FLAXMILLS INDUSTRIAL DISPUTE.

Shannon News, 16 October 1928, Page 3

FLAXMILLS INDUSTRIAL DISPUTE.

INVESTIGATION OF MILLERS ACCOUNTS COMPLETED. POSITION DOES NOT WARRANT AWARD RATES. On Thursday representatives _of the Manawatu Flaxmillers’ Association and Flaxworkers’ EJnion . anet !tlie Pifirn'e Minister in Wellington for the purpose of trying to arrive at a -settlement as regards the rate of pay in the flax industry. Some weeks ago the parties met when it was agreed that an inspection should be made of the millers’ books to ascertain whether they were in a position to pay the wages fixed by the Arbitration Court. This

has now been doi\e. The following statement was made by the Prime Minister (Hon. ,J. tx. Coates) upon the results, of the accountancy investigation carried out by the Department of Industries and Commerce in connection with the dispute: “The parties at the Conference on the 29th August agreed that an investigation should be made by the Department of Industries and Commerce of the accounts of flaxmillers, and that,at a 'subsequent meeting I should express in general terms my opinion as to the justification or otherwise of the employers’ request for a reduction in wages to a level ten per cent, below jiward rates. It was contended by the mill-owners that having regard to existing market prices for hemp they could not in general operate at a profit if the award rates were maintained. “It was further agreed that the investigation should cover at least three mills which were named.

“Following the terms of that agreement, an investigation has duly been made of the accounts of these three mills, and in addition, by agreement of the millers, the books of two furthei companies were covered. This had the effect of broadening the basis of the enquiry and should be more satisfactory to all parties insofar as it tends to 'avoid the risk of a decision being based on insufficient evidence. I may mention that the five firms referred to were responsible last year for the production of approximately forty per cent, of the hemp produced in the Wellington Province. “I have carefully considered, the report submitted to me by the Department and am satisfied that tlie investigation has been carried out with care and-impartiality. “The general tenor of the discussion at tli.e Conference ,011 .the 29th August was such that I do not consid* or myself free to traverse in any detail the matter contained in the Departmental report. “While the financial results of the five mills vary considerably I can say with conviction that during the past trading vear the profits have, speaking generally, been relatively low.: “I am further satisfied that without an appreciable reduction in costs of manufacture, present day prices for hemp will not. in the main allow of operation at a profit. “A reduction- of 10 per cent, m wages below award rates Avili not 11 suit in manufacturers generally making more than a comparatively small profit. 1 , ~ . “I regret to have to report that the industry is in this position .but the facts do not allow of any other eohdusio'DOUßT AS TO FUTURE. The whole matter was discussed at the meeting, and while no official sta-te_ meat has been made, we are informed that the question of pay on a sliding scale basis was again gone into, but the employers would not entertain itNo finality was reached as to pay anu the position as to the future remains indefinite.