FLAXMILLING INDUSTRY.

Manawatu Herald, Volume XLVIII, Issue 3656, 23 June 1927, Page 3

FLAXMILLING INDUSTRY.

APPLICATION FOR NEW AWARD

SITTING OF ARBITRATION

COURT.

Some months ago the Manawatu Flaxmill Employees’ Union, desiring among other things higher rates of pay for its members, commenced proceedings to obtain a fresh award. The first step was the meeting in conciliation of representatives of the employers and of the Manawatu Flaxmill Employees’ Union, and many points in the demands were agreed on. However, concerning overtime and wages, there was a decided divergence of opinion between the parties, and, accordingly, these two matters had to be referred to the Arbitration Court.

On Tuesday that body met in

Palmerston North to consider the dispute. Mr. Justice Frazer presided, and with him on the Bench were Messrs W. Scott and A. L. Montcith, employers’ and employees’ representatives respectively.' Mr. W. Bromley appeared for the applicants and Mr. B. L. Hammond for the respondents.

At the outset Mr. Bromley outlined to the Court the-differences in the claims of the two parties and stated that he would endeavour to prove that, the industry' was well able to pay higher wages, and bring the employees’ rates of pay in line with those in other industries. Regarding overtime, the union was asking for time and a half, as against time and a quarter by the employers, and the speaker asked the Court to follow its usual practieo, which supported the employees’ demands.

Evdience was then given by Percy T. Robinson, secretary of the union, concerning the wages given in the industry for the last 12 years in all branches of work. In evidence Percy T. ltobinson, ■secretary of the union, stated that, during recent years, the employees had been content to take the wages offered, believing the employers when they stated that the industry was not in a position to pay more. Witness added that he had been trying to tell the men for several years past that they could get better pay. Edward Percy Cresswell, a Foxton flaxmill employee, stated that he had been in the industry for 20 years, and that ho was at present .earning Is lid per hour. Over the whole of last year, during which period he had been off work for only a week, his average earnings had been £3 2s 6d per week. Alexander George Parker, of r oxton, tow-presser, deposed that, .in 1925, his average earnings had been £3 2s per week; in 1926 £3 4s 7d and for the present year £3 12s lOd, giving an average of £3 4s lOd over the whole period. James Campbell, flaxcutter, until recently employed at a Shannon mill, put in figures regarding rates of pay for side-leaf cutting voluntarily paid by one mill, showing an average of 17b Id per ton. THE EMPLOYERS’ CASE. “We will endeavour to show that tlie industry is not in a position to pay higher wages,” stated Mr Hammond. His Honour: Then what the recently published prospectuses say about profits is all wrong? Mr Hammond: That will be explained in evidence. “If the industry can’t pay the minimum wage of the Court, then it should go out of existence,” observed His Honour. “1 don’t think you will get below Is lOd per hour.” In 1906, stated Mr Hammond, 27,779 tons of hemp, of a gross value of £776,106, had been exported, the average price being £27 18s 9d per ton; while last year 17,218 tons, of a total value of £520,691, had been sent out of the country, the average price being £3O 10s 7d. For the ten years prior to the wax the average price per ton was £23 10s and for the last ten years £29 10s. Many mills, the speaker proceeded, were finding it difficult to carry oil. In recent years the greatly increased standard of grading had very prejudicially affected the employers' interests, and had kept their returns low On the figures of one large factory the cost ol production had gone up by 24.57 per cent, since 1918, added to which there had been a decrease in price ol 45.22 per cent. ; or, with 1919 as the comparison years, the figures were 15 and 21 .respectively. Labour represented more than half the cost of production at all the mills at Mirauui in 1926, with the side-leaf method o£ cutting, labour had represented 62 per cent, of the cost. An increase of is on the cutting price of a ton of green fiax, the speaker wanted the Court to bear in mind, represented an increase ol 8s per ton on the hemp. Herbert A. Seifert, manager of the Mirauui mill, gave evidence that to give any increase in wages to-day would be tantamount to a levy oil capital. .Present profits were small, and there did not appear to be much chance ol a better market. Sule-leai cutters at liis mill averaged 22a to 2ds per day, with hook cutters a little less; while several paddookors laid earned between £3OO and £4OO during the past year. Mill stoppages during the year, a particularly bad one fioni tbis point of view, hud averaged Of hours per week, while the average hours of work were 7* per day.

To Mr Monteith: On some occasions bonuses had been paid for extra-pro duction, but the desire to got extra tallies had spoilt the quality. Scutchers, proceeded Mr Seifert, earned at his mill an average of 24s (kl per day, which, he maintained, was too high a rate ol pay. The- increases that the men were asking for would, if granted, be the death-knell of some of “the smaller factories. At present the millers were receiving about £29 8s per ton, against which were production costs in the vicinity of £26 10s. The increases asked would bring the production costs up by £2 10s per ton, leaving 8» for the miller. Overtime, he concluded, was not ot any considerable degree of profit to the employers. To Mr Bromley: In the 17 years that his company had been in existence it had paid out £130,000 in dividends, but this profit he did not consider excessive, working out at only about £1 per acre per annum. From 1907 to 1915 very modest dividends had been paid, but during the war years, as in all other industries, big profits had been made and big reserves put aside. The war years, however, were now 1 long gone by. In evidence John Scott Moir, secretary of Whitanui, Ltd., produced returns showing the rise in the cost of production, differences in output, and the wages paid. Scutchers at his mill, lie stated, had received an average, wage of as much as £8 7s 7d per week. The Court then adjourned until this morning. „ Edward Berry, of Foxton, flaxmiller, stated in evidence that, in 1915, his overhead charges had been. £2Bl 14s Bd, in 1016 £454, in 1917 £574, in

192 G £lO4l and in 1927 £1055. During that period his output had remained practically constant, bing 524 tons in 1916 and 530 tons last year. Most of the time lost at bis mill was caused through a shortage of flax, due to the cutters not working the'hours they could. Last year witness had made no profit in his business, and did not view future prospects as sr.tifactorv. Mr Bromley : Other millers say there is plenty of profit in flax. Witness: 1 am prepared to produce inv books to the Court. Thomas Davey, mill manager for Whitanui, Ltd., stated that cutters in his swamp worked an average of seven hours a day and could easily earn more pay by working on Saturday ijiorriings. Charles Henry Harper, clef in the employ of Dempsy and Litchfield, accountants, produced figures relating to wages paid to scutchers by the P.uka Flaxmilling Company, showing that anything from £l3 to £2l had Iren earned per fortnight. William Nye, of Foxton, flaxmiller, gave evidenco that, on numerous occasions, time had been lost at. his null through the cutters refusing to cut flax, even though the leaf was accessible and the weather fine. To Mr Bromley, witness admitted that there were occasions when the flax was in such a had condition that it could not he got out of the swamp. DECISION RESERVED. This concluded the employers’ case, and Mr B. L. Haruond, tneir ag>.nr, addressed the Bench, his opening remarks being to the effect that, despite anything to the contrary, the industry was not in a position to pay better wages. Continuing, Mi 1 Hammond submitted that the employees had made out.no case in their demand for higher wages. On their own showing, cutters were earning from 22s Cd to 28s Gd for an average day ol seven and three-quarter hours, and yet they were asking for more. The speaker confidently submitted that the I acts put before the Court, .nstoad o! justifying an increase, favoured a reduction in wages. Scutchers it had been shown were earning very good pay. In his address, Mr Bromley pointed out that the employers ha 1 been very silent in regard to overtime, on which matter he trusted that Uio Court would follow its usual practice, while nothing had been said as to why drivers should not. get the same wages as were paid under the drivers’ award. While it was* true that the puce oi flax Him lusted to some degree in recent year.*, the average had been £3O per ton f.0.h., which, it was admitted, was a profitable rate, and which appeared ns if it would be the ruling price tor some time to come. His Honour: The whole question at issue is whether the piece work rates are sufficiently high, or are not sufficiently high. Continuing, Mr Bromley stated that, the employers had refused to take tallies in conjunction with the men because they were afraid they would go slow, and yet Mr Seifeit in evidence had said that the bonus system was discontinued because, under it, the men worked too fast and spoiled the quality of the finished product. At the conciliation proceedings the employers had refused to discuss wages. Mr Hammond: They gave an indication that it would be a waste of time to discuss anything hut a reduction. Replying to a question, Mr Hammond stated that it was not the intention at Mirauui to definitely do away with the side-leaf cutting; if the price per ton were reduced the mill would introduce this method again. Mr Bromley went on to comment on the action of the employers in taking tallies at Whitanui without giving the men the opportunity to check the results, saying that, for this reason, the figures possessed little value. Figures, His Honour told Mr Hammond, could often hear two complexions, and, unless they were properly investigated, it would he unwise to accept them. Asked by His Honour as to how many men in constant employment at Mirauui mill earned more than £250 per annum, Mr H. A. Seifert, the manager, replied that about 55 per cent were.

His Honour then intimated that the decision of the Court would be forwarded in due course.