ADDED COSTS

Wairarapa Times-Age, 25 June 1938, Page 9

ADDED COSTS

FELT HEAVILY BY CHEESE INDUSTRY DISCUSSION AT DAIRY CONFERENCE. RESOLUTION OF PROTEST. (By Telegraph—Press Association.) NEW PLYMOUTH, June 24. Cases of cheese factories having to close because of high labour costs were quoted at the National Dairy Conference at New Plymouth today. Five factories were reported to have closed down in the South Island, with the prospect of 13 more having to do the same. It was also stated that three factories in the Bush District had been, unable to carry on and that three more in the same district would be compelled to close in the event of further restrictions. Discussion took place on the following remit submitted on behalf of the South Auckland Dairy Association: — “That this conference emphatically protests against the added costs to industry through restriction of hours and overtime payments, thus substantially reducing the differential payment between butter and cheese suppliers and seriously jeopardising the industry and affecting the quality of cheese.” Moving the remit, Mr W. Perry, Bruntwood, said they all realised the serious position of the cheese industry because of the restriction on hours. The outlook was also serious for the butter industry, because, if suppliers to cheese factories had- to change over- to butter production, it would mean the ruin of the butter industry. Before the present Government came into office hours of work in cheese factories were unlimited. Personally, he was never in favour of men in factories working seven days, Mr Perry said. The South Auckland association considered that unless an emphatic protest were made, hours of work would again be seriously curtailed. Even- if there were a change of Government, he did not think the Arbitration Court would be done away with, and that was one of the main reasons behind the remit. The conference had been told the previous day by the Director of the Dairy Division, Mr W. M. Singleton, that the quality of cheese had slipped. His factory was one of the best grading cheese factories in the Auckland province, and in one year it had slipped two points on the grade. QUALITY AFFECTED. “These shorter hours are. going to have a detrimental effect on the quality of cheese going from New said Mr Perry. “Unless something is done we are going to get into a serious position.” A tribute to employees in dairy factories was paid by Mr Perry. The men, he said, would be perfectly satisfied with a 48-hour week all the year round. In Auckland province they had loyal and efficient service from their dairy factory employees. The remit was seconded by Mr J. G. Brechin, Pahiatua. He said that in the Bush District three cheese factories had closed down, and that if any more expense was put on three others would be compelled to close. Even large factories realised that the restrictions placed on the industry were quite impossible. Courts showing costs involved in conducting cheese factories in the South Island were displayed by Mr G. R. Herron, South Island Dairy Association. He said there were only small factories in the South Island, but they were organising their forces very strongly. If they had the support of the North Island they would be able to get somewhere. There was a very fine type of men in the dairy factories and no one wanted to ill-use them, but those in the south were ashamed of the wages they were receiving compared with the return to dairy-farmers. FIRST ASSISTANT’S WAGES. Mr Herron produced figures showing that a first assistant of a 120-ton cheese factory in the south received during the 1937-38 season wages amounting to £292 Bs, or an average wage of £8 12s a week for 34 weeks. Under the Dominion award for next season that assistant would receive total wages amounting to £3lO 19s 4d, or an average wage of £ 9 3s for 34 weeks. Only one supplier of that particular factory received a bigger cheque than the first assistant, and he was a farmer who milked 66 cows. If the wages to be paid to a first assistant next season were spread over a year he would receive £5 19s 3d a week, whereas the manager's salary, based on last season’s outpt. would average £5 14s a week for 52 weeks. The manager took the responsibility but received less than his assistant. “If we cannot get hours of work lengthened, it is going to be disastrous for the cheese industry in the South Island,” said Mr Herron. “Our trouble in the south today will be yours in the north in the future. Now is the time for the industry to organise itself on a better basis. I attended the Arbitration Court proceedings for the Dominion award, but the industry’s case was put pretty poorly. The trouble is that the industry is not organised and the Labour people are organised up to the hilt. I suggest that every year the conference should appoint an awards committee to handle its interests as we do in the south." The remit, was carried unanimously.