SHARP RISE

Timaru Herald, Volume CXLI, Issue 20442, 12 June 1936, Page 8

SHARP RISE

MANUFACTURING COSTS EFFECT OF LEGISLATION By Telegraph—Press Association AUCKLAND, June 11. In view of the fact that they had booked large orders in January and February last for goods to be delivered in September and December at prices based on manufacturing costs at the time, employers in the Dominion clothing trade dispute before the Conciliation Council made a proposal that the Union should agree to the 44 hours week ruling under the old award continuing to the end of the present year. If that were done the employers would agree to a 40 hours week from January 1 next. The Union, whose claims embraced a 40 hours week, refused the proposal but it was admitted that the employers had a case for permission to Increase prices. A Rise of 52 Per Cent. “We want you to consider the case of the industry under shorter hours,” said Mr T. O. Bishop, secretary of the Employers’ Federation, addressing the Union assessors. “We recognise the Government’s desire to bring the 40 hours week Into the industry as soon :.s possible, but you all know as well as the employers that in this industry orders are obtained in January and February for delivery from September to December. The clothing trade is now working to fill orders at fixed prices. Have you realised how hard the industry is hit by this new legislation? Do you know that the total increase in the wages bill will not be less than 52 per cent? Big orders have been taken on the old basis of cost at fixed prices. How in the circumstances is the industry going to stand an increase of 52 per cent? We therefore ask you to ease down on the 40 hours week proposals. We want you to agree to a 44 hours week until the end of the year. If you do that we will accept the 40 hours week from January 1.” Mr J. Roberts (a Union assessor): The figures you give are impressive. Mr Bishop: They are correct. Mr Roberts: But there is the point that the workers suffered a 33 1-3 per cent, reduction in 1931. The rates for first year girls were reduced from 15/to 10/-. An employers’ assessor: There was a 10 per cent. cut. Mr Roberts: I’m referring to the lower paid wages. When you quote a 52 per cent, rise you are not quite fair. When the cuts are taken into consideration you have had the benefit of a 33 1-3 per cent, drop for two years under the old award.

Mr Bishop replied that the increased wages represented 52 per cent, on the wages ruling when the orders were accepted. “It is perfectly true that wages were reduced,” he said, “but that does not alter the cold hard fact that employers undertook to deliver goods on the cost of living at the time they made the contracts. We ask you to ease things down, not in respect of wages but in hours.

Mr Roberts said It was desired to help the manufacturers as much as possible, but the employers should consider the position in which the union was placed. The Government desired to impose a 40 hours week on industry, and the clothing trade was one of the easiest in which the reduced hours could be imposed. The employees were largely women. An assessor: That is sentiment. Mr Roberts: The world is made by sentiment. We are not going to let down a trades union principle for which we have fought for years when it is within our grasp. We recognise the difficulty in which the employers are placed and we are prepared to help them in any way that is possible. Mr Bishop (io Mr Roberts): Do you think for a moment the court will refuse our request for a 44 hours week until the end of the year in order to fulfil our orders? I will make any reasonable bet it will not refuse our request. Mr Roberts: I will take you on. Mr Bishop: We will go to the court and show our order books. It cannot refuse a reasonable request. A Union assessor: You offered yesterday that if we would accept a 44 hours week that you would pay extra wages for the four hours over the 40. Mr “'shop: That is a separate thing. It was turned down. Advantageous Offer Mr Bishop added that from the Union’s point of view the present offer was an advantageous one. If it were agreed to the Union would be the first to secure a 40 hours week. Mr Roberts: I am quite willing to take the responsibility of refusing it. Your offer is worse than yesterday’s. Mr E. Nicholsen (an employers’ assessor): If the court refuses us it should agree to the raising of prices. Mr Bishop said the question of prices hardly came within the province of the court. Mr Roberts said he agreed that the employers shou’d be permitted to claim higher prices on goods sold, but the employers should remember that in the war perio-' they enjoyed the advantage that prices went “sky high,” while there was a lag of 18 months before the employees got the benefit of increased wages. It was agreed that the Arbitration Court should be asked to settle the question of hours.