RAILWAYMEN'S WAGES

Otago Witness, Issue 3443, 9 March 1920, Page 17

RAILWAYMEN'S WAGES

MR JUSTICE STRINGER’S REPORT

INCREASE OF ONE SHILLING PER DAY

SINGLE MEN TO EECEIYE SIXPENCE PER DAY

IMPROVED CONDITIONS PROVIDED FOR

'(Fkom Ouk Own Co-respondent.)

' WELLINGTON. March 5. The report of Mr Justice Stringer on paj and working conditions in the railway service was made available for publication to-day by the Minister of Railways (Mr' Masaey). Following are the principal clauses of the report: It aeems clear from the evidence adduced before mo that when the agreement as to salaries and rates of pay was arrived at in March, 1919, as a result of much negotiation and many conferences, it was hoped and believed by the management and the members of the staff that the increase in the cost.of living had reached its maximum, and that a decrease in' such cost would follow at an early date. Unfortunately, these hopes were not realised, and although, as appears from the Government Statistician's table showing index numbers for food, rent, fuel, and light groups combined, the cost of living so fatas these groups are concerned remained stationary, for the months of March, April, and May,. 1919, and declined sligthly in June, 1919; 'it again took an upward turn in July, and has steadily risen ever since. If, therefore, the purchasing power of the salaries and wages of the members of the service is to be maintained, it is clear that increases in such salaries and wages .must be granted to an extent commensurate with the increased cost of living. In his official publications the Government Statistician deals rnore with the food groups, housing, fuel, and light. These items,' however, represent only 59 per cent, of rthe expenditure of the average household, leaving clothing and miscellaneous items to account for the remaining 41 per cent, of such expenditure. It is notorious that the cost of clothing (representing about 13 per cent.' of the family ' budget) has increased' enormously (probaly over 125 : per cent.), and it is certain that the : cost of many of the 1 miscellaneous items .which include furniture, utensils, rates, end school requisites, tram, fares and amusement has also increased, but to what extent it is impossible to ascertain. The Acting Government Statistician has been . good enough to furnish me with ia statement show ing the result of his calculations as to what increase' would be necessasy in the basic wage of £3 12s to cover increases in the cost of living since March, 1919, when such basic wage was .fixed for adult members of the services.. In his calculation he has taken the items of food, housing, fuel, and light, and clothing, covering approximatelu 73 per cent, of the expenditure of the average household, and has prepared figures showing the amonnts respectively that would apply if the remainder of the expenditure (2,7 per cent.) were regarded as (1) having increased on the average at the same rate as the four classes constituting the 73 per cent.; (2) having increased at half this rate; and (3) not having increased at all, the result being as follows:

Wage £3 12s, period covered March-De-cember, 1919. New wage rate as ascertained above: (1) £3 15s 11J; (2) jE3. 15s sd; (3) JB3 14s IOJd.

Assuming, as I think, it is reasonable that tho basis marked (2) in the nearest approximation to aocuraoy, it follows that m order to maintain the same purchasing power of the basic wage, as it possessed in March, 1919, it should now be increased by 3s 5d per week. It is, however, clear from the figures of the Acting Statistician that the increase in the 1914 (pre-war) basic wage of £2 14s to £3 123 in March, 1919, did not fully compensate the members of the service for. the increases in the cost of living during the period covered; and, in my opinion, therefore, an increase of 6s per week, or Is per day, should be granted to certain members of* the service (hereinafter mentioned) by way of bonus, computed from the first day of January last, which bonus should be adjusted as on the 30th. day of September next, trad thereafter half yearly, by increasing or diminishing it in accordance with the rise or fall in the cost of living, as ascertained for the purpose by the Government Statistician, from time to time. The periods selected for the adjustments mentioned ere those recommended by tho Statistician as being the most suitable for the purpose. Considering the paramount importance of the railway service to the community and the desirability of maintaining therein a loyal and contented staff, the additional remuneration bj' way of bonus as suggested by me is, in my opinion,, no more than in the circumstances might reasonably be conceded to them, or than the public whom they serve should readily accord. I think, however, that the proposed bonus should be limited to married ..men, widowers with dependents, and single men with dependents. The increased cost of living, as ascertained by the Government Statistician, is based upon the requirements of a. man and wife, with an average number of dependent children. The statistician's figures, therefore, are not applicable to the case of single men, in respect to whom the cost of living has not increased to anything like the extent to which it has increased in the case of the hypothetical family, which is the basis of the statistician's calculations. The various increases in the salaries and wages of the staff which have been made from time to time since the war, and which have been baaed upon the increased cost of living to an average householder, have been granted to both married and single men ; the latter thus obtaining advantages to which they were not strictly entitled on the basis of the increase to them of the cost of living. I think, therefore, that at least for the present the payment of the bonus should be limited as before mentioned. If, unhappily, the cost of living should continue to rise, the question as to ■whether ox not single men should be entitled io participate in any future bonus will be opon for consideration by the management. In making awards In ordinary CHses between employers and workers it is not practicable

to prescribe a differential rate of wages for married and single men, as that would operate to the detriment of the married man (who generally speaking is the more deserving citizen), as he might in such circumstances only be able to obTain employment if single men (at less wages) were unprocurable by the employer. Thi?, however, has not application to a public service such as • the Railway Department, which it may bo supposed would prefer to give employment to married or other men with dependents, and would certainly not discriminate against men _ with dependents in favour of single, men without dependents, for the purpose merely of avoiding the payment of the bonus. In the course of the hearing of the different claims put forward by the various branches of the department many questions were raised and discussed upon which I offer no opinion. First, because they were outsido the specific questions submitted io me by the orders of reference, and second, because they (or many of them) involve the consideration, of technical matters connected with the working of the railways, os to which no opinion, unless based on expert knowledge, which I do not possess, would be of any value. Amongst the questions were the folAs to what should be the relative position in the classification of guards, signalmen, shunters, and storemen; (2) as to the abolition of second grades in the classification and percentages so far as they apply to the second division; (3) as to whether a Bhunter,' having been promoted to guard, should be required to take another term of shunting before qualifying for first grade; (4) as to apprentices and their attendance at technical schools during working hours; (5) as to the introduction of the mileage basis for engine-drivers; (6) the establishment of promotion and punishment boards; (7) that the (so-called) barrier between the first and second divisions be abolished; (8) that the age limit for promotion to certain positions be abolished; (9) the establishment and maintenance of rest houses; (10) readjustment of the system of passes. In the varying and complex conditions under which the railway system is necessarily carried on it is inevitable that anomalies and individual cases of hardship should occasionally arise. So far as I am able to judge these anomalies or hardships, whenever hrought under the notice of the management, are promptly removed or modified, so far as the exigencies of the service will reasonably permit. It is the < practice of the General Manager and the executives of the different railway societies to meet regularly in! conference for the purpose of discussing these and similar questions, and having perused the minutes of a number of these conferences, I feel bound .to say that it appears to me that the General Manager takes infinito pains to ascertain the facts of the cases brought before him, and to rectify, remove, or mitigate any real grievance which is found to exist. It may be desirable to constitute a consultative and advisory board, on the lines recommended by the "Whitley Committee, for the establishment of industrial councils for the. consideration, at regular intervals, of such questions' 1 as. those before enumerated, and of others such as: (a) The rates of pay, hours, and, working conditions of the service; .(b) the settlement of differences and misunderstanding between members of the staff and their immediate superiors ; (c) the grading, .'promotion, welfare,. housing, and discipline of the staff; (d) the training and teaching of apprentices, cadets, etc. These, however, are questions of policy, and as any recommendations of such a board could not,, -be given effect to unless they met with- the approval of the general manager, upon whom the responsibility for the safety and efficiency of the service rests, it may be questionable whether the practice at present in force, whereby the executives of the different railway societies meet the general manager in direct conference, is not the speediest and most satisfactory method of settling all debatable questions which from time to time arises affecting the service and the members of the staff.

With regard to the rates suggested in this report for skilled tradesmen it is true that in. some cases these seem to compare unfavourably with the rates being paid at the present time by private employers. It must, however, be remembered that as a consequence of the war the times <are still abnormal and "out of joint," and that this condition of things may soon be rectified if a comprehensive scheme of immigration is established and made operative. At present there is a general shortage of men, and employers are bidding against one another for the skilled labour they require, with the natural result that .men dispose of their services to the highest bidder and wages climb up higher and higher. Moreover, the abnormally high rates being paid for certain classes of unskilled labour have no doubt had the effect of diverting a considerable number of skilled tradesmen from their proper, avocations. This state of things probably accounts in a large measure for what was stated to be the case—namely, that there had been an unusually large number of resignations from the service during the last year or so. Some men who take short views of things, and who, to secure an immediate advantage, are prepared to sacrifice their future prospects, may have resigned in order to participate in the higher rates referred to. As against these high rates, the continuance of which cannot be relied on, the prudent man will set off the subtantial advantages which accrue to a member of the railway staff—namely: (1) Permanency of employment, no lost time through wet weather, waiting for material or between jobs; (2) annual leave on full pay; (3) superannuation allowance; (4) cheap railway travelling; 1,5) annual passes. If it is true, as is frequently stated, that the two great fears which haunt the mind's of workers are the fear of unemployment, and the fear of a dependent old age, a -member of the railway staff might well pause before resigning from a service which protects him from both these dangers to enter an employment which protects him

from neither, merely to obtain the immediate, but possibly only temporary, advantage of a, slightly higher rate of pay.

I now proceed to answer the speoifio questions 'submitted to me—(l) as to members of the first division, and casual employees in the clerical branch of the department.

(a) The rate of salaries which should be paid to members in grades 2 and 7 inclusive of subdivision 11, and to casual employees, rates as per schedule'to the Government Railways Amendment Act, 1919, with the addition thereto of a bonus of £ls per annum, computed from January 1, 1920, such bonus to be adjusted as on, September 30 next, and thereafter half-yearly, and to be increased or diminished in accordance with the r se or fall in the cost of living during such periods, as ascertained for the purpose by the Government Statistician. No such adjustment shall be made unless the amount re* quired to increase or diminish the bonus in proportion to the increase or decrease in the cost of living, as the case may be, shall be at least £1 17s 6d for the half year. In the event of any dispute as to whether or not the amount so required as before mentioned amounts to £1 17s 6d, the question shall be referred to the judge for the time being of the Arbitration Court, whose decision shall be final; the said bonus to be paid only to married men, widowers with dependents, and single men with dependents, (b) The number of hours which should be worked per day or per week, as the case may be, the ordinary weekly working hours of the salaried staff (other than those employed iat stations) should not exceed 38 hours, and should, wherever reasonably practicable, be as follows: viz., on all week days (other than Saturdays) between the hours of 8.30 a.m. and 5.30 p.m., with one hour off for lunch between 12 noon and 2 p.m., and on Saturdays between the hours of 8.80 a.m. and 12 noon if the exigencies of the service so require. Special hours outside the above limits may be arranged. The ordinary week day working hours for officers employed at stations shall not, so far as is reasonably practicable, having regard to the exigencies' of the traffic, exceed 10 hours in any day, or 48 hours in any week, exclusive of meal hours; and any euch officer shall be entitled to one'day off for every eight hours worked in excess of 48 hours in any week (excluding Sundays), such relief to be given as and when the management consider most convenient. At stations where it is reasonably practicable to do so, officers may be booked off duty for a portion of the day, but (unless for a meal) not for a le3S period than two hours, which may include one hour for a' meal. (c) What payment or other allowance (n should be made -for overtime, or for work performed on Sundays, or holidays? In my opinion no payment or other allowance should be made for overtime or for work done oh ' Sundays or holidays (other than for work done on Sundays in connection with train services). The members of the First Division are granted annual leave of absence on full pay (which extends for two or three weeks according to length of service), and sick pay which according to length of service may extend to nine months ftbree months on full pay and six months on half pay),'and these concessions in my' opinion, fully compensate such members for any overtime worked, and for occasional work done on Sundays (other than 'as'above mentioned) or holidays. For Sunday work done in connection with train services the following rates: should be paid for actual time worked:-viz., for members whose salaries are £2OO or oyer, 3s per hour; for members whose salaries are £llO to £2oi>, 23 3d per hour; for members whose salaries are under £llO, Is 6dper hour. These are the present rates, and appear to. me to be fair and reasonable. ,-.., "(d) What time should be allowed for meals, arid the conditions under which times should be allowed ? Wherever reasonably practicable one hour should be allowed for each meal, and as far as possible booking off for meals should be between the ■■ following hours: Breakfast, 7 a.m. to 9 a.m.; dinner, 12 noon to 2 p.m.; tea, 5 p.m. to 7 p.m. These hours to be arranged with due regard to the railway services, and the convenience, of the staff. As far as practicable time allowed for meals to be arranged between those hours during which meal 3 are generally served. The time to be allowed may vary according to the circumstances of the' particular case. • (e) What leave of absence should be gran tod in each year, and the conditions under which such leave of absence should be _ granted ? In my opinion the present regulations as to extent and conditions, of r annual leave of absence (regulation 83 of 6th December, 1912) are fair and reasonable, and should bo adhered to. (f) What travelling allowances should be granted, to members when ' absent from than? headquarters in the execution of their dutief*, and the conditions under which such allowances should be granted? It is understood that there is in course of preparation a ™.- vised scale of allowances which is to applythroughout the civil service, including the Railway Department. Until such scale becomes operative the present practice to continue. As to members of the second division and casual -employees other than those in the clerical staff. (a) The specifications of the various occupations, trades, and callings. These are set out in the schedule to the Act of 1919, and have not been questioned or objected to. (b) The rates of pay which should be paid for the respective occupations, trades, -ind callings in respect of (1) ordinary time worked during the day, the schedule rates, with addition thereto of a bonus of Is per day, or per shift, computed from the Ist day of January, 1920. Such bonus to be adjusted as on the 30th day of September next, and thereafter half-yearly, and to be increased or diminished in accordance with the rise or fall in the cost of living during such periods, as ascertained for the purpose by the Government Statistician. No such adjustment shall be made unless the amount required to increase or diminish the ' bonus m proportion to the .increase or decrease of the cost of living, is the case may be, shall be at least 3d per day. In the event of any dispute as to whether or not the amount so required as beforementioned amounts to 3d per day, the question shall be referred to the judge for the time, being of the Arbitration Court; whose decision shall be final; the said bonus to be paid only to married men, widowers with dependents, and single men with dependents. In computing the amount payable for overtime, night rates, or Sunday work, the above-mentioned bonus to be excluded from the computation. (2) Ordinary time worked during the night, day rate and a-quarter thereof. (3) Overtime worked during the day, day rate and a-quarter thereof, for every hour worked beyond eight hours in any day, each day to stand by itself. This-' rate shall not apply to those members who, for special reasons, are now receiving more favourable treatment, whioh shall continue. No overtime shall be payable in cases where the department now allows, and continues to allow, time off for time worked in excess of weekly hours. (4) Overtime worked during the night, night

rate and a-quarter thereof. (5) Work performed on Sundays and holidays, Sunday day rate and a-half thereof for all time worked. Holidays, ordinary rate for all time worked. Additional leave as provided by the regulations in the event of work being done on any of the four departmental holidays. (c) The definition of night work- The hours between 10 p.m. and 6 a.m. (d) The number of hours whioh should be worked per day or per week, as the case may be, in the following circumstances; that is to say (1), where the work is continuous for workshops and way and works, 44 hours per week—viz., eight, hours each week day, except Saturday, and on Saturday four hours. Notwithstanding the above, special hours may be arranged to meet special circumstances. Other branches, '4B hours per week, the department to undertake to Una work, the payment for which shall be at least equal to six days' pay at the ordinary day rate, payable to the particular worker. (2) Where the work is intermittent in character, and continuous work is not available, the present practice to continue, each case to be adjusted as circumstances allow. (8) At stations where porters are located for the purpose of train tablet working, and where the duties are light and interhiittenr. the present practice to continue. (e) The times which should be allowed for meals, and the conditions under which such times should be allowed. The same as for first division. (f) What leave of absence should be granted in each year, and the conditions under which such, leave should be granted. - Present practice as laid down in the "departmental regulations of 6th December, 1912, to continue. (g) What allowances should be granted to members when absent from their headquarters in the execution of their duties, and the conditions under which! such allowances should be granted, to be assimilated to the seal© being p'rejmred for the civil service generally. In the meantime the present practice,- under which the ■ department pays the actual expenses, in oases where the specified allowances are reasonably exceeded, to continue. -, - : Lake Wakatipu Steamer Service. I think the present, scale of wages'as set out in the schedule tyS* The Railways Amendment Act, 1919, is fair - and reasonable, and should be continued." I think also that ;the hours of duty, and shore allowance, should continue as at present. Compulsory Retirement on Superannuation. The :expediency and desirability: of making coßjpulaory the retirement under the provisions of part 3 of The Government Railways Act, 1908, of any member of the Railways Dfepariinent who'shall have been in the service of the department for a period of not less ihan 40 years, computed in accordance with the said provisions, or who shall have attained the age of 60 years,;l.and who in either case shall be entitled, to 'an allowance from-the Superannuation' : Fund on such compulsory retirement of not less than £250 per annum. The different branches of the staff were not in agreements on this question. : One branch desired that there should be compulsory retirement of an officer on hi 3 having served for 40 years, or on his attaining the age of 60. Another branch desired>tbat the compulsory retirement should take place on the officer having serv'&d 40 years, and having attained the age of 60. The remaining branch did not favour either proposal. The main objection to the present system, was that under it promotion was slow and automatic, and that it failed to supply any stimulus towards efficiency. This is the' inevitable result of a system, of classification ?under which promotion is : largely by seniority. The alternative, however, would be a method of selection by a. board; this would certainly give. rise . to suspicions that some promotions were made not on account of ability and effiicency, but by favouritism ■ or as a result of undue influence which would probably be, more destructive of a spirit of loyalty to" and contentment with the service than the existing system. Under any system, however, it seems to me that to compel an. offiecr to retire after 40 years' service, or at 60 years of age, would mean that in many cases the State would lose the benefit of his services, just at the -time when by reason of his experience and efficiency such services hod become the most valuable. Moreover, as was pointed out, the suggestion could not be given effect to so far as regards those officers who had joined the staff prior to 1909, without amending or repealing section 92 of the' Government Railways Act, which could not be done, except by a broach of good faith with euch officers. In my opinion, it is neither expedient nor desirable to amend the present system as suggested -above. In conclusion, I desire to acknowledge with thanks the very- valuable assistance rendered to me in the course of the inquiry by the advisory assessors and the gentlemen who conducted the cases for the department and the different branches of the service respectively. The Prime Minister, in reference to the report, made the following statement: "In subsequent consultation with Mr Justice Stringer it has been agreed that to single men in-'the first division a payment of £.l 10s will be made, and to single men in ths second division a payment of 6d per day—both payments to be by way of bonus, and commencing from January 1, 1920."