THE EMPLOYERS' ASSOCIATION.

Star (Christchurch), Issue 7409, 2 November 1892, Page 4

THE EMPLOYERS' ASSOCIATION.

The following is the full text of tbe address delivered by the President, Mr W. Recce, at the recent annual meeting of the Employera' Association :— Gentlemen, — In moving the adoption of the report and balance-sheet, I will, with your permission, make a few remarks on some questions of interest that have arisen since our la3t annual meeting, and refer briefly to what has undoubtedly become ] the question of the day, viz., the relative j positions of capital and labour. We have | much to be thankful for that New Zealand j ha 3 not been the scene of any strike of j importance, and it is greatly to be deplored, \ in the interests of humanity, that other ] parts of the world have produced scenes of violence almost unparalleled in the history of industrial warfare. There is no doubt j individual experiences may either embitter or soften our feeling?, regarding some of i the points I have to refer to, and ] although I have endeavoured to approach I the subject without bias, I must expect j that many, perhaps, ttill not endorse my j views, in which case I trust you will not \ fail to express your ideas, a3 I feel that we do not discuss these vital questions as much as we ought. i LABOUR ORGANISATIONS, j I think it ia apparent from current events that in most parts of the world tbe arrangements surrounding labour organisations have not proved co successful in improving the condition of their members, and conducing to the general prosperity, i as was supposed by the otiginatora. The great trouble soemo to be want of competent leaders ; who should have common j sense, be reasonable in their demands, and \ at the same time ba able to study cause j and effect, to define how an advance in cost .of production will affect the manufacturer, and consequently the workmen. Men are (ranted who are able to feel the enormous responsibility resting upon their shoulders, and who have not their own glorification, j but the true interests of their fellows, at ! heart. To the absence of these qualifica- j tiona may be traced most of /the serious ! disagreements and strikes that have taken j place. More leaders are wanted of the j stamp of Chief Howard, who presided at a | recent convention of railway employees, l held in Kentucky, and who, speaking of the relations of capital and labour, said : — "I have been asked if I did not, as a general rule, despise capitalists, and I answed, No ; that I was a capitalist myself, and the world is f nil of capitalists. Every human being in the world that has good brains and health is a capitalist; every one who has five cents in his pocket over and above what he owes is a capitalist. It is impossible for capital and labour to conflict with each others People do not always agree, but capital and labour always go hand in hand, and it is impossible for it to be otherwise. One cannot possibly exist ■ withont the other, and Buch men aa are i always engaged in trying to excite the envy of the unfortunates, the malice of the poor, should be considered as enemies to humanity and good society ." STRIKES. The notable strikes of the yeat are the Durham coal strike, the Carnegie strike at Homestead, and, to come nearer home, that at Broken Hill. Any of these provide ample food for reflection, and go to show that but little advance has been made in peaceably settling labour difficulties. I am more than confirmed in the opinion I have long held, that strikes and lock-outs should be made illegal, and none should agree with this view more than those who wish to advance the race generally; for all these disturbances jeopardise the peace, property and even the lives of not; only those immediately in them, which of course is not right, but also that of those outside the dispute altogether. Many a good man has been made a criminal by some hasty act committed in the excitement attendant on a strike. Any condition of things that raises the rank hatred so often shown towards a fellow human being by men to the "f/ee labourer" is enough in my mind to condemn the present system. Again, from a business point of view, strikes are most disastrous. In England hardly a strike has occurred which has not resulted in trade leaving for the Continent. The Durham strike, which threw 90,000 men out of work, caused enormous losses to the district, and threw a portion of the coal trade permanently into the hands of German collieries. Manufacturers as a rule do not desire to reduce wages below a fair rate, and if permitted to do businesa in peace, they could pay these and prosper. It ia the uncertainty that kills, and men are afraid to launch into new undertakings or push their business into new fields. It is to be hoped that in the future all concerned will feel that there is no loss of dignity in resorting to arbitration, and by this means avoid friction, save wages, and prevent injury to trade. CONCILIATION AND AEBITBATION. I much regret that a workable Bill in the direction of arbitration was not placed on our Statute Bcok last session. We can scarcely open our morning paper without seeing the necessity of the "application of arbitration in some part of the world. Conciliation and arbitration have now passed from the region of experiment, as is shown in their application at Home and elsewhere. For instance, in the Midland Counties of England, Wagea Boards, composed of equal numbers of workers and izannfactnrers, have been able to settle innumerable disputes; withont even going to arbitration, and have induced r feeling of mutual sympathy which has enabled them to face low prices aad poor trade. The first annual report of the London Conciliation Board shows that it has done wonders; and is nsing its influence in endeavouring to bring about a meeting between disputants when requested to do so by one of the parties concerned. Tbe Board consists of thirteen employers and thirteen employees, and has done its best to further conciliation throughout the country. On the Continent, too, the principle ia recognised by the establishment of a Higher Court of Labour, in Belgium, for the settlement of trade disputes by arbitration, composed of forty-eight members, sixteen representing the employers, sixteen the employed, the remaining sixteen being selected for their special knowledge of economic questions. From this body is expected great things in all matters affecting the relations ot capital and labour. PROFIT-SHARING. One of the solutions of the labour problem is profit-sharing, and believing ai I do in the usefulness of its application to almost any concern where labour is required, I will ask, you to note the points for and againet, when I think yossr conclusions will be favourable. Time will only admit a bare outline of the system feeing given, but those who wish to pursue he Bubjeit further .Bhould read Gilman'a

work and the E9port of the Board of Trade. Profit-sharing commenced in France in 1848, in England twenty years later. In France over eighty-one firms, comprising some of the largest enterprises, have adopted this sjstem ; in Switzerland and the United State 3it has also many advocates. A pure and simple form of profit-sharing is not Buitable to the requirements of the workers, audit is apparent that the time wages system is nob always satisfactory to the employers. Profit-sharing aims at being a solution of the difficulty, being a combination of both sj stems. The chief forms of profit-sharing are — 1. A gift to the workers for the success, of the year, usually known as a bonui. 2. A certain portion of the profits paid into a provident; fund for the benefit of workmen in cases of sickness or old age. 3. Theshareof profits allotted tolabour set aside as an interest in the business. 4. A cash payment to the workmen out of net nrofite, in accordance with work done by each worker. The system is not only applicable to manufactories, bufc for the use of farmers, retailers and merchants. For small concerns, the annual cash bonus plan is simplest and best; 'but where a large number of employees are required, the combination of the cash bonus and provident fund should be adopted, as the encouragement is greater, and a permanence given to the arrangement. An American firm thus describes its plan of profit-sharing : — 1. Labour is entitled to its wage?. 2. Capital is entitled to its wages. 3. That there mu3t be a reasonable provision for emergencies, lest the capital become reduced. 4. The wages of capital and labour being paid, and a reasonable contingent provided for emergencies, the remaining profit, if any, will be divided between cipital and labour in the ratio of investment (which means in the latter case the annual wages received). The advantages are, briefly : Eeduction of j waste of material and general economy s superior excellence and increased quantity of work done j diminished expense of ! supervision ; great stability in the staff, j and increase of practical information, as • all suggestions for improvements would be I for the general benefit j the relationship i between employers and their men will be i improved. Trades Unions may object to I profit-sharing as increasing the output ! and consequently reducing wages, but they I overlook what is cow an accepted fact, that j low prices ensure increased consumption, j which must in turn increase the value of labour. It is also made an objection that the authority of proprietors will be diminished. The experience is all the other way, and supervision is much easier and much le3B a worry than under usual cir- ! cuinstances. Another objection is that t whilst employees share any profit there may | be, they do not share the losses. There are | many replies to this, but I think it is sufficient that, in the event of a bad year, I the employees would only receive j their usual wages, and would loEe ! any reward for their extra exertions. Another objection is that the results of a buainess are made publio, also that the syßtem entails complex book-keeping. The i firat can be easily overcome by all con- ; cerned agreeing to accept the statement I of the accountant or auditor of the profits j accruing to each, and in reply to the second j I think you will agree with me that every j firm or individual in business of any kind i whatsoever should be in a position to ! know, at least annually, the results of the [ year's work. I consider that in the Colony where the working classes and perhaps employees generally are more intelligent, better results might fairly be ! anticipated than in the older countries. I | think that profit-sharing has much on its j surface to commend it, and when we know j the testimony in its favour of a great numj ber of firms employing many thousands of men, it would seem that the subject is j well worthy our further attention. BKLATIONS OF MACHINERY AND INVENTIONS TO THE LABOURING CLABBES. Machinery influences labour in two oppo- ' Bite ways, first in the contraction of labour and Becond in its expansion. The displacement of workmen may cause great distress at the time, but labour is greatly benefited in the end by labour-saving inventions by . the increased consumption of raw material, and in other ways. In the Colonies it ia especially necessary for workmen to fall in with the introduction of machinery, as . otherwise very prohibitive duties will have ; to be imposed to enable local manufacturers ;to compete with foreign productions. In i many industries machinery has also greatly , improved the character of the work men are called upon to perform, and has assisted and improved them intellectually by giving them greater capacity for the enjoyment of life. INDUSTRIAL INSURANCE. There can b$ no doubt that if some effective plan of making provision for old age could be arranged tor the working classes, one of the most pressing problems of the day would be solved, as workmen, whose power to labour is their only capital, run considerable risk, either through accident or sickness, of being deprived of the means of livelihood for themselves and their families. It seems reasonable to expect that some simple plan will be evolved from the many suggestions in this direction, by which the State, at the post offices or other suitable places, will receive a small weekly amount to be returned in the form of a penaion tc the workmen at a certain age. LABOUR EXCHANGES. I am afraid we have not considered seriously the possibilities of usefulness existing in the establishment of Labour Exchanges or Bureaux, and have rather looked upon their introduction into New Zealand as savouring too much of State assistance ; but I find that the Secretary of the Royal Commission on Labour recently arranged to have an enquiry made into the constitution and working of the Brussels Labour Exchange, which came into existence a few years ago. The report shows that, originally starting as an ordinary registry office, it was followed by the formation of a Belgium Federation of Exchanges. "Whilst they cannot, of course, create work, these Exchanges can ascertain where it exists, and enable workmen to find it. The results achieved so far in Belgium have been most satisfactory. THE FUTURE. We are just now overwhelmed with crowds of guides to a better existence for the world generally — Socialists who wish to move gradually. Anarchists who wißh an immediate revolution. Capitalists and employers are constantly being charged as a body with having no soul above dollars, and as having no care for the physical or moral nature of those dependent upon them. This I most emphatically deny, and I do this after most careful observation. I have every reason to think that, whilst there are "some spots of blackness in creation to make its colours felt," neither employers nor employed are as black aa they are often painted. I fear that for the ideal state of the Socialist an ideal people must be made. There are moral forces throbbing in the rich and poor alike, and out of these all measures of reform must come. Whilst I can see objections to any condition that will enable men to grow enormously rich, either by the oppression of others or through no energy or effort of their own, I cannot understand the cry against a man who, by industry, sobriety and thrift, has accumulated a competence, and who uses his means in a rational manner. And I think the aim of reformers should be to elevate and enrich the poor — not to endeavour, by the levelling process, to pauperise those who have honestly and by fair means placed themselves beyond the reach of poverty. The feeling of sympathy is always expected to proceed from the employer, which is quite right ; but I submit that it should not be a onesided matter, as the employer really wants the aid of his employees or fellow-workers quite as much. It is no easy matter to work a businesa or manufactory these times with succesß, and in many cases the employer ia not by any means a capitalist, but as much a worker as any in his employ, and consequently as deserving and in want of the kindly feeling, thoughtfulness and aid of his co-workers. CONCLUSION. In conclusion, I trust the fact that this Association has not been required to take part during the year in any great queßtipn of difficulty will , not lead members to become lukewarm in' supporting it. The policy pursued in the past, by your Committee is, I think, the right one, bearing

in mind that our chief aim ia not to be aggreßsive, but to endeavour to peaceably assist in settling any matters affecting the iaterestß of itß members. It ia to be hoped that the coming year will Bee no new disturbance of the existing relations, for in New Zealand we have many great advantages, and can very well afford to ignore the strife of the old world, and by combining the energy and goodwill of brains, wealth and industry, set an example worthy of a Colony, the pioneers of which knew not the terms capital and labour, but who worked together with a will, with what resvlta we can all testify.