WORKMEN AS EMPLOYERS.

Manawatu Herald, Volume XLIX, Issue 3866, 3 November 1928, Page 4

WORKMEN AS EMPLOYERS.

A very interesting economic development is taking place in Norway which, if successful, is likely to have important and far-reach-ing effects on the labour situation as° a whole. During the past few months a number of industrial plants and timber mills, which had been forced out of business on account of high production costs, have been taken over by the trade unions concerned, reports an Oslo correspondent. The arrangement made with respect to one timber mill was that the workmen found 20,000 kroner, and the remainder of the money required was partly guaranteed by the municipal authorities and partly by the National Association of Trade Unions, which supplied a credit of 100,000 kroner. It is agreed that during the initial period the men are to receive wages which are 20 per cent, below the trade union minimum, so as to place the mill on .a competitive basis and to enable it to consolidate its financial position. Another concern will employ about seventy men, and these will receive no wages until cash has been received on account of orders —that is, about thii ty days after delivery. With respect to another concern the municipal authorities have been asked if they will guarantee 142,000 kroner, whicu will be repaid by the men, who are to surrender 25 per cent, of their wages every week until the guarantee has been fully covered. The men will also pay irp part of the capital required in cash. In each of the eases it will be seen that production costs are reduced by “attacking wages.” This fact is "taken as supplying proof that the trade unions are beginning to realise that their present highwage policy has done incalculable damage to Norwegian trade and industry. Up to the present the workers have always fought against wage reductions, no matter how badly the industry concerned was situated; in the present instances wages are being voluntarily re-, duced by substantial amounts, in order to place the firms concerned on a sound financial basis. At the same time the firms are obtaining capital on far more reasonable terms than are ordinarily obtained. Mutual sacrifices have been made as it is very generally realised that nothing could jbe better than to give the men a chance to see how difficult it really is to run a business at a profit and pay high wages under present conditions.