TRAMWAY MEN'S PAY

Dominion, Volume 11, Issue 296, 3 September 1918, Page 7

TRAMWAY MEN'S PAY

A WANGANUI PROPOSAL SUPERANNUATION AND / ALLOWANCES Seeing tho interest there is in Wellington at the present timo in the pay <of tramway men, it is interesting to ■inow what authorities in. other places arc doing in connection with the same problem. In response to a request lor him to report on OBrtaiu sugges,tions briefly outlined in his annual report, Mr. F. P. Talboys, engineer and .manager of tho Wanganiii tramways, Jins reported as follows:—

"Suggested Allowanco vo Men with Largo .Families.'—To' secave and retain useful men who; ou account of their circumstances might otherwise be constantly ou the look-out for better-paid /work. ■ Men with large families are, as. a rule, steady and reliable. The allowances I suggest aro as follow:—. Two children, 2s. per week extra; three children, 2s. 6d.' per week extra; four children, 3s. per week extra; five children, 3s. 6d. per week extra; six childrenor more,. 4s. per weak extra. ' , "fl-etiring Allowanoe,—l strongly, reedmmend the adoption of—-(a) a scheme of superannuation,.or (b) a retiring al-' lowanco scheme. -.•'The Christchurch Tramway Board is considering the inauguration of an 'employees' superannuation fund, and has submitted 'to its employees a Eohemo formulated by '. tbo National Provident Fund Board. Under this sohome the cost would be shared as follows:'—-Government subsidy, 20 per cent.; Tramway Board's subsidy, 48 per employees' contributions; 32 ;oer . As tho men's contributions ivoijM probably average about 6 per , oeiit. bf their ]>ay, the board's contributions would amount to about 9 per vent, of the pay roll , of contributing employees. -This scheme has the great sdvantngo of being easily worked, as the' National Provident Fund would, practically run it. It ■would also be of immediate 'benefit to all present employees who chose to take advantage of it. the disadvantages, hpwover, in mv opinion, aro somewhat serious:—(a) From an employee's point of view: The benefits, ' though very substantial to','a man remaining in "the service until he is qualified to retire, are not at all good in the , case of a man .leaving, the service or inthe event of a man dying, (b) From an employer's point'' of view: Tho scheme brings such an advantage to a man spending his. whole life in. the service that it would tend to load it up with elderly men past- their most useful time 'for such-work. /In somo cases the'work performed by those nearing their retirement Would not be so'efficient as it might be. ' "Personally, I am inclined to favour a retiring allowanco scheme -which would give, a mail sufficient inducement to serve a fair number of years, by which time he would be entitled, should he leave, to'.a. sum'sufficiently substantial to help him to start in some lino of business for himself. A practical scheme of this kind could be devised on the following lines:— "(1) The employer would subsidise the retiring allowance fund by. .fixed percentage payment on the wages'-of all employees eligible for benefit. ' (2) All employees eligible for benefit' would l>av into the retiring.allowance fund by deduction froin their wages at fixed percentage. ,':; "(3) These foregoing receipts would he immediately deposited .at interest with the Public Trustee or elsewhere, and the interest on such funds as it accrued would be' : added to tho capital of the retiring allowance fund. "('!) All employees • earninc undor, say,-"£250 a year'would be eligible for

nenentv ■."' : ; : . . .'.■ ■■. > • "(5) ■•All eligible employees•• would' have the option of becoming contributing members of this fund on its inauguration. ' ' ' . . ■.'.:..■ •'(6) All eligible employees joining the service after 'the "inauguration; of the retiring, allowance fund would require ,to become members. . : :■•■■' "(7) Should 'a member' of the fund (lie. his legal representative would be entitled to whatever benefit "had accrued to the member at the date of his decease. .■■■:■■..: "(8) A member of the fund leaving the service with two years' completed service-or less would be entitled to a refund of liis own contributions. "(9) A member leaving with more than two years' service but not more than five years' wtmld be to a refund of liis own contributions plus compound interest nt the average rate of .interest earned by the deposits of the fund." '-.•-. . ,' .' ''(10) A member leaving with more than fivo years' service would be entitled to full benefit, which lyould be tih& total of: (a) His own contributions; (b) the employers', contribution on his

behalf s and (o) compound interest on OoUi contributions. "(11) Under this scheme a sum woiiid accumulate over and above the liabilities of the fund to its members through employees leaving who wore not entitled to Ml benefit. From this sum.a bonus Might be declared periodically in favour of contributing mombera of more than, five years' service."