INDUSTRIAL WORLD

Otago Daily Times, Issue 23648, 4 November 1938, Page 3

INDUSTRIAL WORLD

NEWS AND NOTES

By J. T. Paul

The key to our present epoch ... is that things have already woven themselves into a world solidarity, while the thoughts and emotions of men have not yet attained that state, —Salvador de Madariaga. ARBITRATION COURT DELAYS Protesting against statements made alleging delay by the court in dealing with awards, Mr Justice O’Regan, president of the Arbitration Court, made an official reply from the Bench in Auckland on Friday. "The court’s attention has been directed,’’ said his Honor, ’ to certain statements in the press to the effect that there has been delay in making an award for glass workers * The position is that the court made a glass workers’ award last year, which took effect on October 21, 1937, and expired on the 21st inst., a week ago to-day. Not only is the making of a new award not before the court, but the recommendations of the Conciliation Council—and we understand there have been conciliation proceedings—have not been filed with the clerk of awards. “On two days, since -it commenced its present Auckland sessions on August 4, this court has made fixtures, but on neither occasion has any reference been made to the glass workers’ dispute. Further, after making fixtures the court has been repeatedly pressed by parties to various disputes to make provision for the disposal of other cases, and, in our anxiety to oblige the parties, we have trenched seriously on the days allocated for deliberation. Nevertheless, of the large number of disputes the court has heard, there now remains only one in which an award has not been pronounced, and we hope to have this out in a few days. “We have just heard from the clerk of awards that since the commencement of the court’s Auckland sessions a number of disputes have been filed for hearing. These must stand over till the court’s next visit to Auckland, but obviously they have precedence of the glass workers. “Owing to the stress of work there have been delays, but these have been absolutely unavoidable. The parties to the glassworkers’ dispute, however, have no cause for complaint whatever, and the court thinks it proper to protest against attacks, we know not from whom emanating, particularly when they have the demerit of inexcusable untruth. “We may say that these comments have no reference to the drivers’ case, inasmuch as their case is before the Second Court.” MOTOR TRADE APPRENTICES Wages, hours, and other conditions of employment for apprentices in the motor engineering trade in the Canterbury industrial district have been prescribed in an award fixed at a hearing before Mr J. A Gilmour, the Industrial Magistrate. The term of apprenticeship is to be five years, the award sets out, and the proportion to be employed is one apprentice to each journeyman and one to each working employer. Wages set out in the award begin at 16s for the first six months, rising by 4s each six months, until in the sixth such period the apprentice is receiving £1 16s a week. In the seventh six months the wage is to be £2 2s 6d, and the next three'' periods carry progressive increases of 5s weekly until in the tenth and last six months the apprentice receives £2 17s 6d.

Provision is made for apprentices attending classes at a college or school with provision, under certain conditions, for the employer to refund the fees paid for such classes. Increases in salary for success in scheduled examinations are also provided. So that an employer may determine the fitness of an apprentice for the trade, a probationary period of three months is prescribed. Special clauses fix the effect of overtime, and of short time, and time lost, on the period of apprenticeship. Overtime, by the award, may not be worked on any night an apprentice has to attend a class, and there is also a limit based on age to the amount of overtime that may be worked. It is to be paid for at the rate of time and a-half for the first three hours, and double time thereafter, with a minimum of Is 6d an hour in any, case. The only matter referred to the court for adjudication, the rest of the proposals being agreed to, concerned the deduction of time for sickness. The court’s decision is that an employer shall be entitled to make a rateable deduction for an apprentice’s wages for any time in excess of two weeks lost by him through sickness in a year, or through his own default. Accidents not connected with employment are counted as sickness. THE WORKING WEEK AND WAGE RATES IN U.S.A. In a recent issue’of the Wall Street Journal the question of hours reduction and wage rates is discussed in these terms: — The contention of labour groups that the wage-hour law prohibits reduction in total weekly wages was exploded by the new wage and hour administrator as he assumed office. Mr Ellmer F. Andrews, the new administrator, said: “ There is nothing in the Act to prevent reductions in total wages when hours go down.” The Committee on Industrial Organisation and the American Federation of Labour have both interpreted the law to mean that, if hours of work ’are reduced to meet the requirements of the law, hourly rates of pay must be increased proportionately, so that the weekly wage will not be reduced. They rely on section 18 of the law, which states: ‘‘No provision of this Act shall justify any employer in reducing a wage paid by him which is in excess of the applicable minimum wage under this Act, or justify any employer in increasing hours of employment maintained by him which are shorter than the maximum hours applicable under this Act.” The director of the C. 1.0., Mr John Brophy, contends that this prohibits wage cuts and has urged C. 1.0. unions to aid the American Communications Association in fighting a cut by Westtern Union and Postal Telegraph Companies in total weekly wages. The A.F of L.. in its official summary of the wage-hour law, declares: “ Section 18 clearly S ays that existing wages cannot be reduced because of any provision of the Act.”

Mr Andrews said he agreed with the published view that “ there is absolutely nothing in the Act to support the contention that where wonting hours are reduced to conform with the requirements of the law, wages per hour must correspondingly be increased to retain weekly nay unchanged.” The same statement said that section 18 was “ doubtless intended to be little more than a rhetorical declaration in answer to fears sometimes expressed that the legal minimum wage would ‘ tend to become the maximum,’ or that legal maximum hours would tend to become the minimum." Administrator Andrews named three southern industries as the ones which would receive his attention firsttextiles, cotton garments and tobacco Other industries will probably not be affected until the wage determinations for these three are well along as Mr Andrews thinks three is the maximum that can be handled at one time in the early stages of administering the law The wage board for the textile industry will be announced within a week, he said. Its chairman will be a business man representing a large consumer of textiles. Mr Andrews has not yet decided whether to limit the consideration of that board to cotton textiles or to extend it to rayon and silk. After these three are under way. industries which wish to have a wage determination will be served first, he declared. The wage boards have authority to fixe rates of nay between 25 and 40 cents an hour. In the selection of labour representa lives on the waaes boards, the fight between the A. F. of L. and the C. 1.0 “will be a very real problem,” the administrator observed. An attempt

will be made to ascertain the proportion of employees represented by each. About 4,000,000 workers will be affected by both the 44-hour maximum work week and the 25 cents an hour minimum wage when they go into effect on October 24. Mr Andrews predicted. Instead of creating opportunities for union-employer controversies, the Act will improve labour relations, Mr Andrews said. In New York the State minimum wage law has helped to bring about unionisation of laundries, he declared. The law will help business, the administrator said, through setting up fair standards of employment. INTERNATIONAL TRADE AND PROSPERITY Reviewing the course of economic development during 1937, the 1938 edition of the International Labour Office Year Book, which will shortly be published at Geneva, emphasises two points which, as regards social consequences, it considers of major importance. These are:— 1. The enormous value of international trade to the smaller and to the less affluent countries. 2, The responsibility devolving upon the great industrial countries to maintain a high level of economic activity. Admitting that, as an index of prosperity, the importance of international trade is often exaggerated, the Year Book says:— “Where there is great mutual advantage in the exchange, as is sometimes the case in the trading of manufactured goods for raw materials, the addition to prosperity is considerable, But where the figures of trade are swollen by exchanges arising from relately insignificant differences in costs, prosperity is not greatly increased. ~ It would be possible to imagine large additions to imports and exports which would nevertheless add little to the sum of human well-being “But the essential importance of international trade. Jooked at from a world point of view, lies not only in the fact that it increases prosperity, but that it helps to raise the standard of living in countries which would otherwise be condemned to remain at an exceedingly low level. It enables small countries to concentrate on the type of production to which they are best suited, instead of having to strive after an impoverishing self-sufficiency “It enables backward countries to acquire capital equipment and to get the first -impetus towards higher standards by way of sales upon the international market. Furthermore, so long as trade is relatively free it has the effect of discouraging monopolies, price rings, and similar means of exploiting the community From all these points of view international trade is not simply an instrument of economic amelioration, but also to some extent of social justice.” On the other main point—the responsibility devolving upon the great industrial countries to maintain a high level of economic activity—the Year Book says that this is intimately bound up with international trade “ Provided prosperity is maintained in the leading countries” ft explains. “ there is a relatively strong demand for foods and raw materials Prices are favourable to primary producers and the countries selling primary products are able to buy manufactured goods in exchange. If. or. the contrary economic activity in the leading countries is permitted to decline, prices of foods and raw materials are mercilessly cut. every obstacle Is put in the way of international trade in an attempt

to fend off the flood of goods seeking a market at any price, and the whole world is liable to be caught in the vicious downward spiral of which the period 1929-1932 is the outstanding example, As D. H. Robertson. British economist, recently expressed It in an article on the future of international trade: ‘Unless we can work towards international control of the cyclical movement of trade, sooner or later we shall all be back in the gutter playing beggar-my-neighbour.’ It, is on _ this and on the promotion of international trade that social advance, seen in its world aspect, in large part depends.”