PAYMENT BY RESULTS

Evening Star, Issue 23690, 25 September 1940, Page 10

PAYMENT BY RESULTS

VITAL FACTOR IN PRODUCTION DEFICIENCIES OF ARBITRATION SYSTEM [Feb United Peess Association.] WELLINGTON, September 25. In a speech at the opening of the Employers’ Federation Conference, the president (Mr W. Machin) emphasised two matters he considered important at the present time—production, which was vital to our prosperity, and tha proposal that the decisions of the Arbi-t tration Court should in future be subject to appeal. After stating that New Zealand’s great production in primary industries had been based on payment by results* Mr Machin said he was certain thafi New Zealand was missing its highest! production in many industries where! wages were being paid at time rates, particularly in the present atmosphere of strictly limited marking time by law, and, therefore, for the duration of the war at least, he thought we should revert wherever possible to piece-work and payment by_ results, and suspend for _ the time being the present rigid limitation of working hours which, hai was sure, was inducing in many corners* consciously or unconsciously, a limitation of effort which was slowing up production. He quoted the Government Statistician’s estimate of factory pro-' duction for the years ended June, 1939, and June, 1940—£30,500.009 in each case—-which, if correct, showed that production last June must havq been lower, because prices had risen, and the value was estimated at not more. If the Prime Minister’s exhortation of “ Wort; for your lives ” was to be given the meaning he intended (anil the meaning this grave hour demanded) it was surely not too much to ask that serious consideration should be given to the question of payment byresults. In regard to the Arbitration Court, Mr Machin said that if trade and industry were to flourish it must be recognised that the arbitrary apportionment of wage charges on industry ort a basis of assumed and anticipated volume and price return, which might! or might not eventuate, must give way to a sounder and more ordered method. Otherwise, industry might languish because it would have lost part of its intangible, but most important, capital of enterprise and willingness to adventure, because of arbitrary and discouraging impositions by the power nf the State. _ Before, therefore, the Statu wielded this power it should be satisfied, and all concerned sh— M be satisfied, that the judgmeu.,. h might seem to he ill-founded nau jeen impartially reviewed.