet unemployment'and trouble on, all sides. Our Labor--.friends will tell us that this is .through lack of proper distribution, . Coming back now to our own country. It is still more evident that there are ample supplies of all necessities and comforts of hie if such can he made available. Suppose we agree with our Labor friends and say it is a question of distribution, then the problem can only he solved bv everyone pulling his weight. As inevitable as a. law ot nature is. tlie fact that if any man loafs on - lii.s job someone else must toil to make up the leoV-'av.

l«t FREEZING INDUSTRY OYER-(-A RITALIS.KI) ?

“To return to the freezing industry. Our Labor friends 'say if is ovor-cap'-ta lifted. Ihe most- casual -rriance at the,*nct-ual present-day cost value of the freezing works necessary to cope with the necessities of the Dominion,■ and the amount ol inteiost which has-been earned on such present-day value, will show that over-capitalisation, so far as the freezing industry: is concerned, is an utter fallacy. As .a matter of jar t, tne freezing works of N.Z,. taking 'hem as a whole; have lor a - niimher ot years been practically lent- to the. farmers and the employees in the industries without interest. Allowing for depreciation, -there lias, been practically no -.interest earned. "■ have her'U living on reserves. “We cannot- continue in do so. .'.he freezing industry has provided remunerative .employment, lor a large body of meii -for a considerable por - tion of the year. The rates ef pat in the various departments of cue industry, because the work was deemed to lie season'll, were fixed, al oil a much higher has s tha.ii might bait been the case it the freezing work' industry provided work during 'hi. twelve months of the year.- Gut when l’a-rliament. in its wisdom, fixed tho rate of pay for. unemployment, 'relief at- wlT.yt i' - 'called “.asu- «>i ‘award rates,’ the seasonal argument can surely no longer obtain. M hat is perfeetlv clear and plain is that the freezing industry:-cannot taco the coining s'easou at the .present, rates ol running, unless termors .art- prepa-i----ed to pay at least two shillings per head in ‘ineTeasecf TTvekmg- charges, or, what is. oj course, the same thing, tako. two shillings _ per head less for their., stock,-.. ... “To give- one -instance only: The drop in tho value of casings alone is equivalent to a shilling per head on sheep and eightpenee per head on lambs. Some companies may, by living on their reserves, or paying interest on only one quarter of the. actual value on' their plant and bu ings, continue to lend their works and capital to the farmers and. thenemployees. But, sooner c-r latei, they, in turn, will have, to lace the stern realities of economic facts. In the interests of all ..concerned it u obviously necessary for tlie industry to be relieved of every restriction which hampers efficiency and reduces output. ' AN UNFAIR AWARD.

‘ The award governing the freezing industry is "loaded with mminienUm. restrictions, winch are of doubt tut value to the. employee, but of very real hindrance to the development and expansion of the freezing industry: These , restrictions . have' crept in from time to ..time. Once craw a rd comas, before the Arbitration Court the representatives of the eniplovers and the employees are simp-' jy 'there as. advocates- One is determined ■ to concede as. I’-ttle as lie can and the-other is determined to obtain' the maximum. " The successful carrying on of ,the industry at the highest point.of efficiency for the general benefit of all is entirely lost sight of.'7' 'Hie various--representa-tives report back to their respective bodies and- the-, measure of their success is judged- by how. little t,K T have conceded., or how much they have obtained, it must mevitamy be so. , “The Arbitration Court- is. simply and solely a. court. The fact tlnit 1 has arbitrary powers has destroyed the whole, spirit of conciliation m industry. By what rhyme or reason should anv‘: judicial -body be given power to say that one man handling certain goods .shall he paid two oi three times- the. rate of pay ot another man handling the same goods. As an illustration, let .us take the dairv farmer v. waterside worker. The'dnirv fanner produces the goods, hut-tor,- cheese, etc-., winch provides the waterside!- with a fair proportion of his year's work.- To produce-such goods, be works throngliout-tlie year at uncertain hours and under all weather conditions. Taking the average

dairy fanner’s hours, ii lie were to receive wages at award rates what received by the wutersider who han■dles ihe produce his week’s .earn. Il would work out, approximately as follow.;: 5 days, Monday to Friday—--4 a.m. to 7 a.m... 3 hours, if •■sJ, 14s : 5 a.m. to 5 p.m., 8 hours, 2.» 4d, 18s cd ; 5 p.m. t-.j 6 p.m., 1 hour, 4s --u. —£l 17s 4d each of those days. Saturdays;: 4 a.m. to i a.m.. 3 hours. 4s Sd, 14s; 8 a.m. to 12 noon, -- hours’ “s 4(1. 9s 4d: 1 p-m. jo 6 p;m., 4 hours, -Is Id, 16s 4d ; o p.m to 6 p.m.;. 1 hour, Sj 2d. 8 : 2d—£2 7s ILU. Bnndavs: No award rate, bur. they usually get 9; Id per hour —t a.m. to . a.m., 3 p.m. to <; p.m., 0 hours at 9s 4di £2 16s; total mi the wick, £l4 10s Cd.

INEQUITABLE DISTRIBUTION OF AWARDS

“It is obvious that the waterside worker is taking from hi.-, fclJow-worki-r, the dairy farmer, an undue share. The dairy farmer, therefore, must, foil harder to make up the leeway, unless then- can be a more equitable distribution oi the rewards of their joint labor. .Moreover, it the ivatersidc-r is only called to work one hour before . a.m. he is- paid as. a minimum for three hours or 14s for one hour’s work. Surely a Judicial system which allows of such disproportionate rewards lor industry is economically unsound, and must inevitably break 'down.' “Another striking■ illustnuion and coining back to what our tether friends call ‘distribution - is afforded by tlie rates ot pay, but more particularly the conditions, obtaining in our coastal shipping service. .Tho South Island produces many commodities which the North Island urgently. requires, and, if such produce could be economcally transported,- it would mean muc-lv increased prosperity and more employment- m hot it islands. I have taken out tho re\VardS paid to workers on four coastal vessels throughout the whole period of one year, and wish to draw particular attention to the percentage of overtime earned to the actual award rates of wages (shillings and pence omitted). •- " EARNINGS ON COASTAL BOATS

“Earnings on Four Coastal V esscls for one complete year: Chief Officer waoes £319, overtime £133, totai £4077 do., £367, £135, £466; do., £307, £lOl, £4UB; do., £307, £162,. £469. “A.B.’s on four vessels: Wages, £179 • overtime, £159 ; total £339 ;- do.. £179. £2lB, £393; do., £J-u, £lO7, £237; do., £179, £204, £334.; “Donkey-man and Greaser (wages,overtime, total): £215, £124, £34j>:£215, £79. £295; £215, £*o, £301; £203," £l2O, £324. •

“Cook and Steward (wages, overtime, total): £lB3, £126, £314; £206,, £ll6, £317; £IBB, £lO3, £291; £*l2, £137, £350. “In addition all these shipping employees arc provided with lodgings and food on a generous scale. Supposin'' vc leave out ol om aigu-ment-rtlieir total earnings and deal, only with the manner in which it is earned and the proportion of' overtime to actual award weekly rates Surely it is obvious that such a system in actual practice offers a bonus to inefficiency.? The terrific cost of these privileges to the seaman alone is now apparent from tho iact. a we are told that there are 9U6 seamen out of work. While .such a »ytem of payment obtains, it is obvious that motor traffic must capture’ evCrv pound of coastal freight which it can possibly touch, nntl cidentallv. a-largo proportion ol the post of such motor transport departs, to American shores, fi-aving onr soaifieii idlo oil the bench. Snell a resultin any 'industry could only have been reached under a judicial system deal-,, fine-with'commerce, without any.;.fan relation between costs and n-Sfuttst. Must, we continue, under such a .system? Is it impassible for politicians to sink their own pitiable party differences and get- down to the real -difficulties confronting the country.'. Must we wait unf! the tragedy ol the-workloss has its inevitable effect upon the economic life of the country?"