CAPITAL AND LABOUR.

Taranaki Herald, Volume LXVII, Issue 16448, 31 May 1919, Page 6

CAPITAL AND LABOUR.

“STANDING ON A PRECIPICE.” THE NEED OF NEW METHODS. The relation between Capital and Labour was one of the matters mentioned by the president of the Wellington Chamber of Commerce (Mr. J. G. Harkness) at the annual meeting of the chamber on Thursday. Air. Harkness said it might not be usual to refer to labour problems in a presidential- address. The reply to any such objection was that the relationship between Capital and Labour was so intimate and vital to the interests of those engaged in commercial pursuits that there was no legitimate reason why it should be avoided. If in the past business men had shrunk from facing the responsibilities of the position, it was not debateable under existing conditions. “Long before the war, indications were not wanting to prove that industrial troubles were simmering, and loomed larger than the proverbial cloud in the distant horizon,” said Mr. Harkncss. “During the war period these difficulties were temporarily allayed by appeals to our common patriotism, conferences, and substantial increases to wages then paid or war bonuses to meet higher values of food products and the general ‘cost of living. The past year has not been signalled by any striking upheaval. The unrest and dissatisfaction are still manifest, and deepening in intensity. The object that Labour has in view is the readjustment of present conditions. It maintains that the value attached fo national prosperity does not depend, or rather should nob depend, on the increase of wealth amongst the few, the general prosperity of the nation, and the development of commercial pursuits, but in the improvement of conditions under which Labour works, a higher standard of living and a more equitable and general distribution of all wealth amongst those who have to toil with their hands. To i hasten this period it is advocated that all systems for the production of wealth should bo nationalised, such as transport by sea or laud, the output of all cool mines, the total productions of the .soil and the manufactured goods of industry. On this scheme Labour is practically united. “Attempts will be made to retain this objective by means of the political machine, and if evolution or constitutional methods will not bring into existence a complete-transformation, then other processes must be adopted. Neither time nor space will permit a refutation of such plausible arguments ; suffice it to say, the policy underlying the wholmstructure is as old as the history of the world, with this difference, that the portion which is true is old, but that which is new is not true. For the last 26 years or more, wages paid to labour in any particular industry have been fixed, and the conditions and hours under which the work shall be performed have been definitely settled either by the Arbitration Court or flic Conciliation Council.

"Compulsory arbitration has not proved an unraixed blessing. This method of adjusting wages has not given complete satisfaction either to the employer or employee. Experience ha* proved that it possesses several advantages, but it is a matter of considerable moment whether the disadvantages attached thereto do not counter-balance the benefits received. There is definite proof that the thing of the minimum wage is not an inventive to best effort. It fails to discriminate between the efficient and non-efficient worker in the same class of work. It lias not prevented strikes in the past as it was hoped, and consequently agreements made under the award of the Court have been binding on the employers but not to the- same extent with the employee. Further, it has not controlled or prevented the policy which is now being adopted of restricting outputs and limiting the .production of labour, and, above all, has destroyed the very foundation of mutual respect and confidence as between those immediately concerned.

“After this lapse of years these two great forces, Capital and Labour, stand on tho precipice, with something akin to bitterness on each side; one reluctant to forego its privileges, the other armed with a suicidal policy of ‘go-slow’ which must ultimately end in chaos. Tho present is spoken of as a ‘new age;’ is it not the recreation of an old world, shorn of its prejudices, its selfishness, based on the principles which we, as a nation, have fought and sacrificed so much for? “What can bo done to draw closer tho bonds that should unite the opposing forces? The first stop in any satisfactory solution is that the capitalists—the word is used in its broad sense, embracing all employers—must look beyond their own personal interests and regard tho necessities and demands of the community as primary. The strength of this sentiment carried us through the welter of war. If it was essential and good then, it will be efficacious in peace. It may be a bitter lesson, but the fundamental principle has to be grasped that more injury is done to the community by having discontented, depressed, and underpaid employees than any benefits the community will gain by accumulated wealth. It is a hard thing to say, but the truth must be spoken, that in this new “re-oreation” service to the community must necessarily rank superior to a large income. “How about the worker’s attitude? His outlook on life must be considerably broadened. His views on many important questions require modification. The worker must realise that the interests of no particular section of the community can become paramount to the interests and prejudicial to the common good of the community. He must learn that his best efforts should be given, and the hardest work performed, not for a section of the people, but for the general good of the community. A “go-slow” policy which limits output will inevitably deny Capital a legitimate return, and it will seek other firms of investment. Wages will fall, the industry will become unprofitable, mid unemployment will follow. Such a policy is dishonest. It takes all it can get by way of payment, and returns partial service for a given rate of pay. It is a sin against the individual who adopts tho policy and a crime against tho community of which he forms a section, and whom h© professes to assist.

“These two great factors, Capital and Labour, need to unite and co-operate ■in the cause of greater production, the result being that there will be enough to satisfy both. Confidence and trust must be restored in each other, not that Capital shall be enriched or become more powerful, nor that Labour shall be again enslaved or tramelled, but that the former shall receive a fair return, and .the latter improved conditions of working ,better wages, and higher standard of living, eernbluing comfort and contentment. vicstions now touched on are

of such importance as to be worthy the consideration of the keenest, shrewdest, arid most brilliant of Wellington commercial men, and the council during the year in dealing with these has done its best.