ARBITRATION COURT.

Manawatu Herald, Volume XXXII, Issue 813, 12 March 1910, Page 3

ARBITRATION COURT.

FLAXMILLERS’ DISPUTE,

A CONFERENCE RECOMMENDED.

The Arbitration Court presided over by Mr Justice Sim and Messrs Scott and McCullough sat at Palmerston North on Thursday. Mr Pryor appeared for the employers and Mr Dalhousie for the Union.

In opening his case for the Union, Mr Dalhousie said that as the employers were demanding a reduction in wages the onus of proof was an them, and he did not intend to call much evidence.

Percy Tucker Robinson, secretary of the Union, said he had been secretary for over three years, and had been 17 years in the trade. He produced figures to show that in Wellington, where an award had been in operation, the production of flax had not fallen so much as in other parts of the Dominion. In 1907 the average price of flax had been ,£29 7s nd, in 1908, 19s id ; in 1909, £2l 17s 3d. For the fifty years the flax industry had been in operation the average price had been 7s 4d. Figures were also produced to show that the cost of production had dropped from ,£26 5s in 1905 to ,£l9 in 1909. This was mainly due to the drop in royalties from an average of 17s 6d per ton to 4s 9d between the years mentioned. The figures were supported by a letter trom the Hon. T. McKenzie. Witness said he had had trouble in carrying out his duties as secretary of the Union at some of the mills, being ordered out of Messrs Broad and Reeve’s mill by Mr Reeve about three months ago. To Mr Pryor: Seifert’s mill started after the last award came into force, and turned out 17S0 tons. In regard to the demand for 2s fid per ton for bands, witness admitted it was five times as much as the present award, but it took an hour and a quarter to make the bands when they were not supplied.

William Ross was the next witness called, but he did not put in an appearance. Mr Pryor explained that Mr Ross had wired him asking if he could be excused, and Mr Pryor had replied that if his expenses were not forthcoming he need not come. Mr Dalhousie said he could call evidence to show that the subpoena was served in Foxton, and that Mr Ross had said he had no time to run round after Arbitration Courts. It was necessary to have Mr Ross’s evidence, and Mr Dalhousie intimated that he would ask for an adjournment in order to get it. Robt. Johnston, washer, working for Mr Ross, said the presentday washing in the mill was more arduous and less pleasant than under the old system. It was not a healthy occupation, and it was impossible to keep dry in such an occupation. Witness produced a table showing his earnings for a year to have been ,£ll6 4s nd, and his expenditure ,£lO4 12s nd. That was before his wile died.

Joseph Mclvor, washer and catcher, said he found washing with the uew washer wetter and more difficult than under old conditions. It was unhealthy owing to the wet.

George Whibley gave evidence as to the price usually paid for paddocking and scutching. John Boulield and John Danderson, fibre carters, evidence dealt with the work done by fiber carters.

Albert Sylva, stripper keeper, gave evidence as to the extra time taken to keep the stripper in order. This concluded the case for the Union.

Mr Pryor, in opening his case, said that the employers had filed a reference to get the award annulled, and since then, at several conferences, the speaker had pointed out that it would be necessary to prepare for another award. The millers found it absolutely essential that wages should be reduced in order to carry on. Mr Pryor then put in the counterclaim with a scale of reduced wages as follows : Feeders is per hour, bench loaders iold, catchers lod, washers (finding their own boots and aprons) lold, head paddockers is, assistant paddockers loAd, sorters ioJd, shakers lod, hankers tod. vegetation man lod, rouseabouts rod, labour not otherwise specified lold. Drivers for driving and attending to one horse £2 2s per week, for driving and attending to two horses £2 6s per week. No deduction shall be made from this weekly wage for bad weather, or for holidays, or for other cause than for time lost through the worker's default, and this wage shall include attendance to horses on Sundays, week days and holidays. The worker who shall act as stripper-keeper, shall receive not less than 2s 6d per day in addition to the wages paid to him in his principal capacity, whether as feeder, eugiue-driveror manager. The minimum rates for piecework paddocking (which means and includes all work Irom taking the fibre off the poles to stacking same in the scutching shed) shall beFrom April 1 to September 30 (iucluiive) 22s 6d per ton, from October 1 to March 31 (inclusive) £1 per ton. When carting is done 5s per ton shall be added to the loregoing rates. The minimum rate of pay for scutching shall be 20s per ton. Mr Dalhousie objected to the counter-claim as there was nothing to show that a reference had been filed.

His Honour said that, of course, the employers would be in the same posittion as any other applicant lor an award. The

onus would be on them to prove

their case. Mr Pryor said that there had been so many changes since last award that it was necessary to ask for redactions. The millers were absolutely unable to carry on under present conditions. The position was very serious, and if it were not so the millers would not be before the Court to-day. Coloured labour in the Philippines bad to be competed against. It was absolutely essential that there should be a continuity of supply to those who used New Zealand hemp, otherwise their machinery will go out of use. Arthur Emerson Mabin, manager hemp department of Levin and Co.’s, Wellington, said he had had 22 years’ experience in the business, In 1907 “good fair” grade averaged ; 1908, £22 15s: 1909, £,2\ 19s. Inigog the proportion of “good fair” was about 48 per cent. The average price for “fair” and “good fair” in 1907 was ,£2B 10s, and 1909 £2l. That drop meant a loss of ,£I4OO a year to the smallest mills. Witness did not think there was any hope of any increase in prices in hemp. The year 1907 was the end of a period of very inflated values, which were the highsst prices ever known. New Zealand binder twine was very popular with the consumers, but owing to inability to compete with Manila in price and the difficulty of getting steady supplies, numbers of consumers were dropping the New Zealand article. The reason why there had been a greater drop in flax production in Southland than in Wellington was that the flax had been cut out in Southland. To Mr Dalhousie: —He was financially interested in Te Whitanui, Ltd. The property was bought at the top of boom prices. It was admittedly bad buying. Did not think that the fact of bad buying, should detract from [the value of his evidence as an expert. Was not aware that the same machinery spun phormium and Manilla.

Eouis Seifert, manager of the Miranui mill, the largest in the Dominion, said the mill commenced operations just after the 1907 award. The balance-sheets produced were for the years 1908 and 1909, and were for the confidential iuiormatiou of the Court. Witness had had thorough experience as a miller from start to finish, and he estimated that it cost £22 xos a ton to produce. Under the employers’ proposals it would cost £2O 6s 2d to produce, or £1 16s lid lowec than the present award. To Mr Dalhousie : The actual output from Miranui was equal to 7 mills. Had heard reports from abroad regarding non-continuity of supply affecting the future of the industry. It was an old story. It usually occurred on a low or falling market. Tnought that five sets of bauds could be made in 40 or 50 minutes. Mr Dalhousie produced a hank of scutched fibre and Mr Seifert under further cross examination said that he could make bands. Could not make one in two minutes. Might possibly do it in three.

Mr Pryor: There is no nail to hang it on. Mr Dalhousie: Don’t go short of a nail. I’ll take the place of one for this occasion. His Honour intimated that he did not require further evidence regarding the question. Peter L. Sim, secretary of the Koputaroa Fibre Company, produced the company’s balancesheet for the past two years, which showed a loss in 1908 of is 3d, and of 6s 2d in 1909. To Mr Dalhousie : The property was bought at the top of the market.

Charles Clinton Higginson, miliar, Koputaroa, said he was atf one time a member of the firm 9 Page and Co., Linton. He produced the firm’s balance-sheet for 190 S, which showed a loss of 17s id, and the mill was then closed. When the partnership was dissolved it was found that the firm had lost 50 per cent, of its capital.

To Mr Dalhousie: He estimated the cost of growing green leaf at 13s qd per ton. This price would be lower in all cuttings after the first toi-toi had been grubbed. The crop was not a triennial one. It took four years for the leaf to mature upon his property. Reginald Davis, accountant, put in the confidential balancesheet of Mr H. Jarvis’s mill at Rougotea.

Reginald Bell, president of the Faxmillers’ Association, said that his mill was about eight miles out of Bulls, and his employees would sooner work on isolated holidays and have a week at Christmas. He also put in a confidential balance-sheet showing the position of his mill for 1909. Royalty on flax at present worked out at about 6s per ton. To Mr Dalhousie: He was aware he had committed a breach in paying ordinary rates, but as the.men did not object, did not think it would matter. His Honour said that as President of the Association it was ridiculous for him to take that view of it. When he appeared before the Magistrate he would realise the seriousness of the matter.

K. L. Broad, llaxmiller, part owner of three different mills, put in the balance-sheets of his firm for 190 S and 1909. He had worked his mills under contract, and found it verv satisfactory. In May, June, and July he let a contract for stripping. The feeder earned £\i 5s 3d. Under the award he would have earned ,£44 13s 9d. The catcher and benchloader each earned £56 14s 6d as

against ,£3B ms 74, and the washer ,£36 14s 6d as against ,£35 14s. In the second contract the feeder earned ,£39 14s as against £35 7s 2d ; the catcher and benchloader earned £2B 14s 3d as against ,£3O 13s 3d ; and the washer ,£2B 12s 3d as against ,£2B 5s 4d. During the period of the second contract the cost of stripping per ton was £1 iSs as against £2 16s id under the award rate in an adjoining mill. As to board and lodging it did not pay at 14s. Joseph Liggins, flaxmiller, also put in a confidential balance-sheet. He lost ,£4OOO in one year from fires, and ,£7OO another year. No company would take risks on flax mills.

Robt. Gardener said his mill was not running at present. He also put in a confidential balancesheet.

William Norman, manager of the mill at Koputaroa, said the contract system was in operation in his mill, and the men were thoroughly satisfied. They worked 58 hours per week, and earned the same as under award rate. The men were not working unduly hard, and the difference to the firm was just the difference between profit and loss. Edward Phillip Levin, flaxrailler, put in a confidential balance-sheet for his mill for 1909. John Francis Wall, flaxmiller, Martiuborough. said he had been milling in the Wairarapa since 1905. Up till the time the award came into force in 1907 he had run the mill profitably. In November, 1907, he closed down when the price of hemp was ,£24, as he considered the margin of profit too small. All the nine, mills closed down that year. After consultation his Honour announced that the Court thought it desirable that the parties should decide on a sliding scale of wages, and recommended a conference between the parties. Meanwhile the making of an award would be postponed. Both Mr Pryor and Mr Dalhousie announced their willingness to arrange a conference, and the Court adjourned.

AN ABORTIVE CONFERENCE.

The employers and the Union representatives met on Thursday evening. After some preliminary discussion, it was decided that Messrs Pryor and Dalhousie should withdraw, and that the two representatives on the Arbitration Court (Messrs Scott and McCullough) be invited to attend. Mr Scott (the employers’ representative) took the chair, and discussion went on until 10.30 p.m., when it was adjourned until 10 a.m. on Friday. Upon the re-assembling, it was decided, upon a suggestion made by the chairman, that Messrs Pryor and Dalhousie be allowed to take part in the proceedings. An animated discussion took place, lasting until 5.30 p.m., but although the majority of the points in dispute were agreed upon, no settlement could be agreed upon. Mr E. L. Broad proposed a vote of thanks to Mr Scott, which was seconded by Mr G. S. Whibley, and a vole of thanks to both representatives of the Court, proposed by Mr R. T. Bell, and carried by acclamation, terminated the proceedings, The conference throughout was characterised by an entire lack of bitterness, and although the discussion was keen, the desire to effect a settlement was obvious throughout upon both sides.

Much credit is due to Messrs Scotc and McCullough whose efforts in the line of conciliation were most strenuous, and were highly appreciated by both parties.

CAUSE OF NON-SETTLE MENT.

[By Telegraph.] [Special to Herald.] Palmerston N., This Day,

Owing to the incorrect account of the proceedings of the conference between representatives from the flaxmillers and the employees published in this morning’s Palmerston Times, the Union has decided to make known the real point whiph prevented a settlement being made.

The millers wanted to institute a new branch of piecework into the award, namely, stripping, all or any part by piecework. The Union representatives were agreeable to this, provided a clause was inserted that where piecework was carried on the employees were to receive wages equivalent to award rates. The flaxmillers representatives would not agree to this clause being inserted and hence no settlement could be arranged. Unconditional preference was not asked for and this point was made specially clear to Mr Scott by Mr Dalhonse upon the reopening of the conference. A preference clause was agreed upon, no reduction was to be made in the wages of the rank and file and the one point which prevented settlement was the question of piecework.