H.—45

(b) Extra labour. (c) Overtime subdivided into—(1) Total wages paid. (2) Hours at basic rate of 2s. lOd. (3) Total overtime. (4) Ordinary overtime. (5) Special overtime. (6) Cost-of-living bonuses. (7) Special rates, &c. (d) Total of extras (delays, extra labour, overtime, cost-of-living bonuses, and special rates). (e) Contract rates subdivided according to winch-time cost and profit. (/) Total contract price. (g) Supervision. (h) National Pay Office levy. (i) Total co-operative stevedoring cost. Detailed costs per ton are available for all main classes of cargo handled for the two years ending 31st March, 1945. Classes of cargo not separately costed are included under " general cargo " on the basis set out in paragraph (1) hereof. Space does not permit publishing full details of costs under each heading, but costs for each year are shown in the Appendix for the following headings— Ordinary overtime. Special overtime. Contract price. National Pay Office levy. Total co-operative stevedoring cost. It has not been possible to obtain detailed costs on the above basis for co-operative stevedoring performed between July, 1940, and March, 1943, but contract accounts have been analysed for each year and costs obtained for all cargo handled under each type of contract without subdividing according to class of cargo or separate delays. In comparing costs of handling each class of cargo for the two years, 1944 and 1945, and in comparing costs between ports, the following factors should be appreciated : — (a) Except for minor adjustments, co-operative contracting stevedoring rates, which are fixed on the winch or working time of normal number of men per gang at the ordinary time rate of pay have not been varied during the two years. (b) A variation in the quantity of each cargo within the one classification will affect the overall average cost, although there may not be any increase in cost for each type of cargo— e.g., dairy-produce includes butter and cheese, and the cost per ton of loading butter is higher than loading cheese. Similarly, with general cargo, the cost per ton of loading wool (based on 6-4 bales per ton) is higher than other general cargo. (c) A change in the nature of cargo handled at the port will vary the cost of handling—e.g., change from measurement cargo to weight, or vice versa. (d) Weather delays and amount of overtime worked are other factors affecting cost. (e) The contract rates and cost vary at each port according to the number of men employed on behalf of the ship, the facilities for cargo handling, and the average rate of work obtained prior to introduction of system —e.g., at Auckland, wharf men are the responsibility of ship discharging cargo, while at Wellington these men are engaged and paid by the Wellington Harbour Board. (iii) Profit Distribution Included in the tables in r ,he Appendix summarizing results of co-operative contract stevedoring will be found full particulars of profit distributed at each port for each class of contract and the average profit per " winch " hour. Although profits are distributed on total paid hours, it will be appreciated that a profit can only be earned during the winch or working time, all delays being recovered on a wage basis. A summary of profits distributed is published in pages 65 and 66 of the Appendix. It will be seen that from the establishment of the system in July, 1940, up to 31st March, 194-5, an amount of £667,272 has been distributed to waterside workers at an average of 8-79 d. per " winch " hour. The average profit per hour for the period July, 1940, to 31st March, 1941, was higher at most ports than the average for the following two years. There was a marked drop for the year ending 31st March, 1942, and a progressive increase from that date, an amount of £172,667 being distributed during the year ending 31st March, 1945, at an average of 9-93 d. per " winch " hour. This is due to the fact that the contracts were first introduced on overseas vessels, which generally return a higher rate of profit per hour than coastal vessels. The increases in rates of work under contracting system are reflected in the progressive increase in profits distributed. Some ports have shown a much better understanding and appreciation of the system than others and the men have accepted the responsibility of the full contract system, the labour being engaged, supervised, and dismissed by the Commission's representatives, who are or have been local officials of the branch. Co-operative contracting, as the name implies, requires the full co-operation of every member of the union, and the Commission trusts that union members at all ports will display that sense of responsibility which will enable advances to be made. Workers must realize that to obtain a share in the management of industry they must first show that they are capable of accepting the responsibility that goes with it. 4. LABOUR FACTORS AFFECTING RATES OF WORK (a) DISPUTES Commission control with the appointment of Waterfront Controllers and Representatives at all main and secondary ports provides a quick and effective means for the settlement of disputes. Local officers of the Commission are called upon daily to determine matters in dispute which cannot be settled between the parties, and there can be no question that the prompt settlement of these differences has prevented stoppages of work and the extension of disputes to other vessels. Matters of principle and affecting other ports are, if no agreement reached, referred from local Disputes Committee to National Disputes Committee and, if necessary, to the Commission for decision. The Commission is concerned about the time taken for these disputes to be referred and also that the National Disputes Committee does not make any real effort to arrive at a decision. Too many disputes are referred to the Commission which should be determined either by the Local or National Disputes Committees.

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