CAUSE OF CRISIS.

Press, Volume LXII, Issue 18690, 13 May 1926, Page 9

CAUSE OF CRISIS.

STATEMENT BY MR COATES.

SUMMARY OF EVENTS. (FKS3 ASSOCIATION TltJQil* 1 WELLINGTON. May IT. In view of the interest being ;i\-.'. in the existing industrial po*;;ior. -.2 the United Kingdom, the Prinv M;r - ter lias issued for public infer-.-. ■■ v :-. * statement winch sets out .1 '.u;,; >:mniary of the evvtiu iuatiui,; up t • it« present po-uion, and which has >«-\ trained from official (v:nm>:nv\v.: r-« received from F.ngland. "During the last twelve yes>- to coil mditeuy m Great liutiu. :*- lioeii reduced to .1 thoiougi-i;. heallhv state and severe e>v:: ■: >.-■- predion l>\ the uar, by G.'vt-rr .•■ '. control during the war. and tin it u- - .-.lances accnmpanymg Jiwntr.'l !y •••:- traction <>; the ma:kits. in»:al'-.'i:> ■■ cunvnr.e.-. ami ether well-kr.'.>v.-i t- -t----war phenomena. Successive (...-.or--incuts of all three parties have •»-,- jx-iintod to enquire \v.io \ae industry, and all haw agued cr. ii-o necessity for certain measures o: rvin the interests ..f e*-«-ency. such ns th-> closing o* th* *ki« profitable pits, the amalgamation <>» small units into larger companies, an*organised selling agencies. "Following on the Sankey Cotntn:*sion. the Government, in Jul". l?l? when the unemployment figures att« ■ the doniobilisation were high and discontent was widespread, passed the Seven Hours Act which had the effevt. of decreasing the output for each man. and of raising the cost of production Following decontrol of the mine* *n March. W-f, a three months* itri'se took place, (in which the miner* fought for greater uniformity of wage hv mcans of pooling the resource* of aH the collieries. This demand failwl aed the strike ended in a new wa*e a.rr*#ment. which was widely haiWdvs* t ' M * scientific application of the profit tax shnrins by districts. The »re-»ar method of regulating wages a**ordin»: to the fluctuation in the selling prioe of coal and in tho volume of trade wa-s superseded by a method which shared the actual proceeds in a defined proportion between the miners and own*r*. The workmen were guaranteed a minimum level of wage called 90 per cent, on standard, and .eoual in fact to trn average of about 44 per cent. ov*r their earnings in 1914, or of a hirfwr wage, equivalent to So per cent, of the. proeeeds. . Another Increasa. '

"in each district, after meeting co»ts other than wages, the 85 per cent was later raised to 87 per cent, towards ttto end of 1922, after a period of depn»sion. The position of the industry improved in 1928, and the tonnage af coal exported reached the figure <>f 80,000,000 tons, but much of this itm due to the stimulus resulting from the French occupation of the Ruhr. "In January, 1934,15* Miners' Federation demanded a higher minimum, and gave notice to terminate the 1921 agreement in Jnne. "After the Buckmaster Biquirr} under pressure from the Labour Government and in spite of stfong opposition from the owners, the miner*' minimum wages were raised from 90 per cent, to 33 1-3 per cent, above the standard. About the same time trade deteriorated, and within the nert twelve months hundreds of pits dosed. and tens of thousands of miners were* thrown permanently out of work. The owners accordingly gave notice to terminate the 195 M agreement, and asked for a reversion to the Eight Boors Ac*. Another enquiry was followed by another deadlock in the cummer*of hat year, the miners claiming thai reorw*nisation would render the wages redaction unnecessary.

Goal Commission AppntrtHL

"In September a Royal Cosmaaiost was appointed under Sir Herbert Samuel to make recommendation* far an improvement in the industry, the Gorernment meanwhile undertakinc ay means of a subsidy to nurintahi Wages at the level of the 1984 acieesaeat until May Ist, 1986. The Cotsmission reported on March 6th. They e«ndemned the subsidy, made important suggestions for reorganisation, aad re» commended State purchase of minanle. They pointed oat that reonaakatne must take time, and seeing that three* quarters of the coal was bens ptodnced at a loss, declared in Mfoir of the men going back meanwhPeto a w*s» level more like that of UfU. Usey were against reverting tofthe er**:t» hour day, though wufingr to ace *» adjustment within the mm of hwr* now being worked. They/weaved •' strict wage variation; subject to ef ■-*- tive Bnperrision by a natioaal eonference.

Parties Becerre Seport.

"Cabinet undertook to give effect to the report if the other two panes would also do so. The owners gave a general acceptance of the report, aat the miners consistently refused to accept it, as, it recommended a temporary reduction in wages. The owner* were willing to fix the minimum or national negotiation, hot eventually they yielded, under pressure. The miners' refusal to accept any redaction whatever in wages, or w rta place any increase in hours, waa amntauwd until the end. The owners accordingly posted in pit districts as offer of wages on the seven hours beats, and a, much more attractive offer for an eight-hour day. These offers were rejected. The Government induced the owners to modify their attitude tonational negotiation and to negotiate nationally without reserve "The final offer made by the owners was a uniform 20 per cent, on standard (as under the (931 agreement) for an eight-hour day. The miners remained unwilling to consider aiwage reduction until the ft reorganisation had been explored/ This could only mean a continuance vf the subsidy. The Government had aaeady spent over £23,000,000 on it, and had promised a further £8.000.000 to smcoth downward the revision of wages and the displacement of labour which would result from adopting the report. "The negotiations broke down in the early hours of Saturday inorninfi, Hay Ist. but were resumed later in the day with the Trades Union General jConncil. acting on behalf of the miners. They objected to the miners being asked to consent in advance to an immediate reduction of wages, in return for j jin unspecified reorganisation of the industry. The Government pressed for • sincere acceptance of the report as» whole, with its wage in»nli«tioa-The conversation was continued on Sunday evening. May 2nd. "Meanwhile it had come to the knowledge of the Government that oa Sundav afternoon Trades tf«« f**?*; tives had ordered a J»?« r Mondav night. May 3rd Despite «*» the Prime Minister and was in dose touch «* *V™5 negotiators when the news ewe late «« Sundav night that «■• the 'Dailv Mail/ and pMStbtfv t*» ♦ M continue the negotrntjoßS th* U Jon Committee must repwfcat*the strike actions which **«**»*? **£ | E and must unconditon.lv with-I K'inrtructions for n seneral strict tJS still remains the position of the/ Government." ' j