THE RAILWAY SERVICE

Dominion, Volume 13, Issue 138, 6 March 1920, Page 8

THE RAILWAY SERVICE

; JUDGE STRINGER'S REPORT

BONUS OF SHILLING A DAY

TO MEET COST OF LIVING INCREASE

• ADVANTAGES of 'railway workers

The report of Mr. Justice Stringer, who . sat as, Chairman of a Commission to inconditions of employment, ineluding wages, of employees of the New • Zealand Government Eailways, was released, for. publication by the Minister .of Eailways (Mr. Masse.v) yesterday. Following is the text of the report: In pursuance of the orders of reference directed to me bearing date respectively the 21th day of December, 1919, and tho 30th day of January, 1920, whereby I was appointed and authorised to inquire into and report to you upon certain matters respecting tho rates of pay and conditions of work of members of the New Zealand Railway Department, and having.full .inquiries into tho matters referred to me, I have now. tho honour to report thereon as follows:— • ' . Advantages Secured; , 1. The Government Eailways Amend-, ment Act, 1919, the, schedule to which containing the classification of the Department and tho rates of salaries and pay of the various members of the service became operativo as from tho Ist ,day of April, 1919, was possed in circumstances which are familiar to you, and .which it is therefore unnecessary, for me to-recapitulate. ' '3. This Act, coupled with the working conditions which (with some exceptions) had been agreed upon between the General' Manager of the Department and the executive of the_ Officers' Institute, tho 'Amalgamated Society of Railway Servants and the Locomotive Engine Drivers, Firemen, and Cleaners' Association, and ivhich were to be embodied in Departmental Regulations, secured tp the members of the service the following benefits end advantages

> . DIVISION I. . Improved 6alary scale to meet increased •A cost of living, which provided for mini- • ".-'mum addition of .245 per annum to 6alaries'of clerks. . DIVISION 11. War B6miees.-3s.jjer day in the ease of married men—coinc«idated and added to schedule rates of pay. Three shillings per day added to schedule .Tates of pay for single men who wero :l_-in-receipt of 2s. per day war bonuses. In both cases this addition has the . effect of" increasing the overtime rates, and also the superannuation allowances. - Prior to 1919 the war bonuses granted ' wero excluded in computing overtime -v rates, and in pension on retirement on .'- superannuation. ' -V.Eightrhour day conceded .in all cases "..-.'.-where work is continuous and overtime •.'""at rate and a quarter granted for all ' ■?. -time worked in excess of eight hours in V eacli day, and of forty-eight hours per .'. week. ' ■ - Fqrty-four-hour week granted to Vorkshop- men in locomotive and mainten- . .. ance'branches • (Way and works men aro treated as maintenance staff.) - Tablet-porters, crossing-keepers, and a-bridge-keepers granted forty-eight hours week at busy places where work is con- : tinuous; where the work is intermittent ;-,nnd lighter in character, sixty hours per week. Equivalent time off is granted for 'hours worked in excess of those named. (Previously tablet porters worked a maximum of seventy-two hours per week.) •-•Concession of rate'and a quarter of schedule day rate granted for work between the hours of 10 p.m. nnd 6 a.m. . irrespective of whether men commence or •finish shift'between those hours. T. ? o_"o'vertimie • worked between 10 p.m. and .6 a.lll, paid for at rate and a quarter on rate and a quarter. y Special increment of 6d. per dnv to engine-drivers and guards employed' on more important trains as determined by - leading fitters granted increase of 6d. per day. 5 Train examiners granted increase of 6d. ner dav. 1 ' Pay of-first-grade shunters improved. Improved' scale of pay for apprentices, cleaners, rivet boys,- junior porters, labourers, and surfacemen. ! deduction of intermittent time as far as • practicable. Trainmen paid for all standing timo • away from liomo station. ■ Trainmen at\ foreign stations when booked ;.off for rest for less than eight hours paid for three hours standing timo. -Engine-drivers and guards allowed ten minutes per day for correspondence. Porters" (other than tablet porters) granted payment for overtimo instead of being given time off. < Allowance of Is. granted when mem-bers-are on duty away from their home station for more than eleven hours in one shift. ■

; . Rise in Cost of Living. It seems clear from the evidence adduc- ■ ed before me thnt when the agreement as to salaries and rates of pay was arrived at in March, 1919, as a result of much negotiation and many conferences, it. Fas hoped and believed by the nianage- ' ment'and' the members of the stall that the increase in the cost of living had : rejiched its maximum, and that a decrease in such cost would follow at an flarlv date. • Unfortunately these hopes r were not realised, and although, as appears from the Government Statistician's table showing index, numbers for food, rent, fuel, and light groups combined, the cost of living so far as these groups are concerned remained stationary for the months of March, April, and May, ... . 191!). and declined slightly 1919; it acain took an upward turn in July, ' ~ "and'has steadily risen ever since. If, '"'"therefore, the purchasing power'of the salaries and wages of the members of the i service is. to be maintained, it is clear that increases in such salaries and wages must .1)6 granted to an extent commeusur- • ate with the increased cost of living. . In his official publications tho Government Statistician deals only with tho food groups, housing, fuel, and light. These items, however, represent only 59 •per cent, of the expenditure of the average household, leaving clothing, and miscellaneous items to account for the reV" maining 41 per cent, of such expenditure. " It is notorious that the cost of clothing (representing about 13 per cent, of tho faroilv budget) has increased enormouslv 'probably over 125 per cent.), and it is certain that the cost of many of the miscellaneous items, which include furniture. utensils, rates and taxes, school requisites, tram fares, amusements, etc., has also increased, but to what extent it is impossible to ascertain,

A Bonus Recommended. The Acting Government Statistician has been good enough to furnish me with ' a statement showing the result of his calculations as to what increase would be : necessary in the basic wage of t £3 12s. to cover increases in the cost of living since March. 191 D. when sucli basic wage was fixed for adult members of the service. In his calculations lie has taken the items of food, housing, fuel and light, and clothing, covering approximately 73 per cent, of the expenditure of the average household, and has prepared figures showing the amounts respectively that ■: would apply if the remainder of the ex- . penditure (27 per cent.) were regarded as (1) having increased on the average at 'the same rate as tho four classes constituting the 73 per ccnt.; (2) having increased at half this rate; and (3) not having increased at all; the result being as follows:— Period' New wage Wage. ; covered, rate aa ascertained above. ■£ y £ B. d. £ s. d. £ ». d. 3 12 31ar.-Dec..1919. 3 15 113 3 15 5 3 14 105 Assuming, as I think, it is reasonable, that the hasis marked 2 is the nearest ■approximation to accuracy, it follows that in order to maintain the same purr chasing power of the basic wage as it possessed in March, 1919, it should now be increased by 3s. sd. per week. It is, however, clear from the figures of tho Acting-Statistician that the increase in the 1914 (pre-war) basic wage of £2 lis. to w£3 12s. in March, 1919, did not fully compensate the members of the 6ervieo

for the increases in the cost of living during the period covered, and, in my opinion, therefore, an increase of 6s. per week, or Is. iier day, should be granted to certain members of tho service (hereinafter mentioned) by way of bonus computed from January 1 last, which bonus should bo adiusted as on September 30 next, and thereafter half-yearly by increasing or diminishing it in accordance with the rise or fall in the cost of living as ascertained for the. purpose by the Government Statistician from timo to time. The periods selected for the adjustments mentioned jre those recommended bv the Statistician as being the most suithblo for the purpose. Considering the paramount importance of the railway service to the community, and tho desirability of maintaining therein a loyal and contented staff, the additional remuneration by way of bonus, as suggested by me, is, in my opinion, no more than, ill the circumstances, might reasonably be conceded to them, or than the public, whom they serve, should readily accord. I think, however, that the proposed bonus should lie limited to married men, widowers with dependants, and single men with dependants.

Case of Single Men. The increased cost of living as ascertained by tho Government Statistician is based upon the requirements of a man and wife with an average nuiii'ljcr of dependent children. The Statistician's figures, therefore, are not applicable to the case of single men in respect to whom the cost of living has not increased to anything like tho extent to which it has increased in the case of the hypothetical family which is the basis of the Statistician's calculations. The various increases in the salaries and wages of the staff which have been rondo from time to time since the war, and which havo been based upon the increased cost of living to an average household, have .been granted to both married and single men, the latter thus obtaining advantages to which they were not strictly entitled on the basis of the increase to ■ them of the cost of living. I think, therefore, that, at least for the present, the payment of the bonus should bo limited as beforementioned. If, unhappily, the cost of living should continue to rise,_ the question as to whether or not single men should be entitled to participate in any future bonus will be open for consideration, by tho. management. In making awards in ordinary eases between employers and workers, it is not practicable to prescribe a differential rate of wages for married and single men, as that would operate to tho detriment of the married man (who, generally sppaking, is the more deserving citizen), as he might in such circumstances only be able to obtain employment if single men (at less wages) were unprocurable by the employer. This, holvever, has no application to a public servico such as the Railway Department, which, it may be supposed, would prefer to give employment to married or other men with defendants, and would certainly not discriminate against men with dependants in favour of single men without dependants for the purpose merely of avoiding the payment of the bonus.

Matters Not Relevant. ■ 111 the course of the hearing of the different claims put forwahl by the various branches of the Department, many questions were raised and discussed, upon which I offer 110 opinion, first, because they were outside the specific questions submitted to me ; bv the orders of reference. nnd, second, because they (or many of them) involved the consideration of technical matters connected with itlia working of the railways, as to which no opinion, i.nless based on expert knowledge, which I do not possess, would be of any value. Amongst the questions were the following:— (1) As to what should be the relative position in the classification of guards, signalmen, shunters, and storcmen. (2) As to the. abolition of second grades in the classification and percentages so far as they apply to the Second Division. (3) As to whether a shunter, having been promoted to guard, should be ■ required to take another term of shunting before qualifying for first grade. (4) As to apprentices and their attendance at technical schools during workihg hours. (5) As to the introduction of the mileage basis for engine-drivers. (6) 'Die establishment of promotion, and punishment boards. (7) That the (so-called) barrier between the First and Second Divisions be abolished. (8) That age limit for promotion to certain positions be abolished. (0) The establishment and maintenance of rest houses. ' (10) of the system of passes.

Grievances Are Investigated. In the varying and. complex conditions under which the railway system is necessarily carried on it is inevitable that anomalies and individual cases of hardship should occasionally arise. So far as I am able to judge these anomalies or hardships whenever brought tinder the notifo of the management are promptly removed or modified so far as the exigencies of the. service will reasonably permit. It is the practico of the General Manager and the executives of the different railway societies to meet 'regularly in conference for the purpose of discussing these and similar questions, and, having nerused the minutes of a number of these conferences. I feel bound to say that it appears to me that the General Manager takes infinite pains to ascertain the facts of the eases brought before him and to rectify, remove, or mitigate,, any real grievance which is found to exist.

About Whitley Councils. . \ It inav be that it would be desirable to constitute a consultative and advisory board, on tho lines recommended by the Whitley Committee for the establishment of industrial councils, for the consideration at regular intervals of such questions us those before enumerated, and of others, such as: (a) The rates of pay, hours, and working conditions of th(; service. ' (b) Tho settlement of differences and misunderstanding between members of the stafF and their immediate bu- . neriors. . (c) The grading, promotion, welfare, housing, and'discipline of the staff. (d) The framing and teaching of apDront.ices and cadets, etc. These, however, are questions of policy, and as any recommendations of such a board could not bo given effect to unless thev met witli the approval of the General Manager, upon whom the responsibility for the safety and efficiency of the service rests, it may be quesbonablo whether the practico at present in force wherebv the executives of the (lilrorcnt railway societies lucet tho General Mnnagor in direct conference is Jiot the speediest and most satisfactory mpthod of settling all debatable questions winch from time to time arise affecting the service and the members of the stall.

Advantages of the Service. With regard to the rates suggested in this renort for skilled tradesmen, it is true- that in some cases .these seem to compare unfavourably with the lates b?in" paid at the present time by piivate eniDlovers. It must, however, bo remembered that, as a consequence of fhn wnr the times are still abnormal, ami ■'out of ioint," and that this condition of things may soon he rectified if a comorehensive scheme of lmimgiation established nnd made operative. At present there is a general shortage of men, and employers are bidding against one another for the skilled labour they refitiirc. with the natural result th I men disooso of their services to tho highest bidder, ami wages climb up higher and higher. Moreover, the abnormalh high rates being paid for certain cln.sses of unskilled labour have, no doub . "ie effect of diverting a considei.ible of skilled tradesmen from their p)oper avocations. This state of tlungs probably accounts in large measure lor what was stated to lie the ease, namelj, that there had l>een an unusually large number of resignations from the service doling tho last year or so. home men who take short views of things nnd who, to ■wire an immediate advantage, are prepared to sacrifice their future prospects, nmv have resigned in order to participate in the higher rates referred to. As against these high rates,, tho continuance of which cannot ,bo relied oil, the prudent, man will set olf tho substantial advantages which accrue to a member of tho Ba.ilwav staff, namely :- (1) Permanencv of employment. No lost timo through wet weather, waiting for material, or between jobs.

(i\ Annual leave on full pay. (S) Superannuation allowance. M) Cheap railway travellinif. (5) Annual pusses. If it is irue, as is frequently stated, that the two great fears which haunt the minds of workers are the fear of unemployment and tho fear of a dependent old ago, a member of tho Railway stiff might well, pause before resigning from a service which protocts him from both these dangers to enter an employment' which protects him from neither, merely to obtain the immediate, but possibly only temporary, advantage of a slightly higher rate of pay.

Recommendations as to Pay. I now proceed to answer the specific questions submitted to me. _ 1. As to members of the First Division and casunl employees in tho clerical branch of the Department: (a) The rates of salaries which should be paid to members in Grades 2 to 7, inclusive of Subdivision 11, and to c "»al employees. Bates as per schedule to tho Government Railways Amendment Act, 1(119, with the addition thereto of a bonus of ils. per annum computed from tho Ist day of January, 1920: such' bonus to be adjusted as on tho 30th day of September next, and thereafter half-yoarly, and to be increased or diminished in accordance with the risa or fall in the cost of living during such periods as ascertained for the purpose by the Government Statistician. No such adjustment shall bo made unless the amount required to increase or diminish the bonus in proport:on to the increase or decrease in tho cost of living. as the case may be, shall bo at least il 17s. fid. for the half-year. In tho event of nny dispute as to whether or not the amount so required as beforementioned amounts to il 17s. 6d.. the question shall be refrrred to the Juclgo for tho time hein? of the Arbitration Court, whose decision shall be final. The said bonus to b» paid only to mnrried men. widowers with dependants, and 6ingle men with dependants.

Hours of Work, (b) The nurrfber of hours which should be worked per day or per week, as tho case may be: The ordinary weeklv working hours of the salaried staff (other than those employed at stations) should not exceed thirt.v-pi<rht hours, nnd should, wherever reasonably practicable, be aa follow, viz.: 'On all week days (other than Saturdays) between the hours of 8.30 n.m. and 5.U0 n.m., with' one hour off for lunch between 12 noon and 2 p.m.; and on Saturdays between the hours of 8.30 a.m. and 12 nopn. If the exigencies of the service so require, special hours outside the nbnve lim ; ts may be arranged.^ The ordinary wefk-day working hours for officers employed at stations shnll not, so far as is reasonably practicable, having regard to the exigencies of tho traffic, exceed ton hours in any day. or fortyeight hours in any week, exclusive of meal hours, and nny such officer shall 1» entitled to one day off for every eight hours worked in excess of forty-eight hours in nnv week (excluding Sundays). Such relief to be given as and when the management shall consider most convenient. At stations where it is reasonably practical.)' l ! to do so, officers mny be booked off duty for a portion of tho <l»y, but (unless for a meal) not. for n less period than two hours, which may include one hour for a meal.

Special Rates. (c) What payment. or other allowance (if any) should he made for ovortime, or for work performed on Sundays or holidays? In 111 y opinion, no payment or other allowance should be made for overtimo or for work done on Sundays or holidays (other than for work done 011 Sunday* in connection with -'train _ services). The members of the First Division are wanted annual leave of absence on full pay (which extends for two or three weelcs, according to length of service), and sick pay, which, according to lonpth of service, may extend for nine months (thres months on full nay and six months on half pay) and these concessions in my oninion fully compensate such members for any overtime worked, and for ccnsicnnl work'done on Sundnvs (other than as above-mentioned) or holidays. For Sunday work done in connection with train services, the following ratfß should he p<r'd for actual tin l " worked, viz.: For members whose salaries nre ,S9M or over. 3s. per hour; f.T- members whose salaries are .£llO to .£2OO, 2«. 3d. per hour; for members whose salaries ar" under .£llO, 1?. fid. our hour. These are the present rates, and appear to mo to be fair and reasonable.

Other Questions. (d) What time should be allowed for meals, and tlw conditions under which times should be allowed? Wherever reasonably practicable one hour should he allowed for each meal, and as far as possible booking off for meals should be between the following hours.'Breakfast, 7 a.m. to 9 a.m.; dinner. 12 noon to 2 p.m.; tea, 5 p.m. to 7 p.m. These hours to be arranged with due regard to the railway services nnd the convenience of the staff. As far as nracticable timo allowed for meals to be arranged between those hours during which meals are generally served. The timo to be allowed may vary according to the circumstances of the particular case. (c) What leave of absence should bo granted in each year, and the conditions under which such leave of absence should be granted? ' , In my opinion the present-regulations as to pxtent and conditions of annual leave of absence (Regulation 83 of December fi. 1912) are fair and reasonable, and should be adhered to. (f) What travelling allowances should 1m granted to members when absent from their headquarters in the execution of their duties, and tho conditions under which such allowances should be granted? It is understood that there is in course of preparation a revised scale of allowances, which is to apply throughout tho Civil Service including the Railway Department. Until such scale becomes onerative the present practico to continue. The Second Division. 2. As to members of tho Second Division and casual employees other than those in the clerical staff. (a) The specifications of the various occupations. trades, and callings. These are set out in the schedule to the Ant of 1919. and ; liave not been questioned or obiected to. .(b) The rates of pay which should be oaid for the respective occupations, trades, and callings in respect of: (I) Ordinary timo worked _ during _ the dav.—The schedule rates, with addition thereto of a bonus of Is. per day or per shift, computed l from January 1, 1920, such bonus to be adjusted as on September 30 next, and thereafter half-yearly, and to be increased or diminished in accordance with the rise or fall in the cost of living during such periods as ascertained for the purpose by the Government Statistician. No such adjustment shall be made unless the amount required to increase or diminish the bonus in proportion to the increase or decrease of the cost of living, as the case may be, shall be at least 3d. per day. Tn tho event of any dispute as to whether or not tho amount so required as beforementioned amounts to 3d. per day, the quost.inn shall be referred to the Judge for the time being, of tho Arbitration Court, whoso decision shall be final. Tho said bonus to be paid only to married men, widowers with dependants, and singlo men with dependants. In computing the amount payable for overtime, night rates, or Sunday work, the abovementioned lionus to be excluded from the comnutation. (0) Ordinary time worked during the night.?— Day rate and a oua.rtor thereof. (III) Overtime worked during the day? —Day rate and a nunrfer Hiereof for even- hour worked heyond eight hours in any day. Each day to.stand by itself. This rate shall not nDD.Iy to those members who for special reasons are now receiving more favourable treatment, which shall continue. No overtime shall bo pavnble in cases whore tho Denartment now allows and continues to allow time off for time worked in excess of weekly hours. (IV). Overtime worked during the night?— Night rate and a quarter thereof. (V). Work performed on Sundays and holidays?— Sundays: Day rate and a half thereof for all timo worked. Holidays: Ordinary rate for all time worked. Additional leave as provided by the regulations in the event of work being done on any of the four Departmental holidays. 9 '* (c) The definition of night work?—Tho hours between 10 p.m. and 6 a.m.

(d) Tho number of hours which should bo worked per day or per week, as tho ease may be, in the following jircumstances, that is to say: (1). Where the work is continuous?— For workshops and way and works, II hours per week, viz., eight hours each week day, except Saturday, and on Saturday four hours. Notwithstanding tho above, special hours muy be arranged to meet special circumstances, Other ■branches, 18 hours per week. Department to undertake to find work, the payment for which shall bo at least equal to six days' pay at tho ordinary day rate payable to the particular worker. (IT). Whore the work is intermittent in character, and continuous work is not available?— Present prnctice to continue, each case to be adjusted as circumstances allow. (III). At stntions where porters are located for purpose of frain tablet working, and where the duties are light and intermittent —Present practice to continue. (e) The times which should be allowed for meals, and tho conditions under which such times should bo allowed?— Same as for First Division. (f) What leave of absence should bo granted in each year, and the conditions under which such leave should be granted?— Present practice as laid down in Departmental Eegulations of December fi, 1912. tn continue. (g) What allowances should lie grnnted to members when absent from their head, quarters in the execution, of their duties, and the conditions under which such allowances should be granted?—To bp assimilated to the scale being prepared for the Civil Service generally. In the mean, time the present practice under which the Department pays the actual expenses in cases where the specified allowances aro reasonably exceeded, to continue.

Lako Wakatipu Steamer Servico. I think the presort scale of wages as set out in the schedule to tho Enilwny Amendment Act, 1919, is fair and reasonable. and should be continued. I think ->lso that the hours of duty and shore i llwar.ee should continue as at present. Compulsory Retirement on Superannuation.

Thn expediency and desirability of malting poicpilsorv the retirement under the provisions of Part TTI of tlio Government Railwavs Act. 1908, of any member of the Railways Department who shall have been in the service of the Department for a period of not less than forty years, computed in accordance with tho said -provisions, or who shall have attained the age of sixty years, and who in either case shall he entitled to an allowance from the Superannuation Fund on such compulsory retirement of not less than .£250 per annum. The different branches of the staff Wire not in agreement on this question. One branch defiirod that there should l>e compulsory retirement of an officer on his having served for forty years or rn his attaining the a.ee of fixty. Another branch desired that the compulsory retirement should talcs place on the officer having served fortv years, find having attained the aire of sixty. The remaining branch did not favour either proposal. The main objection to the present system was that, under it, promotion was slow and automatic, and that it failed to supply any 'stimulus towards efficiency. This is the inevitable result of a system of classification under which promotion is largely by seniority. The alternative, however, would be a method of selection bv <1 board or tho management. This would certainly give rise to suspicions that some promotions were made not on account of ' ability and efficiency, but by favouritism, or as a result of undue influence, which would rrobably bo more destructive of a PDU'it of lovalty to, and contentment with, the servico, than tho oxisting system. Under any system, however, it seems to me that to compel an officer to retire after fortv years' service, or at sixty years of age, would mean that in rany cases the State, would lofo t.lic benefit of his services just at the time .when, by reason of his cxperienco and efficiency, such services had bccome the most valuable. Moreover, as was pointed out, the suggestion could not be given effect to so far as regards thoso officers who had joined the staff prior to 1909, without amending or repealing section 92 of the Government Railways Act. which could not be dono excopt by a breach of good faith with such officers. In my opinion, it is neither expedient nor desirable to amend the present system as suggested above. In conclusion, I desire to acknowledge, with thanks, tho very valuable assisr«ice rendered to me in tho course <if the inquiry bv the advisory assessors, and the gentlemen who conducted tho cases for the Department and the different branches of the service respectively.

Stjjement' by Prime Minister. Tho Prime Minister, in reference to the report, made the following'statement:— , "In subsequent consultation w:th Mr. Justice Stringer it his been that to single men in th? First Division a payment of_,£7 10s. will be ninilo. and to single men in the Second Division a payment of sixpence per day, both payments to bo by way of bonus, and commencing from January 1. 1920."