INCREASED COSTS

Otago Daily Times, Issue 26707, 28 February 1948, Page 6

INCREASED COSTS

EMPLOYERS’ PART FLOUTING OF AWARDS THREAT TO WAGE STRUCTURE “There is undoubtedly a lesson to be learned from the carpenters’ and joiners go-slow strike,” said Sir James Fletcher, in an interview with the Daily Times yesterday, " and that is that there is an alarming condition of affairs existing amongst industrialists and employers generally throughout the country. While there is a shortage of all classes of labour the foolish practice of one employer competing against the other by offering higher wages to attract the necessary labour is not ' relieving the shortage one iota, but is only destroying the whole wage structure which has been built up. This will have serious repercussions on the stability of our internal economy while at the same time it must have disastrous effects on those employers themselves in the long run. Dread of Personal Loss

“ Those manufacturers and employers engaged in the building industry and engineering trades who are following this practice must today accept the responsibility if a break-down of the Arbitration and Conciliation system results,” Sir James said. “We have the sorry spectacle of the leaders of the building industry in Christchurch—in some cases, men who have occupied the highest positions in the Builders’ Federation and Association—giving way within 24 hours to the illegal demands made by the carpenters and joiners. Within the first few days of the demands being made, the whole of the builders of Christchurch, with one exception, gave way. It would appear that to them the dread that they personally might lose a few pounds was of more importance than the upholding of award conditions and a balanced price level.

“It is also a fact that during the time that certain builders were trying to hold out against the demands,” Sir James said, “ many manufacturers were actually advertising in newspapers offering wages considerably in excess of the standard award wages so that they could entice away from the building industry labour for their own maintenance staffs. “To blame the Government for its lack of action would ,be a comedy if it were not so serious,” Sir James said. "An examination of the position shows, that the only action the Government can take is through the Labour Department, either by way of prosecution of those engaged in an illegal strike or by the holding of a secret ballot, but,’’ continued Sir James, “no good purpose could be served by the holding of a secret ballot when almost 95 per cent, of those employers engaged in the building industry have . already met the demands. “ There is not the slightest doubt,” Sir James said, “ that the employers, regardless of the industry in which they are engaged, have now got to face the fact that ifc is useless negotiating through' the Arbitration and Conciliation Court. to fix basic wages when many of them show by their actions that . .they have no intention of abiding by the awards which have been fixed. “I would be the last to suggest that an award fixed by the Arbitration Court is a standard wage for all employees,” he added. “ It has been recognised that this is a minimum wage only and that there are certain men who, through their iniative and ability are entitled to a greater share for their efforts but it must also be reoognised that to pay every man above the award rate is defeating the very purpose of an award.” Employers’ Share of Blame

There was a certain amount of justification in the contention of labour that costs were rising and that it was getting no benefit from the recent wage increases granted, Sir James stated, but those employers who at the present time 1 were offering inducements of additional remuneration were contributing.to a greater extent to these increasing costs than were the unions which were demanding the increases. For these employers on the other hand, through their various organisations to proclaim and protest their inability to carry' these added costs and their insistence that they must be passed on to the public through increased prices, seemed to him. Sir James said, to be utterly inconsistent. They were by their owft actions tending to create the very difficulties for which they are so volubly criticising the Government when it resisted their demands for increased selling prices. “ By the public reports of the number of conferences now being held by all sections of the community, there was probably never a more opportune time for an examination of the wage structure in all industries,” Sir James said. “It would be a most interesting study if employers attending these conferences, or represented at these conferences, would submit a certified statement of the wages being paid by them in their respective industries. I feel confident that the shock to the country as a whole coming from such a public disclosure would be such that a general overhaul of the whole wage system would be demanded."