THE ARBITRATION ACT.

Putaruru Press, Volume VI, Issue 253, 6 September 1928, Page 4

THE ARBITRATION ACT.

The system is no longer a system of “ arbitration ” in the proper sense of that word, but a system of statutory wage-fixing by a State tribunal which in practice takes no account whatever of the economic and industrial consequences of its awards. The root fallacy of the system is the assumption that wages - and hours can be fixed at the level desired by the workers without reference to the means by which industry can provide those conditions. Wages were gradually forced up without any corresponi cling increase in the wealth-value of the work given. The inferior worker was placed on a level with the good worker so far as pay is concerned, and the result has been that there Is little or no reward for real competence. Prices rose in consequence, and this in its turn led to demands for wages higher still. This vicious circle might perhaps have had no bad consequences of importance if New Zealand were isolated from the rest of the world. But our existence as a progressive State depends upon our trading with other countries, and In particular upon our capacity to produce and sell profitably our primary products in markets which are independent of our industrial laws. It is almost universally agreed that tlie Act is inflicting economic injury upon the Dominion. Its defenders cannot say more than that perhaps its ill effects are less great than is supposed. These are, of course, not measurable, just as the evil effects of bureaucratic encroachments are not measurable. In each case, however, the, general tendencies and ill consequences are indisputable, and it is not candid in the defenders of the Act to deny this. There is already on the Statute Book an Act—the Labour Disputes Investigation Act—which would need only a little extension in order to become a thoroughly suitable method of dealing with the dissensions that arise in industry. This Act provides for compulsory arbitration, but it leaves the parties to a dispute free to accept or to reject the arbitrators’ verdict. It aims at compelling parties to a dispute to stay their hands until. the dispute has been investigated and made the subject of recommendations, leaving them thereafter to the effect of public opinion. —Christchurch Press.