FLAX MILLS CLOSING FOR WINTER

Manawatu Herald, Volume XLVIII, Issue 3614, 17 March 1927, Page 2

FLAX MILLS CLOSING FOR WINTER

HUNDREDS OF MEN THROWN OUT OF WORK.

EFFECT OF RESTRICTIVE REGULATIONS.

An example of the effect, it is alleged, of restrictive regulations on industry was given yesterday by Mr Alfred Seifert, managing director of A. and L. Seifert- Co., Ltd., the well-known flax milling firm. “I reckon that unemployment should not exist in New Zealand,” said Mr. Seifert to an “Evening Post” representative; “this is a young country and if things were at all normal there would be ample employment for everybody. The fact that unemployment does exist proves that there must be something wrong in our methods. The cause of unemployment in my opinion, is too much interference and the regulations in regard to employing labour; and, further, the attitude that is taken up by the men’s representatives when considering disputes. “It is said that in America the men often ask how they can enable an industry to pay more, and that is a very proper attitude to take up, but it appears to be the rule for the workers’ leader's to endeavour to make industries as costly as possible to operate; or, at any rate, to ignore the economic necessity of an industry being profitable. “The llaxinillers have a most striking example to show that the proper attitude is not taken up either by the workers’ representatives of the Court to encourage industries. “About four and a-half years ago some of the flaxmillcrs in the Manawatu district started what is known as side-leaf cutting. This is a method by which only the matured leaves of tiie flax are cut, the three youngest leaves being left to grow. This method saves the shock to the plant; and it was hoped that the extra yield would be not less than 90 per cent. Many flaxgrowers expected an extra yield of 150 per cent. Four years’ experience has proved that the extra yield is about 70 per cent. SIDE-LEAF CUTTING.

“Under the old method of cutting flax, known as hook cutting, all the leaf was cut, and it took the crop from three to four years to mature again. This was a much cheaper method than side-leaf cutting, hut the yield has proved to he about 70 per cent. less. “Those starting side-leaf cutting realised that the work was purely experimental, and that it would take a long time before all the facts were known. The men taking up the new method were inexperienced at the work, consequently their cutting tallies were p_oor, hut. the employers had to pay a rate that would enable the men to make good wages at work they were inexperienced in in order to attract them from the work in connection with which they had had experience. THE TWO METHODS.

“Shortly after the new .method was started, the men’s representatives made claims for £1 a ton for cutting flax; this as against 7/6 as a minimum rate for the old method. The employers believed that the new method was worth about 65 per cent, more than the old method, and on that basis they could see a profit in cutting side-leaf; hut the Flax Millers’ Union asked for nearly 300 per cent, more for cutting and after the ease had gone before the inspector of factories, and then the Arbitration Court, the rate was fixed at 16s per ton for side-leaf cutting as a minimum against 7/6 under the old method. “This minimum rate is too high to make side-leaf cutting profitable, and it, has had the effect of making practically all millers revert to the old style. “While negotiations were on with the men’s representatives the question as- to how much the industry could afford to pay cutting under the new method was never gone into; and I noticed no desire on the part of the men to get at the true relative difference between cutting by the new and the old method; consequently the Arbitration Court iu fixing a minimum, of 16s has done something which is very detrimental to the industry. MILLS TO CLOSE DOWN IN WINTER, “It should he explained that when flax is cut under the side-leaf method; double the number of men are employed, and that the work is continuous throughout the year. “Owing to this decision,” said Mr. Seifert, “it is necessary for my own company and another large company iu the Manawatu district to close down their works during the winter, thus throwing several hundred men out of employment throughout the winter. “It should also ho explained that

last January the millers put the/ whole matter before the men with the view of getting them voluntarily to move for a reduction of the minimum rate before the Arbitration Court, with a view to keeping the mills going and the men empolycd during the winter months. The . men, however, declined to take any action. “Can we wonder,” asked Mr Seifert, "whilst the union leaders and the workers take up this extraordinary attitude that there is unemployment in New Zealand 1 ? We are only one industry, but we arc naturally well acquainted with our own difficulties; and it is natural to assume that difficulties of a similar nature exist throughout the country and that regulations and restrictions will have to be cancelled before the country will become prosperous and all men will have an opportunity to get to work.”