AMERICAN LABOUR POLICY

Nelson Evening Mail, Volume LVI, 23 January 1926, Page 11

AMERICAN LABOUR POLICY

WACF.S iJASKi) ON I'P.ODUOTION (Contributed by the Welfare U-.igue.l The American Federation of Labour at il.i recent annual convention had at: interesting debate over wages and production, which resulted in a declaration that has been called i; new labour policy. The language of the entire ivsolution hardly seems to justify III? claim that any new idea or policy lias had sudden birth, but an attempt within the Federation to formulate a wage policy based primarily upon production undoubtedly is of real importance. The original resolution upon the subject in tlu» report of the committee on resolutions was no more than a general declaration condemning all wage reductions as producing social and industrial unrest and raising instead of lowering production costs. .John P. I'iey. head of the International Moldeis' Union, declared that "the time had come when the position of the trades union movement on the question of wages must be more clearly debited." "We cannot base our wage demands."' lie said, "upon any individual or group conception of the cost, of living. What may be a living wage for one man. may nol he for another. Wages should be based upon the value of what we are creating. Methods of production are continually being perfected, including utilisation of water power, and this should be reflected in the wages we receive."' Frey. therefore, asked that the following addition lie made to the committee's report. "Social inequality, industrial instability anil injustice must increase unless the workers' real wage—the purchasing power of their wagesis advanced in proportion to man's inereasing powers of production." On the following day the new draft was offered and adopted. It. read as follows: "We hold that the best interests of wage-earners as well as the whole social group, are served, increasing production in quality as well as quantity, by high wage standards, which assure sustained purchasing power to the workers and therefore higher national standards for the enviroment in which they live and the means to enjoy cultured opportunities. We declare that Wilge reductions produce industrial and social unrest and that low wages are not conducive to low production costs. We urge upon wage-earners everywhere :■ "That we oppose all wage reduction, and that we urge upon management the elimination of waste in production in order that selling prices may be lower and wages higher. To this end we recommend co-operation in study of waste in production, which the assay of the Federal American ICngineering Societies covering important industries has shown to be 50 per cent attributable to management and only ■2~) per cent attributable to labour, with :'.'< per cent attributable to other sources, principally managements, industries producing commodities for any single industry under consideration. "Social inequality, industrial instability and injustice must increase unless the workers' real wages—the \ purchasing power of their wages—coupled with ;t continuing reduction in the number of hours making up the working day, are progressed in proportion (o man's increasing power of ' product ion." ; The decision on wage policy was unanimous, without so much as a debate. The 101) delegates voted to declare that the American workingman must begin to protect himself against being subordinated to increasing introduction of labour—saving machinery and electric power. They acted on the principle that ihe offset lay in proportionate increase of wages with respect to purchasing power and decrease of working hours. The weight of the pronouncement, in expressed opinions of the delegates, was in the last paragraph. The introduction yesterday of these two principles was what took the convention by surprise and caused it to take the mutter under advisement over night. President William fireen hailed the declaration by saying:: "This action [daces American labour in a most advanced position on wage theories, ft may be regarded as the enunciation of a new idea. It is a position far in advance of any position we have ever taken before. We are the, threshold of a great new era. We are in the infancy of giant power. A new condition is here, and we must meet it, and this is our way of meeting it." A BANKER'S YTEW The Bulletin of the National Cily Bnnk of New York comments as follows: I "Whether or not these declarations are to be taken as enunciating a new and advanced policy seems to depend upon whether the dominant idea is that great possibilities for the labouring masses lie in increased production. or that increased productive capacityis it menace to the neutralised or suppressed in some manner. Does the Federation have a vision of the universal gains to be had from an increase of productive power, and is it inspired' to co-operate in obtaining them, or is it on the offensive? Obviously it will make a great difference which way the influence of organised labour is given. The Frey amendment as originally proposed did not raise this question, but in the resolution as adopted it is nearly smothered by expressions which are suggestive of the traditional attitude of labour toward machinery. The idea of connecting up the working man's advance with increasing production is all to the good. It is not only time that his real gains must come through industrial progress, but that industrial progress, will utterly fail of results and actually choke down for wan; of an expanding market unless there is the widest possible distribution of benefits. All plans for increasing production necessarily contemplate a corresponding increase of consumption, and the only way that consumption can be obtained is through a constant increase in the buying power of the masses. Broadly speaking, everything produced in all the industries must be sold back to the people engaged in the industries, for there is no other way of disposing of the output. Questions may be raised as to the "elative distribution between proprietors and employees, but the proprietors are not running their works on the theory that they are selling their products to each other. They are all striving for the broadest possible market, and thai can be had only through the purchasing power of the masses. Therefore there can be no controversy over the proposition that "real wages"—the purchasing power of wages —must increase in proportion to man's increasing power to production." h is the basic principle of the existing order of society. It is in line with all experience. It is a declaration in favour of just what has been l.ak;ng place pver since capital began to he used for increasing production. .Mr Frey's original statement and amendment are entirely sound and unexceptionable. It is true that wages

cannot be bused upon a theoretical conception of the standard of living. It is certain that nobody will pay wages verv long unless they are covered by thc'value of the services render,d: 'not ii cu a Socialist state could do thai. CONTRAST WITH NEW ZEALAND What give* food I'ot thought to u., in New "Zealand id the contrast ol poiiev enur.'dated by this great i'"ed eration of Labour in America and the generally pronounced Labour policy hire, and in Australia. L'nder our Arbitration Law. and apart from it. we are constantly engaged in settling wag.' standards '"upon a theoretical conception of the standard of living." The idea of the basing wages on tic value of output and seeking from increased production advancement in Labour's benefit is a view we seldom find expressed by any Labour L'nion in these Dominions. The New Zealand Alliance of Labour made a pronouncement on wages which was founded solely on" the cost of living basis. Ciu'ons and their nflicers have followed suit. The question of relation between the work given and the wages received is passed over. Still it is only from the production that wages can be paid. Fuiployers and employed might well consider whether greater general benefii will not result from giving more attention to production and relying less on the speculative basis of the cost of living. High production, elimination of waste, good wages, and lowered prices are ideals of labour in America which could be tried her. we think, with advantage.