THE PUBLIC SERVICE

Otago Daily Times, Issue 19146, 14 April 1924, Page 7

THE PUBLIC SERVICE

RAILWAY WAGES BOARD REPORTS OF MEMBERS. STATEMENT BY THE MINISTER ACTION BY A.S.R.S. CRITICISED. (Pee United Press Association.) WELLINGTON, April 12. The Hon. J. G. Coates (Minister of Railways), after perusing the reports of members of tho Wages Board, made the followin- statement this afternoon; — “The present position originated in a request by the A.S.R.S. to the Minister of Railways for an increase in wages of the men in tho second division of tho railway service. After some discussion with the Minister tho society intimated its desire to have the whole matter of the request m respect of wages and conditions of work referred to a board. The board was to be composed of an equal number of representatives from the society and the department respectively, with an independent chairman. This was agreed upon between tho Minister and the society, and the board was duly constituted, three members being nominated by the society and thro© by the department, and the chairman was agreed upon in terms of the request made by the society. This is the board that has been sitting during the last fortnight. The Order of reference was duly submitted to the A.S.R.S. before being finally decided upon, and was agreed to by the society. It will be seen, therefore, that the constitution of the board and the definition of its func-

tions, as contained in the order of reference, were fully known and agreed to by the society before the board commenced its proceedings. Obviously the proceedings of such a board would be along the lines of the probable differences between the two sections represented on the board, which differences were intended to be, and, indeed, would have to be, settled by the chairman. This appears to be the view adopted bv the chairman, and bis attitude seems to liavo been that he should have all the information which he desired to enable him to discharge his responsibility in this connection that had been cast upon him. The A.S.R.S., however, adopter! the attitude that the subject of wages should bo dealt with in complete isolation and without reference, to any other of tho 71 items which wore placed by the society before the board. The department’s view was that the fullest information any member of the board considered he should have should be made av’ailable to that member, and that the board’s discussions should bo practically unrestricted on any matter brought before it in pursuance of the order of reference. This attitude is supported by the procedure that was adopted by previous boards of a similar nature, when various subjects were discussed and deferred from time to time, and later brought under discussion, so that gradually members of tho board obtained a comprehensive view' of tho whole of the matters brought before them. “In the nature of tilings it was clearly impossible that any board of inquiry could effectively carry out its functions as such if its deliberations were to be confined at tho will of any party to the consideration of any particular aspect of the matters brought before tho board to the entire exclusion of all other considerations that might, in tho opinion of the members of the board, warrant attention. The attitude of tho A.S.R.S. is justified neither by precedent nor by reason. It finds no support whatever in tho order of reference, and is indeed altogether inconsistent with its action in submitting some 72 items to the board for consideration.

‘"1710 decision of the society, as already reported in tho newspapers, to issue strike ballot papers even before the reports of the various sections of the board were in tho hands of tho Minister, makes the position of tho society entirely untenable. It is obvious that the Minister could do nothing in tho direction of dealing with tho situation until ho had received tho reports, and tho society’s decision amounts to nothing less than taking tho law into its own hands regardless of whether anything might be done to meet tho position and entirely ignoring the fundamental principle involved in the reference of the differences between the department and the society to the board. Obviously tho Minister could have no option but await tho reports that wore required to bo made to him under tho order of reference, and as obviously it was tho duty of the A.S.R.S. to wait until the Minister had had an opportunity of considering these reports so that he' might make, any suggestion that he might think advisable. The responsibility for the. position that had now arisen must rest entirely with tho society. “It seems advisable at this juncture to state a few facts bearing on the demand tor an increase in wages that has been made by tho society. The rate of the basic wages that, was paid in the Railways Department in 1914 was equivalent to Is lid per hour. Tho society submitted that on tne ‘ all groups ’ figures the cost of living has risen since 1914 by 62 per cent., and if this percentage is added to the basic wago of 1914 so that wages should be made to increase in proportion to the cost of living as disclosed by the ‘ all groups ’ figures, the railway basic wage-earner should now be receiving Is 8 G-9d per hour. lie is in receipt of Is 9 M-44d per hour, so that it will be seen that tho increase in wages over 1914 has been at practically the same rate as tho increase in the cost of living. It is found also that, the basic wage in the Railways Department compares more than favourably with that ruling in New Zealand in other occupations, and with those ruling in the railways in Australia. The basic wago under the builders’ award in New Zealand is Is old, and the basic wage paid by the Wellington City Council is Is Sfd. Tho basic wages in tho various Australian States and New Zealand are set out in a statement attached hereto. It will be seen that the rate in New land is higher in every instance except in the case of a certain proportion (who are in the minority) of the railway workers in Queensland, and in this connection it may bo noted that climatic conditions have generally been, considered to warrant the higher rate of pay in Queensland than in New Zealand and in other Australian States. ‘The effect of granting the railwayman an increase in wages is a consideration that cannot possibly be ignored. As is wellknown, the railway rates have.had to be substantially increased sinco 1914 to meet the expenditure, and up to tho present it. has not been possible to grant anv relief from those increases notwithstanding urgent demands from the users of the railways, and it cannot be overlooked that the high rates that, are riing for railway transport aro undoubtedly having an adverse effect on tho department’s business and the progress of the dominion. For the last three years the railways have not paid even the policy rate of interest. It is therefore obvious that any increase in wages granted under the existing conditions must be met by an increase in fares or freights, or by drawing on the Consolidated Fund. As to the latter alternative, it is clear that it would be altogether unjust to expect the taxpayer to meet a bill for a higher rate of wages to railway servants than is paid to others doing similar work outside the railway service, while the alternative of increasing the rates would not only be strongly resented by the users of the railways but would exert a retarding influence on the development of the dominion and undoubtedly materially increase those factors that are now operating to the detriment of the department’s business. Such a position would not be in the interests of the railway employees themselves. “me question that naturally suggests itself is whether anything can be done to relieve the position without involving the difficulties mentioned, and the department has accordingly suggested a method which would effect (his object. It has suggested that the men should work an additional four hours in each week and he paid for the extra time so worked. This would afford them the higher wages which the society urges arc so necessary, and would at the same time relieve tho department of the great burden that is now resting upon it in consequence of the operation in the railway service of a practically universal 44-hou'r week. The experience of railway systems elsewhere as well as in New Zealand has amply demonstrated that railways cannot profitably bo worked on the basis of a 44-hour week. In New Zealand wages costs have risen to such an extent that the department is being seriously hampered in affording the public the services it requires. The cost of working Ins advanced to the stage where the department cannot afford to extend its services and make ends meet, and it lias become a matter of mime importance that something should he done to keep the. expenditure within such limits as will enable the department to provide services that will afford a reasonable degree

of satisfaction to the users of the railway. The department cannot do this on a 44hour week, and it believes the railwaymen would be better off in every way by reverting to the 48-hour week, while the better service that could be afforded to the public would have a stimulating effect in the railway industry and place it on that healthy basis which is so essential for the welfare not only of the country in general but also of the employees themselves. “It may be mentioned that the advisability or otherwise of referring the dispute to another tribunal or Wages Board has been raised and put before the A.S.R.S., and it is understood that the proposal is under consideration by the society.” The following is the comparative statement of the basic wages in New Zealand and the Australian States; — New Zealand 44 hours, Is 9 34-44 d per hour—79s lOd per week. Now South Wales —43 hours, Is 8d per hour—B2s per week. Victoria —48 hours, Is B£d per hour —83s 6d per week. South Australia—43 hours, Is 7|d pelhour —78s 6d per week. Queensland—44 hours, shops and way and works, Is lOd per hour —80s 8d per week; 48 hours for ail other hands. Is B*d per hour—3ls per week. Western Australia —44 hours in shops. Is 9d per hour —77s per week; 48 hours for all other hands, Is 7Jd per hour—77s per week. Tasmania —54 hours for traffic staff, Is 7 5-9 d per hour—Bos per week; 43 hours for all other employees, Is 8d per hour — 80s per week. Mr Connelly (president of the A.S.R.S.) stated this afternoon that there were matters contained in the statement which the society would take steps to reply to immediately. CASE EUR THE RAILWAYMEN. OUTLINED BY MR CONNELLY. MINISTER’S FIGURES CRITICISED. THEIR ACCURACY QUESTIONED. (Pee United Press Association.) WELLINGTON, April 13. The following statement was made by Mr N. Connelly (nreaident of the A.S.R.S.) on behalf of the 'societv in reply to the statement by the Minister of Railways on the present railway dispute: "The Minister does not rightly slate the position, and the public should know that the society has been negotiating with the department and the Minister for about to months on the wage question, and has been patient all this time, agreeing to the suggestions of the Minister to allow himself time to investigate all of the matters connected with the railway working and administration, after which he promised to state definitely how far he was prepared to meet us on the wages question. This statement has never yet been made. I wish to say that the society recognises its responsibility to the public, the railways being a public service. It is only under the extreme pressure of our members, brought about by their needs, that wo would lake any steps that would interfere with the ordinary services of the community, but we are satisfied that when the people of the dominion are made fully aware of the facts they will accord the railwaymen their support in the present dispute. This brings mo to the point in which an attempt is made to show that we have received the full percentage of increase in wages on a 62 per cent, rise in the cost of living above 1814. 'J ho Minister lias obviously made an error in saying that wo are entitled to Is 8 8-9 d per hour to-day. a _ short mental calculation will show that this should read Is 9 8-9 d per hour. The Minister also mistakes the position when ho says that the builders' labourers’ basic pay is Is Bfd per hour. R is now Is Sid per hour, and it must be remembered that Is BJd is the minimum, and many labourers are getting a much higher rate of pay, which advantage does not operate in the railway service. “It woilld appear in view of the misleading figures that have been presented to the public that the Munster is cither careless in handling figures or his case is somewhat weak. Apart from Uie inaccuracies mentioned, the Minister has, in effect, stated that the railwaymen are 7» 73d per week under a sum that would give tho equivalent of £2 14s iu 1914, ad the following table will show: “Basic wage in 1914,, £2 14s per week. A 62 per cent, increase in tile cost of living over 1914 requires a 62 per cent, increase in wages, equal to £t 13s sfd per week, making a total of £4 7s 53d per week Iho present basic wage per week id ho 19s Ivd per week, and the amount required to bring tho wage up to 62 per cent, increase in the cost of living is 7s 73d. ■•’ihe society does not think the 1814 standard a fair one, as no increases in the basic rate of pay were received by the rnilwavuicn between February, 1912, and April,” 1916, and on ibis we have maintained our claim for a 2s 6d per day increase. "The Minister suggests that wo should go back to a 48-hour week in order got a living wage on the 1914 standard. Inis has already been urged by the department s representatives before the NV ages Board. Wo regret to see that the Minister, who has frequently stated that ho is vitally concerned to see that the members of the service should have good wages and conditions, is taking up this attitude. The figures disclosed by the Government Statistician show that to-day, out of 41 trades selected, only 14 are working 48 hours per week or over, and that, whereas out of 41 trades selected in 1914, only seven were then working 44 hours per week, to-day out of the same number of trades, 17 are on a 44-hour week basis, the tendency being to reduce hours, not to extend them, which is the logical outcome of the present advance in civilisation. Tho wages paid and the hours worked in other countries by rail way transport workers are beside the point. Tho question is; What is a fair week’s work and what is a fair week’s pay in New Zealand? Countries could be quoted where the standard working week is over 60 hours. It would be just as reasonable for the society to go to the Minister and demand, because certain groups of workers in New Zealand are working only 38 hours per week (this operates among a section of the New Zealand railway to-day), that tho railwaymen's working week should ha one of 58 hours, as it is for tho Minister to insist that because in other countries railwaymen work 48 hours we should agree to an increase to that point. The whole point of our case is this: What is a fair week’s pay for ourselves as New Zealanders by comparison with other New Zealanders, and are not the railwaymen entitled to a fair standard of living for the efficient railway service they maintain? Tho society accepts the responsibility for tho breaking off of negotiations when it could bo seen that no real progress could lie made, and our attitude will be readily understood by a reference to pages 180, 217, 221, 222, 227, and 241 of the Official Report, when the chairman declined to act the part of mediator, and said so dofinitoly. “ Before breaking off negotiations, and to demonstrate to the board our desire to reach an amicable settlement, we offered to recede from tho 2s 6d demand which was originally made. Unfortunately, the departmental side of the board did not approach the matter in the same spirit. It would now appear that the department on its own evidence showed that the railwaymen have got to remain 7s 7|d under a 1914 bring wage, unless they are prepared to go back to a 48-honr week.” A BETTER SERVICE. THE MINISTER’S SOLUTION. REVERSION TO 48-HOUR WEEK. (Pke United Press Association.) WELLINGTON. April 13. To-night Mr Coates issued the following statement: — “The public will be subjected to grave inconvenience if any interruption occurs to the railway traffic at this season of the year, is will therefore naturally be asked ; (1) “Has the Government' taken all reasonable steps to negotiate a settlement?’' (2) ‘Which party was responsible for the breakdown of the negotiations?’ (3) ‘What are the outstanding facts revealed by the negotiations as to the merits of this dispute?' “In answer to the first question I need only state that after every effort had been made by myself and the department to reach some satisfactory settlement with the men, it was agreed to refer the 72 claims put forward to a hoard on which the railwaymen had three representatives, the department three, and presided over by a chairman who was agreed on by both parties. After full msettßSion the order of reference was also referred to the A.S.R.S. and agreed to by it. 1 think the public will agree that nothing more could have been done than this by the Government to secure a fair and exhaustive discussion, and a decision on tho railwaymen’s claims.

“Secondly, why did the negotiations break down? Purely because the railwaymen refused to submit their 72 claims for consideration as a whole, but insisted on the first item being isolated and dealt with by itself. This course of action is surely unprecedented and would effectively prevent any comprehensive dealing with the whole problem. “Thirdly, as to the merits of the dispute, the facts show (a) that the hourly rate of pay of railwaymen compares more than favourably with the wages paid by private, employers. (b) That the hourly rate of pay of tne railwaymen is better than that in any State in Australia (except for one section in Queensland, climatic conditions justifying n higher rate there); (c) that if some railwaymen in the Australian States earn more money in each week it. is because tney work 48 hours instead of 44 hours. (d) that in three Australian States the 48 nours week is observed by all railwaymen and in luree other Stales by practically all except the men in the shops ; (e) that if the cost of living has risen 62 per cent, since 1914 so also for all practical purposes have the rates of wages of the railwaymen; (f) that if the claims of the men are granted not only will it be impossible to reduce fares and freights (which reduction is urgently needed if trade and commerce are to be stimulated) but on the contrary the fares and freights must be increased. I have mentioned these points merely to indicate that comparing the condition of the railwaymen with private employees and with railwaymen in Australia it is difficult to see where there is any ground for legitimate grievance. Certainly there is no justification for holding up .no whole transport business of the dominion. It is curious to note that in tneir statement the men complain of the impartiality of the chairman. They say, ‘The chairman adopted a neutral attitude which did not assist either party and as a result of this wo were compelled to call our executive together with lue result that it decided negotiations should cease.’ “It is also a matter for comment that me railwaymen object to the increase from 44 hours per week to 48 hours per week, not on the grounds that the hours would be excessive, but that about 13C0 men would be dispensed with, but this reasoning falls to the ground when it js pointed out that the expansion of business and the ordinary flow of labour in the department will quickly absorb most of these extra employee?. “In conclusion. T can give the public (1) a better railway service; (2) reduce fares and freights; (3) pay 3 per cent, interest on capital; (4) and, above all, I can increase the wages of the men on the simple condition that the hours of labour in the New Zealand railways are put on the same basis as prevail in the transport industries generallv in New Zealand, and in the railway systems throughout the Australian States—viz., 48 per hour.”