INDUSTRIAL RELATIONS

Otago Daily Times, Issue 26026, 14 December 1945, Page 6

INDUSTRIAL RELATIONS

CHAMBER OF COMMERCE REPORT EMPLOYER AND EMPLOYEE POSITION OF- THE UNIONS Early in the present year the Dunedin Chamber of Commerce appointed a Committee to investigate the matter of industrial relations, and the report of this committee, as approved and adopted by the Council of the Chamber is published below in an abridged form. It is a matter of great regret to all who have the welfare of this Dominion at heart that there should be a lack of harmony between employer and employee. It is hardly necessary to point out that the ultimate result of strikes and labour inefficiency is to penalise the people as a whole in some way or other, while happy industrial relations benefit every member of the community. Internally, the price level is affected by the volume of production. Externally, the export of our products depends on our ability to meet competition in world markets.. This again is related to production. A solution of this complex problem is, therefore, of the utmost importance to the Dominion. Solution in General Terms It is clear that no substantial change for the better is likely to take place until each employee feels more real satisfaction in his work. If a general feeling of contentment can be created efficiency will replace inefficiency, and labour disturbances will be eliminated. How, then, can such a desirable aim be attained? The answer may be stated in a few words. Employers must regard their employees as human beings, and as of vastly greater importance to industry than the tools, machinery, and buildings employed therein, and, therefore, as entitled to even more expert attention. It is a fundamental principle of staff management that the employer treats the employee as he himself would wish to be treated. This might be termed the golden rule of industrial relattons. Various applications of this principle will be mentioned later, but smaller matters (which may not be small to the employee) should not be overlooked. Giving praise where it is due, taking personal 'interest in the employee and his family, showing general kindness and consideration, and attention to many details for the comfort of the employee which cannot be covered by awards are indications of the attitude of mind which is too often lacking on the employing side. Furthermore, skilled control of staff is essential. Employers appoint engineers for the care of their machinery, but some neglect any special attention to the,labour upon which they are completely dependent. This aspect is fully discussed under the heading of personal management. Specific Points We now proceed to the practical application of the above-mentioned rule. We consider that every employee giving reasonable service is entitled to full employment, a comfortable standard of living, satisfactory working conditions, security in sickness, security on retirement. Let each employer ask himself what he has done voluntarily to secure these benefits- for his employees. Actually, in the main, advances towards this standard of employment have been made by State legislation, and benefits compulsorily given are usually' not gratefully received. Full Employment

The fear of unemployment is at the root of a great deal of labour unrest. It is the cause of many provisions in awards designed to maintain the employment level in times of labour surplus. These provisions are often a subject of criticism, but let us look at the position of the employee. His resources are usually insufficient to carry him on for more than a week or two if he is out of work. Then he becomes a subject for charity or State aid. The first is obnoxious, and the second is helpful but insufficient. _ Full employment is an ideal which will be difficult to realise, but employers can make a definite contribution to this desirable end if, in engaging and dismissing members of their staff, they follow two principles:—(a) In engaging staff exercise care to ensure that the persons selected for each type of job are fitted for it. (b) If an employee proves unsuitable for his position after engagement, try him in another department before a decision is made to dispense with his services. Comfortable Standard of Living

Every employee is entitled to such remuneration as will enable him to secure the necessaries of life for himself and his family, together with a fair share of the amenities which are now regarded as the right of every member of the comniunity. The extent of the latter must, of course, depend on the general level of prosperity, but the workers collectively should enjoy a high • proportion of the goods and services which are the products of their labour; otherwise they cannot feel that they are receiving a due benefit from their work. Satisfactory Conditions Various points may be mentioned under this heading: (a) Comfort. Awards deal with the general terms of service of the employee. There are a host of details which are not covered by all awards—e.g., lighting, heating, freedom from dust and fumes, noise, etc. Collectively, they are of great importance to the employee, but they are not under his control. The presence of physical discomforts and the absence of reasonable amenities undoubtedly affects efficiency. All grounds of complaint on this score should be remedied, but better still, the cause for complaint should be anticipated and prevented from arising. (b) Share of returns. It is important for every employee to feel that he will benefit from increased output. Payment depending wholly or partly on results is theoretically sound, but it has been applied in some cases unfairly by employers by cutting piece rates. Such rates must be fixed and maintained so as to be fair to both sides. There are other forms of re-' ward for extra effort—e.g., special payments, depending on output or profits. Whatever scheme is adopted, the payment must be directly related to the employee’s work, and must also be automatic—that is, it must become due according to events, and not on an arbitrary decision of the employer. (c) Advancement. Dissatisfaction is aroused if reasonable claims to promotion are ignored. It is always advisable to fill a vacant position from within an organisation if that is possible. Such a practice offers an inducement to employees to qualify themselves for promotion. Another aspect of this mater is the failure to recognise the value of employees’ suggestions for improvements in methods of working. Every encouragement should be given to employees to help in this way. (d) Selection of foremen. How many employers show sufficient care in the selection of their foremen, or exercise any reasonable degree of supervision over them after their appointment? A foreman may be guilty of favouritism, petty tyranny, graft, or general incompetence. In such cases the result is destructive to the employee’s efficiency and his happiness in his work. (e) Monotony. Repetition work has deprived the great, majority of employees of any craftsman’s interest in the products of their labour. They perform the same minor operation every few seconds or minutes for eight hours a day. Measures can be taken which will, to some extent at least, relieve the feeling of boredom which ensues. (f) Consultation. Full co-operation can seldom be secured without consultation, Management will derive great benefit from a preliminary discussion with employees in regard .to contemplated changes. Valuable suggestions will often be made, and the way for changes prepared. Security in Sickness No employee should suffer a loss of wages as the result of sickness or accidental injury. The Workers’ Compensation Act and the Social Security Act make a ' great advance, but they do not go far enough.

Security on Retirement In spite of the provisions of the Social Security Act, there is still room for the introduction of superannuation schemes for the benefit of employees. Such schemes should now provide for the payment of a lump sum. rather than a periodic payment, so that the retiring employee may reduce or clear off any mortgage on his home, or even purchase a home. Personal Mangement The control and management of a large staff cannot be satisfactorily performed except by special officers with particular aptitude and experience. The truth of this statement can be tested by anyone who is able to compare the extent of staff turnover in establishments according to whether or not they employ a capable personnel officer. It is not only in regard to staff turn-over that benefit accrues. After a reasonable period of time a well qualified personnel officer with a free hand in his duties should be able to eliminate unrest, and promote efficiency by remoying all reasonable grounds of complaint by the employees. The subject of personnel management is a big one. Briefly put, the personnel officer is a specialist in the science of human relations who is responsible for all factors influencing the comfort and efficiency of the individuals in an organisation. There will necessarily be some variation in the performance of personnel management according to the size of the individual concern. A very large establishment will require a special department, as one officer could not perform the work alone. One man will suffice for medium sized businesses, while, in the’’ case of small ones, the duties will be. combined with other activities. The essential point to re? member is that personnel supervision must as far as possible be separate from general management. General No employer Can' secure the full respect and - esteem- of -'-his--staff unless he works substantially the same hours as they do. It may be said that management is not a matter of time, and that a capable executive can make his full contribution to the progress of his establishment by attending at his office for a short period each day, but this is not a view which appeals to the staff. A manager who arrives punctually when work commences and is still on the job at the close of the day has a much better chance of securing full co-operation. * It is also worthy of mention that the management should attend all social functions held by the employees and mix freely with them. Position of the Unions Although the committee has directed its attention mainly to the employer side of industrial relations, it feels that a few remarks as to the attitude of the unions should be added. The unions have succeeded in raising the wages of their members and improving conditions of work, and they will always be necessary for the protection of employees. It seems to the committee, however, that the work of the unions should now be broadened so as to benefit the whole community. It is suggested that in future, union officials should give attention to the following matters:— (a) Safeguarding employees in regard to wages and general . conditions of work (as at present). , . (b) Maintaining and if possible, increasing the real value of wages. Employees should be led to realise that it is a futile policy to force up wages and other costs without any corresponding increase in production as the consquential rise in prices nullifies the increase in wages. (c) Formulating suggestions for raising the status of employees and at the same time educating them to take a higher view of their responsibilities. Every worker owes a duty to the State as well as to his family. It has been truly said that we will not deserve victory if we cannot win the peace to follow. To that end this report is framed, with the picture in view, of employer and employee marching forward in a partnership to which both will contribute in understanding, sympathy and co-operation. Nor .does the effect of harmonious industrial relations stop there —what of the home life of Tom Jones, Bill Smith, Dick Brown? All husbands, all fathers with children to raise, clothe and educate. Surely if justification for this report were demanded, we need look no further than to the inevitable uplift in domestic tranquility and happiness in the circle of the family unit. This is the unit that produced the fighting men to guard our shores both here and abroad. Let it be our duty, then to guard and strengthen the bonds of the family circle on which the nation is built. [Extended report by arrangement/?