WELLINGTON NEWS

Hokitika Guardian, 10 May 1927, Page 4

WELLINGTON NEWS

DEAD HAND OF PUBLIC CONTROL (Special to “ Guardian.”) !

WELLINGTON. May 9. ' The latest Bulletin (Xo. 28) of the Canterbury Cliamher of Commerce, prepared by the Department of Economics of Canterbury College, deals with our system of compulsory arbitration. and the conclusion arrived at is expressed as follows: “It has received much credit for good work in the past: but at the present time it tails in its primary object, the maintenance ol Industrial peace, it is responsible lor seriously retarding adjustment ol the juice disparities which are a chief cause of depression in the juimary industries and ol unemployment, its limited economic vision goes little be—

void tlie sheltered industries which it investigates; its rhiel basis ol wage standards is founded on lallacy. ami over the vita! internal relations of labour and capital in much of our jnoductive industry, it has laid the dead hand of public control.” The Indus,trial Conciliation and Arbitration Act was passed in 189-1. “I rankly (said Mr Reeves, who introduced iti the Bill is hut an exjierimenl. hut iL is an experiment well worth the trying. Try it, and if it fails, repeal it.” For the next ten years industrial peace appoared to have "been achieved. Ibe times were |irosperous, prices and wages rose steadily, no serious industrial stoji|iagos occurred and in many (pun ters New Zealand's system ol com-. jiulsorV arbitration was regarded as having settled the strike |>rol>lem. From 1900-7, when a temporary setback

to the country’s prosperity checked the rising trend of wages, the Court s power to secure industrial peace began to wane. The stronger and more militant unions, whose disjnitcs the ( ourt was designed to control, learned to jihice themselves beyond the Courts jurisdiction at, tbeir convenience bv declining to register or cancelling their registration under the Act. During tbe period from 191J3 to 192 n t be total of dis|)iites involving sto|)j»ages of work numbered Gilo. <>l which 212 were ill mining. 210 in shipjiiug and cargo working, 102 in food, drink, etc., mainly freezing works) or 000 stojijniges in these, industrial groups combined. During the five years 1921 to 1920 the concentration was even more marked, for out of 301 stojipages 273 or 90 jior cent were in the three industrial groujts named above, and 28 jier cent in ail the other groups combined. It ap|icars now that in the industrial groups dominated by strong and militant unions, the system either lulls to operate, or ojierates only at the con-; vcniencc of the unions. Obstructionist tactics are commonly used with iinjnin- j it.v, and the unions inn compel the emjdoyers to accept the awards ol the. Court hut the emjiloyers tail exercise no such compulsion over the unions, for they may register under the Act. or not, as they please.

From t>he earliest times the major jiart of the Court's attention has been given to wages, and. failing to find any other definite basis, the Court lias gradually taken more and more tlie cost of living as the standard by which to determine wage rates. In effect, the Court lias succeeded in steivoty|>iug for a large |>rojiortion of the wage earners the standard of living which

hnpjKned to pertain in 1911. There is a considerable amount of truth in the statement that, in adjusting wages to a rising cost of living, the Court moves in a vicious spiral of its own mention. The real limits to the upward movement of this vicious spiral are set b.v the unsheltered industries, those which have to export their prodmts, that is the jirimary industries. In 1921. these primary industries employed till per cent of the working population. ’1 be higher awards obtained in the town industries are largely responsible for the drift to town, and oHicial figures shew that- while the mean population in reused by 80,U(k'), or over 3 per cent, the number employed on the land decreased by 9,00 fl or over (5 per cent, between 1923 ami 192*2. This means a fall of 12 per cent or almost oneeighth. in tin" proportion of our population engaged in farming. The recent falls in external juices show that both internal prices and labour costs must be reduced. ft is a well known fuf't that the general level of wages can he raised only if there is an increase in the volume of wealth prnduetiou. Pr lessor Clay, of Manchester, one of llioi greatest living authorities on wages, says: ‘•Government should do everything in their jiowor (,;> promote and even compel, conciliation and arbitration. hut they should never on anv a - ' count, fix a wage rate.” Our arbitration system has developed into Slate

regulation of wages, and that regulation mainly on the basis of an obvious fallacy. Tbe Court is perhaps Hie

most potent instrument in causing stagnation of production and standards of living in tbe Dominion!