“LIMIT REACHED”

New Zealand Times, Volume XLVI, Issue 10507, 7 February 1920, Page 9

“LIMIT REACHED”

THE RAILWAY INQUIRY DEPARTMENT DEPRECATE “WILD CHARGES.” OVER U MILLIONS TO SATISFY DEMANDS-

The .Railway Inquiry Board—. His Honour, Mr Justice Stringer (chairman), Mr A. W. Mouatt (assessor for the llailway Department), and Mr G. Matthowson (assessor for the railway officers) continued its sittings jesterday. Mr J. Macdonald appeared for the Railway Department and Mr R. U. Morgan (secretary) for the Railway Officers’ Institute.

Mr Macdonald, replying on hehalt of the department, said that ho was disappointed at the manner in which the institute had presented its case. Thcro was a regrettable absence on the part of some of the speakers of the fairness and moderation which had been conspicuously a characteristic oi the previous executives of the institute in their relations with the man-, agoment. A marked disposition haa been shown in support of many of the claims to quote instances as typical which it had subscouontly been admitted were exceptional, and ho had no hesitation in saying, extreme. Nothing, he submitted, was lo bo gained by such tactics, which tended to obscure the real issue. The past and present 'management of the department, he claimed, had given too many evidences ' of practical interest in the welfare of the staff, too many instances of a desire to deal fairly with all the members, to fear any wild charges such as two or three members did not scruple to make. THE CHARGE OF “SWEATING.” It was reserved for a member of the Officers’ Institute, to which he onco considered it an honour to belong, to come before the .board and charge the department, in effect, with sweating clerks at stations for the purpose of augmenting its revenue. A charge which was as baseless as it was mischievous, carried its reputation on its face, and it would be sufficient to meet it with a mere denial. But ho submitted in reply a statement made by -a gentleman who, for seven or eight years, nntil a few weeks ago, hold the honoured position of president ot the Railway Officers’ Institute. Ho said to the general manager at a conference:—“l may say in regard to the General question of excessive hours ot duty that the Officers’ Institute has a great deal to thank the. department for in adjusting these matters of excessive hours. During the last few years you have made very great Improvements in that direction. I think that in nearly every case we have represented, improvements have been effected. I understand that there are a few stations that require adjustment still, it is a position that may bo only a temporary disability.’’ His Honour: When was that said? ■Mr Macdonald: That was in 1915. Continuing, Mr Macdonald stated that where the department’s schedule differed from the original demands of the institute was in the maximum salaries attached to higher grades, and the reason for this was that the originating cause for a revision of wages conditions at . this time was the rise in the cost of living. The department had practically met the institute on its own terms for the grades mainly affected by the cost of living; and, while granting material increases to the higher grades, did not go the whole length of the institute’s demands. , The arguments which had a compelling force in the lower grades lost their urgency, ho submitted, as the salary rose and as the margin available between Hie actual coat of living and tile total salary increased. Comparing the old ■ and the now schedules, he maintained that the scale granted was favourable, and applied to the clerical staff in all sections of the Public Service. ADMINISTRATION OF SCALE.

Tile suggestion had been made in evidence that the administration of the scale by the railway management compared unfavourably with . that of other djepartmenlts, fbuib the witness found himself unable to quote any dear instances in support, except those of the' audit inspectors. It must be obvious to ithe board, however, that the assessment of the value of the services rendered by men in various positions in the State departments was a matter for the administrative officers to decide. No parallel could be drawn between officers performing widely varying duties, and oven in the cases quoted the parallel was anything but exact. Ho contended that the scope of the duties of an officer of the Audit Department, who had to bo an expert in the accounts, not only of every State department,, but also of local bodies, was much wider than the scope of the duties of a railway audit inspector, who required little accounting knowledge beyond what was needed for the accounts of tho Railway and Postal Departments. Grades and suihgrades, _ho submitted, did not correspond, and married men should ho the first consideration of the department. The ago of marriage he put provisionally at 25, at which ago after 10 years' service tho employee would bo receiving £240, as against the limit under tho old scale of £IBO. And ho did not stop at £240. RIGHT UP AGAINST IT. Referring to the representations on behalf of a clerk getting £270, who. ho had stated, was right up against it and had to sell his piano to pay tnc doctor's bill, the department’s scale of pay did not profess—any more than any other employer’s scale would— to provide a margin for all domestic emergencies. The margin between £270 and tlie basic wage was sufficiently great to render any further notice of the president’s remarks on that point unnec-

ossary. The president had remarked 1 that tlie department and the institute were both anxious to give the efficient men opporuuitics to gut to the top, an.d asked the department to consider ■the reward in such cases. Tin’s, he claimed, the department had done in the 1919 D 3 (railway classification list) an examination of which would disclose that a number of officers were promoted and had their salaries increased to a considerable extent. Promotions bad since been made which would have been included in D 3. IMPORTANCE OF DUTIES. G refit stress had been laid upon the importance of the duties performed by the clerical branch of the department in respect to dealing with the movement of trains and to cither matters coming within the functions of the station staffs. But it should he unnecessary to point out that only a section of the clerical staff came under that ncad. A very large section performed merely clerical duties of a routine nature, and certainty of no greater importance than clerical work in any cither business. Certain important duties, of course, had to he performed by the members of the staff dealing with the movement of trains, but that was not peculiar to the clerical staff. Such duties were shared by all the men who had to deal with the movement of traffic. Precisely the same responsibilities, in varying degree, fell upon the ganger, the guard, the signalman, the shunter, and the driver. The witnesses had emphasised the fact that the improvement in the portion of the staff must bo dependent upon the administration of the scale rather than upon the scale itself. That was obviously quite true, and to a very large extent destroyed the force of the argument for any alteration of tho present scale. Further, it only remained for the department to ho satisfied of the higher value of a position to ensure a higher salary being attached to it. This, therefore, reduced tho institute’s demand for a higher rate for tho lowest grade on the ground of the increased cost of living. THE DEPARTMENTAL “NO.”

He wished to make quite clear to the board the attitude of tho department to the claims made by the railway societies before tho board. Owing to tho fact that the replies of the department had been in tho negative, there was a risk of the fact being misconstrued by the public and of the department being charged with lack of sympathy. The departmental ‘‘No” had already boon mentioned, and it might be taken to mean that the department took no trouble to understand the aims and aspirations of tho staff. Bulb nothing could he further from tho truth. The management recognised that a high standard of service such as was required of a staff carrying' the special rethat railway employees carried, could not be obtained if the men were -discontented. The management would be failing in its duty if it neglected any opportunity of conferring with the societies representing the employees, and it .discussed and met their requests as far as they were reasonable. For a number of years past regular conferences at frequent intervals had taken place between the representatives of the various societies and tho department, and tho discussions had been carried on in a perfectly amicable manner. The management had given evidence, bo claimed, oi practical sympathy with the men; and the representatives of the men bad shown an •intelligent appreciation of the difficulties of-tho management. It had been recognised on both sides that some of tho claims of tho men had been put forward rather as ideals to- be aimed at than were any expectation of their being granted at the time. But, on the whole, the records of tho conferences showed that the relations existing between tho men and tho management were of an amicable and oven of a cordial nature. There had been evidence throughout this case on the part of the representatives of the societies of a continuance of these relations. Mr Hampton had dbated to the board that his society had no desire to break off the negotiations, which hud hitherto been satisfactorily carried on with the General Manager. THE EXPLANATION. The explanation of tho apparently uncompromising attitude of the department to the claims placed before the board, was the fact that the department had in tho Government Railways Act. passed not two months ago, made very substantial improvements in the pay and in tho conditions of the staff in regard to overtime and night rates. It was not necessary to enumerate these. It would be sufficient to say that, in addition to the war bonuses paid to the Stall, a sum of over £200,000 bad in consequence been added to' the oxpoudituro of the department. Those concessions had been made after conferences between the employees’ societies and the management. The ' management bad considered the claims carefully, and after giving full consideration to the oircumstances, not only of the department, but of the country, it was decided that the improvements made were as far as tho management could go. It was pointed out, however, to all the societies that there was no desire on tho .part of the management to adhere rigidly to tho decision in tho event of the cost of living still advancing. It was made quit© clear that if the circumstances should materially alter tho whole question would be re-opened, and further improvements made to meet the change of condition? The' present claims, therefore, and the attitude of the department in respect to them must be viewed in tho light of tho improvements already granted, and of tho fact that there had -been submitted, no such material cliange in tho conditions of life as would Justify- a revision of the provisions already made. The department, he maintained, had already gone as far as it reasonably could, and had granted as much as was possible, without adding to the Kites and faros. The management fully recognised its obligations«to pay a living wage; but, it was submitted, by the rates it paid for unskilled labour, it was now discharging that obligation. In this connection, the board would of course, take into consideration tho special privileges enjoyed by railwayman on tho permanent staff, already enumerated and including security of tenure; all of which, it was submitted, were factors when comparing the wages paid by the department for unskilled labour with the Wages ruling outside. With regard to security of tenure, ho again reminded tho hoard that during the recent coal out when tho services were cat down by 50 percent. not a single railway employee was called upon to suffer in any way in respect to the pay that ho would have earned under ordinary conditions. £1,030,000 REQUIRED TO MEET TOTAL CLAIMS. It was estimated that . t-he amount required to meet the claims of tho First Division would exceed £300,000 per annum, and that the aggregate sum required to moot the claims of. the three societies was £1,630,000. That must bo regarded ns an approximate estimate only, because some of the claims were of such a nature as

to render it impossible to ascertain the exact cost without making very extensive investigations. He must add ■that the amount given did not include the coaU of granting tffio extended leave asked for by tho Second Division societies, which would bo in the vicinity of 1350,000 for tho first year, and involve a recurring annual liability of close on 11100,000. It would be Been that the sum mentioned would more than absorb tho 'whole of tho net income of the department, which last year amounted to £1,080.000. It bad been argued that tb© management of tho Government had no right. ,va keep dawn tho rates of pay merely to enable tho public to obtain a cheap service. That, of course, was undeniable; but, on the other hand, the employees of the State had no right to expect to ho paid at a rate largely in advance of the ruling rates of pay outside tho department for similar clashes of labour. Under no circumstances would the management be justified in accepting tho responsibility for what could only be considered as extravagant rates of pay to the staff. But there was a limit to the extent to which 'wages could ho raised, even whore the State had, as in New Zealand, a monopoly of rail transport; there w-as a limit to the extent to Iwlnich Il'ich rates of pay could be passed on the public. Railway rates all the world over wore based upon the principle of “charging what the traffic will hoar.” The cost of carnage upon goods of high value added a very small fraction to the selling price ot tho article; hut freight upon goods of low value, such as raw materials and agricultural manures, added very considerably to tho cost of the article, at its destination. So much was this the case, that there was a more or less defined radius beyond which it was unprofitable to the owner to rail goods of low- value. The board would, recognise that to add materially to the rates for such goods, apart from tho serious effect that it would have upon tho industries and the productivity- ot the country, would in the long run result in tho Railway Department losing tho traffic, quite apart from the clement of competition. COMPETITION TO BE MET.

On this point ho directed the attention of the board to the effect of the recent increase of the railway rates in New South "Wales upon the non-work-ing industry at Lithgow, w-hioh announced its intention of closing down if the higher rates were maintained. - There w-as, however, the question of competition to bo considered. The geographical position of tho principal towns throughout New Zealand offered special facilities for sea competition. In the South Island, for example, there were good harbours on the average every GO miles, and no inland] towns as yet of great size; and tho competition of motor vehicles had to be taken into account. In America, where tho roads w-ere go.od, there was successful competition by motor with the State railways, to distances of 300 miles. The possibilties of road motor competition against the railways w-as shown by the recent railway strike in England. By road conveyance the inconvenience of tho strike was reduced to a minimum. With the improvement in the construction and tho upkeep of the roads in New Zealand, it was inevitable that motor- traffic would play a in competing with tbit State railways, and nothing‘was more certain to stimulate the development of such competition than high freights. That, ho maintained, would not bo in the interests of tlie country nor in the interests - of tho railway- staff. ’lll the former, ease, tho people would bo called upon tp pay a liigher cost.for tho upkeep of tho roads subjected to heavy traffic which fcould be better carried upon tho State railways; and in the latter case, tho staff would ultimately ho the losers. They w-ould' bo giving assistance to a competition which would inevitably curtail their opportunities of earning a livelihood.

UNFAIR. TO CHARGE TAXPAYER.. It had been suggested that tho' increased charges involved in tho societies’ claims could be passed on to tho taxpayer; but that, ho maintained, would bo very unfair. Railway services could not bo regarded as services .rendered to tho taxpayer as such. In tlie ordinary course, the users of the railways should pay. He submitted that tho economic condition of tho country was such that additional expenditure for salaries and improved conditions could only ibe justified on tile plea of urgent necessity ; and he contended that all cases of such necessity had been met by the Railway Act of 1019. ' ■SHORT STAFFS AND SUNDAY' WORK.

Mr Macdonald called Arthur Herbert Laughlan, district traffic manager, Oliakuno, who stated that ho had never had a single instance of any reasonable application for an increase of staff not being approved and granted by the general manager. Such an application from To Awamutu, dated January 31st, was being looked into, and if found reasonable would bo granted. Tc Kuiti applied for an increase when the new railway service was started, and the increase was granted. An application from Waimarino was now being considered. He had had no complaints from other stations. It was absolutely absurd to suppose, as had been suggested, that any otationmastor would prejudice his chances in the service, or find his promotion blocked, if bo made a reasonable application for an increase of stuff. As a general thing there were no complaints as to Sunday duty; but there had been requests for overtime for such work. In his opinion, if the officers kept their work up during the week, there should not, under normal conditions, be any necessity for Sunday work. Of course, some officers liked to work on Sunday. They preferred to have Saturday afternoon off to play bowls and to make up for it on the Sunday. UNRESERVEDLY WITHDRAWN. Mr Donnoby (president of the Officers’ Institute) «aid that ho unreservedly withdrew the statement made by a witness to the effect that the department was sweating its employees. His Honour: I am very glad to hear that. Mr Donncliy thought that His Hon our would appreciate the peculiar position in which they were placed fore such a tribunal. They wore speaking mainly under stress. He thought that Mr Macdonald had given Mr Roll’s statement a colour and a meaning which it hod not convoyed, to his (Mr Dennehy’s) • mind at any rate. As president of the institute and on behalf of his colleagues, he said that they looked upon it as their duty to do everything they could to protect the interests- of their members, even at tho risk of occasionally making a slip. And, if they mado a slip, they would withdraw it. His Honour: That is quite the rightattitude. Replying to Mr Morgan, Mr Laugh-

lan said that no other cases for complaint had been brought under his notice. It was tho first he had heard of a feeling that a stationmaster’s chances of promotion might 'bo blocked if he asked for an increase of staff. Ho was very much surprised to hear it. He had had no knowledge of it before.

His Honour: Wo should have a very low opinion of intelligence of a stationmaster who argued in that way. Mr Morgan: The service is run very much hotter than it was twenty years ago; but these feelings die hard. Mr Laughlan thought that the institute should endeavour to discharge the stationmasters of them. Mr Morgan : So wo do. Replying to Mr Morgan, the witness said • that ho considered that forty, eight hours would he a fair week's work.

Mr Casey stated the position of tho institute in regard to compulsory retirement at the ago of sixty, to avoid blocking tho chances of promotion of tho younger men. With regard to superannuation, he suggested that half of tho allowance should he allocated to the wife and half to the retired railway servant, so that tho wife would still have her half if her husband died, and vice versa. Mr Bell explained that he had not meant his statement as to sweating to bear the construction put upon it by Mr Macdonald. Mr Morgan briefly replied on behalf of the institute, and at 12.50 p.m. the board adjourned till 10 o’clock this morning, when the case of the A-S.R.S. for compulsory retirement at sixty years of ago will he presented.