STATE MONOPOLY

Otago Daily Times, Issue 26589, 11 October 1947, Page 8

STATE MONOPOLY

Strong i Protest by Insurance Employees

Criticism of the proposed legislation to make workers’ compensation insurance a State monopoly was expressed at a meeting in Dunedin yesterday of Otago and Southland District members of the New Zealand General Insurance Industrial Union of Workers. More than 100 members, including women, were present and the following resolution was carried unanimously:—

“We insurance employees oppose the Workers’ Compensation Bill at present before Parliament because it is not in the interests of the workers and we, the insurance workers, are not prepared to accept employment under the proposed Government scheme.”

Although Mr D. T. Martin, who presided, invited members to offer any argument in favour of the proposed legislation, none was forthcoming.

“When we oppose this legislation, we are not expressing political opinion but are emphasising that we do not want to become Government servants,’’ one speaker explained. “If we become servants of the State, it would be impossible for us to receive promotion beyond Government scales or to realise our ambitions to advance■ment.” The proposed legislation was “the thin end of a wedge,’’ he said, and the Government might in the future take all fire, marine and other accident insurance. When the late Mr Savage was Prime Minister, he had given the insurance employees a definite promise that if they formed an industrial union, as they had done, there would be no Government interference with their employment. Effect on Employees

Workers’ compensation insurance had been administered with particular success for many years, said one member who claimed 30 years’ experience. He contended that if the Government took control the worker would not receive the same generous treatment or any ex gratia payments. “Red tape ” would be introduced if the Government gained a monopoly and while some of the present staffs would be employed by the Government others would lose their positions. Other speakers also emphasised their fears that many workers in insurance pffices would lose their employment if the Government took control because it was obvious, they said, that all would not, and could not, be employed by the State. Insurance employees who had served in the armed forces were being successfully rehabilitated at present, they said, but this rehabilitation would suffer -seriously if the Government stepped in.

Public as Petitioners

“ Government officials are too remote from the public,” another member declared, “ and under Government control of workers’ compensation insurance the public would be forced, to become petitioners. To-day, the public always receives the benefit of the doubt, when one exists, but that would not be likely under State control of the insurance.”

One speaker said that he feared the Government might appropriate some of the workers’ compensation . funds for other purposes. \ Those employees who did not lose their jobs under State control would only be employed on the Government’s “ temporary permanent casual" basis, it was claimed.

A resolution from Southland District members who could not attend the meeting was read. It expressed “a , serious view ” of the proposed legislation and “a strong protest” against the Government’s proposal.