d ae 2nd Issue, June B.C. LUMBER WORKER From Page 1 Minority Report Accuses Bias “In my opinion the claims ad- vanced by the Union were well supported in evidence and argu- ment before the Board. It is now apparent that the Board has failed to achieve the purpose for which it was created, as under its terms of reference it was instructed to ‘endeavour to bring about agree- ment between the parties.’ “The uncompromising agree- ment with the employers’ point of view on all matters presented to the Board by the Union, now adopted by the Chairman and the employers’ nominee, defeats the end desired in conciliation pro- cedures, A settlement of the dis- pute must now be reached by other means. The majority award will destroy confidence in the value of conciliation as conducted in this instance. It not only invites, but compels the members of the Union to seek a just and equitable solu- tion of their problems through other avenues.” A Sorry Failure “This adds another sorry chap- ter to the record of Conciliation Boards in the B.C. lumber indus- try. Only rarely have genuinely constructive efforts been made to reach agreement through concilia- tion, In the main, conciliation boards dealing with problems in the lumber industry: have been time-consuming and costly fail- ures, just as this Board has been. “It is a matter of profound dis- appointment to me, that no, real effort was made to bring about some mutually acceptable solution as an alternative to open economic warfare. The intent of the law regarding conciliation is that much more is required of Board mem- bers than the rendering of judg- ment for or against one or the other of the disputing parties. Harsh and Provocative “The terms of the majority award are harsh and highly pro- vocative. In effect, the majority report tells 28,000 lumber work- ers, ‘We will give you nothing this year in the way of an im- proved contract.’ No amount of rationalization will convince the Union members that they have been fairly dealt with, nor con- ceal from them the fact that the majority award means nothing to them, for it proposes noth- ing of any significant value to them as a group. “The declaration of the major- ity members of the Board is a declaration that the employers are wholly right, and that the employees are wholly wrong. As all experienced conciliators or mediators will realize, such a report is provocative, rather than conciliatory, Any accurate appraisal of the situation with conciliatory purposes requires greater consideration of the hu- man factors involved, and not merely the restoration of high profit levels. WAGES “The most important issue be- fore the Board was that of a pro- posed wage increase, The position taken by the majority of the Board, denying any wage increase is untenable, in view of the evi- dence, Undeniably, the costs of living have risen since the last wage settlement. The consumers’ price index shows a rise of 3.39, with food costs up 4.8%. The costs of living have risen in a degree that has seriously lowered the real value of present wage rates in re- lation to prices. “The Union presented convinc- ing evidence to show an estimated 8% increase in productivity. Dif- ferences of opinion were expressed as to the exact degree of this in- creased productivity, but that it was substantial was not denied. Productivity Up “An outstanding fact, in this re- gard, is that production through- out the entire industry in the prov- ince has risen.20%, and that the number of workers engaged for this production has decreased con- siderably. I hold the opinion that, because of this increase in produc- tivity, labour costs per unit of production have been lowered to the point where the modest wage increase requested may be granted. Discrimination “The denial of any wage in- crease for the lumber workers exercises a grave discrimina- tion against them as a part of the working force in the Coast Lumber Industry. Employers represented before this Board, indeed the largest employers, have already granted an increase to their employees in the pulp and paper section of the forest industry. BOB SMEAL Get Your Facts From Your Union covered by some type of pre-paid medical services plan, sponsored by individual employers. “Uniform and more comprehen- sive coverage would, in my opin- ion, prove a great boon to the entire industry. It would improve morale and efficiency, and ac- complish an equitable distribution of the financial burden. Industry- wide responsibility in this regard would lead to better coverage with excellent prospects of lowering premium rates for the enlarged group. “The remaining proposals made by the Union have been largely ignored despite the fact that none of them represent any substantial increase in costs to the employers. It is obvious that the proposed changes in contract phraseology would enormously improve and stabilize employer-employee rela- tions. “I am unable to understand why every proposal originating with the Union should be suspected, how- ever meritorious. This steady and constant opposition to all Union proposals for better contractual relations is not conductive to in- dustrial peace, and in my opinion, In Effect The Majority 28,000 Lumber Workers “We Will Give You Nothing This Year In The Way Of A Better Contract” “The base rate for the lumber workers, which the majority of the Board desire to retain, is $1.72, per hour. The base rate already granted the pulp and sulphite workers, effective July Ist, 1958, is $1.89 an hour. As the skills employed in both sec- tions of the industry are com- parable, this discrimination is bound to be highly objection- able. “It was shown in evidence that the increase awarded this year to other groups of workers averages between 734% and 15% and have established base rates above those now in effect, in the lumber indus- try. “Vancouver city street sweepers receive $1.84 an hour, as compared to the base rate in the lumber in- dustry of $1,72 an hour. If 28,000 lumber workers are singled out to bear the brunt of proposals to freeze wages, while workers in ad- jacent industries are granted wage increases and higher rates, acute unrest is inevitable. “The majority of the Board evi- dently agree with the employers’ contention that marketing pros- pects are such as to prohibit any wage increases. Yet the evidence indicated conclusively that the lumber operators are rapidly in- creasing their shipments this year to all markets at prices that are now closely competitive. They are enjoying a large share of these markets, and with advantages over their competitors that repre- sent improving profit opportuni- ties. : “The claim made by the employ= ers that they have accepted price adjustments and now rely on in- creased volume to enhance their profits, does not, in my opinion, re- lieve them of the responsibility of sharing the results of productiv- ity with their employees. Boom In Housing _ “The prospects of still further improvements in marketing con- ditions are confirmed by the e dence showing a remarkable re- vival of the home-building pro- grams in the United States and Canada, resulting from the diver- sion to this construction of large amounts of government and pri- vate investment funds, Report Tells “It should not be overlooked that a boom in this particular in- dustry in both countries has al- ways been followed by a boom in the B.C. lumber industry. “The accumulated profits of the employers, their present profit position, as well as the immediate prospects for continuing profits fully justify a wage increase. I direct attention to the fact that the employers did not at any time dur- ing the hearings show financial inability to pay a wage increase. “Fantastic” “I am unable to accept the theory that wages must be tied to net prices received by mill opera- tors. This proposed formula for wage determination is fantastic in the extreme. It is my opinion that this theory has been devised at this time only to confuse the issue. “This is a new concept which has never been used by the em- ployers in past negotiations. It ignores the time-tested formulae for determining wage adjustments, such as, cost of living, productiv- ity, comparable wage rates and current wage settlements and takes no account of the factors enter- ing into the fixing of net prices to the mill, such as, reduced raw ma- terial cost, increasing productiv- ity, increased utilization, and new technological advances. “The acceptance of this theory would leave the Union’s members completely at the mercy of price manipulations. i OTHER DEMANDS “Other important recommenda- tions were made by the Union for improvement of contract relations which I heartily endorse, “Provision for upward revision of tradesmen’s rates is’necessary to adjust such rates to the rates prevailing for their trades’ in the area. Such a provision is necessary to retain skills within the industry now more essential than ever, be- cause of the rapid pace of tech- nological change. “T agree with the proposal made by the Union that the time is now ripe for the introduction of an industry-wide medical plan on a 50-50 contributory basis. The dif- ficulties in the way of such a pro- posal are almost negligible, as al- teady some 22,000 employees are Should not have een condoned by this Board. These proposals have great merit, and are possible of acceptance by the employers with- out occasioning any additional ad- ministrative burden. “1 Recommend” “In view of the failure of the Board to conciliate the issues be- tween the parties, and because of the adamant position maintained by the employers, I have no alter- native but to recommend the fol- lowing as a basis of settlement: 1, A ten per cent across-the- board wage increase. 2. Provision for the revision of tradesmen’s rates. 3. An industry-wide medical services plan on a 50-50 con- tributory basis. It was intimated during the hearings that two areas of dis- agreement could be resolved by negotiation. These were, (A) amendments to the seniority pro- visions, and, (B) an improved arbitration procedure. I therefore recommend that the parties be re- quired to meet and reach an agree- ment on terms which have already been indicated as mutually satis- factory. “The balance of the Union’s pro- posals also have merit, and their inclusion in the contract would materially lessen the areas of dis- agreement. I therefore recommend that they be included in the terms of a general settlement. Respectfully submitted, s/ R. R. SMEAL Board Member. Besetting Charged GALT (CPA)—Paul Swaity, a Canadian Labor Congress regional vice-president for Ontario, and Canadian director of the Textile Workers Union of America, has been charged along with three other TWUA members with “be- setting” at the Stauffer-Dobbie plant here. They were released on $25 bail. “Besetting”, or preventing en- trance, is prohibited by the Crim- inal Code and is punishable by a fine of $500 or six months in jail. They Say MR. ERHART REGIER (Bur- naby-Coquitlam)—When he (the Minister of Finance) spoke in Waterloo on May 15 he made reference to our extended produc- tivity. He said: “The net effect of all this has been that, between 1946 and 1956, productivity per man-year in the private sector of the economy has risen by nearly three per cent annually. The percentage has, of course, varied from year to year. Last year appears to have been somewhat out of line in this regard, but the long-run trend is nonethe- less upward.” If it was 3 per cent per year for a ten-year period, that means an increase of upwards of 30 per cent in our productivity, accord- ing to the figures given by the minister. Then later on he said: “Tf account is taken of the increased population, per capita real income has risen by about — SMEAL 10 per cent since 1947, most of the rise occurring since 1950.” In other words, labour has raised its productivity by upwards of 30 per cent in a ten-year period, while the purchasing power of la- bour has been allowed to grow by only about 10 per cent. Karl Marx himself could not have made a finer analysis than the Minister of Finance did when he spoke in Waterloo. We rob our work- ers and farmers of their purchas- ing power by denying them the benefit of their increased produc- tivity. LEON H. KEYSERLING, president, Conference on Econom- ic Progress— Comparing the first three quar- ters of 1957 with the first three quarters of 1956, profits of large corporations increased more than 50 per cent faster than wage rates in all manufacturing, twice as fast as wage rates in petroleum and products, and three times as fast in automobiles and iron and steel. Of course, when a recession starts, profits tend to slow down even faster than wages. But the cause generally is inadequate wages and consumption. Further- more, allowing for existing profit levels, accumulated reserves and tremendous fixed assets, leader- ship industries in the main still have room to make the needed wage and price adjustments, If total real wages have lagged seriously behind the real volume of investment in the means of production, real wage rates have been relatively too high because they have yielded enough re- tained earnings despite excellent dividends to feed this relatively excessive investment. The time is long overdue to recognize that the way to lift pro- ductivity is to release our full technological capabilities. This depends upon a full employment and full production program, with wages and consumption attuned to this objective.