PAYMENT BY RESULTS

Otago Daily Times, Issue 25393, 26 November 1943, Page 2

PAYMENT BY RESULTS

SYSTEM IN INDUSTRY MANUFACTURER'S ADVOCACY (Special) AUCKLAND, Nov. 25. The conviction that payment by results and a better employer-employee relationship in industry were the only systems by which New Zealand could maintain her present living standards was expressed by Mr W. J. Truscott, president of the Auckland Manufacturers’ Association, at a luncheon meeting of the combined senior and junior Chambers of Commerce. “I can guarantee that, by adopting the payment-by-result system, a factory can increase its output by from 33 1-3 to 50 per cent.,” said Mr Truscott. “Up to a month ago a certain Auckland firm worked on the cost plus system. Its weekly output of articles for war was 1200. Since then, the payment-by-result system has been introduced, and, with the same staff working the same hours, its weekly production has averaged 1950, and in one week it reached 2100 articles. “In the long run, this system will bring more than increased profits. It will help to stabilise conditions in New Zealand, and will give the country a better financial basis. Combined with better employer-employee relationship, it will eventually result in a breaking down of compulsory unionism and its attendant vices. Without this, industry will not be able to compete anyway. “I am not an opponent of the 40hour week,” Mr Truscott added, “and I believe that if a concentrated effort were made during those hours, New Zealand would be able to compete with the world in many articles, and perhaps maintain our present standard of living, and have some reasonable prospect of the fulfilment of promises now being made regarding social and national security.”