THE FLAX INDUSTRY.

Manawatu Herald, Volume LI, Issue 4547, 23 December 1930, Page 4

THE FLAX INDUSTRY.

(Concluded from page 1). five men for one stripper was ridiculous. It was absurd that such a number of employees was required. He knew that from practical experience there should be no feeder at £3 4s a week, to be perfectly candid. Mr Ogilvie: Yes, I will admit that. Mr: Monteith pointed - out that the estimates for automatic scutching costs were greater than for hand scutching. They had been set. down at £1 11s a ton, but must be considerably less. Mr Monteith asked if it was necessary in a three stripper mill to employ three strippers and three feeders as well. Mr Ogilvie agreed that it was not. NO EVIDENCE CALLED FOR UNION. Intimating that lie was not calling any evidence, Mr Bromley stated that when the award was made the price of fibre was £27 per ton. Later, when prices dropped £2 per ton, there was sought a reduction of 10 per cent, in wages, which the men agreed voluntarily to accept conditional on an investigation. The arrangement was not accepted and the employers paid the award rates. The mills had now been closed for some time again. The union contended that, when the price of hemp was high, notwithstanding the practice that award rates were regarded as the minimum the series of rates paid between 1915 and 1927 were based upon the cost of living and not on the price of hemp. When Llie price ol licuip was reduced in 1927-28, and the 10 per cent, reduction was sought, it was di--closed that royalty payments had fallen in proportion. The union did not think it a fair proposition to be called upon when prices were low to carry the greatest part of the burden when they bad not received the advantages while prices were high. It was not to be expected that either the 'workers or the Court would accept the drastic proposals made. Proceedings were then adjourned until 2.15 p m. PR OGEE DINGS CONTIN UED. Proceedings in connection with die application for a variation of the award governing the rates of pay in the flax industry in the Manawatu were continued in the Arbitration Court on Saturday afternoon, when Mr D. Ogilvie was recalled lo give further evidence. He stated that the “rouse-about’’ could be eliminated from his figures for the stalling of the mill. Addressing the Bench, Mr Bishop, for the flaxmillers, staled that from 1009 to 1929 the value of the products of the llax industry was £12,000,000. There were 70,000 or 80,000 acres of self-planted llax and about 10,000 acres of cultivated llax. There was a great deal at slake in addition to the need for maintaining an export industry. It was noteworthy that there had been a greater fall in the price for hemp than in the world s price for the commodity. That was due to increasing competition from cheap labour. 1 he industry had Unit additional handicap. Mr Bromley had not called any evidence, nor had lie denied the great dillerence between prices and production costs. The point at issue was whether the industry was to continue or whether it would have to go out of action through conforming to the wage standard. It was impracticable and unwise to bring the industry into line with general standards. The flax industry could not eonform with the general standard, and d must bo carried on on some other basis. J t was being carried on in other districts where there was no award or industiinl agreement. He was informed that the wage being paid in the Southland mills was 9s per day. The employers regretted the need for a departure from the standard wage, but it was case of sheer necessity. There was only that issue—either work at less than standard rates or not- at all. Losses had to be reduced with Ihe hope that they would later be recouped. The responsibility of reaching a decision was realised, both from the point of view' of the capital invested and the employment of labour. Rents were low in Foxton, some being 10s a week for a four-roomed house.. When the worker w r as being asked to accept a reduction lie w’as not asked to make the sacrifice of a city worker. It was utterly useless to base a sliding scale on an award rate tied on to a price of £27 per ton, as throughout the whole period of the award the mills had operated at a loss. If a sliding scale was to be considered it must be some . other basis. There was an equalisation point at about £25 per ton on the reduced scale of wages between prices and the costs of production. The price would have to be £35 n ton to warrant a wage of 15s a day, and

even then it would have been unprofitable, lie trusted that the Court would see its w'ay to make the reduction, or grant a skeleton award with the rates of pay unfixed fer a period, the wages to be a subject for arrangement between employers and workers Mr Justice Frazer stated that the Courl had little evidence on which to base a sliding scale as suggested and other avenues would have to be probed to see iif there was any alternative to a straight-out reduction. He suggested that more intimate de-. tails of the industry bo discussed by selected representatives from each side with the Court in committee, in order to clarify the atmosphere. In view of the importance of the matter the Court had arranged to lie present at Palmerston North again on Monday to finalise the matter. The Court was not asking for relief from ite onerous responsibilities, but only for assistance in discharging them. That could be obtained in a round table conference. It was a heavy and unusual responsibility. The Court then adjourned for fifteen minutes to enable each party to appoint its representatives for a following private decision. END OF PROCEEDINGS. decision this week. Palmerston N., IDe-c. 22. • Proceedings of the greatest importance to the llax industry were brought to a close in the Arbitration Court this morning, when decision was reserved in the lesl ease involving an application for a variation of the existing award I>a a reduction in wages of 33 1-3 per cent., from 15/- to 10/- per day. Evidence was heard at a. special Killing of the Court on Saturday, when the principal issues concerned the costs of production and the disparity with current market values. iMv. Justice. Eraser presided. With him on the Bench were Messrs A. L. Monteith and W. 0. Prime as employees’ and employers’ assessors respectively. M,r. W. Bromley appeared as advocate for the Manawatu Bhixmills Employees’ Industrial Union with him being associated Mr. P. T. Robinson, the secretary of that organ is“alion. Mr. T. 0. Bishop (Wellington) presented the case for the El ax mil lews’ Association, being supported by the New Zealand president (Mr. D. R. Ogilvy) and Messrs A. E. Mubin and 11. Greig. Primarily with the object ot reaching an adjustment of costs, which would make it practicable for the industry to resume, Messrs Ross, Rough and Co., Ltd., made the application to amend the Wellington industrial, district (laxmills i. employees’ award. Following a suggestion from the. Court, representatives of each party were appointed to discuss in camera the more intimate details of the industry and their difficulties. No decision had been made Into on Saturday night and the discussion of the case, which Mr. ..Justice Eraser described as involving a heavy and unusual responsibility, was concluded this ■ morning.

It is understood that a decision will, be filed at Wellington by Saturday next, in order to finalise the matter before the advent of the New Year.