“NO WORK, NO PAY”

Sun (Auckland), Volume III, Issue 903, 21 February 1930, Page 7

“NO WORK, NO PAY”

UNEMPLOYED INSURANCE SCHEME

AUCKLAND DISCUSSION The underlying principle of an unemployment assurance scheme propounded by Messrs. A. J. Hutchinson, W. J. Holdsworth and L. A. Eady is said to be “no work, no pay.” Last evening the scheme was discussed at a conference convened by the Auckland Chamber of Commerce. As the Government is almost certain to introduce some, form of unemployed insurance this year the scheme has been framed to meet it. It is proposed under the scheme to raise a fund by compulsory levy on employers and employees, augmented by Government subsidy. 4XIIII the money available it would be possible to give productive employment to persons out of work, at wages slightly lower than those prevailing in industry. There would also be a special aim to develop unoccupied land. Mr. M. Stewart, acting-president of the chamber, presided over the 1G delegates who represented the executive of the chamber, the Manufacturers’ Association, the Employers’ Association, the Farmers’ Union, Land Settlement and Development League, Economic Society and the Rotary Club. In explaining the scheme, Mr. Holdsworth said that exceptional rapidity and change in Industry today tended to produce unemployment. He referred to Mr. P. Fraser's Unemployed Workers’ Bill, which had reached is.s second reading in f tlie House and had been referred to the Labour Bills Committee so that evidence might bo taken in the recess. The Minister of Lands, the Hon. G. W. Forbes, has said that the Government was determined to place an Act dealing with unemployed insurance on the Statute Book. As any such Bill was certain to go through with the support of the Labour Party, Mr. Holdsworth thought that the conference should see that the measure was on sound liues. OPERATING IN ENGLAND

He pointed out that in England and also 12 other countries unemployed insurance was operating in some form, and the contributors numbered millions. A Canadian Government committee had recently reported that the question must be dealt with before long in that Dominion and recommended compulsory contributions. Mr. Hutchinson’s scheme was fundamentally different from those operating at present, as it was based oil the principle of “no work, no pay.” As a tentative basis for the scheme a computation of the official figures for 1916-20 had been made. These showed that the average total weekly earnings of 305,120 male and 96,425 female workers was £1,092,000. If each worker contributed threepence in the £ and equal sums were paid by the employer and the State, there would be a weekly income of £41,000. This sum would be sufficient to provide 12,000 persons with employment at £3 a week, leaving £5,000 for administrative expenses, reserve fund and other incidental expenses. The administration of the fund should he in the hands of a nonpolitical organisation which should represent Capital, Labour and, the Government. All employment provided should be classified into regular trade work, non-union work, clerical, professional and miscelaneous.

The need for land settlement was emphasised by Mr.. Holdsworth, who suggested that the scheme could be adopted to this end by employing men in clearing, fencing, draining, ploughing and in the erection of farm buildings. Mr. Hutchinson said that trade union representatives had disagreed with his proposals that a mail could be compelled to accept work when unemployed through no fault of his own, or that he should be paid.less than the current rate of pay. 11l his opinion it ■was fair to pay less, because otherwise the worker would get nothing. Sir Joseph Ward had assured the speaker that a Bill would be proceeded with. If some action were not taken the Government’s Bill would probably be drastic and unacceptable, said Mr. A. G. Lunn. The scheme would come up against established industry, but the position had to be faced. Mr. G. Finn disagreed with the proposal to pay less than current wages, as the Labour Party could never agree to it. Mr. H. M. Rushworth, M.P., considered that the conference was dealing only with palliatives. There were grave difficulties in any form of assurance, but that did not say that any scheme could not be improved. After further discussion it was agreed, on the motion of Mr. Finn, seconded by Mr. J. C. Entrican, to meet again in a monthls time.