CAPITAL AND LABOUR

Dominion, Volume 12, Issue 210, 30 May 1919, Page 5

CAPITAL AND LABOUR

"STANDING ON A PRECIPICE" ME NEED OF NEW METHODS ' The relation between Capital and Labour was one of the matters mentioned by the president of the Wellington Chamber of Commerce (Mr. J. G. Harkness) at the/annual meeting of the chamber yesterday. Mr. Harkness said it might not bo'usual to refer .to, labour problems 'in a presidential address. The. reply to any such objection'was that.the relationship between Capital and. labour was :so intimate and vital to the interests of those engaged in commercial, pursuits ' that thero was no legitimate reason why it should be avoided. If in the past business men had shrunk from facing the responsibilities of tho position, it was not deb'ateable whether, or not' it should bo discussed under existing conditions. "Long before the war, indications were not wanting to prove that industrial troubles were.,-simmering, and loomed . larger than the proverbial cloud in the distant, horizon," Bajd- Mr.. Harkness. "During.the war period these difficulties were' temporarily allayed by appeals to 1 ■ our common patriotism, conferences, and ■' substantial'increase to wages then paid or war bonuses to meet higher values of food products and the general 'cost of living.-" The past year has ; not been signalled by any striking upheaval. The unrest and dissatisfaction are still manifest, and deepening'in intensity. The object that Labour has in view is the readjustment of present conditions.- It maintains that the value attached to national prosperity does not'depend, or rather, should not depend, on the increase of wealth amongst the few, the general, prosperity of the nation, and the develop<ment of commercial pursuits, but in the improvement of conditions under which. Labour works, a higher standard of living and a more equitable and general distribution of all wealth amongst those who have to toil with their hands. To hasten this period it is advocated that nil systems for the production of wealth nhonld be nationalised, such as transport by sea or land, the output of all coal mines, tho total productions' of the soil and the manufactured goods of industry. On this scheme Labour is practically united. . . "Attempts will be .made to-attain this objective by means of the political machine, and if'evolution or,.constitutional methods will not bring into existence a complete transformation, then other processes' must )n adopted. Neither time nor 6pace_ will permit a refutation of such -plausible arguments; suffice it to say, the policy underlying the whole structure is ns old as the history of the

world, with this difference, that, the portion which is true is old. but that which is new is not true. For the last 2S yeans or more, the wages paid to labour in any particular industry have been fixed", and the conditions and hours un-der-which the work shall bo, performed' have' been definitely settled" either by the Arbitration-Court or the Conciliation Council. . ■ "Compulsory arbitration has not proved an unmixed, blessing. This method of adjusting wages has not-, given complete satisfaction either to the employer or employee.' Experience has proved that it possesses several advantages, but it is a matter l of considerable momentwhether the disadvantages attached thSr. to do not counter-balance tho benefits received.' There is definite proof that'tho fixing of tho minimum wage is not an incentive to; best effort. It fails to discriminate between the efficient and'noneffieieiit worker in tho same clnss of work. It has not prevented strikes in the past as it was hoped, and consequently agreements made under .the award,'of the Court have been binding on the employers' but hot to" the same extent with the employee: Further, it has not controlled or prevented the policy which is' now being adopted of 'restricting outputs and limiting the -production of labour, and,' above all;'has destroyed the very foundation of mutual respect and .confidence as between those immediately con. cerned.. "After' i this lapse of years these two great forces, Capital and Labour, stand on tho precipice,' with something akin to bitterness on each sido; one reluctant to forgo its privileges, the other armed with a suicidal policy of 'go-slow''which must ultimatelyerid in- chaos. The present is spoken of as a 'new age'; is it not the recreation. of an old world, shorn of its prejudices, its selfishness, based on the j principles which we, as a nation, have fought and sacrificed so much-for? '

"What can be done to draw closer tho bonds that should unite the opposing forces? The first step in any satisfactory solution is that tlie capitalists—the word is used in its broad sense, embracing all employers-must look beyond their own .personal interests and regard the necessities and demands.'of tho community as prjmary. The strength of this sentiment Carried' tho welter of war. It ■ it wasessential and good then, it will be efficacious in pea6e. .It may bo a bitter lesson, biit the: fundamental principle has to be grasped that more injury is done to thf> community by. having discontented, depressed," and underpaid employees than any benefits the community will gain by .accumulated wealtlu U is a hard thing to say, but the truth must bo spoken, that in this new "re-creation" service to the community must nccess; sarily.rank superior' to n large income. -. "How about' the workor's attitude? His outlook on life must be considerably broadened. His views on many important questions require modification. Tho ■ worker must realise that the interests of no particular section of the community' canbecomo.'paramount to the interests and prejudicial to the common good of the community. He must' learn that his best efforts-should bo given, awl tho hardest work performed, not for a section of the- people, but for the general good- of the community.'' A "go-slow" policy which limits output will inevitably deny to Capital a legitimate return, and it will seek other 'forms of invest, ment. Wages will fall, the industry will become unprofitable, and unemployment will follow. SucTl a policy is'dishonest. • It takes all it can get by way of pay. : ment, and returns partial services . foi a given rate of pay. It is a sin against the individual who adopts the polic> and a crime against the community of which he forms a section, and whom, his professes to assist. , "These two great factors. Capital anr. . Labour, need to unite and co-operate n> the cause of greater production, the result being that there will be enough tt. satisfy both. Confidence and trust must bo restored in each other, not (lint Capital shall he enriched or becomo more powerful, nor that Labour shall be again enslaved or tramelled, but that the former shall receive a fair return, ami the latter improved conditions of working, better wages, and higher stnmljvd "f living, combining comfort and containment. "The' questions now- touched on are of such importance as to lie worthy tint consideration nf the shrewdest, and most brilliant of. Wellington commercial men, and the council d'HMig the year in dealing with these has done its best.