The Guardian (And Evening Star, with which is incorporated the West Coast Times.) WEDNESDAY, NOV 14th, 1923. WAGES AND PRODUCTION.

Hokitika Guardian, 14 November 1923, Page 2

The Guardian (And Evening Star, with which is incorporated the West Coast Times.) WEDNESDAY, NOV 14th, 1923. WAGES AND PRODUCTION.

A phoiii.k.u that badly needs attention in New Zealand r.s well as in countries like Great Britain was discussed by .Sir Herbert Humbling in Ins presidential address to the British Institute of Banker.-, which was reported recently. Observing that Britain was losing much more trade as a result of high production costs than because ol the European situation. Sir llerbcit llamhling made it clear that lie did not look to lov, wages as a remedy. 3lie reduction of wages (lie said) does not necessarily mean lowei costs Higher wages in some cases aic mine likely to be ellective. The heller way is to increase production by groaP'r ellicicncy and increased output by the workers. To this, after pointing out that “the heresy in favour of limiting out put is not: con lined to labour." lie adds that : If labour removed all restrictions on output, and eapiialist- aimed at small profits oil a big output, Britain would increase her oversea trade ami cure unemployment. Without prejudice 1o the fact that something more Ilian the

dome-tic remganisation of British iudustries is needed to provide a full remedy for unemployment in Great Britain. there i- no doubt Unit Sir Hoi host Humbling has indicated accurately the only hopeful lino of industrial progress, and one that might, be followed with groat, advantage ill this countiy as well

as an Great Britain. Tt is ohvi ms enough that here and in other British countries industrial efficiency ami the output of industry are alike limited bv (In' prevailing unsatisfaetoiy relationship between the parties in industry. An improvement of this relationship, involving the substitution of mutual confidence for suspicion and passive hostility, undoubtedly would open the way to greater industrial efficiency. increased prediction, and a progressive expansion of real wages and elevation of the standard' ol living. These benefits, also, as Sir Herbert Hambliilg correctly contends, would he accompanied by an increased competitive power in the ma:kds of tlie world. Practical efforts to attain these benefits of improved industrial oi ganisat ion arc even less in evidence in New Zetland than in Great Britain. Consideration ol -nrli questions in 11 iis- country -rhloin gets beyond t’ e stage of general discussion, and this perhaps i- flic rn<". of the trouble. A new a.lmosphere is needed in industry. Imt even if that new .atmosphere wee

develeping more obviously than it i,, nrogre.,. towards better indmtri.il coil ditions would still depend in the main on detail efforts by enterprising sections oi i'!ii!'|.’OT ahd workeis to imprint on iho existing state "I affairs. IliiImini., was interestingly elaborated by a Biitisli industrialist (Mr P. -I. I’ybiis) in a series of articles lie contributed recently to the London ‘'’limes. ' 'ihe les-on of past failures to improve the organisation of industry, Air Pyhits observes. '“has surely been this, that the object in lie aimed at should be definite and limited, ami the method ot approach one which fits- mitmally into the existinjr structure and practice oi indust ix." As a measure that at once ilomamls eoiilidelitv between employer and employee, and might be made the mean- of bioadeuiug this eonlideiiee. and elevating the standards of industrial efficiency. Mr Pybus sets strong empha-is on an extension of the system of payment by results. He contends in brief that such objections as are raised

by trade unionist- to the "ide application if tit is method of payment might easily be met.. As one means to that end, ho names a. proper machinery ol nitc-nxing. There is no lack of examples in modern factories (he observes! of iu rangments for rate-fixing which eliminate guesswork, which allow to the opeiatnr concerned a pj-o| er voice in the workshop, and which provide by it recognised and open procedure for eurrcctiing onto is whether they arc in favour of the worker or the employer. As an additional means of gaining and justifying the confidence of the workers. Mr I’ylius suggests the creation of appeal tribunals, consisting of representatives of the employers and trade unions. with statutory authority to hear charges of rate-cutting and evasions of wage bargains, to award damages and inflict penalties. In almost any mod-

ern country a progressive extension of the system of payment by result offers probably the readiest means of approaching the two broad essentials of sound industrial efficiency and prosperity high real wages and low production costs. An extension of the system on some such lines as Air I’ybus recommends i- well worth eonidering in this count r v.