“TRADE BOYCOTT STUPID AND A PIECE OF BLUFF.”

Star (Christchurch), Volume XLIV, Issue 63, 16 March 1931, Page 8

“TRADE BOYCOTT STUPID AND A PIECE OF BLUFF.”

Business Men Declare Lower Wages Are Only Alternative To More Dismissals.

U TUST A BIT OF HOT AIR that lias been allowed to J escape,” .. . “ Merely a gesture on the part of trade union secretaries who wish to impress the rank and file of the workers,” . . . “ A clever piece of bluff that will get them nowhere.” These were some of the comments made this morning by business men in regard to the drastic measures decided upon at the conference of trade unions last week for fighting the proposed wage cuts. It was pointed out by the principals of commercial firms that "while a boycott was a deadly weapon it was exceedingly difficult to use it with success in an enlightened community. New Zealand could not be compared with China or India, where a boycott of British goods operated according to plan. Talk of trying out such a method in New Zealand was only so much bluff, especially as its operation would harm the workers themselves and aggravate the unemployment problem.

Heads of firms dealing in such necessaries as clothing and groceries declare that the threat of a boycott of those firms which follow the Government’s lead in a 10 per cent reduction of wages is one of those wild and rather vague ultimatums that the firebrand section of Labour usually resort to in times of stress. One manager said: —“ The average working man is a sensible and goodhearted fellow, and will not countenance any such action at a time when he realises that all sections of the community have to make sacrifices, and that the employers have had to bear the brunt of the depression for six months before any reduction in wages was thought of.” A boycott; the heads of firms declare, could not succeed, as the reduction in wages would be so general that the would-be boycotter would have to starve if he obeyed the edict. The only alternative to a reduction in wages was the putting-off of more men, which would aggravate unemployment. “ Exceedingly Foolish.” “ The whole thing is so exceedingly foolish that it is not worth a momento consideration,” stated the head of a large firm dealing in the necessaries of life. “ Any man with any thinking capacity who is employed to-day knows that the employers are * up against it ’ as far as trade conditions are concerned. Our experience is that the staff is more alive to the position than even the employers. The staff realise that something must be done, and that if labour costs are lowered 10 per cent it will assist in relieving the situation. 44 It is amazing that Labour men in this country can talk such rubbish when their confreres in Australia are reducing costs, acting on the truism that ‘ needs must when the devil drives.* Notwithstanding close watch on all costs, labour costs have shown an increase greater than any other business costs during recent years. There have been comparatively few reductions in wages since the start of the depression, and employees are six months behind the employers in having their returns decreased. 44 A trade boycott would increase the employers’ difficulties and make imperative the putting-off of more men. 44 It is very difficult to know how to deal with the problem, and I suggest that some of those agitators for a boycott should take over the businesses and show how to run them without eating up all the capital in "‘‘.the process.” Alternative To Dismissals. That consumers were human, and would therefore buy at the shops which best suited their requirements, was a statement made by the of another firm. He said that the reduction would be so universal that a successful boycott of the firms concerned would end in starvation for the consumer. The speaker looked upon the edict as one of those wild and somewhat vague declarations usually made by a section of Labour at such a time. Quite a number of firms had reduced the wages of their staffs from the beginning of this month, and the only alternative to that had been the putting-off of men on the selling staff. Many firms were gag j*li*is

carrying staffs numerically greater than was warranted by the present condition of trade. It was better to have a reduction in remuneration than in staff. The fall in the price of groceries, in the last three or four years was considerably more than 10 per cent, stated one of the leading grocers. Prices had been reduced by about 25 per cent, and all before there was any question raised of a reduction in wages. If wages were reduced there would be a further decrease in grocery prices. There had been no fall in wages so far, and the employers had been compelled to put off some of their employees. The likelihood of further reductions in staff would be lessened if wages came down. A of grocery establishments could not succeed.

A Potential Danger. A financial authority stated that while a boycott would not be successful in the case of shops, there was the danger that the declaring of dwellings “ black ” because of a non-reduction in rent might lead to mob violence. Timid people would not care to live in those houses declared “ black,” and the houses might be liable to damage. Tenants had their legal remedy for high rents in the Rent Restriction Act, which was still in force, and by virtue of which an appeal could be made to the Court for a reduction. In the last two years rents had been reduced, in some cases up to 25 per cent. Most of the mortgages in Canterbury were held by trustees, who had not the power to lower rates of interest while the beneficiary was under twentyone years of age, or was suffering from some disability. Natural Laws Operating. A land agent who does an extensive house-letting business referred to the proposal that workers should themselves reduce the rents they are paying by 15 per cent, and that those who have bought houses should impose a compulsory reduction of 15 per cent on their mortgages. He said that such a scheme was doomed to failure if an attempt was made to carry it out. “At the same time,” he added, "it should be made, clear that natural laws are operating in that direction all the time. There is absolutely no need for any organised effort on the part of the workers. Those of us in the houseletting business know that rents are continually being reduced. In fact, only last week pur firm secured reductions in centals for seven tenants.’ We find* with very few exceptions landlords ate prepared to meet tenants, and in some cases rents have been reduced mere than once in the past few months.” The land agent said that while the rentals of the better class of houses had dropped on the average from 10 to 15 per cent, those of the cheaper dwellings had remained fairly stationary. It could be expected, however, that as soon as the Arbitration Court reduced wages, rents would fall. It was a question of supply and demand, and if people could not afford to pay the present rents most landlords would meet the position. A moratorium was not required, as natural laws operated to bring about adjustments in this matter. (Details of the proposed action by trade unions appear on page 14.) ! si is m is ii m m is m ® m ® mm ® is ® m m g