ARBITRATION COURT

Hokitika Guardian, 18 July 1929, Page 5

ARBITRATION COURT

(By X.) The original intention, w’hen the Conciliation and Arbitration Act was nrst put on the Statute Book was that the Arbitration Court should be ‘a Court of Appeal to decide disputes which could not be adjusted in the Conciliation Council. At that time it was not perhaps realized that a “dis- , pute’’ could lie croated at any time simply by the workeis anpiyL.g i»»r an increase in uuiges, or employers applying for a decrease. The result of this has been, however, that the Court lias become a wage-fixing tribunal, whether that ivas the original intention or not it is now an accomplished fact. At first it seemed that this was all in favour of the worker, / as wages were raised all round, and j apparently without any harmful effects ■/• on industry. But, as has been pointed out, there was a rise in world prices starting in 1896 the year when the Iburt first got into its stride, and went on until 1921. The rise in wages was simply a manifestation of the general rise of prices. Prices have fallen—in some cases to below / pre-war. level—and the Court isffinding itself unable to reduce wages accordingly. A very peculiar 9‘ate of affairs has therefore been brought about. It has been found that many employers hound by ■ the Court awards have had to v abandon manufacture of certain lines, as the margin of profit had disappeared and a loss was being .made.; . Many-.-men were turned off and left to make a living for Themselves. Some of tnese started out on their own account, tendered for any work within their capacity, and were able to cut below the prices of employers bound by’the award rate of wages and overtime and other charges. , - V At first sight it might be thought ~ip ? that fejich competition twlipld be geglh-L gible, but it is being found that in the aggregate it is very serious. There are a large and increasing number of small factories now which are outside the' jurisdiction of the Arbitration Court because no labor is employed. How far this will extend it is difficult to predict, but it is certain that if the Court maintains wages on an uneconomic level it will sooner or later break down the present system altogether. lt would appear that if the Court attempts. to increase hours of work or reduce wages the workers will not obey it. The recent strikes in Australia, and Hie consequent decision to do away . with the Arbitration Court altogether 1 is a warning of what might happen in New Zealand if a similar course is fol- .j? lowed: ; If on the other hand thefCcftirt f'J 'hj .maintains the rate of wages‘at the pre'sent uneconomic level and the people find that they are paying more for work than they can get it done for-.by-,-, those working on their own, the whole, system will collapse under its own weight. With the exception of a fe.w of the larger factoriesethe. employer as ':'U. now known :and boundVby .The Afbitra- -Lo - tion Court awards will’ cease to exist. At the' same time the number of Jlabfcir-' unionists : employed ( will- be> so ~ .small that labor unionism in industry'be ;f,V negligible. This of course will not' ap- V. T ply to the minipgp and shipping indus- - tries to any exteiit, but in the group . ' of smaller’.indjisiries, known as “ sec-r £ o'ndary ” 'the position is so clearly defined now that if serious consideration is not given to it the end must’soon come. As the \ vice-;President of. a the; Auckland Employers’. Federation ■ said 1, recently, the labor unions must realre ■ T j that the battle was not between labor'.! 1 ■ and employers, but between labor and economic conditions. Once this was realized and the parties could be got together some solution might be found. , On such solution the future industrial prosperity of the country must depend.