WELLINGTON NEWS

Hokitika Guardian, 31 January 1928, Page 4

WELLINGTON NEWS

COMPUI -SOI? Y AI? B1TI? AT I OX. (Special to “ Guardian AYELLIXGTOX, Jan. 28. It is perhaps significant that at the moment there should he so much talk in respect to compulsory arbitration, as it is known in Xew Zealand and Australia. Professor A. LI. Tockcr, at the Science Congress in Tasmania and in an address delivered to the manufacturers, roundly condemned our system of arbitration. The Professor has given very close attention to the subject and has shown no fear in publishing his views. lie not merely states his opposition but gives chapter and verse for his contentions. Undoubtedly the system is wrong and there is not the slightest doubt that radical changes are bound to take place very shortly. The -Minister of Labour (Hon. J. G.

Anderson) intimated that a conference of parties immediately concerned would be held during the recess, but if this conference is merely to point out the defects in the Act it will not achieve much. AVliat we want is some concrete suggestion that will help us frame a new measure that will he economically sound and fair to the public, ft is not sufficient to tell us that certain elements would suffer by any changes in the Act. AVe know that any change will occasion hardship to individuals, but it is not the interests of individuals which should receive consideration. Air J-. T. Daniel, of Alasterton, in an

address before the AA'airarapa Provincial Executive of the Farmers’ Union, discussed this subject in a rather clear and concise way and pointed out that the cost of living basis on which the Court based its decisions should he scrapped, as tluft was not a true basis for fixing wages. Air Daniel suggests that a basis should be insisted on making Arbitration Court wages in relation to the value of exports. This does not strike one as being altogether reasonable or fair. The Court should onlbe called upon to arbitrate in cases where voluntary agreements at a round table conference have failed. The Court must be given power to work on any independent basis but should arbitrate only in respect to the dispute submitted to it for arbitration. AYe want to get rid of the advocates who are eternally creating trouble and who

are not interested in the ethics or economics of the problem, but who are

anxious only to win success and so enhance their prestige. These advocates are dependent on the Court for a living, and it can be seen that the oftener they are before it the better for themselves and often times they firing matters before the Court that would not come before it in the ordinary course. AYe want to get clear of these advocates.

AYitli respect to wages no attention has been paid to world’s parity of prices, but wages have been fixed more or less on the basis laid down for the Court. The Court hitherto has arbitrated only for a very small section of the workers, hut its award has formed a basis of those who actually are not unionists. The unsheltered industries have suffered from this for, as Professor Tockcr hits pointed out, the unsheltered indus-

tries cannot pass on any increases in costs as can the sheltered industry. The present unemployment due to the inability of the primary producer to pay the high wages demanded, and that not heeati.se labour is not needed, but because they .cannot afford the regulation price in wages. As Mr Daniel

points out, every increase in wages had to he found from the (nunlrv's e.viiort able surplus. (5 per cent of which came from the land. This is equal to saying what has been said repeatedly, that there is a striking disparity between the export, prices and those demanded by the workers sheltering under the Arbitration Court and the tariff. Afr Daniel says that the high cost of working land completely i hanged tin economic position of fanners. During the last two seasons the average producer had been selling rile main exports of tile country • below l lie cost of production. This was an aspect which bad never previously been considered by the Arbitration Court, yet there was plenty of data to establish it. The

average primary producer was not malting a living wage. I'rnfit-sliaring has been largely discussed as a means of conciliating labour, hut if there is pro.'it-sliaring there must he loss-shar-ing and that will not he satisfactory to t..e workers. According to Air Daniel, the farming community was startled recently by an insolent attack by the Employers’ Federation on the Parliamentary Act. Later it was found that there had been at least one secret meeting between the Employers’ Federation'and the Alliance of Labour.

Afore recently there has been a proposal for an industrial wage truce for live years. This latter is an absurd proposal because Labour could not agree to any truce which involved a reduction of wages, and yet a reduction of wages and commodity prices is essential. A\ e will never get hack to the pre-war level, but we should he able to so regulate wages that one section does not suffer with the heuciit o! another. The AYairarapa Council tjgrecd that in the event of a conference being held to discuss fresh bases for the fixation of wages, the representation ol the Alliance of Labour and of the Employers’ Federation should not together outnumber the representation of primary producers, and further that a professor of economics he asked to outline a formula as a guiding principle to the Arbitration Court in the fixation of wages, such formula to aim at a rise and fall in wages in proportion to the value of our exports. AYe cannot see that much good would he achieved by this, the contending parties will endeavour to score a victory and whoever is defeated will continue to he dissatisfied. It would he hotter to have this matter discussed by scientific men. such as economists and actuaries with perhaps a small sprinkling of business men, like accountants and bankers.