NEW ZEALAND EMPLOYERS' FEDERATION.

Otago Daily Times, Issue 17502, 19 December 1918, Page 5

NEW ZEALAND EMPLOYERS' FEDERATION.

ANXUAL ' MEETING. (Per United Press Association.) WELLINGTON, December 18. Tho annual conference of the New Zealand Employers' Federation opened to-day; tho president (Mr T. S. Western) in the chair.^ OFPICKRS. Tho following officers were elected: — President, Mr T. S. Wcston (Wellington), elected for fifth term; vice-president, Mr A. C. Mitchell (Wellington); treasurer, Mr H. CouU. REPOBT. Tho annual report stated that while there had not beon any outstanding labour troubles, there had been evidence* of a movement to break do\yn tho system of conciliation and arbitration at present in operation in New Zealand. This was promoted by the more militant section of organised labour, and had been supported latterly by a number of what are termed arbitration unions. The Arbitration Court was established contrary to the wishes of employers, and in their opinion had consistently strained its powers to cnablo it to grant every concession to workers it legitimately could. The position employers at present found themselves in was that they were bound by the provisions of industrial agreements and awards, while the workers —or their representatives—observed them and were only bound by them so long as it suited their purpose. This was amply demonstrated in the cases of tho seamen, coal miners, and Wellington train - waymon. all of whom were parties to recently-made agreements or awards which they repudiated as soon as they found it convenient to do so. The .authorities took action againsttho officials of the Seamen's Union, but did not do so in the case of the miners, nor was there any indication of proceedings being taken against tho Wellington* tramwaymen for their undoubted breaches of both the industrial agreement and ths Industrial Conciliation and Arbitration Act. "Employers were of tho opinion that in such cases prompt action should be taken to ensure a, due observance of the industrial laws of tho dominion, and that agreements or awards should be equally binding on both sides. At the Labour Conference in Wellington in July last proposals were adopted having for their main objects the formation of one big union, and tho right not only to strike, but to call all workers out on strike for even the most trivial reasons.

Movements in Great Britain with the end' in view of bringing about better relations between capital and labour were many and varied. Several of the affiliated employers' associations had given considerable attention to the matter so far as New Zealand is concerned. Both Parliament and people had decreed thatthe unfortunate industrial and social conditions which obtain in some other countries will not get a footing in New Zealand. Tho result was that with advanced labour Jaws, the minimum wage clause operating- in practically every trade and calling, and with conditions of work unsurpassed in any other country in the world, the workers' lot in this country compared more than favourably with" other lands. That being the case,"there was not the opportunity to grant many further concessions, and so long l as Labour leaders deemed their duty first and last to bo to secure still frgher wages, shorter hours, and more restrictive conditions of work, without a corresponding improvement in the quality and quantity of output, there was not much encouragement fr>r employers to them in conference. On f.he other hand", it was believed that if employers would make it their business to ret into closer personal touch with thsir individual employees, and by some means offer "renter incentives for increased energy and" application to work, it should result in benefit to all concerned The solution of the matter was an entire change in tho mental and moral attitude .of both employers and workers to each other. One of the lessons of tho w-ar was that if the British Emnire is to secure and maintain commercial supremacy, it is essential that .arrangements should' be made in all tho dominions and colonies as well as in Groat Britain itself for effective scientific and industrial research. Last session there was laid before tho New Zealand Parliament a report on schemes in operation or about to be started in various parts of the world. _ The New Zealand Institute, after some inquiry, made recommendations to the National Efficiency Board, suggesting that a board of science and industry, with local committees to assist, should be sot up, and that an adequate sum should hi. voted by Parliament to enable these bodies to carry out their duties in a manner which would be of benefit to the dominion. Following the address given by the Hon. A. L. Herdman at last annual meeting, arrangements were made whereby each association was able to assist the officials of the Discharged Soldiers Information Department in placing returned men in work, and thus assisting them in their, return to civilian life. Good work had been done by the department mentioned, but tho time had come when plans for greater activities in that direction should bo made It was admittedly the duty of those who wore unable to fight their country's battles at the front to see ,to it that those who did were not sufferers thereby. It was suggested, therefore, that this federation—consisting as it of employers of labour —should take such stops aa will ensure adequate arrangements being made to secure tho desired end.

During- the year the Trades and Labour Councils had mado representations to tho Government proposing amendments in the law, a number of which, if adopted, would deprive employers of tho safeguarding clauses granted by the court after the fullest inquiry, and which have operated satisfactorily for several years. The main object, of tho proposals," which -were supported by technical school directors, was to secure time off for apprentices to attend technical schools during working hours Looking to the short hours cf labour, and the conditions of life in New Zealand, tho better plan would be to errant higher wages to those apprentices who have proved themselves to have taken advantage of the technical classes, rather than to allow all apprentices, whether idle or industrious, time off during working hours to attend technical schools. PRESIDENTS ADDRESS.

In the course of his retiring address the President, after referring to the problems that must arise in the reorganisation of society after the war, urged the necessity for returned soldiers to throw their weight into the scale on tho side of stability and disciplined control. The report submitted to the Labour Party by its executive at tho Nottingham Conference this year was an able one, and •woll worthy of careful study. After settiug out certain immediate aims m practical politics that are already largely enjoyed in Nov.- Zealand, such as "the nationalisation of railways, State control of electric power, State mines, female suffrage and a minimum wage, the report declared against a gradual amelioration and improvement of tho present structure of society as being more patchwork, and urged that for tho present principle of individual selfinterest, communistic interests should be substituted as the basic principle setting in toroe and controlling individual effort From the earliest pariod of village communities the main motive producing the best individual effort had been love of family and its security and advancement. Abolish private ownership and private reward, and this great evor-actmg incentive, which produces the virtues of industry, thrift, temperance and honesty, in tho main went The social change suggested-required the α-cation of a man witti new feelings and different desires. J here was no provision in this Labour scheme for tho control of the idle and the vxnous. Every man had to save his share of tho country's production. In all communities Qiere were men who had failed tlirough want of energy, vice, drink, or Without punishment there was no preventive for these offences atrainst the common weal. No practical provision was made tor tho discipline and control of industry. At present tho man controlled industry who had either the moans to pav if h>3 fails, or whose ability had won tho conUcience of those who could provide such, nieans to pay. In tho one case the dan-or oi personal loss, m tho other case tho danger ot forfeiting such confidence, ensured a proper sonso of responsibility, and the utilisation of tho full capacity of the indiyictual to secure success. The LaWmr Party suggested "Democratic ControL"T the past attempts to establish communistic associations and to run democratic businesses m. which every employee Lad a voice in the management, had split upon the rock of discipline. The groat war had. above all, taught the necessity of Mng-Je uncontrolled authority and absolute discipline in human affairs there was no doubt that individual and family interests might clash in some instances with public interest. These could and must, bo controlled. Trusts were good inasmuch as they tended to rednco tho expenses of production—they were b:id if. when competition was eliminated, they were not content as their reward with a' share m the savings effected in the costs of production, but also increased existing prir.os. However, a democratic form of government, such as existed in English-speaking countries, had full power to control these

owiossos. jn Now Zealand wo should above •'ill things i:\oid the ruin of extremists anrl cranks. Wo should remember the old maim "The. truth is in the middle." As was well pointed out ly .Sir John Findlay some years back, our statutes aimed at providing equality of opportunity for all. (liyc-i this, let individual merit have the fullest EC-oye,, except, where it became, as in an eviily-dircoted trust, an enemy of the community. Finally, above all, was it not folly to attempt to overthrow the r>rese/it social system, tho gradual growth of centuries of thought and experience, without having a very clear and exact idea, oj what was to repl.-ice it. Tho safest progress was gradual evolution. A feature of tho. last jear had been the greater attention paid by the public to the teaching of economio experts. It was a curious trait in the ilntish ration that it preferred to learn by uctiH oypc-rienc.T and to imnrovise in the face of immediate difficulties] rather than to arrive at a. eompletelv-thought-out scheme of work beforehand, "in this country popular education had been a fetish; vet in our political and social difficulties knowledge of sane, wise, well-balanced, ana educated men hud not had the- weight it should ha-re Given for«e of character and a determination to arrive at and present the truth apart from the personal prejudices of themselves or their hearers, New Zealand s leading scientific and economic students should every year play a more important pert in tho development of this country. The work undertaken under the E-t-spices of the Workers' Educational AssoI cratioii in the study of economics and questions arising therewith was worthy of commendation and support. Much good -would r ssult if employers would join these classes ■-intl ciisciiss with their employees the problems of lifo in which they are' both so much interested. Many mutual ings would bo swept away if this were done, ant! a united jUalform for tho common good would be built up and consolidated. The people -.ho looked upon the end of tno war as the beginning of a millennium would bo disa.ppointe.-L Now Zenland had enjoyed steady prosperity during tho past four years. Now, however, the world would have to face the economic competition of Germany and Austria, whoso populace must bo content with a low • standard of living and small wages; and of Japan, who had accumulated large stores of capital, and was opening up new avenues of trade as a direct result of the war. To meet this competition highlv-paid workers must learn that high wages "required to be accompanied by high •efficiency. Employers have to recognise 'that' methods of management and manufacture must be constantly reviewed and brought up to date, and that they may have to be content in some industries with a smaller return for capital than they have enjoyed in more prosperous times. The great problem was how to retain in full effoct all the existing spurs to individual initiative, find yet to curb that individual initiative where it was injurious to tho State, and to assist mu to acivance along the right avenues. I hero must be more muttTal trust between employers and employed—this could only arise from a radical change- in the mental attitude of each individual employer and employee, towards each other. No" schemo which did not produce this result could bo permanently effective. Tho Arbitration Court in Ne-R- Zealand was at one time thought to have settled labour disputes. So long as it could make concessions to workers, it was approved by them. When the limit of concessions began to b« reached tho advocates of direct action took its p'.ace. At the present, no sooner did a labour leader , begin to inspire the smallest feehng of trust and respect amongst employers than his followers proceeded to

cast him out of office. Consequently unless ho was a man of strong character and great courage, to maintain himself in power ho must constantly stir up friction and strife between employer and employee, and preach, if he did not practise Bolshevist doctrines. There must be a certainty of conditions if business is to bo done economically and expcditioiisly conducted. Modern undertakings aften required months to complete. Unless a fixity in the price of labour and material existed, contractors required a large margin to guard against the possibility of a rise in either or both. Constant alterations in the scale of wages might stop altogether the initiation of new industries, sand the development of old, and in any*, case inevitably increase their cost. This want of certainty in industrial conditions was one of the factors thai resulted in higher prices. It was on points like these that the moderate men on both sides should come together and consult. There was no doubt that the expenses of production and distribution of most articles of living could bo substantially decreased provided both capital a.nd labour concentrated their attention on these points, and sought the aid of dispassionate students in economics for wliom personal wealth had no great attraction. The most acute danger in sight, the British Empire and the United States had to face was the bitter antagonism between laboui" and capital. This was a matter even more for tho individual than the State. Every citizen must do his part and must not evade his personal responsibility. If the worker recognised the necessity for the existence of capital, and that labour without its aid is impotent; if iie gave a. full and unstinted .effort, then tho capitalist on his part must be fair and geperous in his dealings. If each employer would sot his mind to remedy the reasonable grievances of - his men and endeavour as far as possible to improve their conditions of life, much could be speedily accomplished. In this connection in every business of a permanent nature with a non-fluctuating staff, employers would be. well advised to inaugurate some scheme of profit sharing and establish, a superannuation fund for their men.