WAGES AND INDUSTRY.

Waikato Times, Volume 96, Issue 15360, 8 October 1923, Page 2

WAGES AND INDUSTRY.

I TWO INCOMPATIBLE POLICIES. The articles contributed by Mr. C. A. McCurdy, M.P., to the " London Daily Chronicle", on British industrial conditions -have attracted very wide consideration outside England, as these deal in large measure with fundamental principles. A Labour Socialist paper here makes much of the contention that wages should be on a higher standard but ignores the fact that tliis is but one side of the square deal which Mr McCurdy is looking for. It is also put by him that "on the workers' part a square deal means that there is to be no more restriction of output, no more ca'-canny. There must be willing honest acceptance by trade unions of all new machinery and means and methods for increasing output, utilising every invention which British brains can apply to British trade." When Mr McCurdy says "The sense of insecurity in the mind of the British worker is the fundamental cause of industrial unrest and restricted output and strikes" we can- i not wholly agree. • Though recognising that this is a very important factor we arc yet of opinion that another equally important cause of the evils referred to is the widespread dissemination of impractical socialistic doctrines which raise hopes which cannot be fulfilled and engender a spirit of conflict based on political considerations rather than industrial facts. Looking at these matter^-broadly there appear to us two distinct psycho-industrial policies existent of which we ought to possess clear understanding for the good of our people. The policy by which Mr Henry Ford has built up a wonderful . business with the result of achieving the lowest costs whilst paying the highest wage rates, is but one example of what is commonly met with in American industry. From the Labour side the policy is that the workers shall, without restraint, supply the goods and receive good wages in return. In the August number of "The National City Bank of New York Bulletin" we learn that a recent agreement was effected on the building trade at the rate of 12 dollars a day of 8 hours for bricklayers—equivalent to about £2 10s per day here. A note is added that "this did not secure the bricklayers for the reason that they had work at higher pay with other employers." How can these very high rates be paid? In another part of this Bulletin we find what offers some explanation. This is a return of the manufacturing industries for the years 1914, 1919 and 1921. The return shows that with the number cf wage earners practically the same wages and salaries more than doubled in 1921 as compared with 1914, but the value of products also practically doubled —it is there we find the key of what constitutes a policy of progression. Where the . output is materially increased the wages of employees can be increased with safety

and the relative cost to consumers not increased. There is the policy of industrialism which is fully economic in its outlook, which aims, above all, at supplying the goods and therefore cultivates initiative, good organisation and the fullest measure of efficiency all round. That policy "appears to make good for employer and employed and specially for the community in which it. operates. The other policy is that which more or less regards industry as dependent upon politics or to be mixed up with political control. We fear that in Britain, both at Home and. overseas, this policy has had far too much sway for some years past; even now it largely dominates in many quarters. On the employers' side it is exhibited in running to the Government for- many things which they could better provide themselves and looking to the politicians to do the industrialists' work. As for Labour. —the policy is pushed by it in the direction of regarding industries as the means for solving all sorts of social problems, so that the economics of industry become greatly obscured; Industrial questions are treated not in their true relation as economic factors of which the state of trade and commerce are the determining facts. The issues of industry are rather taken as being the elements of political programmes which have been formed without any consideration of the general state of industry. In New Zealand for instance, whilst the people arc clamouring for houses to be built the N.Z. Political Labour Party

declares for" "A Ave day week of 40 hours"- and'the Industrial Unions of the building trade adopt this as their demand. The two policies here presented are incompatible with one another. , ... The economic industrial policy with its call for efficiency and steady progress along safe lines; its stand for the free play of personal initiative and aptitude is such, we think, as Britain and her overseas Dominions will return to because of the essential sanity of our race. The policy of politicoindustrialism has led us into all sorts of quagmires of party conflict, class antagonism, practices of "go slow, retaliation, strikes, lock-outs, and other forms of restriction on industry. It is time that the sane peaple in the ranks of Labour and Capital came together and recognised—(l) That all are dependent on the prosperity of industry. (2) That industry is essentially economic rather than'political. (3) That whether the present economic order of society continues or not it is wisest to make the best of it, not the worst. (4) That as industry will have to be existent in any succeeding state it should be preserved in value independent of all political systems or states. In England there are formed joint councils of employers and employed for the advancement of industry. We should like to see' similar action taken in New Zealand. (Contributed by the New Zealand Welfare League.)