ARBITRATION BILL

New Zealand Herald, Volume LXXIII, Issue 22401, 23 April 1936, Page 13

ARBITRATION BILL

"NOTHING TO FEAR" CLAIMS BY MINISTER THE 40-HOUR WEEK PRINCIPLE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday Tho principle of tlio 40-hour week was strongly advocated by the Minister of Labour, Hon. H. T. Armstrong, in moving tho second reading of tho Industrial Conciliation and Arbitration Amendment Bill in the Houso of Representatives to-night. "Under this bill." said the Minister, "tho Arbitration Court is asked to fix n 40-hour week where it is sought, not only in respect of new awards, but also as far as existing awards are concerned, and there is to bo no reduction in the weekly earnings. We know that tho 40-hour-weok principle cannot be applied in the same way in every industry and there may be industries where it will bo difficult to apply it at all, but in most industries wo can apply it. Tho more people we can get working five days' a week the better it will bo for this country." Onus on the Employers The onus would be on the employers, Mr. Armstrong continued, to show cause why the principle of the 40-hour week should not bo applied in their particular industries.. It was the intention of tho Government to introduce the principle to as great an extent as possible and it was the duty of the Arbitration Court to give effect to the will of Parliament. There were industries in New Zealand which had been working the five-day week for some time and the employers had never rogretted it. The Minister referred to one factory in Christchurch whore tho five-day week had been in operation for a long time. The employers had lost nothing by it. The employees were averaging over £5 a week and they were working under splendid conditions. The Christchurch tramways had introduced the 40-hour week for most employees in its workshops and it was the intention to apply it generally as soon as possible. In 1922 the tonnage handled by waterside workers in New Zealand was 6,566,000, the Minister continued. It required the services of 6416 men. In 1928 the tonnage increased to 8,153,000 but the number of men was reduced to 5200. That showed that the shipping companies could have paid the men the same wages for 30 hours' work a week and still have done the job more cheaply than under a 44-hour week in 1922. The Use of Machinery Mr. S. G. Smith (Opposition—New Plymouth): That is due to better machinery. Mr. Armstrong: Of course it is. We live in a machine age and there is all the more reason for a shorter week. The benefit should go to human beings. " Tho value of factory production in New Zealand for the year ended March, 1935, was £79,324,000," Mr. Armstrong continued. " Wages amounted to only £13,244,000, and the total expenses of running the factories amounted to £74,331,000. Wages were only 18 per cent of the value of the goods produced, and 17 per cent of the cost of production. It seems clear that an increase in the wages could not possibly increase the cost of production by more than 1.8 per cent, according to those figures, which were supplied by tho Government Statistician. That would not knock the bottom out of New Zealand." In 1932 the compulsory provisions of the arbitration law had been repealed and the Government of the day had substituted a system of compulsory conciliation and voluntary arbitration, said Mr. Armstrong It would have been much more honest to havo repealed the arbitration law altogether than to have camouflaged it in that manner. Since 1932 the workers had had no protection under the arbitration law. with the result that tens of thousands of men and women were working under conditions that should not be tolerated. " A Better Arbitration Law "

"At on»i time the social legislation of New Zealand was the envy of the world," continued Mr. Armstrong, "but to-day it is lagging behind and there is at present more poverty than at any time I can remember. The purchasing power of the people of this country must be increased in proportion to the increased product'on. Otherwise it is an economic impossibility for them to purchase the goods. "This bill not only restores the arbitration law to what it was a few years ago, but lays down * system of arbitration superior to anything that has existed in the past. There is nothing in the legislation to be afraid of. The higher the standard of living maintained, the bettor for the employers, whether they be manufacturers or farmers. The useful section of tho community has everything to gain and nothing to lose bv this legislation. "If we are not going to give the unfettered right to the workers on tho one hand and the employers on the other to go to the Arbitration Court," concluded the Minister, "then wo are going to finish up in chaos as far as this country is concerned."