FLAX INDUSTRY

Manawatu Standard, Volume LVI, Issue 258, 29 September 1936, Page 5

FLAX INDUSTRY

MEN TO RESUME WORK. CONFERENCE WITH MINISTER. AGREEMENT FOR A MONTH. A conference of representatives of the flaxmill owners ana employees with Hon. H. T. Armstrong, Minister of Labour, and Hon. W. E. Parry, Minister of Internal Affairs, was held in Palmerston North, yesterday, when an agreement was reached that the men resume work to-day on terms to operate for one month, during which the Government is to make an investigation into the whole of the flax industry. The workers had ceased operations several days earlier, contending that they were entitled to higher wages.

With the Ministers was Mr J. S. Hunter, Commissioner of Employment, and otliers present were: Mr C. L. Hunter, M.P., and Mr J. Hodgens, M.P.: Messrs G. Westwood, L. McCarthy, W. A. Spiers, H. Seifert, R. Cochran, I). R. Ogilvy, R. A\ ilson, and E. W. Sutton, representing the mill owners; Messrs T. Fuller, F. AVhiteley, H. l’odinore, and P. T. Robinson, representing the workers; Hr. J. S. Yeates (who is engaged in flax research at Massey College), Messrs G. Brown and E. AY. Coppell (Labour Department). The Minister of Labour at the outset explained that the meeting had been called at his request as lie was particularly concerned about the flax industry; he was seriously wondering whether it was worth while perservering with it at all. At one time, it was a flourishing industry earning good money, hut now the workers were out in the cold. Provision had been made in all other industries for the restoration of cuts, but unfortunately lor the flax workers they had had to put up with a very substantial reduction prior to the reduction made in 1931. They had a 33 1-3 cut in 1930 made by the Arbitration Court because of the very low price of fibre at that time. The price was £l3 10s a ton and the wages were fixed at 10s a day. Mr Armstrong said he understood that at the present time fibre was bringing very nearly double that, and it seemed that if the industry could be carried on in 1930,. then it could be carried on just as efficiently to-day even if the increase asked for by the men was conceded. If that was not so he would like to hear tne reasons. Representatives of the flax workers had met him in AVellingt-m and had pointed out that of all the industries in New Zealand affected by recent legislation they alone had not been granted a restoration of wages. It had been an accidental omission, hut he had told them that very shortly the basic wage would be declared which would be the minimum in any industry. However, the Arbitration Court had been so snowed in with work that it had not as yet been able to declare the basic wage. Again, it was at the discretion of the Court to say when the basic wage would become operative. INDUSTRY SUBSIDISED.

Mr Armstrong said lie took it that the flaxworkers were tired of waiting. The average earnings of the men engaged in the industry did not exceed £2 a week and if the industry could not give something better than that then it was questionable whether it was worth while going any further. The Government was subsidising the industry to the extent of £4 a ton (good fair quality). A delegate interjected that they could not get it. Mr Armstrong explained -that when that subsidey was granted the price of fibre was '£l3 a ton. Now it was £23 a ton. Did that include the subsidy? A delegate: It must do, for the highest grade. Air Seifert slated that the award was made when fibre was much higher than £l3. It had been something like £2O.

Mr Armstrong said that as far as he could see the methods of working the mills were very similar to those used when he was a boy, and it would have been impossible then to have produced a hemp at £l3 a ton. However, it had all been through an accident that the flax-workers had been left out of recent legislation, and the owners should not take advantage of it. The workers had every moral right to an increase in wages. The Minister reiterated that be was at a loss to understand why the owners could not carry on to-day with flax at £23, when they were quite able to do so when it was only £l3, with the £4 subsidy. Mr Ogilvy, for the millers, pointed out that in” 1932 the first subsidy had been 50 per cent, of the wages, which, in the case of bis company, amounted to £5 a ton. Later the subsidy was altered to the basis of £5 a ton, but some time after that it was reduced to £4 and to-day averaged £3 a ton, covering all grades. During the last year or .so the Government had examined the books of the flaxmillers who had made no profits. If they had made a profit it was a very small one. Some mills had revealed a loss. The £3 subsidy now being paid expired on Wednesday. It was quite impossible for the millers to pay higher wages. To Mr Parry delegates gave figures relative to royalties, prices at which the fibre was sold, subsidies received, etc. WORKERS’ CLAIM.

Mr Robinson, secretary of the Flaxworkers’ Union, presented the workers’ case. He said the workers had always carried the industry on their backs. At any time when there was a reduction in the price of fibre it was the worker who suffered a reduction in wages, but when the price went up the men had to fight the owners tooth and nail to get back what they had lost. Nor had the Arbitration Court treated the men fairly; it had never put the wages of the flaxworker up to the wages received even by the ordinary unskilled worker. The flaxworker was “full up” of carrying the industry on his back and thought that, with the subsidy, the millers could pay 15s a day as they did in 1930. Figures submitted by the millers themselves showed that they were more able to pay 15s now than they were 12s in October. If not, it was time the industry went out altogether. The men who were sticking to the industry were being penalised in that in all other industries workers could get los a day. It was not fair and the men were “full up,” coming as it did on a refusal by the Arbitration Court to grant a 40hour week.

Several of the millers present said they could not run their mills if they had to pay more wages. Mr Fuller, president of the Flaxworkers’ Union, contended that the millers were taking advantage of a loophole in the recent legislation. It was up to them to give the men a decent standard of living. The men could earn 15s a day on other jobs. Mr Ogilvy explained that officers of the Department of Labour bad made a thorough investigation of the industry and should know the position it was in. He could not understand the action taken by the workers on Friday morning seeing that they had agreed to a conference. Mr- Fuller said there was no agree-

ment made for a meeting for last week. It was only thought they could meet in 12 days’ time.

Mr Ogilvy: You agreed to meet us last week. Mr Robinson said that he had asked for a conference to consider going back to the 1930 conditions, hut the men had refused to wait any longer and so had gone out on strike. Mr G. Brown, Department of Labour, corroborated Air Robinson’s statement that the latter had tried to get the men to hold off for a day or two. “CANNOT PAY AIORE.” Afr AA’ilson drew attention to the fact that by not giving notice of their intention tlie men had left the mills with a. lot of fibre on the. fences and out in the paddocks where it would deteriorate and cause considerable loss to the owners. The men had not even made an application for an increase in wages. He had a lot of sympathy with the men, but the industry could not pay more. The men should have asked lor :;l conference instead of leaving a thousand pounds’ worth of material to waste. It was not sportsmanship. A workers’ delegate said the millers knew the men were restive.

Air Armstrong declared that there would he something wrong with the mental make-up of the flax worker if lie did not ask lor an increase like that which other workers were getting. Representations had been made continually to him by both Air Hunter and Mr Hodgens, and he did not think advantage should be taken of the position the men were in. The Government would have legi.sla.ted to cover this but for the fact that the Arbitration Court would be dealing with the matter. In all other industries the men had a remedy in law, but here the flaxworkers wore outside of it. Air McCarthy said it took the best of his cutters to make 12s a day, and he could not pay them more. Air Seifert said he thought the whole thing the result of a misunderstanding. Before anyone could raise wages lie must have the money to do so. Under the existing returns for fibre it was impossible to give an increase. Mr Parry said that raised the question as to whether the industry i\as warranted. Air Seifert said that was for the Government to say. The industry had gone as far as he was concerned. Air Armstrong: AA T e have been listening to that argument since .boyhood from employers in many industries. It was always ruin to concede what the workers asked for. Aon would have paid the men. had the flax industry been included with the others under recent legislation. and you would have managed somehow. ALLEGATION OF AYASTE.

Mr C. L. Hunter asked if the millers had endeavoured to clean up the waste that was going on. He could not see much difference from the nulls as they were 20 years ago. and the workers had to pay for the waste. The millers had not gone into that aspect of the industry properly. He had seen a lot oi waste in the mills. Air Armstrong: I think the whole industry wants reorganising and put on an entirely different basis. Maybe it is not an industry that should bo left to private enterprise at all. However, the Alinister added, the question now was whether the men should start work again. AVhat subsidy did the millers want in order to concede 15s a day? All would admit the millers had had a pretty had spin and sometimes they were exploited by the fellow who had the crop, but the millers must admit the justice of the men’s claim. Unless it was paid there would be no men left to carry the industry along. He thought they would not go back to work for a penny less than they had asked for. Air Parry pointed out that if the owners wanted a higher subsidy it must be one the Government would recognise as worth while to keep the industry, going, but it it was going to reach a point where it would bo too high the Government would employ the men at something else. There were many other industries the Government could take up in New Zealand if they liked to pay the wages of the men, but it would be uneconomical. Mr Seifert stated that if flax was put out dairying would also have to be put out as uneconomical. Air Parry: Is dairying uneconomical at the price paid by the Government? Air Seifert: It depends on what you value the farms at.

Mr Armstrong pointed out that farm workers would now be better off than flaxworkers.

At this stage the conference went into committee to discuss matters. The decision reached was as stated earlier.