THE B.C. LUMBER’ WORKER Page Three bia have cause to view with serious alarm ‘the recent Order-in-Council announced allowing instead for bonuses based upon ‘the rising cost of living can only be con- ‘sidered as an attack upon the basic dem- ‘ocratic organizations of the people, trade unions, and upon their living standards. If this measure is allowed to pass un- protested the effect on the trade union movement will be disastrous. It will have & twofold reaction: Firstly, it will tend to undermine the utility of unions for the workers because with the Government setting a ceiling for wages the bargain- ing power of organized labor will be sev- erely curtailed, Secondly, the Order-in- Council will hinder further organization of unorganized workers since it holds out no possibility of workers increasing their standards as a result of the favorable circumstances arising from improved market conditions. Arbitration, A Farce. Even the limited extent to which work- ers were formerly able to utilize arbitra- tion is now obliterated. Previously work- ers were able to enter arbitration with some hope that through their organized strength they would be able to compel their demands. Now that hope is gone. ‘yen before arbitration is entered into the workers will know what the outcome is to be, since the Government has al- ready made known that there will be no wage increases, From a near-farce, arbi tration has become a complete farce. Denies Right To Inerease. Improved business and market condi- tions have created favorable circum- stances for the worker to increase his wages. But these advantages are denied through the Government’s policy of re- viewing all awards and forcing their re- vision according to the formulae of the Order-in-Council—which means no wage inereases above the level of 1926-29. One is inevitably driven to the con- clusion that the Order is designed to safeguard the profits of industry for the industrialists as against the eco- nomic needs of the working people. At no time in the history of labor in this country has such policy been adopt- ed toward the working people. It belongs, not in Canada, but in fascist Germany— for only there can anything approaching it be found. The measure reflects the tre- mendous influence of reactionary big- business in the affairs of the country, groups of workers are to be cov- ‘by the Order? According to the ovities it will include all groups worl is definitely linked with war ‘This can be given a very wide Pegging Wages A Vicious Anti-Labor Plan A Popular Explanation of Minister of Labor McLarty’s Recent Order ii Council — By Harold J. Pritchett interpretation. Since the policy of the Government toward industry is to trans- form it from a peacetime to war time basis, there will be very few workers who will escape the ruling. And even the small number in the lesser industries who do, are bound to be affected with wages of the great majority of the workers in the basic industries, set at a certain level, those in the minor industries will find it extremely difficult to raise wages above that level. This is admitted by the “Van- couver Province,” of December 18, when it stated: “The policy finally arrived at . sets a standard for the others (i.e. other than groups linked with war activi- ties), which will logically be considered in any future wage adjustment.” And so, it must be admitted that the Order really affects all groups of workers. ‘The basis for passing judgment on any measure is whether it will bring advan- tages to the working masses. The an- nouncement of the Order-in-Council was hailed in some daily newspapers as a step to protect the worker. This is nonsense. The opposite is true. Let us review the salient features of the new wage policy and actually see how it works: Aims To Keep Wages Down. 1, The central theme is that henceforth IT WILL BE ILLEGAL FOR WORK- ERS TO HAVE THEIR WAGES IN- OREASED. (That is, above the level of 1926-29.) 2. The workers are told they must be satisfied with the wage levels of 1926-29 since they are not to be allowed to rise above that point. The authorities con- clude that the maximum gains of the workers from the improved industrial activities in the country shall not be more than the inadequate wages of that time. Is the establishment of such a basic wage fair? Decidedly not! Already indus- trial production, as well as profit and dividend payments, have far exceeded the level of those years. B.C. serves as a fine example of industrial expansion. Taking 1926 as 100% production by June of 1940 had risen to 132.5%. A rise of almost ys And the future promises even greater expansion. Yet wages are to re- main as they were in 1926-29. While wages are to be pegged profits are not. As an example of how profits are soaring the following facts recently made public are interesting. A Guarantee To The Profiteers. The CPR. in the first seven months of 1940 increased its profits 15% over the same period of 1939. U.S. Steel in the first six months of 1940 increased its profits 1,7439 over the same period of 1939. This is the story all down the line. In view of these circumstances to enforce a ceiling on wages based upon the 1926-29 level can only be interpreted as a move POOOOOOOOD Attention, Loggers! Jack Matsui, formerly of the New Lion Hotel, has moved to take over personal management of the popu- lar HOTEL EAST. All communications regarding the New Lion should be directed to Mr. Matsui at the HOTEL EAST “Make It Home” SEymour 0308 to safeguard profits in industry for the industrialists and bankers at the expense of the economic conditions of labor. Bonus System : A Fake. 3. The basic formulae that there will be no wage increases but that bonuses will be given based onthe cost of living is decidely unfair. The present increase in the cost of living is given as 6.2%. (The basis of arriving at this figure is declared as un‘ fair by many authorities.) Wages are to be reviewed every three months and al- terations made on the basis of 5% fluctu- ation, Unless the fluctuation reaches 5% there is to be no change. The bonus plan is sheer deception, Ac- tually workers will never receive the full bonus since the cost of living in wartime does not go down but up. As an example: a worker receives his 6.2% bonus—but in the following period prices continue to rise as they inevitably will. Say this increase averages 4%—the worker will then only actually be getting a bonus equal to 2.2%. “This is true because no provision is made to cover such increase between periods of adjustment. No Raise Till Prices Rise 5 Percent. In addition there is still another point. Since no change will be made in the bonus until prices rise 59 there can and probably will be a considerable period during which workers will be receiving slightly over 1%. Actually Mean Wage-Cuts. 4, Actually the Order-in-Council gives big business the opportunity to carry through one of the most far-reaching wage-cuts that have ever been imposed upon so large a body of workers at any one time. How is that? Since the outbreak of war the average wage increase in the basic industries has been 10%. The government admits that in many cases wages have already risen above the 1929 rates. As a result of the Order-in-Council workers in the basic in- dustries will have to give up these gains. They will have to return to the wage levels prevailing in their industry in the 1926-1929 period. Deduct Present Gains. But this is not all. According to the News-Herald of Dec. 18, “any wage in- creases since the beginning of the war would be deducted from the 6.2% cost of living bonus.” In other words, workers engaged in industries that have enjoyed wage increases shall actually receive no bonus for many months, at least until the amount gained by them since the war started is repaid to the bosses. Actu- ally, therefore, thousands of workers for months to come will be receiving even SEY: 0988 CITY THE LOG Jess than before the war. This is achieved by (1) the fact that at no time will the whole 6.2% be received as pointed out above, also (2) by deducting from the bonus sufficient to compensate the bosses for the increased wages paid by them, (3) real wages are lowered by additional taxation, etc. Used To Fool Workers. And so, the bonus stunt turns out to be nothing but a trick to fool the worker into believing they are’ getting, something while actually it leaves them poorer than before. Working men in industries where wages have dropped considerably below the 1926-29 level are liable to think that the Order will be of advantage to them since it will bring their wages up. Gross Betrayal Of | Labor. But a close survey of the Order shows that the employers are adequately pro- tected from any such situation. Wages will not automatically rise to the 1926- 29 level. Clause 4 of the Order specifi- cally states that in cases where wage levels of 1926-29 are higher than the pre- sent prevailing rate—increases in wages in any calendar year setting 5% as the maximum increase in any calendar year. Instead of passing measures protecting the worker we find Orders such as this betraying labor into the profit-seeking hand of big business. Sharp Protest Necessary. : For working men not to protest Mc- Larty’s Order-in-Council is to accept lower living standards and a crippling blow against their organizations. a The method of passing such important measures without proper democratic dis- cussions in the country and in Parlia- ment but through Order-in-Council under the War Measures Act is also to be con- demned, It is a complete negation of democracy. e Working men: Raise the matter in your organization for discussion and for ward your resolutions to Ottawa. Organization and unity of Labor's ranks alone can guarantee that labor's rights will remain as a pillar upon which Canadian democracy must be based. BINGO & DANCING at the Swedish Community Hall 1320 Hast Hastings St. BINGO 8:30 DANCING 9 to 12) Music by HELGE ANDERSON EVERY SATURDAY ADMISSION 25 CENTS Office & Stand: 404 COLUMBIA AVE,/