INDUSTRIAL LEGISLATION

Poverty Bay Herald, Volume LV, Issue 17606, 23 October 1931, Page 5

INDUSTRIAL LEGISLATION

EMPLOYEES’ SUGGESTIONS OPTIONAL ARBITRATION URGED FEDERATION’S ANNUAL REPORT (Special to the Herald.) WELLINGTON, this day. The possibilities of legislation to deal with. the present industrial situation are reviewed in the annual report of the New Zealand Employers’ Federation submitted to the annual meeting to-day. After mentioning the plight of farming and business interests in the Dominion, the necessity for helping tlio farmer, the need for sane optimism, and the importance of the public showing prei'creico for New Zealandmade goods, the report reviews the 10 per cent, wage and salary reductions as follows: “As regards the State economies, they were unavoidable because of the reduction of State revenue, and as regards the wage reductions in private employment it was also a case of sheer necessity in most cases. To say that the wage reductions caused a reduced spending power and a further shrinkage of trade is a mistake; the unfortunate truth being that the aggregate purchasing power of the whole Dominion has been reduced to such an extent that tho money with which to pay- the former level of wages is not available. Much as we all regret the need for wage reduction it could not be avoided. Moreover, many employers were able to keep on an extra man or two as a result of the economy effected. EMPLOYERS’ RESPONSIBILITIES

According to the Hon. W. Downio Stewart’s budget speech, it was the Government’s intention to amend tho Arbitration Act along the lines of the recommendations made after the Industrial Conference in 1928 so as to provide for optional, arbitration. “If the recommendations of the employers in 1928 are followed,” the report added, “the result will be that in any case of an industrial dispute in which the employers and workers’ assessors arc unable to reach an agreement in Conciliation Council, the dispute can be referred to the court for settlement only with the consent of the parties. Ik the even of there being no agreement either upon terms or the question of reference of tho disputed matters to the court, any existing award governing the industry will cease to be of effect. “Tho employers, therefore, will have placed on their own shoulders the whole responsibility of making such alterations in existing awards as are necessary to meet economic circumstances. Their duty will be to effect all essential economies while at the .same time providing for their employees the fairest and best conditions which circilmstances will allow. “One of the most valuable things arising from the arbitration system has been the creation and preservation of a proper proportion between industries. This must be maintained if certain sections of workers are not to be unfairly treated. Under an optional system of arbitration the duty of maintaining a proper, proportion will devolve upon employers themselves and hence will arise a greater need than hag ever previously existed for close co-opcra-tion between all sections of employers with the object that a common policy will be observed by all, and no one section of industry by reason of specially favorable considerations will take advantage of other sections-to which more difficult apply. “In the past neither employers nor workers’ organisations have had to accept a great measure of responsibility. . In fact, responsibility has been taken from them even if they had been desirious of accepting it. Under the amended Act both employers and workers will have responsibility thrust upon them, and the way in which they discharge- their newly-acquired fune-. tione will have the greatest and most far-reachihg effects upon the industrial future of the Dominion.” LEGISLATIVE INTERFERENCE When tho president, Mr. A. 0. Mitchell, addressed the meeting, ho drew a attention to special conditions in awards that were a source of serious oxpense to the employer at present, and also operating to the detriment of the . workers; such restrictions often closed avenues of employment that would d.therwise bo available. “A suspension by legislation,” lie said, ”df the whole of the awards ,Lu tho Dominion to-day with the exception of the fixing of the length—but

not'the. actual'hours—of the working day and minimum rates of pay has been advocated by some employers .is a partial solution of the problem, and as an alternative to the possibility of further wage and salary cuts. Others again advocate the repeal of the Art and the abolition of the Arbitration Court. “The first suggestion would involve / legislative interference with awards of V the court made in the exercise of the legal authority conferred upon it by Act of Parliament, and so long as the Act remains on the Statute Book I do not think such a course could be justified even on the grounds of expediency. The court itself has no power to vary au award during its currency, and I do not think it would be proper for the legislature—without an amendment of the original Act—to do so. ■(“The second alternative is not exposed to thb shme moral objection since at is competent for the Parliament of the coilntry to repeal or amend any existing . legislation. There are, however, many serious objections to the repeal of the Act and the abolition of the court, although there is a considerable body of thoughtful and humane employers who would be prepared to go even as far as that. THE TRADE REVIVAL • “The considered opinion of tins federation, however, is in favor of an amendment of the Act providing for the abolition of the automatic refer- • once of all disputes from the Conciliation Council to the Arbitration Court, and substituting a provision making it mandatory to deal with all industrial disputes in Conciliation Council, but reference to. the court to be subject to the mutual agreement of the assessors for both sides. “If the consent of both set. of assessors Was necessary to ensure jhe reference or the dispute to the court, the assessors would assemble and discuss tho proposals with some sense oJ responsibility, and I venture to suggest that in the great majority of cases they could and would arrive at mutually satisfactory settlement, !y embodying workable conditions agreed 4 upon by experts in tho particular industry. under consideration. B "The employer hag a. joint respan- ..

sibilitv with Iho worker in the steps necessary to bring about that trade revival which is so essential to the country’s welfare. lie lias already made financial sacrifices far in excess of those of the award rate worker who is still in employment. In many eases, not only lias his income been reduced to vanishing point, but in thousands of cases his capital and reserves are being drawn upon to enable him to carry on at all. He, however, has the further responsibility of introducing more scientific methods of production in order !o assist in a reduction of manufacturing costs to a. level which Will ensure to tho worker and himself bo same purchasing power on a lower price ns a result of a general reduction of all classes of commodities.”