WAGE REDUCTION SOUGHT

Taranaki Daily News, 22 December 1930, Page 11

WAGE REDUCTION SOUGHT

FLAXMILLING DIFFICULTY ■ ;■ “IMPOSSIBILITY TO CARRY ON.” ’ PRODUCTION COSTS TOO HEAVY,;. ; By Telegraph.—Frew Aaaoeiation. ; Palmerston N., Dec, 20. . Application -to amentf. the .. Wellington indiitrial'. district flakmill employees award was made the Arbitration, Court to-day by the flaxmillers. The. millers sought a reduction m wages of--33 1-3 per cent., from los to 10a war day,-to make it practicable for the industry. to resume. ' ,? Lengthy evidence was given concerning the costs of production and the.; disparity with current ma s va !. u , G *‘ Mr. Bromley appeared for the Manawatu' I’laxmill z Employees’’ Industrial Union and Mr, T. O‘. bishop for th Flaxmillers’ Association., Notice ,of application to amend, the award had previously been made by °ne the parties, Ross, Rouck and Co., Ltd., by 'reducing the wages and piece-work rate*; specified in clause 4 by, 33 1-3 per cent. The grounds of the:. application •h*Wi; that the conditions of the industry had. altered inasmuch-as the price of hemp had fallen since the award was made to such an extent as would not permit the industry being carried on if the wages specified in the award remainedin force.. •.. . ■■ , Mr. Bishop , stated that the employ-; ers had exhausted every means of , arranging'adjustments of the wages.question and the: Court was the last, hope,; They had been v endeavouring to.:rar^ : on and had unsuccessfully appealed to •the Government for assistance. ' Mr. Bromley asked if the millers would abide by the decision of the ; Court and undertake to start the mills upon the basis arrived at. , . Mr. Bishop replied that the mill*, would start if the Court could. makesuch provision as would enable them to do so. Even if wages were 10s . a day the millers would still lose money. . “I take it that the millers are anxious ; to start,” said Mr\ Justice Frazer; i ? Mr. Bishop said that mills would start as soon possible after January. 1 if the ■ losses • could be> reduced. The millers J wanted no profit and no intercet. , ’ . ’ ’■ £ -.; Mr. Bromley said that in- the past tha price of hemp had been £5O ton, instead of £lB, but the award had not been increased in proportion. Mr. Justice Frazer: .“The. Court tries to adhere to standards where they exist, although it has. been, .blamed for., doing, so. •.. . . . Mr. Bromley said that provision was made for. a sliding scale in the plication by ' the millers. . Mr. Arthur Mabin, chairman .of director 3 of Miranui Limited, who has been connected with the industry ’for years, submitted a schedule of milling •costs at £l5 0s Id per ton in addition,. to a royalty of 7s Bd. The overhead expense was ’ £l2 /Is lid, making ' total cost of £27 9s sd. The . price J *t> ? the mill last year was £2B 9s JkL ton, showing a Idss on milling lid per ton. In addition there had beeii| a capital expenditure of £7740 not pro-i; vided for. The price to-day .wae aiffi-ts cult to gauge as no flax was being prw«. duced. In 1929 it was £27 17s per ton. A high price in the world.’s market*? to-day would be £l9 per ton. in 1913 was £25 plus the. tow, making it £271 Sisal had been -a; factor inforcing down flax prices, owing to tha ? competition produced by cheap ' labour; ; in East Africa and ' Java. The actuai? New Zealand wage cost was £l2 16e 3d per ton. Even with a reduction.« one-third there would still be a heavy loss; but witness stated -.that the -mill* .; would re-open if a’, reduction w»a fected to bring production, costs >to a little over £25 per ton f.o.b. The average price over a long period had been £25. There had been; no fat ’divideiid* f paid. At present it was impossible ,td ~ carry' on • and the ’swaihps were- going j back. Given encouragement the millers could re-establish the' industry. g Mr. Bromley asked questions concerning distribution profits during the war, ;j and was informed that ■ there was. no.’; trace of thenk ; , Mr. Mabin said the mills could not ‘ re-open even'on. a wage ,of Ilsa: day.;-'; To the Judge witness said royalties had-' come down. ■ ■Henry Greigs supervising director m ; the. company at Tokomaru, gave evidence that the total cost of productionj; on his property was '£2B 6b 2d provision was made for depreciation ;; c-r interest on share capital. He would . not ; ;giye an assurance that his company. would re-open at a one-third wages.? reduction, as it would still mean a. loss of £3 to £s'per ton. . Replying to Mr. Bishop witnes®, eaid j he could obtain labour at the rates applied for to the Court; The company , had not,the finance to convert'its;lapAli; into grass"land.. ■•'’■?.■ ' Mr. Justice .'Frazer, .said that if but-,?; ter prices remained at the present letel.? dairy -land values must drop all over? r . the-country. ... Witness said his company was prae* - ticallyat the end of its resources. Thai ! application had been made out of •!»««■?.: necessity. .?,.? ~?. ... .?■ The Court adjourned. , , ' • : ?•??