WELLINGTON NEWS

Hokitika Guardian, 29 April 1930, Page 2

WELLINGTON NEWS

THE WOOL TEXTILE SITUATION

(Special Correspondent.)

WELLINGTON, April 26

It was reported from Bradford the Other day that a large number of wool textile workers in the Bradford district had gone on strike refusing to accept the wage reduction. Mail advices furnish some details regarding the position. In the wool 'textile industry to-day the person difficult to find is the optimist. A long scries of disappointments and difficulties aggravated l>v a protracted deadlock over wages appears to have resulted in depression becoming a habit of mind. In, their evidence before Lord ‘MacMillan, sitting as a Court Inquiry into the wage dispute the employers put forward as their considered view the pessimist conclusion that there were only two alternatives; a substantial reduction of wage rates or the bleeding to death of the industry. In his report issued early in March, Lord MacMillan a,greed with the employers that a reduction > of wages is imperative and found that "in present circumstances and upon the present basis the industry is in a most unsatisfactory if not an actually dangerous position.’ 1 He recommended a cut in wages of roughly 9 per icent. The present wage system is highly complex. For time workers there is added to a base rate, firstly 10 per cent, and secondly 7.5 per cent, cost of living bonus. Since December, 1922, the minimum wage of time workers in the manufacturing departments have been: men in scheduled occupation 54s lOd, men on unscheduled occupations 52s 8d; women 32s 3d. For these grad. Lord MacMillan proposed a reduction of the 10 per cent addition to 5 per cent and of the cost of living addition from 72.5 to 64 per cent. The reduction in full time weekly earning; wpuld be 9.249 per cent or 5s Id, 4s IOJd and 3s respectively m three classes mentioned. In the case of piece • workers, whose system ..of percentage additions is even mope complicated Lord MacMillan' recommended an gft'ecfjive .reduction,, of 8.766 per ssj[fP>e for reductions Urangingi I n;dm .'Mlsi23, per cent -to 18.47 per ceqt. But apart fi'tatt wool wor | pagesj bq: ed as 'high or low. ■ In relation to of to earnings in otfeni&istriisV‘wf 1 MacMillan fi yas: !T, to )i. , '! t )- e that thtf iMsW gt Resent ; has got the ability To pay current 'Fates out of its proceeds; and a sample inquiry into the accounts of. oiqepresentafcivve concerns in different d>fa,hphbs of th® trade convinced him that 1 during the past five years the'financial position of the industry has become progressively worse and has ..flow reached a really critical stage? The * "Economist” states?- that the crux of the^j.tn?tion''-lies in the export trade'.^Tho' home- market has failed to lplain t’haJ,,voHune of prewar years, competing imports are not a- sfe'l|onsv;factor fin comparison with theig pre-wjx'r position. A rough calculation oj^:;.theT.basis adopted last year % 4hc 'Committee on Safeguarding indicates. that in 1929 the British pro|.t|c|jon. ofi: woollen and worsted tissues?|§mpunt,ed to * about 400 million squayekyards against -143 million square ya|dSi ini 1924 millions in 191.2, and home consumption to 279 million square yards as compared with 252 million in 1924 and 398 million in the pre-war year. Thus the rate of retained import? to 'British production which was 13.1 per cent in 1912 amounted last year to only 8.5 per cent—a figure showing an increase as compared with 6.1 per cent in 1921, but not suggestive of lack of the lack of stability on the part of British firms to hold an adequate proportion of the domestic market.

It is clear that the chief wool textile producing countries on the Continent, hare gained ground very substantially 'in the export (markets since 1924., at the expense of Great Britain; and although the. catastrophic decline in the value of wool ■which has; brought down the price of 64’s tops- from 48rl a year ago, and isod in March, 1928, to 28}d per lb now, is' causing, a temporary restriction of demand, affecting all European producing industries. ‘’The striking contrast between the trend of British exports and those of our oh,ief competitors’ sales abroad during the past five years is disquieting,” observes the “Economist.” In submitting to Lord MacMillan their (case against a reduction of wages rates, the workers’ representatives suggested that the economic condition of the industry could be adequately improved by other means. Tbe employers submitted to the Court that “infinite variety was an essential requirement of tbe industry ’ and that ‘bulk producing was carried to tbe limit of its usefulness. Existing machinery was adequate.; salesmanship was satisfactory; over capitalisation was not a material factor, and though ■ competition might be diminished and weak sellers eliminated by rationalisation the result of that process would raise tbe average price and would thus be of little avail.