LOWES SHEARING RATES.

New Zealand Herald, Volume LVIII, Issue 17881, 8 September 1921, Page 6

LOWES SHEARING RATES.

imapSST'.OV THE CGTJET,

PARITY WITH,OTHE« WORKERS

SEDUCTION OF 20 PEE OENT.

EXTRAORDINARY CONDITIONS [BY TELEORAPH—PEBSS ASSOCIATION. 1 WELLINGTON. Wednesday. The judgment of the Arbitration Court upon the case of the shearers and shed hands was announced to-day. The members of the Court were divided in opinion, but ultimately the employers' assessor concurred with the decision of the president, with the result that the old rates have been reduced- The Court has added to the present rate of 20s per 100 the accumulated bonuses, totalling 2s 2d a day, and deducted 20 per cent, from the total of rate, plus bonus, leaving the average shearer or shed hand with his relative in crease on the same scale as workers in other industries, as well as giving him a reasonable allowance *to meet the in creased cost of traveling and maintenance. Mr. J,- A- McCullough, the em ployees' assesses, dissents from the decision. The award is not available, but a memorandum by the president, tlis Honor Mr. Justice Fraxer, which deals with the subject iSully, is as follows:— " The Court has considered the evidence and the argument* placed before it at the hearing of the dispute in Dunedin, Christchurcb and Wellington. In each centre the union's claim was for increased rates, while the owners' claim was for a reduction of the shearing rates from 30s to 2Qs per 100, with corresponding ieductions for shed bands. The members of the Court were divided ip opinion. Mr. Scott considers that on account, of the present financial stringer cy and the disastrous fall in the prices of wool, skins and mutton, no rates should be fixed for the ensuing season, thus leaving the matter to be adjusted between individual emecyera and their workers. Mr. McCuiugh, on the other hand, is of opinion that the present rates should be maintained for the ensuing season in view of the Court's pronouncement in regard to the May, 192 L bonus. Protecting t>he "Workers.

"I am therefore alone responsible (or the decision pi the Court- I d# not think it proper to leave wages unsettled in a time of depression, more especially in the ease of an industry suffering more severely than others from depression. The duty of the Court is to protect buth employers and workers as far as it is able to do so and the effect of amitting so provide tor rates of wages would bo to leave vorkera entirely in the hands of their employers. While most sh«ep farmers would, I have no doubt, treat their * workers fairly, some of them, owing to the pressure of financial conditions, would take advantage of the sorp.ua of labour to cut down rates to an unfair extent. That there wU] be a surplus of labour this season seems extremely probable, for the evidence given at the hearings in the various centres indicates that a >a*ge number of sheep owners wi 1 co-operate this year in the work of shearing. "On the other hand it is out of the questio-i that the. present rates should be maintained. The Court has indicated it wil, wherever possible, maintain wages at the existing standard until April 70 next, but it has also intimated it can only state the principle that it wishes to to low arid that H cannot control financial and e onomic'conditions. It has recently refused an application to riluce rates for imis terers during the cur.ency of an existing award, but in the present case a new award was being applied for and the Court must view the matter from a 1 sides and make ite award in accordance with the conditions it finds to exist. Disproportionate Increases. "US it had been the case that shearers and shed hands hsuT, received no more than the increases equiva'ent to those granted in other indrntries, to meet the general increase in the cost of living, and the improved standard of living over a period of years, I would have found H very difficult to reduce their rates at the present time. In going through earlier awards of the Court, however, I find that shearers in '1904 were granted a rate of 15s per 100. That rate has gradually risen until it w now 30s per 100. To take a tßbstconsiervative estimate, making generous allowances for wet weather and time lost in travelling between stations, an average shearer shears 450 sheep a week. This, at IBS per 100, works out at/£3 7s 6d a week; at 30s per 100, it conies to £6 15s a week. To each of these weekly estimates has to be added an allowance tor rations and accommodation, worth at present, say 28s a week. Now, taking otSter awards made about I9fj4 # when the shearers' rate was fixed >at 15s per 100, 1 lind that the average wages granted to workers of a similar grade were £2 a week lower than in 1921. These wages, furthermore, were 'dry' wa g?s, without, allowance for rations. The shearer then has benefits to the extent of £3 7s 6d a week, apart from the increased cost of rations, while others have benefited to the extent of £2 only. Unprofitable Industry. " The explanation of the difference is pot difficult to find. From 1906 the price of wool rose steadily and during the war the commandeer price was based on a 55 per cent, increase over 1913-14 rates. Sheepfarmers were prosperous and shearers' rates were increased from time to lime in sympathy with the increasing returns received by farmers. There was to all intent* and purposes a system of profitsharing. At the present tima the gross return to I lie New Zealand sheep-farmer for his wool is below thai of 1906, and his net return, owing to increased costs, is far below that of 1906. Since May, 1921, he has experienced a disivstrous fall in prices and quantities of wool of the lower grades are not now worth the cost of shipping and sale. The Australian farmer, with his finer wools, is not so seriously affected by the fall in prices, but m New Zealand 39 per cent, of the sheep are crossbred, and the greater part of the wool is medium and coarse m quality. The New Zealand sheep-farmer has carried on during the 1920-21 season with vanishing profits and in many cases at actual loss, and the present financial stringency has added to his difficulties for the 1921-22 season. Wages on General Standard.

" There is no prospect of any material increase lor some considerable time in the prices realised for New Zealand wools, and it is, in my opinion, just and reasonable that shearers and shed hands should be awarded the 19X4 rates, with an mcreasi to meet the additional cost of living, and in accordance with the improved standard of living, similar to that granted to other workers of similar grada between 1914 and 1921, and should relinquish the added amounts conceded by owners and awarded by the Court in times of prosperity. Farm hands throughout the Dominion, who had benefited during the prosperous years, have accepted reduced wages during the present year, and it most be recognised that similar cond lions at such a time as the present must apply to sheareTa and Bhed hands, except that the Court limits .he rate of reduction in their case. " It is quite erroneous to imagine that the average sheep farmer is a wealthy man. The average flock in 1886 numbered 1659. and in 1920 it numbered 998. In 1891, 2 7 >9 farmera owned from 10,000 to 20.000 sheep each, and 169 owned over 20.000. In 1920. 139 owners were in the 10,000 to 20.000 class, and only 25 in the over 20,000 class. Excluding 21,946 owners who owned fewer than 2500 sheep apiece in 1020. and presumably did not in the majority of capes engage shearers, there were" in 1920 1314 owners with flncks numbering from 2500 to 6000 and 536 with flocks numbering from 5000 to 10,000, as against 164 owners whose flocks exceeded 10,000 in number. Tb.a

Wjir profits of the smaller sheep'farmers 4id. not leave a great deal over after pro Tiding for"' increased -coats and charges and the increase ia their own cost of Jiving. The larger owners were com* PsUed to pay increased taxation and to take invsstinent stocks, :; which,; have now depreciated 17, per cent, is] value. I am not, However, specially conr ©eroad at the present with the larger sheepowner, though I recognise that the] financial stringency renders it as difficult for him to obtain ready money as for the emailey I am principally concerned with the average sheepowher, whose position to-day, in spite of com* parative prosperity daring the war, is exceedingly serious. lam satisfied that the case is one in which the circumstances are extraordinary, and that it is accordingly not one to which our stabilisation pronouncement applies. "During the currency of the last award the shearers did not apply to the Court for the costK>f-iiving bonus, though the shed hands appUed for and were granted the usual bonnaee. I propose now to add to the present, shearers' rates (30s per 100) the accumulated bonuses (2d 2d per day), which in many cases were paid voluntarily in the past, either as bonuses or as to the award shearing rates, and to deduct 20 per cent! from the total (rates plus bonus), for shearers and shed hands alike This will leave the overage shearer or shed hand with his relative increase on the same scale as workers in other industries, as well as giving him a reasonable allowance to meet the increased cost of travelling and maintenance wh.Ue travelling from station to station. The term of the award will be shorter than usual—seven months—so that the matter can be reviewed after the close of the ensuing shearing season. "As it is necessary that two members of the Court should concur before a decision can be given, Mr. Scott has formally withdrawn hi* dissent. Mr. McCullough. however, desires his dissent to be recorded." It is stated authoritatively that, except for the matters mentioned in the memorandum, the old award wCI be renewed It is estimated that, taking the average shearer's output as 450 a week, the reduction in wages will be 16s 6d per week— £5 IBs 6d instead of £6 15s.