THE TEXTILE INDUSTRY

Taranaki Daily News, 29 April 1930, Page 16

THE TEXTILE INDUSTRY

REDUCED WAGES SCALE

LORD MACMILLAN'S FINDINGS.

BRITAIN’S LOST EXPORT TRADE.

(Special Correspondent.) Wellington, April 26.

It was reported from Bradford the other day that a large number of wool textile workers in the Bradford district had gone on strike, refusing to accept the wage reduction. Mail advices furnish some details regarding the position. In the wool textile industry today the person difficult to find is the optimist. A long series of disappointments and difficulties aggravated by a protracted deadlock over wages appears to have resulted in depression becoming a habit of mind. In their evidence before Lord MacMillan, sitting as a court of inquiry into tlie wages dispute, the employers put forward as their considered view the pessimistic conclusion that there wore only two alternatives—a substantial reduction of wage rates or the bleeding to death of the industry. In his report issued early in March Lord MacMillan agreed with the employers that a reduction of wages is imperative and found that “in present circumstances and upon the present basis the industry is in a most unsatisfactory if not an actually dangerous position.” He recommended a cut in wages of roughly 9 per cent. ; The present wage system is highly complex. For time workers there us added to a base rate, firstly 10 per cent., and secondly 72.5 per cent, “cost of living” bonus. Since December, 1922, the minimum wages of time workers in the manufacturing departments have been: Men in scheduled occupations, 54s 10.7 d; men in unscheduled occupations, 52u, 8d; women, 32s 3d. For .these grades Lord MacMillan proposed a reduction of the 10 per cent, addition to 5 per cent, and of the cost of living addition from, 721 to 64 per cent. The reduction in full-time weekly earnings would be 9.249 per cent., or 5s Id, 4s lOld, and 3s respectively in the three classes mentioned. In the case of piece-workers, whose system of percentage additions is even more complicated, Lord MacMillan recommended an effective reduction of 8.766 per cent. The employers asked for reductions ranging from 15.23 per cent.' to 18.47 per cent. But apart from the question whether wool-workers’ Wages should be regarded as high or low in relation to the cost of living or. to earnings in other industries, Lord MacMilla'n was forced to conclude that the industry at present has not the ability to pay current rates out of its proceeds, and a sample inquiry into the accounts o.f representa- ! five concerns in different branches of the trade convinced him that “during the, past five years the financial position of the industry has become progressively worse and has now reached a really critical stage.” The Economist states that the crux of the situation lies in the export trade. The home market has failed to regain the volume of pre-war years, but competing imports are not a serious factor in comparison with the pre-war position. A rough calculation on the basis adopted last year by the Committee on Safeguarding indicates that in .1929 the British production of woollen and worsted tissues amounted to- about 400 million square yards against 443 million square yards in 1924, and 550 millions in 1912, and home Consumption to 279 million square yards as compared with 252 million in 1924, and 398 million in the pre-war year. Thus the rate of retained imports to British production, which was 13.1 per cent, in 1912, amounted last year to only 8.5 per cent., a figure showing an increase as compared with 6.1 per cent, in 1924, but not suggestive s of lack of stability on the part of British firms to hold an adequate proportion of the domestic market. It is clear that the chief wool textile producing countries on the Continent have gained ground very substantially in the export markets since 1924, at the expense of Great Britain, and although the catastrophic decline in the value of wool which has brought down the price of 64’s tops, from 43d a- year ago, and 55d in March'. 1928, to 284 d per lb. now, is causing a temporary re-striction-of demand, affecting-air European producing industries, “the striking contrast between the trend of British exports and those of our chief competitors’ sales abroad during the past five years is disquieting,” observes the Economist. /

In submitting to Lord MacMillan their case against a reduction of wages fates the workers’ representatives suggested that the -economic condition of the industry could be adequately improved by other means. The employers submitted to the court that “infinite variety isan essential requirement- of the industry,” and that bulk production was carried to the limit of its usefulness. Existing machinery was adequate; salesmanship was satisfactory; over-capital-isation was not a material factor, and though competition might be diminished and weak sellers eliminated by rationalisation, the result of that process would raise the average price and would thus be of little avail.