THE New Zealand Herald AND DAILY SOUTHERN CROSS. FRIDAY, AUGUST 16, 1901.

New Zealand Herald, Volume XXXVIII, Issue 11734, 16 August 1901, Page 4

THE New Zealand Herald AND DAILY SOUTHERN CROSS. FRIDAY, AUGUST 16, 1901.

Since our last Summary issue there has been great stir throughout the colony in reference to the working of the labour legislation which is on the Statute-book, and also in respect to what is threatened by the Seddon Government. The mass of the people of the colony have hitherto taken but a languid interest in the subject, and, in consequence, the labour unions have been able to enact laws which, if enforced as they have been hitherto, would mean ruin to the industries of the colony. The Act which has so suddenly roused public opinion is the Conciliation and Arbitration Act. This Act purports to be for the purpose of settling disputes between employers and employed, in the first place by a hearing before a Board, and if a settlement cannot be made under the recommendations of the Board then an appeal is made to a Court which has compulsory powers. The Act was a novelty. When the measure was passing through the House it was stated by its author (Mr. Reeves, the present AgentGeneral) that the great majority of the cases would be settled by agreement through the Conciliation Board. This has been proved to be entirely wrong, almost every case having to go before the Court and become the subject of a compulsory decree. The whole working of the Act has turned out quite differently from what its authors anticipated. It is not an Act for settling differences which might arise in any trade. It is an Act for settling by legal compulsion the rates of wages in every trade, the hours of labour, how many apprentices shall be employed, and, indeed, every particular affecting the trade. That is what the Conciliation and Arbitration Act amounts to. And this is attempted through machinery constructed by politicians seeking the 'favours of the labour party—an entirely one-sided organisation. Employers &re compelled to bring their books into Court in order to see if their profits do not admit of higher wages being paid. All attempts to fix these things by Act of Parliament hitherto have proved abortive, and New Zealand will add another instance of disastrous failure. " Conciliation" was, according to its authors, to be the watchword of this measure. But the unions have, time after time, in most trades, made outrageous demands, demands which would have killed the industries, and any idea of conciliation has been impossible. The only thing to be done was to struggle, and capital flies from every industry where there is continual unrest and turmoil. The Act, according to its authors, was to " usher in an era of industrial peace." There never has been such a period of industrial turmoil in any community. The Conciliation Boards are sitting all over the colony at considerable expense, and with the effect of keeping everything unsettled. At first it was thought that one of the judges of the Supreme Court would do all the business of the Arbitration Court in time which he could spare from ordinary duties. Now it has been found necessary to appoint a man who does very little else, and, indeed, the probability is that another judge will have to be specially appointed. The effect of all this turmoil and unrest will be speedily apparent. As an effect of the prolonged contention in regard to the wages and hours in the mining industry, 200 men have been thrown out of work in the Waihi district. The dispute is not yet settled, having been appealed from the Board to the Court, and it is impossible to say when a decision will be come to. Persons here who have hitherto put capital into mining ventures declare that they will not dream of paying calls to comply with the demands of the Miners' Union. The boot and shoe trade enjoys a protection of about 33£ per cent., but within the last two years the importations have doubled, and large orders have recently been sent to America. It seems likely, indeed, that the whole boot and shoe trade of New Zealand will, notwithstanding the heavy protective duties, shortly be captured by the United : States. .

The operations of the Act would not be so disastrous to the colony as a whole if othei circumstances did not attend the mad legislation of the Seddon Government. It must be remembered that many of the industries affected exist on protective duties, and that if labour and capital are driven out of these, the country is probably a gainer. But the Government are threatening everything. Ministers talk about working State coal mines ; about building steamers to carry on the intercolonial trade in opposition to the present service; about establishing State fire insurance. They borrow money in England, and lend it out in the colony. They carry on the public works by co-operative labour parties, and so these works cost three times as much as they otherwise would do, and take three times the time to complete. The consequence is that the healthy stream of English capital that used to come to the colony is stopped, and the Government have to keep things going by continual borrowing, much of the money thus acquired being wasted. The first resistance to the labour legislation was on the part of the country districts, and "Fanners'

Unions" are now being formed all over the colony. The producers of the colony, *those who have maintained the position of the colony during the last ten years, have undoubtedly been sacrificed to the compact labour unions in the towns. But in the future the Farmers' Unions will count for much in our political forces. The Premier himself has become frightened at the monster he has created. We give in another column an abstract of a speech he made a few days ago to a deputation, representing several trades' unions. He said that "if things went on as they were going there would be a breakdown," that the unions were "riding the thing to death. He said also that "employers did not want to be everlastingly in a turmoil,'' which they were being kept in at present. But the Premier must recollect that what is being done is simply to work the Act which he has put on the Sta-tute-book. He has no business to say, " Thus far thou shaft take advantage of the Act, and no further." Moreover, what is now occurring, the loss of capital, the everlasting turmoil which spells ruin to industries, was all predicted when these Acts were being discussed, and were scouted by him as being absurd. Again, his position is grossly inconsistent, for while he is denouncing the disastrous effects of his own legislation, he is promoting in the present session in the Factories Bill and the Shops and Offices Bill more stringent legislation than anything vet passed. We deem it necessary to make these statements in our present issue because this labour legislation has been vaunted in England as having been a great success. It has been held up as a model to be followed in Great Britain. It has been declared that New Zealand owes its prosperity to its labour legislation. The fact is, that the prosperity, of the colony is owing to its production from its lands, and this department has been but slightly affected by the labour legislation. But the injurious effects are beginning to be felt, and if the Acts continue to be worked as they have been, there will be a breakdown. The feeling of the country, roused to activity within the last few months, is already felt in the House, where the Premier had so large a majority. The Government is kept in, but their legislation is kept out. They have not passed any measures of importance, and their new labour legislation is likely to be entirely stopped.