H—4s

(Ib) COSTS OF CARGO HANDLING Through printing delays the tables showing costs per ton of cargo handling under the co-operative contract system for the years 1947-48 and 1948-49 have only recently been published. Included with the tables are comprehensive explanatory notes on— A. Basis on which costs compiled. B. Increases in basic rates of remuneration. C. Adjustments for comparative purposes. These notes will be included and brought up to date in future issues of cost tables. As stated in last year's report, the Commission considers that the figures from 1947-48 onwards represent a reliable indication of post-war trading conditions. The cost tables for 1949-50, therefore, will include for comparative purposes the average costs per ton for cargo handling from 1947 to 1949. (c) PROFIT DISTRIBUTION The tables included in the Appendix (pages 50-59) summarize for 1940-49, 1949-50, and 1940-50 the principal figures in relation to profit distributions earned under the co-operative contract system at each port where the system has been in operation for any period during the past ten years, and for all ports. The averages per hour -(Commission) are the rates of profit distribution on " winch " or cargo-working time, which is the only part of waterfront work at present covered by the contracting system. They reflect the improvements or falling-off in cargo-handling time as shown by the ■" winch " time rates of work per net gang-hour (see Appendix, pages 28-49). For the year ended 31st March, 1950, the total amount of profits distributed at all ports for all vessels was £278,387, which was a reduction of £19,671 as compared with 1948-49. This decrease was principally on account of the lesser volume of work under co-operative contract, as explained in Section (a) above. The total of profit distributions under the system during the ten years it has been in operation is now £1,912,928. This represents 10| per cent, of the total contract price of £18,124,512 for the same period. The average profit distribution per winch-hour for all ports has decreased from 11-49 d. in 1948-49 to 11-45 d. for 1949-50. Individual port averages, however, vary considerably according to the standard of work. The highest averages for the year 1949-50 are at Westport (2s. 11-13 d coal-loading work on coastal vessels), Port Chalmers (2s. 3-06 d.—overseas vessels only), and Timaru (2s. l-78d.—all classes of vessels handled). All other ports except Auckland, Wellington, and Gisborne were above the all-port average. At Auckland the average was only 7-41 d. per winch-hour, and at Wellington the rate was 9-65 d. It will be seen, therefore, that the co-operative contract system does provide an incentive to greater output of work. It is largely in the hands of the men at each port as to just how great an increase in earnings they can obtain through faster work. 4. AVERAGE HOURS OF WORK (Appendix, page 66) The total average hours worked per week by unionists for 1949-50 for all ports was 44§ hours, which is the same as for 1948-49. There has, however, been an increase of -J hour in the ordinary hours average for 1949-50, with a corresponding decrease in the average for overtime hours. The total hours worked by unionists paid through the Commission's Central Pay Offices have increased by hours during 1949-50. Although the all-ports average has remained stable, there have been many changes in individual port averages during 1949-50 as compared with 1948-49. At only one port, Lyttelton, have the figures remained the same. Increases are shown at eight ports, including Wellington (l| hours), and range from I hour at Dunedin to 3| hours atWanganui and 4 hours at Gisborne. The remaining eight ports, including Auckland (1| hours), show decreases varying from J hour at Nelson to 3 hours at Port Chalmers and 3| hours at Oamaru. These fluctuations in average hours are reflected in costs of daily and weekly guarantees (see Section 6, page 12).

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