The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JUNE 8, 1926. INDUSTRIAL RELATIONS.

Hokitika Guardian, 8 June 1926, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, JUNE 8, 1926. INDUSTRIAL RELATIONS.

Following its exhaustive and valuable report on overseas trade, the British Committee set up in 1924, under tie chairmanship of Sir Arthur Balfour, to inquire into the conditions and prospects of British industry and commerce has now issued a second report in the form of a survey of industrial relations, embodying in some 500 pages all-important features which will make for productive power and peace in indutsry, together with useful information concerning the everrecurring difficulty of hours and wages. In the matter of wage inequalities the Committee states that the proportionate rise has been greater for the less skilled than for the more highly skilled workpeople, the average increase being from 80 to 90 per cent, for the former and from CO to 70 per cent, for the latter. Calculations have yielded the conclusion that the prevailing rates of increase of weekly rates of money wages in the trades most exposed to foreign competition range from 45 to 75 per cent., with an average of about 60, while for the trades sometimes described as “sheltered” the increases range from 80 to 120 per cent., with an average of. about 100. In industries in which time rates of wages prevail skilled workers fully employ-ed-in industries directly exposed to foreign competition, are on the average less well off than, before the war while on .the other hand, unskilled workers generally and workers both skilled and unskilled in “sheltered” industries, have, with some exceptions,, improved their average position as regards purchasing power. There are indications that payment by results has been gaining somewhat on payment by time. The report draws to the general decrease in hours of labour, which lias taken place since 1914, the average decrease amounting to 10 per cent., and 'while legislation has been enacted in a large number of countries for the establishment of maximum hours of labour, Usually in principle 48 hours a week, mention is made of the tendency in the majority of countries concerned to modify the legal restrictions by expedients, such

as permission to employer and workpeople to lengthen hours by agreement, the grant of permits and elastic interpretations, and the liberal recognition of overtime. In a section dealing with industrial welfare work, the report refers to the improvements that have taken, and might he expected to take, place in the amenities of workship life and in industrial relations and productive efficiency, and it goes out of its way to state the true view that should bo taken of welfare activity-—viz., an essential part of good business organisation rather than a philanthropic adjunct. The Committee, in commenting on the unemployment situation, points out that while it is common knowledge that unemployment has been very severe during the last four years, the total number of persons in employment in Great Britain is fully as great as immediately before the war, the increased margin of unemployed being at least balanced hv the increase of the employed population. A comparison is made of real wages in England, and those in other countries, showing that in most of the Continental countries, they are considerably lower than in Great Britain, and there is a reference to the system 7 of family allowances, which lias entered into the wage agreements of a large number of European countries. Among other features of the report is a statement by the Industrial Fatigue Research Board showing that productive efficiency can he markedly increased by finding and adopting the most favourable working conditions and methods of work for the operate, and a reference to profitsharing schemes, in which connection the Committee states that, on the whole, the evidence available appears to suggest that if an employer introduces j\ scheme with the object of stimulating his workpeople-to increased zeal and exertion, and maintaining the stimulus for a long period of years, he is not unlikely to he disappointed. The success or failure of profit-sharing as a method of industrial remuneration is shown to depend partly on the circumstances of the trade and also largely on the personal factor.

Tiik Dominion finance for the year disclosed a surplus of £1,155,079, which was quite a respectable sum as these figures go. The amount was disclosed in good time for the loan flotation at Home, and could he used as useful propaganda in attracting attention to the solvency of New Zealand finance. The buoyancy, however, it has been pointed out, has come from an Increase iu stamp and death duties, and a very substantial increase in custom duties. The large increase in the latter category suggests heavy importations again, and that fact will make finance difficult as the months go by. for there is falling revenue to he faced by reason of the drop in the prices for primary products. The situation financially at the moment calls for careful handling. The Government has boon going on merrily year after year, borrowing an average of six millions annually. This policy adds anything up to £300,000 in the yearly hill for interest without provision for repayments, so that a different position is being created year by year. Vet the Government does not show any dispositon to curtail borrowing, and for the same reason to reduce expenditure. The country has to foot some very heavy bills for hydro-electric development, and public works generally, and there is no sign of any shortening of sail under those heads. Where money can he raised, steps are taken to do so. Even with the substantial surplus which is disclosed, there is not any suggestion to utilise that money to ease the financial position. In England, it lias been pointed out, it is the custom for the surplus revenue to ha applied to debt reduction, which is the practice any wise business man would be disposed-to do. By utilising the surplus revenue for debt reduction, a possible reduction in taxation of revenue would be accomplished, hut there is no suggestion of such a desirable move. I lie financial operations of the country are directed in such a way as to secure as much revenue as possible, and together with the borrowed money, use the surplus money for public works. Development is highly essential and proper, blit it should he along lines which the country can afford without creating inequities or causing a difficult financial situation. It is just the latter which is likely to occur immediately if the high rate of Dominion expenditure is continued without forethought ofr what appears to lie the inevitable at the presort rate rate of expenditure.