WAGE REDUCTIONS.

Timaru Herald, Volume CXXXIV, Issue 18831, 20 March 1931, Page 4

WAGE REDUCTIONS.

OPPOSED BY ALLIANCE OF ( LABOUR. GENERAL COMMITTEE APPOINTED. The following report is supplied by the Alliance: — The conference convened by the New Zealand Alliance of Labour, which was held in Wellington during the past week, was the most representative Labour Conference ever held in the Dominion. There were 165 delegates present, and they represented B'B,ooo trade unionists. Never in the history of the labour movement was such unanimity shown as was expressed in connection with the necessity of action being taken by the organised workers to prevent the reduction in wages proposed by the Prime Minister. Reports from the delegates indicated that owing to the casualness of employment the average wage of workers on an hourly rate, whether skilled or unskilled, had been reduced by twenty, thirty and even as much as fifty per cent. The secretary of a large union in one of the skilled trades stated that more than seventyfive per cent, of the membership of the union were working short time. The opinion of the Conference was therefore, that further reductions in wages would make it impossible for the working people and their dependents to exist. The Conference decided unanimously to oppose the wages cuts and a central committee was appointed to advise and instruct the trade unionists throughout the Dominion on the action to be taken. This central committee will be composed of representatives of the trade unionists in each centre who will act in conjunction with the National Council of the New Zealand Alliance of Labour. The committee has been instructed to commence an organising campaign amongst the employed and unemployed workers throughout the Dominion with a view of preparing for widespread and effective industrial action in the event of a wage reduction being enforced. In addition to the national committee, local committees will be appointed in each city and town. These committees will be under the guidance of the national committee and will cooperate with that committee in any action which it may decided to take. The conference gave definite instructions to the national committee in regard to several matters in connection •with the proposed wages reduction. It ■will be remembered that the Prime Minister gave a direction that the wages of all workers, should be reduced by ten per cent. On the other hand, he expressed only a pious hope that interest charges would be reduced. The delegates were of the opinion that the Prime Minister considered that interest charges should be reduced, but the Conference was not prepared to leave that matter to chance for they directed the trade unnions of the Dominion that, in the event of a ten per cent, wage reduction being put into operation, they instruct their members to reduce all rentals by 15 per cent, this reduction to apply to State and municipal owned houses and to houses owned by private landlords. It may be asked why a 15 per cent, reduction in rent is suggested when the wages reduction proposed by the Prime Minister is ten per cent. The fact of the matter is that rentals absorb such a large amount of the workers’ wages that it is necessary that a 15 per cent, reduction in house rentals take place. It is probable that if action of this kind is taken, working people will be evicted from their homes, but the national and local committees will deal with this matter. Workers are asked not to occupy a house from which a tenant is ejected for reducing the rental by 15 per cent. Many of the workers throughout the Dominion have some equity in buildings owned by the State, by the municipalities, and in many instances money has been advanced by private concerns. As it appears that these people have no intention whatever of reducing the rate of interest, the Labour Movement considers that it is necessary to impose this reduction by the same method as that proposed by the Prime Minister. The workers are asked, therefore, to impose a compulsory reduction on all mortgages whether paid by way of rent or for any other purpose by 15 per cent. The Prime Minister also expressed a pious hope that the cost of living would be reduced. The Conference discussed this question very fully, and they were not prepared to accept the word of the Prime Minister, for in 1922 when the Court of Arbitration reduced wages by the wholesale method the cost of living actually increased. It was, therefore, decided that all workers be asked to impose a reduction of ten per cent, on all bills for food, clothing and other necessaries of life. The attitude taken up by many industrial concerns throughout the Dominion in connection with the proposed reduction in wages was considered by the conference, and it was decided that the workers be asked to organise their purchasing power as it was of equal importance to the organisation of their power as producers. Many of the large retail and wholesale firms have been to the forefront in supporting the Prime Minister’s proposal to reduce wages, and it has been decided that the trade union governing the workers engaged by these concerns report the matter to the national committee, and that all the trade unionists refuse to deal with food, clothing or drink stores or any other establishment if the owners of these concerns support or act with the Government in its policy to reduce wages.

The conference held that the workers had a perfect right to organise their purchasing power, for we have noticed for many years that any business concern would not deal with another firm which attempted to reduce its income. These firms are aiming to reduce the workers’ income by ten per cent., and the workers have a perfect right to refuse to do business with any commercial concern that aims to lower their standard of living. The Arbitration Court. The conference discussed the position of the Court of Arbitration in regard to the proposed wage reduction, and while many of the smaller unions realise that in the past the Court was necessary to maintain the standard of living of their members, if, however, the Court intends to declare all existing awards and industrial agreements merely scraps of paper, then it cannot be said that the Arbitration Court even assists to maintain the standard of living of these workers. It has always been held that an industrial agreement or award is a solemn contract made between the employers and the workers, but if these contracts are made only to be smashed at the will of Parliament or the bondholders overseas, these workers cannot hope to rely on that institution any longer. The conference after serious consideration decided that, in the event of the Court of Arbitration reducing wages or worsening the conditions of employment contained in any award or industrial agreement before the expiry of that award or industrial agreement,

the union or unions affected be ininstructed by the National committee to cancel their registration under the Industrial Conciliation and Arbitration Act.

The trade union movement of New Zealand is definitely opposed to the Parliament of this country interfering with awards or industrial agreements; indeed, the labour movement questions the authority of Parliament to break a contract of this kind. If they can break a contract legally made by the Court of Arbitration or a contract legally drawn up between the trade unions and the employers, then it is certain that Parliament can break any other commercial contract that may exist.

The Government of the country has only itself to blame if it creates a position in New Zealand similar to that which has been operating in India for some years. The trade union movement of this country realises that the majority of the workers cannot take direct industrial action, although many of the unions can, and no doubt will if the powers that be attempt to force a reduction in wages. The trade unionists of the Dominion can, however, organise their purchasing power and can impose reductions in rentals despite any action taken by the Government.

The industrial history of New' Zealand, and indeed of the world, does not contain a similar record to that enunciated by Mr Forbes. Even Mussolini called the Fascist Unions together before he made his famous pronouncement to reduce wages a few years ago. The Prime Minister of New Zealand did not call a conference, and did not consult the labour movement. His Cabinet simply announced that a reduction in wages would be made without even an investigation as to the actual conditions of the unfortunate people who are only in part-time employment and are consequently suffering severe economic hardship even at the present time. When awards or industrial agreements are made by the Court of Arbitration or by the law of New Zealand, the Government has no right to interfere with these awards or to declare them null and void. In the opinion of the conference just concluded, the Forbes Government are acting the lawless party and by the illegal policy they propose are compelling the workers to organise and join issues in a universal fight against a lowering of the standard of living of the people of the Dominion. To put it plainly, the conference was of the opinion that the Prime Minister and those who will vote with him for a wage reduction no longer serve the interests of the majority of the people of this country. They serve only the bondholders and moneylenders overseas and the agents of these money-lending institutions in New Zealand.

The secretary of the New Zealand Alliance of Labour has been requested to communicate the decisions of this conference to the labour movement of Australia and the labour movement of Great Britain and European countries, particularly to the International Transport Workers’ Federation. The conference was of the opinion that the main cause of the proposal to reduce wages was international inasmuch as we believe it to be a direct instruction from the bondholders and moneylenders overseas. For that reason, the Labour Movement of New Zealand considers it will be necessary to obtain the co-operation of the international labour movement to fight the wages reduction proposal effectively. The labour movement contends that the people of the Dominion have, after years of struggle, established a standard of living which no institution, including Parliament, has a right to take from them.

The delegates to the conference have now returned to their homes, and meetings will be held during the coming week in all centres to appoint local committees. These committees will in turn convene local meetings in order to discuss ways and means to fight effectively the Forbes policy of reducing wages.