THE INDUSTRIAL WORLD

Otago Daily Times, Issue 22545, 12 April 1935, Page 3

THE INDUSTRIAL WORLD

NEWS AND NOTES By J. T. Paul. Heretofore two systems have been used for matching a nation’s power to produce with a power to consume. In one system, which may be designated the low-wage system, a nation is dependent upon a power to consume from abroad along with its own to match its power to produce. This system, to function for any time, requires an excess export of goods over imports and the investment abroad of surpluses derived through the denial of purchasing power to the workers at home —purchasing power which would keep the home power to consume in step with the home power to produce and which would ensure prosperity for all. This system is fallacious, and can bring only a temporary prosperity,”—Mr A. G. M'Gregor. FORTY-HOUR WEEK. The opinion that the 40-hour week would be harmful to the community as a whole, and of littlq benefit to the unemployed is expressed by Professor A. H. Tocker in reply to a questionnaire from the Christchurch Unemployment Committee dealing with the first question, the incidence of unemployment, Professor Tocker states:

“ I think it is necessary to distinguish between the incidence and the extent. I take the incidence to mean the distribution of unemployment amongst occupations. There might be appreciable alteration in the distribution amongst occupations resulting in more unemployment in some and_ less in others. This, I think, is impossible to estimate. Regarding the extent of unemployment, I think it would tend to increase rather than decrease if such a change were made. There might be a short term increase or a decrease in some occupations, but I think this would be offset by n later increase and increases in other occupations. My reason for this conclusion is that costs would be increased, prices would necessarily increase, and the demand for many goods and services would tend to fall.”

The second question concerned the cost of living. He believed that the wages and salaries constituted 70 per cent, of the total costs in _ New Zealand. A 10 percent. increase in hourly rates would mean a 6 or 7 per cent, increase in total costs, and it was to be expected that the cost of living -would rise from 5 to 10 per cent, for that reason. It was possible that higher rates might be balanced by greater efficiency in some cases, but he thought that that would be more than offset by the increased cost and the lower efficiency in other cases consequent upon the disturbance of existing arrangements.

Thirdly, dealing with trading operations and business generally, Professor Tocker thought that the effect would be disturbing and -would make for instability and less effective organisation. There were some occupations in which the workers could be readily changed without serious effect, but there were many occupations where that could not be done and where every job was an individual job which required to be learnt and to be fitted in with the work of the whole team of workers. In such eases the attempt to rearrange hours, work schedules, etc., would tend to be disturbing and to impair the organisation of production.

“On the whole I doubt very much whether the suggestions would be of benefit to the unemployed, and I feel sure they would be harmful to the rest of the community,” stated Professor Tocker. “In the United States, where attempts were made along these lines, opinion his been hardening for some time past against this type of interference with existing business arrangements. “America’s recovery legislation was begun early in March. 1933, and the suspension of the gold standard, settlement of the banking panic, etc., stimulated a rapid recovery and expansion of business ■up till tlie following July. On June 15 the National Industrial Recovery Act providing for shorter hours and increased wages in industry was passed. During subsequent months, as efforts were made to apply codes in accordance with the N.R.A., business rapidly contracted, and a severe setback occurred, which carried on till about the following December. Since then the codes have been modified and it appears that further modifications are to come. I think a close survey of American experience would convince most observers that the American attempt had very little success in reducing unemployment.” LIVING WAGE INQUIRY. A preliminary sitting of the inquiry by the New South Wales Industrial Commission into the living wage standards for adult male and female employees of the State was held recently.

The following table shows the variations in the State living wages since 1918: —

The president (Mr Justice Browne) suggested that the parties should confer and agree upon who would call evidence and arrange who would actively question witnesses, thus saving time. The commission desired to make the inquiry as short as possible, but the adult female inquiry should be taken first. Probably it would be essential to keep the two sections of the inquiry separate.

Mr Newell (for Chamber of Manufacturers and others) submitted that the commission should not first inquire into the adult female standard. Its function was to determine one standard and from that to affix the rates for adult males and adult females. The president: Somehow we shall have to arrive at a standard for females as well as males. Mr Justice Cantor said that before any rate for females was determined other brandies of the inquiry would have to be gone into. v The inquiry was adjourned until April 29. LIVING CONDITIONS IN RUSSIA. Through the large increase in the harvest, members of collective farms have received payment in kind several times in excess of 1932, and far beyond their personal needs. These and other factors show that the poor peasant of yesterday is now becoming a well-to-do member of a collective. and the foundation hag been laid for the establishment of a cultural and comfortable standard of living for all collective farmers. There is also a constant improvement in the workers’ standard of living. The existence of unemployment has been forgotten. Wages were raised 10 per cent, during 1933. and this year the general tendency will be to increase the real value of wages by reducing prices. Considerable growth in cultural matters is planned for this and the following years. WORKERS’ CONTROL IN OPERATION. North of the Arctic Circle, lying between two of the richest iron mines in the world, is Kiruna, a town of 10,000 people, said to be “ a workers’ paradise.” The majority of the inhabitants are miners and their families. The local government is under the control of the workers. Local institutions and enterprises have been adapted to the needs and largely to the free use of the workers and their families. Wages per worker are the highest in Europe, with correspondingly high living conditions. All homes are heated cheaply and cleanly by electricity, and the children attend schools warmed and lighted by the same power. Every household has its own telephone, and trolley cars take the workers to and from work free. The town has its own radio station, and the programmes are furnished entirely by home talent. All workers, apart from wages, share in the profits of the industry. A miner earns as much as £92 per month. The great majority of the workers own their own motor cars. Homes, replete with every

convenience, are rented from about £2 per month. Most of the workers and their families spend the long winter evenings reading in the libraries, with which almost every home is equipped, attending lectures, or listening to the radio. LABOUR IN AMERICA. Ignored by the Roosevelt Administration in its new emphasis on “recovery first,” and with prestige among the rank and file of Labour seriously undermined by pacifist policies during the past two years, ‘ the American Federation of Labour has swung to aggressive, almost belligerent action (says the Christian Science Monitor). Its first experiment in line with the new policy-—militant advocacy of the prevailing wage amendment to the £9,000,000 Work Relief Bill in the Senate —having proved surprisingly successful, its high Command laid plans to-day for a second flank attack on the New Deal by way of the automobile industry. Mr William Green, president of the federation, announced he had sent a conciliatory letter to automobile manufacturers seeking a conference over possibilities of a compromise. But this gesture of conciliation was a velvet glove covering a strike threat of major proportions. If conciliation is refused —as In all probability it will be—strikes at key points throughout the industry are to be attempted, which, if successful, would cripple the one industry which more than any other is leading in the recovery procession. It is a well calculated device for putting pressure on the Administration to force concessions to the federation which it had found itself unable to obtain through headquarters diplomacy despite Mr Green’s much vaunted personal friendship with the President. The federation has given its approval for strike elections among its affiliated organisations in the industry, and, it is understood, will approve and back to the limit any one which decides to resort to a strike. . The federation’s resentment derives from a long succession of adverse decisions, most of them taken at the White House itself. . First waa the Presidents support of Mr Clay Williams as chairman of the National Industrial Recovery Board, over protests from the Labour group. Second was his consistent support ot the Automobile Labour Board, which he personally established over a year ago against the federation’s demand that automobile labour problems be transferred to the jurisdiction of the Rational Labour Relations Board. Third was Mr Roosevelt’s extension of the automobile code in a form highly unsavoury to the federation. Fourth 'a the Administration’s effort to secure revival of the NR A without the changes in section 7A which the federation seeks as a weapon against the company union. Last, was approve! of a code for the tobacco industry equally distasteful to labour. The cumulative effect of these adverse decisions has proved too much for the federation leaderships preference for diplomacy rather than strikes, and even pacific Mr Green has been forced to revert to older trade union methods of /securing Labour objectives.

Male Female. 1918 . £3 0 0 £1 10 0 1919 . 3 17 0 1 19 0 1920 . 4 5 0 2 3 0 1921 . 4 2 0 2 1 0 1922 18 0 i 19 6 1923 (April) . . 3 19 0 2 0 0 1923 (Sept!) . . 4 0 0 2 1 6 1925 . 4 4 0 2 2 6 1927 . 4 5 0 2 6 0 1929 2 6 2 4 6 1932 . 3 10 0 1 18 0 1933 (April) . . 3 8 6 1 17 0 1933 (Oct.) . . 3 6 6 1 16 0 1934 (April) . . 3 7 6 1 16 6 1934 (Oct.) . . 3 7 6 1 16 6