FLAXMILLS DISPUTE

Manawatu Standard, Volume XLVIII, Issue 221, 16 August 1928, Page 2

FLAXMILLS DISPUTE

OPEN LETTER TO MANAWATU flaxmillers. Sirs —lt appears quite clear to our executive thw you are using every means, including the Hospital Board and the Foxton Borough Council to bolster up your demands toi ai 10 P cent reduction m tlae tlaxnu nloveos’ wages under the plea that, at present prices ruling lor hemp, you cannot carry on. , For Che past twenty years yon have religiously stated on oath, before Court of Arbitration, that it increase in wages was conceded, then the industry would go out of existence. Let me here state 4lie profits made by one flaxmilling company, whose managing director was alwajs in the forefront at the Arbitration Court, proclaiming the poverty of the industry. This company commenced operations in 1907, with a capital of £36.000. In nineteen years they distributed in dividends £130,310 and in addition they added to capital £iJo,500. in all a total profit of £32J,01-L In February of this year your nulls/ started closing down, and in June your association asked the union tor a conference, and thereat your delegates asked for a reduction ip wages ranging from 10 per cent to N 2o per cent. This lequest was considered bv our members and refused.

I Later, at another conference, your I delegates were informed that the ! union was firmly convinced that the prices ruling for hemp did not warrant a reduction ill wagesy and requested that to verify your statement —“that milling could not bo carried on at present prices” —you grant us the right to have your books examined by an accountant and, if lus investigations proved your statements correct, then the union would agree to a reduction in wages. Every flaxmiller present at the conference refused to submit his books for investigation. Yet, in your circular letter or July 12. 1928. to members ot Parliament, when you were asking for a subsidy, vou state: “Millers arc quite prepared to have their hooks inspected by responsible officers to prove their difficulties.” AVhy do you shuffle when we ask for the same as you offered members of Parliament. The union delegates then suggested a sliding scale of wages (as requested bv our Foxton members). Your delegates then assisted us to draw up. the following sliding scale of wages (on the understanding that anything drawn up would not commit them): Award rates of wages to be paid when combined prices (high and low fair) reach the same as when the award was made (July, 1927). When prices fall £2 per ton, wage workers receive sixpence per day reduction and pieceworkers 3 1/3 per cent: when prices fall £4 per ton, li- per day. Lid 6 2/3 per cent; £6 fall, 1/6 per dnv and 10 per cent: £S fall, _/- per day and 13 I'3 per cent pieceworkers'. Rises in wages over award rates, vliep prices arose, tlie same amount when tho award was made. To our astonishment when this was drafted .your delegates asked that. tle union delegates retire, while jour delegates could discuss among the nisei vL whether they would advise the r association to accept it. M'hcn our delegates returned, your presiden stated that they could not recommend their association to accept the sliding scale of wages as it contained too many difficulties. _.~ ,v • Your president (Air H. A. Seifert) m his report to the annual meeting of vour association held on August 9th, stated- “The value of the millers receipts,' f.o.b. basis, would -be- about £512 000, a'lmdst -£2 per ton lower-than-for ’the previous year. Prices fell steadily throughout the year and after beginning at about £2B 10s foi H fair had dropped at the close of the season by about £2 per ton. . Now let us take the position of the Foxton flaxmiller who obtains Ins green leaf on royalty from the Aloutoa swampThis miller’s royalty has been reduced by 4s per toil of green leaf, and Ins river' freights have been reduced Is per ton bf green leaf, making a reduction of 5s per ton; now, taking 8i tons of rrreen leaf to produce one ton of hemp, we find that this miller can now produce hemp 2s 6cl per ton cheaper than he could when the award came into force (July, 1927). Let me put it in another way. You state ■ that, if the union agrees to a reduction of 10 per cent, m w ages, when the price ot hemp rises to the price when the award was made, i.e.. k rise of £2 per ton then you will agree to pay the award rates ot wages. Your royalty and river freight charges, which you received a reduction on, through the rise in prices will also go up- the amount of the reduction you received. Then you wi 1 he at least 2s 6d per ton worse off than you aie at. the present time. ; . It has been reported to me that a Manawatu Flaxmilling Company hate shown a profit of £9OOO odd for the six months ending January 31st, 1928. You were prepared to lobby members of Parliament with the .object of lecoiving money from tlie taxpaAGis of this country in spite of the fact that your business, according to your statenients and balance-sheets, shows that you rank parallel with the banking and financial institutions. 11l conclusion, do you wonder why we refuse to believe your statements, without verification —“that you cannot carry on milling at present prices.”—

1 am, etc., PERCY T. ROBINSON, Secretary, Manawatu Flaxmills Employees’ Union. Palmerston North, August 16th, 1928.