Reductions by the Union Company.

Star (Christchurch), Issue 4712, 2 August 1893, Page 3

Reductions by the Union Company.

[FROH OUR SPECIAL COER2BPONDKNT.J WELLINGTON, August 1. With reference to the Union Steamship Company's circular notifying a reduction < of wages of seamen and others, it is noticei able that there is a clause intimating this to he merely the first step towards the ! carrying out of a general scheme of redactions. I understand that the intention is, next month, to intimate similar reductions to all classes of the Company's employees, including engineers, master?, pursers and general shore hands. The reason for the postponement of dealing with these classes of employees is probably to he found in the fact that there is an agreement between the Company and the Engineers' Association on the subject of wages, which does not expire until September next. [Pee Press Association.! DXJNEDIN, Attgttst 1. The Union Steamship Company has I ißßiied the following notice to the crews of i the Company's steamers :— ' "It is with regret that the Directors of the Company have to announce that in consequence of the great shrinkage in trade resulting from the severe commer- ■ cial depreesion in Australia, they are.com- ; pe'led to effect economies in expenditure wherever possible. Since -1890 the business of the Company has not shown satisfactory results, and dividends have gradually declined. Last year the profit on i working account was so small that it was fonnd necessary to encroach upon the insurance fund to enable the payment of a dividend at the rate •of 6 per cent per annum. There being jno immediate prospect of any general ; improvement in trade the Directors have no option but to follow the example of shipowners in Australia, and ask their employees to accept reduced rates of pay in caßes where the wages paid warrant a i . reduction. The first step in this direction : must naturally be taken with the crews of „ the Company's steamers, . which form by far the moat numerous class of their employees. The Directors are of opinion • that the circumstances of this Colony are ■ not bo unfavourable as to necessitate at once bo sweeping a reduction as has been made in Australia, where the wages. of seamen, firemen and trimmers have been 1 reduced by £2, per month, and they ' : also recognise that membership of > the Mutual Benefit Society and its I accompanying obligation, should be taken into consideration in connection with the question of wages. The present rate of wages of seamen was fixed in 1881, when trade generally was brisk and prosperous. The increase then granted has been enjoyed for nine years now, although for a j considerable portion of tbat period the , I profits of the shipowners have been steadily , j decreasing. The Directors, therefore, feel ' i warranted in asking their crews to accept i I a reduction in wages of £1 per month, or • one-half the reduction that has been eatabi lished in Australia. This will make the, wages in the Company's coastal steamers i. and the intercolonial boats trading with i New Zealand— Seamen £6, trimmers £6, ! : firemen £8, greasers J6B, and they also pro- '• pose to fix the rate of overtime at 1b per ) hour. Hitherto the rate of overtime in 3 j the Company's employ hasjbeen Is 6d per i last three years has only been Is per hour, > { so that during tbat period the Company's E men have been enjoying an advance of 6d L per hour over the crews in Australian 3 steamers. The Directors feel it is due to their men to give reasonable notice of the piopoßedchange,audhavethereforedeoided 5 not to bring the reduced rates of pay into operation till Sept. 1. This- will give the t men ample time to weigh the proposal ; carefully, and to fully consider the posi- £ tion in connection with the circumstances I ruling both in this and the neighbouring *■ Colonies. The directors earnestly hope 2J that the men will recognise that the present proposal is rendered imperative by the unsatisfactory state of business. They g also wish their employees to understand that should trade so improve as to result in satisfactory returns being secured it is not their intention to make any further reducJ j tion."