INDUSTRIAL UNREST

Dominion, Volume 13, Issue 49, 21 November 1919, Page 7

INDUSTRIAL UNREST

SUGGESTED REMEDY AN INTER-STATE CONFERENCE .A preliminary confercnco of represenfatives of the employers' federations in .Australia was held in August to discuss tho industrial outlook and endeavour to .formulate suggestions for improving tho relationship between employers ana employees throughout tho Australian Commonwealth. , After a full discussion it was deciiled /to remit tho whole matter to tho various employers' federations, so that, after consultation with tho chambers of' manufactures and other important employers' associations, any proposnls or suggestions might bo considered at a subsequent conference of employers to bo hold in Melbourne at a later date. Tho conclusions now arrived' at by this second conference are now officially made public, in the hope that they may bo taken into serious consideration by the various trades unions, and may form a basis of friendly discission and possible negotiation for the promotion of industrial peace. Limitation of output has undoubtedly had a considerable influence on the cost of living, but the main cause of industrial' unrest would seom to bo based on tho assiduous promulgation of tho belief that tho workers should receive a larger sharo of the profits of the industry, and thus add to the amount received in tho way of wages. ' The conferenoo is of opinion that, no mere ohangfcs of system can bring any /substantial benefit to the employees. Nationalisation, profit-sharing, copartnership, a voico in tho management —all theso things aro mere variations in detail. Tho workers as a body would gain 110 substantial monetary advantago from the indiscriminate adoption of any or all of them. On the contrary, they might conceivably bo worse off by nn elimination of private enterprise, and the consequent lack of incentive to efficient and economical production. When considering any of these expedients' wo aro invariably forced back to the basic fact that tho measure of reward must depend upon the measure of production. A popular misconception exists in the winds of employees and the general public as to'.thoamount of surplus profits ivhieh might be made availablo for increased remuneration to employees. In Mullock's' work, "The Limits of Pure Democracy," it is demonstrated that if all incomes' iin Great Britain which exceed ,£IOOO per | annum ,-\vero confiscated and divided amongst wage-l?arners it -would mean a rise in wages of 'lid. in 'tho shilling. Statistics demonstrate that practically the same result would apply .to Australia. It is _ obvious that this result would not satisfy the great body of employees, lior meet the inflated anticipations of those Socialistic Labour leaders and academic theorists who aro so assiduous in the promulgation of doctrines based upon tho abolition t of the wage system find tho elimination of the employer. Under any system that can be devised— whether industries are conducted by tho State or by private enterprise—it is inevitable that men and women must continue to work for wages. After full consideration, this conference is of opinion that the following principles applied to onr industrial activities might prove of value as a means of, promoting that harmony in our industrial life which is so essential to the progress andprosperity of the Commonwealth:— 1. The continuation of the present system of arbitration tribunals for fixing tho living wage, and for settling the standard wage and working conditions in each industry". 2. Parliament to decide tho number of hours to constitute a week's work. 3. The adoption of tho Whitley scheme in a'modified form. ■ 4. The introduction of ' profit-sliuring where practicable. 5. The adoption of tho system or ipnynient by results. 6. Unemployment insurance .by'general Commonwealth taxation. 7. Encouragement and assistance to employees iii the building or purchase of their homea by State oil Federal Governments. " ■ ' 8. Commonwealth legal endowment for children under 14 yean..of age, where wagP9 do not exceed a, stipulated amount. The opinion of th ; 6 conference of the relative value of the Whitley scheme, profit-sharing,.and payment by results, is Bet forth in detail hereunder:— Whitley Scheme. . In Great Britain tho war compelled the Government to give serious consideration to industrial conditions, and what is • known as the ."Whitley .Report" has been issued as a result of tho deliberations of a committee of public men, including employers and employees, whose names are a > guarantee of the value of the rfr commendations'they have made. It must be Tomombered, however, that tho Whitley scheme, as propounded by the subcommittee on "relations between employer and employed," is designed to make a beginning wherp- little or nothing of a national or lgeislative character has before been attempted. It must also be recognised that established industrial tribunals in this country already govern and control the most important matters dealt with in this report, viz./wages, hours, and working conditions.' ' The main feature of the Whitlev report is the establishment in connection with the various industries of:—First: Works committees, representative of the management and'workers ill particular Second: District counoils, representative of the trades unions and' employers' associations in a particular industry in a defined area. Third: National councils representative of an industry as a whole, .Lt is worthy of note that the Whitley report does not recommend cpmpulsory arbitration as we know it in Australia. It is obvious that the adoption of tho Whitley scheme in its entirety would render unnecessary the continuance of our present industrial tribunals , established uniler State and Federal industrial laws, except as possible courts of appeal; This wo believe would riot bo acceptable to the majority of trades unionists and employers as a desirtible or satisfactory change. Nevertheless tho fact cannot be overlooked that tho decisions of arbitration courts and industrial tribunals have been deliberately disregarded bj bodies of . trades unionists on very many occasions, and that - some of tho most powerful trades unions have denounced our present arbitration laws, and declared .their intention of disregarding the Arljitrntion Court as a tribunal for settling industrial disputes and • relations" in their particular industry. We are of opinion, however, that the continuance of our present industrial tribunals undijr legal enactment is desirablo, with such demarcation of the jurisdiction of the Federal Arbitration' Court as would prevent the present unnecessary overlap-, ping of State and Fedoral industrial awards. That portion of tho Whitley scheme which Tceommends the establishment of works committees ai'd trade councils is, in our opinion, worthy of the most favourable consideration. Many questions arise in workshops and factories from day to day which could be satisfactorily dealt with adjusted by such committees acting in conjunction and consultation iwth the management. It needs no stretch of imagination |o discern enormous possibilities of benefit and advantage to employers and employees as a result of clow acriuaintnnce and knowledge bv both parties of what is possible, and what is impracticable, in the conduct of 'business enterprises. Profit Sharing. The establishment of the principle of profit sharing has been 1 widely advocated, and this conference has necessarily given careful ■consideration to this oucstion in nil its twiners. Profit sharing has been inlreduced m a number of industries in. Great Britain nnd America. but' in dealinjr with, industry a.s a whole the crucial consideration is ns to how far profit sharing could lie widely applied with any hope of substantial benefit to the erect body of employees. It must be noted that, in many instnncp« where profit shnrin? has been introduced its benefits do not extend to all tho workers in the industry. It must also be rcOitniscd that the businesses concerned are often of a special character, fejinp well established concerns, in trtiteh tho strugglo for development is »cnte. There can bo no possible obiection to pttftt faring la any. individual bu^Loestf

or industry where it is aoceptablo both to tho firm or company and its employees. Speaking broadly, however, this conference is of tho opinion that no system of profit sharing could bo dovised as applicablo to industries as a wliolo which would givo to tho workers any substantial or adequate financial benefits. Tho Whitloy Committee summarises tho question of profit sharing in tho following sentence:— "On the question of tho adoption of schemes of profit sharing and co-part-nership, the coinmitteo stated that it had considered tho evidence availablo, and felt bound to rome to the conclusion that it was not Justified in putting forward any general recommendations." Tho following aro fxinie of tho difficulties in the way of any general adoption of profit sharing:— 1. In mo&t businesses, after providing for a moderate return on capital and allowing reasonably for development, thero would bo 'littlo left for division amongst employees., Many businesses (especially /nanufacturing concerns) aro carried on and developed so largely on borrowed capital that if tho book profits wore paid away each year liabilities could nover bo reduced, and extensions would lio impossible. 3. Profits Shown in balance-sheets aro book profits, and aro seldom represented by cash balances. In many instances tho payment of a dividend representing mere interest on shareholders' crpital is only possiblo by the confidence of the firm's bankers in the soundness and stability of tho business. 1. In. bad years the employees could not be expected to help make up any deficiency, but tho absenco of any profit or bonus would leadyto discontent and dissatisfaction. 5. Any system adopted with the object of rewarding workers for increased output must provide payment for extra work dono in bad years as well as in good years. fi._ In industries where employment varies change or irregularity of employment would deprive many workers of any participation in a division of profits. 7. The undue restriction of the profits and Tewards of industrial undertakings would tend to destroy enterprise, and react prejudicially upon tho employees. 8. Profit sharing would not secure fo tlio employees generally any substantial financial hei-efit. 9. Nevertheless, in any business or industry in which a system of profit sharing can bo applied, which would be acceptable to employees nnd onsure substantial benefit, this conference recommends that it should be tried. Payment by Results, t This conference is of opinion that any industrial scheme which is likely to benefit tho great body of employees by ensuring substantial and permanent extra,# numeration, should be based on a svstom of piecework, or payment by results, lt may bo stated .as an economic axiom that only by an unrestricted and maximum output in all industries can the employees as a body receive increased payment that will carry with it any corresponding, and permanent increased purchasing power. "More Production" must also mean "Moro Pay," and increased pay, based on increased output, will not only mvolvo no increase in the cost of production, but will actually lower the cost on which selling prices are necessarily based. This conference recognise.? that as a basic consideration there mus6 be adequate and absolute protection for tilio payment of an agreod and fixed standard' minimum wage. Assuming that the employees ill any industry are first satisned on this point, and are prepared to discuss with employers tho adoption of an agreement whereby each employee shall have perfect freedom in unrestricted output, tihe following is suggested as a basis of remuneration:— . standard minimum wage in all industries shall be fixed by independent tribunals. Übis standard wage to be regarded as a fixed minimum, and not to be affected by any agreement entered into on tho basis of extra pay for extra output. 2. A representative of tho employees (or a shop committee) to agree with the management as to the amount of work which shall be: taken to represent the value of the standard wage. j 3. Any individual employee Who exceeds'tho minimum output shall be paid tho mil labour or time value of tho work so performed. ' -4. Where desirable or necessary, the output of a group of employees may be treated in a similar manner, the excess of hours or unite of production to be computed and paid for weekly or monthly, as. may bo arranged. 5. For tho purpose of computing the time value of varied work, the employer : to provide skilled accountancy assistance where necessary, and to pay tho em-' 'ployees' appoiuted representative-in each department for time occupied in conferring with the management as to computation of timo values, G. Piece work to bo introduced in industries or industrial sections where tho character of the work performed allows of fixed piece-work rates being, established. This' conforeneo is of opinion that, it would be possible to apply this system to a great many manufacturing establishments and other classes of business with benefit; to employees and employers, and with the very desirable additional result that the -workers would receive substantial increased remuneration without any increase in tho cost of production, and without increasing the cons.eQuent selling price to tho consumer This conference recognises that the Assistance and good will of (the trades unions 'would be necessary for the successful adoptiion in any industry of the suggestions or recommendations contained m this report. It would involve the recognition by the" unions of tho introduction of piece work or payment by results, wifih no limitation of output. It would also be necessary that employees in an industrial establishment should be allowed to enter into agreements with the management in settling many 'local conditions-, provided thero was no infringement of an industrial award governing the industry in regard to wages, hours and working conditions. This conference feels that it' is necessary that concerted .effort be made to impress tho lesson that the further development of industrial relations, based upon the idea of class war,'cannot but briii£ serious disaster to the whole community. ■' _ It ■ must be apparent, however, that if a genuine effort is fo be made towards a solution or an amelioration of tho present disturbed industrial position, it can only 1m brought to a successful issue by free and full discussion and a generous recogition by employers nnd employees that justice and fair dealing is the only foundation nn which -industrial peace can bo established. An Industrial Educational Propaganda. The conforenco carried tho following resolution:— j "That this conference records tho view that an urgent need of to-day is that tho working community, both employers nnd employees, should be better educated for citizenship. In industry the aims of specialised education among employers nnd employees should Tm to show that closer co-operation nnd understanding between capital and labour is a livo sourco from which improvement of the wellbeing of the community will flow. Onco such a system of education is established unsound economic theories, which are at tho root of much of tho industrial uiiTcst of the time, will be taken at their real valuo. "The self-interest of employers and employees would lend to improvement in tho industrial structure and to tho advancement of the interests of the employer, the employee and the consumer, who "aro Tenllv tho community ns a wliolo. "This conference therefore suggests to every federation in Australia that industrial educational propaganda should lw undertaken in each State. The details must be left to each federation, but one' detail seems essential, nnd Hint is that men who address meetings of employees should bo themselves employees, ns wage-earners speaking to wnTC-enrners. They must by arguments nnd facts be able to show economically that the wage system is essential to modern indvlrv. and the wnee-payer nnd the wage-earner have .a common interest in increased production." A Press Association telegram from "Foxton states, that, at the Borough Council byelection held yesterday Mr. T. W. Hunt defeated Mr. Thomas Henderson (ox--1 councillors .