Flax and the Price of Labour.

Press, Volume LXVI, Issue 20102, 4 December 1930, Page 10

Flax and the Price of Labour.

Sooner or later there is going to be a crisis which will test the foundations of our wage system, and it looks as though the flax industry is going to be the proving ground. At present most men can earn a living only on the conditions laid down in awards of the Arbitration Court, and this means, so far as flax is concerned, that many of them cannot earn a living at all. The cost of production of a ton of flax fit for export is 90 per cent, wages, and if the export value is £ls per ton, while wages at present rates bring the cost of production to iilG, all the mills will be idle, and all thu men will swell the ranks of the unemployed. But if men were granted a special exemption to work longer hours or accept lower wages, so that they could produce flax at XI4, our exports would increase, we could pay for our imports, our credit would improve, our exchange would improve, our retailers would benefit by increased trade. In short, tiie whole mechanism of civilisation would start to move again. Of course if times got better the higher scale of wages could be paid and we could revert to normal again, but it looks as though we shall have to amend the system whereby false pride prevents a man from accepting wages below standard rates. Real pride in his country, as well as in himself, would encourage a man to do anything that would increase its prosperity. Everyom would like to see wages keep up, anil all men enjoying the highest standard of living the country can afford, but the inflexibility of the present system is not for the good of the country or even of the worker himself.