PAYMENT BY RESULTS.

Lyttelton Times, Volume CXVIII, Issue 18414, 21 May 1920, Page 4

PAYMENT BY RESULTS.

A year ago the industrial future of Britain looked very dull and cheerless The forces of reorganisation were in the thick of their struggle against post-war ohaos, production was handicapped by lack of workers, frequentstrikes and by a very obvious determination on the part of organised labour to deliberately restrict the amount of work performed. At the same time the vast industrial resources •of the United States were keyed to the

highest pitch of efficiency, and '.here were evidences of a great American campaign to retain and strengthen ike hold obtained upon the world’s markets during Britain’s concentration on war effort. Britjsh national finance was in an alarming condition, and a catastrophe seemed duo at no distant date. That all the dreadful things which the prophets then foretold have rot happened is due, perhaps, more than anything else, to good plain Brit’.sii commonsenso. The Chancellor of tie Exchequer has taken drastic measures to restore to health the finances of the nation; the Empire, far and wide, has rallied to the support of British manufacturers, a movement which has open helped rather than retarded by the adverse tendency of American oxchange; and there are now indications that Capital and Labour fiave found a bridge across the seemingly impossible gulf that separated them on the question of speeding up production. Suspicion and distrust were the lions in the way, to mix the metaphor, and it must be confessed that so far as organised labour was concerned there was some ground for lack of confidence. To combat the‘general spirit of “ca camy ” with which Labour policy seemed impregnated the employers in various industries greatly desired to substitute the piece-work or “ payment by results ” system. They offered very tempting terms, x but Labour had been once bitten in this way and was intractably shy on the second occasion. Some years ago when piece-work was largely in voguo production was greatly increased, arid workers in some of the skilled trades began to make wbat were in those. days considered very high wages. Certain of the employers thereupon reduced the piece rates, and their competitors, whether willing or not, were sooner or later compelled to follow suit. Tho result was, not unnaturally, to give Labour the impression that tho surest way to reduce wages was to increase production, and conversely that the lower tho standard of production tho hotter the chance of getting more pay. A period followed which was Lad for employers and employees alike, and it was only ended by the war, during which munition production, stimulated - alike by patriotism and by unprecedente lly high wages, was carried on at a very high rate of efficiency. Tho problem before the Ttritish employers who desired after the war to stimulate their workers to greater efforts was tho problem of restoring confidence, and of offering sufficiently impressivo guafantees that the benefits of increased production would not be monopolised by the employers. Tire first important step towards rapprochement on this question was made at York on Marcli 18 last, when the National Federation of General Workers, which numbers the Right Hon J. R. Clynes among its leaders, approved tho principle ofteayment hv results. This federation embraces a million and a half skilled and semi-skilled workers, and its example is sure to he followed. Tho. guarantees given by' the employers at York were definite and explicit. It was agreed that “ tho price to he paid or the basis time to he allowed either for a new job or for an altered job should be fixed by mutual agreement between the employer and the men who are to perform the work, or bv such other methods as now exist or may hereafter bo established by agreement in any trade or district.” It was further agreed that "no piece-work price, bonus, or basis of time, once fixed, may be altered unless the material, means or method of production is changed.” A still movo significant clause in the agreement was that declaring that “piece-work prices and bonus or basis times shall be :uch as will enable a workman of average 'bility to earn at least 33 1-3 per centover present time rates, excluding war bonuses.” There is to be no interference with existing payments for overtime and night work, and such allowances ns arc in force for Sunday and holiday work are to continue. An agreement of this kind marks a new epoch in the history of organised labour, and it is to be boned that the results will realise Uio anticinatiofis of both employers and cmnloved.