The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MAY 31, 1927. THE ARBITRATION COURT.

Hokitika Guardian, 31 May 1927, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times. TUESDAY, MAY 31, 1927. THE ARBITRATION COURT.

Professor Murphy, Professor of Economics at Victoria University College, in a recent address to the Royal 'Agricultural Society, at Wellington, analysed the main arguments in the controversy in regard to the Arbitration Court and suggested remedies for industrial peace. A defect in the Act, he said, was that it laid down no guiding principle on which the Court could act. This had given little trouble in years of steadily rising prices and growing prosperity, but on occasions had since grown embarrassing. The Court tended to. accept the standard ol living basis because it was the most easy to apply and seemed most in accordance witli social justice. A difficulty arose when a wage fixed on the standard of living basis was move than an industry could stand. Thus the Court, through no fault of its own, was unable to solve the unsolvahle. The Court was not sufficiently flexible to accommodate itself conveniently to the changing requirements of industry, he added. Awards were legislative in their nature and had to bo imposed over the whole industrial area without close consideration of modifying industrial or local circumstances. The system seemed to promote jpeffi*

cieney because of tlic absence ol flexihiity and because of tlic tendency of men to look for increased reward to contention rather than production. Representatives of both sides were a race of quasi barristers, who enjoyed the game for the zeal of the chase, and were often anxious to commend themselves to their unions by pointing to the scalps they had won on the field of arbitration battle. Tiffs did not make for industrial peace. The most serious aspect of the problem, and that which directly hit the farmer was the maladjustment between wage and price levels and between groups of industries. Unsheltered industries had to compete with foreign commodities either at home or in the markets of the world, and take a world parity for the products. Farming was our most important unsheltered industry. It was true that the Court under its discretionary power had more than once refused to make an award covering the wages of general farm hands, but some of the groups of workers whose wages were a direct or indirect charge on the farmer, were protected bv awards. Wages should be based on what a man produced, not on what he consumed. Tlic cost of living basis was, ill the speaker’s opinion, unsound. Industry paying ocoimmcially unsound wages was really eating up capital. Sheltered industries were paying wages about 7G.1 per cent, above pre-war rates, whereas unsheltered industries wore paying wages about 70 per cent, above pre-war rates, but were getting only about 48 per cent, above pre-war values. There could he no economic stability until these mill-adjustments were eliminated. The fault was inherent in the system of wage fixation. Most people would agree there should he a minimum wage. This,should be a true physical minimum of such a nature that actual wages would range above it in normal times, and it should he removed from bargaining just as factory, sanitary and safety regulations now are. These views put the whole question very clearly and should he helpful in .affording a more general understanding of a. very complex issue. At the same time, having so stated the ease, the remedy is no less difficult in achieving. Whatever is done under any change over, must he dislocating in its character, and will inflict hardship in some degree. But any attempt to change present conditions will he resisted very strongly in certain quarters. Nevertheless, Professor Murphy makes out a very strong case for a change in the economics of the situation, and those responsible for the ndniinistation of the law should have the courage to act and not permit a serious wrong to continue, a wrong which is assisting to do great injury to employment generally. Parliament is so close at band now that with the amount of publicity directed to the subject the matter is sure to be ventilated on the floor of the House, and some indication should he given regarding remedial measures.