FLAXMILLING INDUSTRY.

Manawatu Herald, Volume XLIX, Issue 3841, 6 September 1928, Page 3

FLAXMILLING INDUSTRY.

RECENT HOLD-UP DISCUSSED IN PARLIAMENT. prime mnister explains TENTATIVE ARRANGEMENT. “It is a distinct and clear misrepresentation of the facts —that is my answer to any suggestion that I brought about a reduction in the wages of the flax workers,” said ithe Prime Minister (Right Hon. J. G. Coates) in the House of Representatives on Tuesday night when reviewing the negotiations which led up to the reopening of the flax mills in the Manawatu district. Dealing first with the question of wages generally, Mr. ICoates said that the welfare of the workers was not only the concern of the Labour Party, but of every decent-thinking citizen in the community. (Hear, hear). “We desire,” he added, “no reduction in wages or in the standard of living. If employer and employee sit round the conference table, where the facts are known, it may be necessary for the worker to realign his thoughts to the particular industry' If that is done mutually then there is good cause for bringing the interests together to ascertain whether the industry is vital, and what it means to the employer, the employee, and the country.” Mr. W. E. Parry (Auckland) : You recommended a reduction to the flax-workers, though. The Prime Minister: “The member is endeavouring to side-track me.” He explained that the industry had been practically closed down as far as the Manawatu was concerned. It was an industry quickly affected if its competitors were able to provide suitable substitutes in the world’s markets. If the markets established for NeAV Zealand hemp were interfered with, and competitors were placed in a position to capture those markets, the industry here would be in a prevarious state. With the f.o.b. price at £24 10s a ton the millers in the Manawatu said they were unable to pay more than 13/6 a day to the workers, ■while the Arbitration Court wage for the work was 15/per day. The Leader of the Opposition (Mr H. E. Holland): The workers said they could not live on 13/6 a day. The Prime Minister replied that the question was whether the workers were willing to accept, as a basis for starting the mills, a ten per cent, reduction in wages, and whether the millers themselves were prepared to start on a certain specific obligation. The arrangement arrived at, which was purely tentative, and Avould not act prejudicially to the Avorkers, was that the workers accepted a ten per cent, reduction in wages on the clear understanding that the trading accounts of the millers Avould be investigated by an officer of the Department of Industries and Commerce, to ascertain Avhether the basis of £24 10s a ton was a satisfactory one. LABOUR-LEADER’S VIEW.

The Leader of the Opposition, Mr. 11. E. Holland, said no doubt the wages question was one about which there would always be disputes. It had been so since the wage system was first established, and the roots of the difference went deep down into history. The practical question to-day was whether an industry which could not pay a living wage was worth supporting. He thought not, because the first thing about any industry was that the people employed in it should have a reasonable standard of living. Coming to the flax industry, Mr. Holland said he doubted if any married man could live and bring up a family on 13/6 per day. In his opinion, the fixation of 13/6 per day was a breach of the award existing for that industry. The Prime Minister had been called in to patch up that dispute. The Prime Minister had appealed for a spirit of friendly co-opera-tion, but only within the last few days the sheep-owners had refused to meet the shearers’ representatives. What was the Prime Minister going to do about that.

He, however, hoped that in those industries where grievances existed the employers would agree to meet their employees in conference and not take up the attitude of the sheepowners. Had the workers refused to meet the employers there is no doubt pressure would have been brought to bear to compel them to. dd so.

So far as the flaxworkers were concerned, Mr. Holland said it would have been better to have given them a subsidy as the apple-grow-ers were given rather than to have dropped them down to the level of 13/6 per day. Mr. A. E. Ransom (Pahiatua) said it was quite clear that the flax industry could not pay the present award rate of wages of 15/per day, and to save the industry it might be that the workers will have to accept something less than the award rates. He looked to a spirit of co-operation as the true solution of labour porblems, but there must be co-operation on both sides. It could not be all on one side.

Mr. W. D. Lysnar (Gisborne) said 95 per cent, of the workmen were good men, but five per cent, of the agitators were interfering with them. If a man did a good day’s work an agitator came along and said: “You are doing too much,” and so now it was almost impossible to get a good man in any line. He hoped the next conference would result in a better spirit being cultivated between employers and employees.

Mr. M'Combs (Lyttelton) said the Prime Minister had agreed to have the books of the flaxmillers examined in the hope that the investigation Avould result in a reduction of Avages, but he had not taken any steps to have the books of the sheepowners examined because that was a prosperous industry. If he had the right to intervene in one case he had the right to intervene in the other.

Mr. W. A. Veitch (Wanganui) said that to secure industrial peace on a basis of voluntary conferences was no doubt a very fine ideal, but there must always be a final arbitrator to determine points upon Avhich no mutual agreement could be arrived at. He hoped the House Avould hesitate before it abolished the method of settling disputes by means of arbitration.

Replying to interjections, the Prime Minister said that in his opinion, Avhere a co-operative spirit Avas introduced, all should benefit. If a market were a A-iolently fluctuating one, everybody Avould recognise lioav difficult Avould be the position of the worker. While both sides might benefit in the increased A T alue of the product, the most important consideration to the Avorker were permanence of employment, and stability of Avages. Facts such as those Avould be considered when the conference of millers’ and Avorkers’ delegates Avas held in about a fortnight’s time. PRIME MINISTER CONGRATULATED.

Mr. J. A. Nash (Palmerston) said that Mr. Coates Avas deserving of the thanks of the Avhole country. His action had been appreciated by many of the Avorkers engaged in the industry. It Avas only to be expected that Avhen the Prime Minister took up the matter for the benefit of all concerned, he would be charged AA-itli reducing Avages. But that Avas entirely Avrong. There Avas no desire on the part of the flaxmillers to reduce the rate of Avages. R EASON FOR INTERVENTION. Replying to points raised by other members the Prime Minister said it Avas not the millers Avho had asked him to call a conference, nor Avas it the employees. He had been asked by independent people avlio had pointed out to him that betAveen eight and nine hundred men were hard up and their families were in difficulties. That Avas the reason why a conference had been called. The clerks, the assistant managers, and the managers of the flax-milling companies had agreed to reductions up to 50 per cent., and the directors and the shareholder's Avere to get nothing. His action in the matter Avas simply to bring the parties together to see if some basis could be reached for the opening of the mills. He Avas astounded that some members had placed on his intervention the interpretation that he Avanted to cut doAvn Avages.