The Daily News THURSDAY, JUNE 21, 1928. THE CONTRACT SYSTEM.

Taranaki Daily News, 21 June 1928, Page 8

The Daily News THURSDAY, JUNE 21, 1928. THE CONTRACT SYSTEM.

The protest voiced by a number of workers employed at the Waitara Meat Works, regarding the increasing introduction of the contract system of labour, is just one of those actions whieh indicate the trend of the workers towards dictating to the employers , the conditions of employment. The argument used by the president of the workers’ union was that it was very unfair to the men who had built up their homes (some of whom had been “on the job” for the last twenty years) to be put on the road at this juncture of their lives. From a humanitarian point of view the contention is admirable, but from a business, aspect the main need of the present time is for economy in production, and one of the ways in whieh that is to be secured is by the contract system. Apparently these employees of Borthwick’s have not kept in mind the notable example set some time back by Mr. Semple in taking a contract from the Public Works Department for the construction of a tunnel. The system under which that contract was carried out was exactly the same as that which is the subject of complaint at the Waitara works. One man is made responsible for the work and he gets together the requisite number of colleagues on whom he can rely to put forth their best energies and reap the full profit of their labour. The working of this plan was emphatically demonstrated years ago when it was introduced into the co-operative works carried out by the Public Works Department with signal success so far as the contracting gangs were concerned. It is also the same in effect as piece-work. Under present-day conditions, and with very keen competition by foreign countries in the meat trade, the margin between profit and loss is not sufficiently large to justify the payment of fixed wages which have been based, not on the amount of. work performed, but on so-called cost of living statistics. It is, of e.ourse, well known that, despite the object lesson given in Mr. Semple’s ease, the Labour Party set their face strongly against pieee-work and eo-operative contracts. The indications are, however, that the trend of industrial progress will inevitably be in the direction of contract work, if only for the reason that such a system should practically eliminate strikes and other labour troubles In the ease of the export trades concerned with the output of foodstuffs it is of prime importance to eliminate, as far as possible, all hindrances to the preparation and shipment of supplies. It can be readily understood that a certain section of the workers are determined to do all they can i to keep those weapons wherewith they can paralyse industry whenever they please, and it is equally evident that the employers will endeavour to obtain a fair and just measure of control over the details of their business. There will, however, always be a fluctuating amount of employment for men not sufficiently efficient as to be able to be included in contracting parties. At the same time, no doubt eases of hardship will arise, but the basic law 'of political economy must prevail if the Dominion is to progress. To some extent the workers must shoulder the blame for any increase in the contract system that is found necessary. After all, it is the fairest method of adjusting wages to output or services performed. There is no getting away from the fact that by some such system will the future of industry in the Dominion have to be safeguarded and fostered. The present system offers no inducement for men to put forth their best efforts and thereby add to the -wealth of the community and bring about true and sustained prosperity.