LABOUR AND LIVING

Dominion, Volume 11, Issue 26, 25 October 1917, Page 6

LABOUR AND LIVING

ACUTE PROBLEMS REVIEWED

BY THE EMPLOYERS' FEDERATION

The annual report of th.o New Zealand Employers' i'ederatiou, presented sit yesterday s conference of delegated, states that in presenting the report the Advisory Board regretted that it could not repout what woe said last year regarding treedom from industrial trouble. "Tho poriod under notice," says the report, "Uati been oue of constant anxiety to the board, and to all olaeses of employers of labour, and has been rnarrod by strikes of considerable magnitude. In uddition thereto, the continuance of tho great war is making a serious drain on the niansood of tho country, and as a result the staffs of many businesses have been so depleted as to make it extremely difficult to keep trade going satisfactorily. The constantly accumulating cost of the war has reaaltod in the Government being again compelled to increase taxation, and while the inequitable exce=3 profits tax has been done away with, the incidence of the new taxation ie bearing very hardly in some ways, and especially with Tejfard to the assessable income of limited liability companies, and tho6e industries working wasting assets. The floating of the Uvelvo million loan indicates the prosperity of the country, but the withdrawal of money from the ordinary avenues of industry will steadily continue as further loans have to be raised, and unless our primary products are promptly realised, must inevitably produce considerable financial stringency, and check tho present development of our various industries. In order to meet the cost of the war to this Dominion, whatever sacrifices it may require, it behoves all classes of the community to exercise thrift and economy bo that if a period of depression ensues, some preparation will have been mode to meet it. The shortage of shipping is beinc felt to some considerable extent, although the purchase by the Imperial Government ot tho whole output of several of our primary products has minimised the effects. At the same time, it has been evident that during the last month or two there has been a considerable falling off in trade, although tha power of the people to indulgo in sport and pleasure ehows ■ that generally speaking the community has not as yet been called upon to make any serious sacrifice,

Cost of Living, "The increase in. (lie cost of living is a matter which affects every . liouseliold in Complaints have been mauo by members of' Parliament and especially by certain sections oi organised .Labour that Government has not taken effective action to prevent any uiiwarrantable increase in tho prices of the Decenaries of life, and that it is largely to bliimo for tiie pr&sent state of tilings. In no case has any detailed scheme been set fbrfcli as to iiow Government should djwj with the'niatter, and it has to be confessed that it is difficult to sea what more could have bean done than 'has been accomplished. The New Zealand Bi>H.rJi of 'lra&e ;n its excellent first annual report, recently issued, ehows tiiiit it has given a great deaL of attention to the subject and that the members of the board realise the tremendous <lifficulties which have to bo faced in uny praotical atteiiipt to deal with the problem. Tho board shows that Australia and New Zealand are easily the most favoured countries in this connection, as shown by tho following table. This table shows the percentage of increase in tho cost of living eince July. 1914 : — Austria, 171.7 (January, 1917); Germany, 1110.5 (J anuary, 1917); United Kingdom, 91 (March, 1917); Norway, 84 (November, WIG); Holland, 70 (March, 1917); Sweden, 6ii (February, 1917); United States, 31 (March, 1917); Canada, « (March, 1917); Australia. 25.6 (March, 1917); New Zealand. 25.79 (March, 1917). The board states the main reasons for the increased pi ices in New Zealand as follow:—(1) The enormous demand for New Zealand primary products oversea; (2) high ini ward aud coastal freights owing to shorti'age Of shipping; (3) shortage of all supj plies iii countries affected by the war, I owing mainly to men being diverted from i the productive industries to the fighting ! line and munition works, necessitating I many factories that in pre-war times I were engaged in the production of articles of commerce giving up their ordinary work and dovoting their whole i time to the production of war materials; i (4) shortage of labour in New Zealand tending to decreased production; (5) depreciation in the value of labour owing to the best men having joined the Expeditionary Forces, Post-War Problems, . "In the opinion of many students of industrial economy, it is considered certain that after the war there will bo something in the nature of an industrial revolution throughout the Empire. It is stated that in Great Britain itself it is unthinkable that the millions of man and women who have been earning very high rates of pay during tho wai; will consent to return to pre-war rates and pre-war conditions of life after the cessation of hostilities. It is almost generally conceded that such a state of things stfould bo prevented at almost any cost. It will be difficult, however, to maintain the present high wage standard, as it will be found impossible to secure the same output per worker as is being maintained during the pressure of the war period. Many writers predict the over-1 throw of the present wage system, and indicate that some other system which will provido the means of securing a I high-earning power for labour, with more or less ideal conditions of work, will take its place. While it will be conceded that the great disparity between, the immensely rich nnd the submerged poor of the Old Country should be lessoned, it will havo to be recognised that there is no magic fund which can bo drawn upon to allow any class of the community to have their earnings indefinitely increased without giving , a correspondingly adequate return for the wages it receives. So far as Now Zealand is concerned, it is certain that unless by some means it is found possible to incrense the efficiency of the workers of the Dominion, it will be found quite impossible to maintain any position as a manufacturing country. It is quite evident that tho present system of increasing wages and shortening hours and planing further restrictions upon 'our trades and industries must cease, if their j expansion, or even their continuance in many cases, is to be secured. Just what should be done it is difficult to say, and this might well bo made the principal subject for discussion at tie annual meeting. It is inevitable that, notwithstanding the favourable conditions of work in New Zealand, difficult problems regarding the industrial situation will have to be dealt with by the federation in the near future."