1936, a 40-hour week is made the maximum in industry except where employers can show cause for exemption, basic weekly wages are to be established, and compulsory arbitration and union membership are provided. Part of this legislation was approved by way of restoring conditions as they existed before 1932, but the establishment of the 40-hour week and compulsory unionization are new features of the law. In addition to the control of working conditions the Parliament has made provision for widespread house building and public works, thereby reducing unemployment, and has authorized increases in pensions for the aged, widows, and injured miners. Working conditions.-The Industrial Conciliation and Arbitration Act of New Zealand, through which conditions of employment are controlled, was adopted in 1894. It has been amended periodically in different respects, and because of the unfavorable economic conditions existing in 1932, the rigid standards provided in the law were relaxed by dropping the requirement that labor disputes be submitted to compulsory arbitration and by leaving basic wages to voluntary agreement. By the 1936 amendment to the law, arbitration again becomes obligatory and basic wages taking into account the needs of a family must be established. The standard family consists of man, wife, and three children.

As stated, the 40-hour week provision is new. It is applicable to all industry except where its introduction is found to work undue hardship, in which case an application for exemption may be requested and granted. The 40-hour week became effective September 1, 1936, somewhat later than the other terms of the law, which were enforced beginning June 8. The delay in introducing the shorter working week was believed necessary to minimize hardships that might arise from rearrangement of working schedules on short notice. Awards covering working conditions made after September 1, 1936, must provide for the 40-hour week unless this is impracticable. Where longer hours are authorized the award must contain a statement giving the grounds for the decision. The court is required, upon application by any party, to make the necessary reduction to bring hours within the limit established under existing awards and agreements. Exemptions are permissible under the same terms for existing and new awards. Where hours are reduced in industries operating under agreement prior to September 1, 1936, the hourly or other wage rates must be increased sufficiently to offset the reduction in hours and to keep the weekly wage at the former level.

In all cases where it is practicable the law stipulates that the 40 hours of work be scheduled on a 5-day week basis, eliminating Saturday employment insofar as possible.

A section of the law provides further that where an award applies to the majority of the employers in a district, this group may apply

to the court to have the award extended to cover all employment in the area. The court, in making an order for such extension, may allow total or partial exemption to any employer on application within 1 month of the decision. Compliance with the terms established is

required pending the disposal of the case.

Union membership is obligatory for workers of 18 years and over who receive the adult minimum rates under an award or industrial agreement. For younger workers the same applies, provided they are paid at adult minimum rates. Some exemptions are authorized. Certain Government employees will also benefit under the 40-hour week provision of the law, a notable advance having been made in granting shorter working time, in principle, for railroad employees. It is recognized, however, that general acceptance of the 40-hour week for these employees is impracticable at present.

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Construction program. The plan for reducing unemployment through widespread construction contemplates an expenditure of £105,000,000 for public works, including railroad building, housing, and land development. It is estimated that 20,000 persons will be employed on the work thus created.

To labor, the housing project is particularly significant, as the long-range objective is to supply a home to every New Zealander. Construction of 5,000 houses has been authorized as the initial step in mass house building. Only workers of good character may secure dwellings. The purchaser is given 40 years to repay the loan. At a slight extra cost he may secure insurance, so that in the event of his death before completion of the repayment of the total indebtedness the property will pass to his wife without further payments.

Increase in pensions. Under the budget, provision was made for increases in the amount of pensions that will bring benefits to a large group in the general population. For example, the amounts paid in old-age pensions are increased and the terms for eligibility liberalized, and pensions for widows and injured miners are increased.

Curbs on prices.-In order to avoid rises in the price level that would counterbalance any increases in income that workers might secure under the new program, the Government has introduced measures for price control, notably restrictions on rents and prices of food and gasoline.

The Fair Rents Act of 1936 prohibits increases in the rent of dwellings that are let at not to exceed £156 per year. This restriction is of a temporary character, being effective until September 30, 1937. At its expiration new building is expected to have progressed to such a point that supply and demand will be in better balance and artificial measures for control will thus be unnecessary.

2 Pound at par=$4.8665; average exchange rate in July 1936 $4.0326.

Rents charged tenants during the period of their tenancy may not be increased, except where a higher rental is determined to be fair in accordance with the provisions of the law. This section applies to tenancy existing as early as May 1, 1936.

Determination of fair rentals is made a function of magistrates, who may render decisions on application of the landlord or the tenant. In the absence of regulations governing the determination of rents, the opinion of the magistrate forms the sole basis of the decision. He must determine what is fair and equitable for the particular tenant to pay, having regard to any hardship likely to be placed on the tenant or the landlord and other relevant considerations. The fair rent may not exceed that paid by the tenant on November 27, 1935, or any lower rent charged since that time, unless the landlord proves that the amount was too low.

Rents may be fixed by a formula taking into account the capital value of the dwelling, taxes, insurance, repairs, depreciation, etc. The rent to be charged would be calculated at from 4 to 6 percent of this total.

The court is empowered to order refunds of excessive rents paid under certain conditions or to permit tenants to deduct extra amounts so paid from future rent.

INDUSTRIAL RELATIONS

Collective Bargaining in Pulp and Paper Industry of Pacific Northwest

INCE 1934 an agreement has been in effect between the Pacific

SINC

Coast Association of Pulp and Paper Manufacturers, representing the employers, and two unions representing the workers-the International Brotherhood of Paper Makers, and the International Brotherhood of Pulp, Sulphite, and Paper Mill Workers. The agreement is negotiated annually by eight representatives of each party, the officers of each group acting as advisers. The workers' representatives are chosen by delegates from locals of both unions in that area, meeting in joint conference prior to negotiations with the employers. The current agreement, which expires May 31, 1937, covers about 10,000 workers.

Employment

THE two unions are recognized as bargaining agencies for their members. It is further provided that, if an employee is now a member of the union or becomes a member, he must maintain his membership as a condition of continued employment. Recognized reasons for discharge are listed in the agreement.

Wages and Hours

FOR both day and tour workers1 the N. R. A. code hours are continued with slight changes. The standard workweek is 40 hours, averaged over a 13-week period. For day workers 48 hours is the weekly maximum. All workers receive time and a half for overtime after 8 hours in any one day. There are three holidays on which work is prohibited, and Sunday work is to be reduced to the minimum actually necessary. If possible, employers are to designate definite day or days off for each worker, such days off to be consecutive if more than one a week is scheduled. When a shift partner fails to appear, the worker must notify the foreman, and stay until relieved,

1 "Tour" workers are those employed on operations scheduled in advance for at least 24 hours continuous running.

with provision for time off later. Workers unable to report are required to give at least 4 hours' notice.

Hourly minimum wage rates are 52.5 cents for men and 40 cents for women, an increase of 5 cents for men and 2 cents for women over the preceding year. When ordered to report at other than the regular shift time, 2 hours' extra pay is given. Tour workers doing specified types of machine fixing during shift hours also receive extra pay1 hour's pay plus pay for time worked. If tour workers do such work outside of regular hours, they receive 2 hours' "call pay" as well as pay for actual time worked, but not less than 4 hours' pay on any one call. Except in cases of emergency and when the employer has made a reasonable effort to notify workers, 2 hours' pay must be given when ordered to report and no work is available.

Disputes

STRIKES and lock-outs are prohibited during the life of the agreement. In cases of disputes which cannot be settled by the employee concerned and his foreman, the standing committee of his union deals with the employer's standing committee. Each committee is composed of three members, all of whom must have been employed in the mill for at least a year preceding their selection as representatives. If the standing committees do not solve the question within 5 days, the union consults with the mill manager. If the matter is still unsettled, the international president of the union and an official of the company not previously participating in the case attempt to effect a settlement. Final recourse is to a joint relations board for the Pacific Northwest area, composed of four representatives each of workers and employers, and in addition, when necessary, an impartial member. It is noteworthy that this board has been called only once since first established in 1934.

To expedite settlement, discharge cases are not handled by the two standing committees, but are taken up by the union committee directly with the mill manager within 48 hours after discharge occurs. Further appeals follow the steps outlined above. When a decision is adverse to the employer, he must bear actual and necessary costs of the case. Employers are specifically exempted from acting in jurisdictional disputes.