TRAGIC FOLLY

New Zealand Herald, Volume LXIX, Issue 21274, 30 August 1932, Page 9

TRAGIC FOLLY

COTTON DISPUTE NO SETTLEMENT YET STRIKE IN LANCASHIRE MORE TO BE IDLE SOON CUT ACCEPTED IN ITALY By Telegraph—Press Association—Copyright (Received August 29, 5.35 p.m.) LONDON, Aug. 29 The newspapers denounco tho tragic folly of the cotton dispute. There is no prospect of an early settlement, and a further 200,000 operatives shortly will be idle if the present situation continues, A message from Rome states that the employees in the cotton industry in Italy have accepted a 10 per cent cut in wages. This affects all but the minimum wageearners. The agreement is welcomed as a triumph for tho Fascist policy—which, while it forbids strikes, safeguards the lower paid workers—at a time when the cotton industry countries are paralysed by strikes. Early last month it was stated that whereas a beginning was likely to be made in clearing up the confusion in the manufacturing section of the Lancashire cotton industry, a new movement for an attack on labour costs had sprung up among the employers in the spinning section. The "parlous state of the cotton industry" was discussed by the General Committee of the Federation of Master Cotton Spinners' Associations. Among the questions reviewed was that of an all-round wage reduction. No decision was reached, but, it was reported that the federation was likely shortly to table a demand for wage reductions and for other alterations in working conditions. This was eventually done. Prior to the present strike the industry was working without an hours agreement, as the 1919 agreement was terminated about seven months ago. "If any new agreement is fixed up," said a member of the committee, "it must take account of the changed conditions in Lancashire spinning mills in recent years. It will not be an easy job, bub it has to be faced."

The wage reductions on the manufacturing side continued to extend. They were most numerous at Blackburn, where three-quarters of the mills were running at reduced rates, but they were also spreading to Burnley.. Messrs. Bichard Stuttard, Limited, of Byreden and Primrose Mills, which contain nearly 3000 looms, posted notices on July 1 of a 12£ per cent cut in current wages, equal to about 2s 6d in the pound. Other mills followed suit and the climax has como with the operatives' refusal to accept the employers' terms.

Speaking to a meeting of the Conservative Parliamentary Party in the House of Commons recently Mr. S. S. Hammersley, member for Stockport, said the immediate need of the Lancashire cotton industry was some reduction in surplus productive capacity. The redundancy scheme had failed, and for the moment nothing but economic attrition took its place. The process could be facilitated if the joint-stock banks would agree together on a plan whereby a definite proportion of the less economic mills which they controlled should be scrapped. In addition, a large proportion of the mills in the Lancashire Cotton Corporation should be scrapped. This would bo the prelude to getting the size of the industry in co-ordination with the requirement of the world. Thereafter it might be necessary for the Government to play a more active part in the cotton trade. If that industry continued to decline piecemeal interference was worse than useless. For the time being the organisation of the Lancashire cotton trade had better remain free from further Government interference.