Southland Sawmills Facing Trouble

Chronicle (Levin), 10 September 1949, Page 7

Southland Sawmills Facing Trouble

INVERCARGILL, Sept. 9. Discrimination shown by the Government in. removing the subsidy on overtime rates of . pay for Saturday work threatens to disrupt the sawmilling industry in Southland. No statement was available from offieial quarters today, but it is fairly definite there will be no more Saturday work until all the miliers have been placed on an .equal -footing. During the war in an effort to step up production and overeome the laek oi manpower in the mills .the Gqvernment initiated a scherne which enabl'ed overtime to be worked by mills on two Saturdays in a month, the Government paying the major part of that overtime. This subsidy was set down to expire on a certaih date, but it had t>een extenaed each year to expire on March 31 the ; following year. •••. - Just before March 31 this year another extension was made to March 31, 1950, but late in July it was announced that the subsidy would cease in August. Following a protest by sawmillers about the lack of notice the date was extended to August 20, and later to include Saturday, August 27. It is understood that what concerns the millers is that some mills have been informed that the subsidy is to be discontinued and others have not been informed. These latter mills have been told they can continue Saturday work. It is said that this discrimination has annoyed the millers who point out that some of the men engaged in the industry will be able to have the benelit of overtime rates wliile others will be unable to work overtime. It is thougJtit this will tend to make the employees of. mills not working dissatisfied and that | there will be a danger of those men , going to some other industry. It is' pointed out that Saturday work witnout a subsidy would not be economic at the penalty rates. The price of timber, is fixed by the Price Tribunal and there would be no way millers could make up the cost of the penalty rates of pay.