STATE ENTERPRISE

New Zealand Herald, Volume LXXV, Issue 23029, 5 May 1938, Page 12

STATE ENTERPRISE

BODY BUILDING WOBK WPROTEST BY EMPLOYERS : j UNFAIR COMPETITION ALLEGED [by TELEGRAPH —OWN correspondent] "WELLINGTON, "Wednesday An emphatic protest is to be made to the Government against interference with the interests of the coaehbuilding industry in New Zealand. This decision was made at the twenty-fifth annual meeting of the New Zealand Coach and Motor-body Builders' | Federation at Rotorua. "During the past year," said Mr. J. E. Hunt, Wellington, in an address to the conference, "349 motor-bodies were built for various Government departments, and of these about 33 1-3 per cent were built either by . the Railways Department or in the Post and Telegraph Department's workshops. "If the Government departments are doing the work more efficiently than the recognised industry, then no one can complain, but it remains to be proved that this is so. The most im- . portant question, that of the cost, either to build, or to the using depart- ' ments, cannot be ascertained from the Government. Government Advantages "Fair competition is always welcome, because it leads to greater efficiency, but unfair competition is to be deplored. Private firms compete under identical factory conditions, and the rates of wages are also regulated by awards, but when competition is sheltered from such conditions and given unfair advantages, it is claimed that it is downright interference. In three important matters Government departments have an advantage over private firms; these are the rates of remuneration, holiday pay and the training of craftsmen.

"first, all Government departments are free from the Court of Arbitration award conditions. Awards and agreements between employers and employees have always been desirable, as a basis from which all competitors should start. If such conditions do not apply in Government workshops, not only are the workers receiving unfair treatment, but the Government workshops are not operating on a fair or relative basis. It may be argued that the Government employees receive many advantages, but I suggest that the costs of these are not taken into account when the production costs are computed. Training ol Craftsmen "An undesirable feature of the Government interference with our industry is that we, the private employers of this Dominion, have been called upon to supply the craftsmen for the various Government body-mpking activities. No one can object to tradesmen taking employment which appeals to them, but there is a duty devolving on employers to train craftsmen to meet the growing demands of the industry. "The training of craftsmen is undoubtedly important in any industry, but we submit that,<-if the Government proposes to enter into the motor bodybuilding trade, then the various departments should train there the full quotas of apprentices required. As matters now stand, the private employers are training all the apprentices, only to have them taken away by the Government departments—all this in spite of governmental desire to have youths trained. "To sum up, the two Government departments that are competing with us, or rather are engaged in the same work, have unfair advantages, in that all Government work reaches them as a right, competitive quotations are not obtained, and the conditions are not identical. We cannot cavil at Government activities if all things are equal, but it appears we are going to "be barred from partaking of Government business while still carrying out the obligations of private manufacturers,"