4 Bc: EDITORIAL “CORRECT ANALYSIS TS Bureau of Economies and Statistics in . Victoria has just issued an executive opinion poll of the business outlook for 1960. The Forest- ry section naturally interests us the most and re- printed below are excerpts from this document. ‘‘Most of the companies expect a further im- provement in sales and production during 1960. This is particularly notable in view of the marked improvement experienced this year in spite of the lengthly strike by the I.W.A. Many firms antici- pate sales and production increases in excess of 10 per cent. This group showed the most consis- tently favourable position this year and it is the, most optimistic for 1960 of all the various seg- ments of the manufacturing industries. Sixteen of the companies forecast sales increases during 1960 while the remaining three expect to main- tain this year’s level. ‘‘Inereased production of pulp and paper and plywood is forecast by almost all firms, while two-thirds of the lumber producers expect increases next year. ‘Employment in the forestry group shows an even more marked lag in the sales to employ- ment ratio than in the other industries. While production increases are forecast by over 80 per cent of the firms for the coming year, only 10 per cent expect to increase their labour force. ‘‘Nearly all of the companies anticipate profitable operations next year with almost half expecting increases over their 1959 profits. This year two-thirds of the companies showed an im- proved earnings position, in some cases by sub- stantial amounts.”’ From the foregoing it is easy to see that most ’ of the executives in the forest industry feel they are going to have a good year in 1960 and increase their profit, notwithstanding the sorry picture they tried to paint to the public during negotia- tions. Very significant is the fact that 80% of the firms in the forest industry are forecasting in- creases in production, while only 10% of the firms expect to increase their labour force. This clearly proves one of the major points made by the Union: that the productivity in the forest indus- try is increasing at a rapid rate and that wage in- creases can be given without necessitating any increase in prices. Now, with negotiations over, the forest in- dustry is, in effect, admitting that the Union’s analysis of the industry was correct and that the picture painted by Forest Industrial Relations for public consumption was erroneous and mis- leading. Publication date of the next issue of the B.C. LUMBER WORKER is January 21st. Deadline for ad copy is January 14th and for news copy January 15th. PUBLISHED TWICE MONTHLY ON THE FIRST AND THIRD THURSDAYS BY International Woodworkers of America eps 3 (AFL-CIO-CLC) Regional Council No. 1 4 REGIONAL OFFICERS: | Ben SLOT eveseceeovecsneeanssnvsonseeceseserenseenennscsnsssusreacansnetceenerenssrt2te oe 0: pre Vice-President .. Jack Moore 9nd Vice-President .. ea ee ... Bob Ross Brd Vice-President ...--v----vvemnsonvreeeenseeeersseeeen Fred Fieber Secretary-Treasurer Sapeet “ esossveaseness Gepree i pion eer es . International Board Membe yalter Fe aceon Address all communications to GEORGE H. MITCHELL, Secretary-Treasurer 45 Kingsway - TR 4-5261-2 Vancouver, B.C. bscription Rates......._--§2.00 per annum ioe aing Representative. . A. dc gee a as Second Class Mail, Post Office Dept, wa Authorized #5) COPIES PRINTED IN THIS ISSUB LUMBER WORKER Canada’s Labor Costs One Of The Lowest By JOHN BREWIN Canada’s labour costs pricing us out of the world market? Nonsense, says CLC assistant research director Russ Bell. The facts are clear. Labour costs in Canada are lower than in eight of the leading trading nations of the world for which statistics are available. These include Argentina, France, Germany, Japan, the Philippines, Norway, the United Kingdom and the United States, Mr. Bell has pointed out. In a memorandum to CLC staff personnel, Mr. Bell takes to task ratios (of wages to productivity) as did smaller countries such as the purveyors of the myth that] Argentina, the ‘Phillipines and Canadian wages are pricing this] Norway,” the CLC economist country out of the world market. added, Position Improved “Indeed . . . Canada’s position actually improved during the period 1950 to 1955.” In manu- facturing industries since produc- tion runs in Canada are shorter, Proper Distinction “It is quite apparent that the authors of such statements fail to make a proper distinction be- tween wages and labour costs,” the CLC researcher says. “At most, one or two selected facts, usually distorted, are used to support the contention of the writer or speaker. Most of the time a dire warning is sounded without any facts at all... “For time and again one sees references to the fact that Cana- dian workers are being paid so many times as much as workers in Japan and elsewhere in the world, This is of course true, Productivity Rate “But there is never any ac- count taken of the difference in the productivity rate of Canadian and foreign workers,” Mr. Bell says. For example the output of a Japanese worker in 1955 was only $444 (U.S.) compared to $4,259 (U.S.) by Canadian workers. “The average output of the Canadian worker,” states Mr. Bell “was 914 times as great as for the Japanese worker. On the other hand wages per Canadian worker was only 5% times as great as for the Japanese worker. “Tt would come as a genuine shock for a lot of people to learn that because of this big difference in the productivity rates average Canadian labour costs for the en- sie as lore tire economy are lower, not higher than Japanese labour costs.” If a Canadian worker is getting paid $12 a day for producing 10 units of a particular product, then Canadian labour costs ($1.20 a unit) are obviously lower than in the case of a foreign worker get- ting paid only $4 a day for pro- ducing 2 units ($2 per unit). In 1955 only Australia, Belgium and the Netherlands (where the difference was almost negligible) had lower labour costs than Cana- da. “All the major countries had higher labour costs than Canada. All the major countries had higher * More flavour, more life, more satisfaction! A New Year—A Continuing Pledge cupital costs, interest costs, ma- terial costs, labour costs, overhead costs and all other production costs must be spread over fewer units of output. “But despite this handicap,” Mr. Bell points out, “our labour costs in manufacturing compare most favourably with other countries. “Canada has a lower ratio of labour income ‘in manufacturing per worker to value of output than five of the countries, namely Denmark, India, Japan, United Kingdom and the United States, practically the same as Germany and Argentina, with only the Netherlands, Belgium and Nor- way being appreciably lower.” Apart from a few specific in- dustries, ‘Canada’s average labour costs whether measured for the total economy or for manufactur- ing, compare quite favourably with most of the leading trading countries of the world.” Concluded Mr. Bell: “Anyone who says differently is talking without a knowledge of the facts.” to CURLING: More of the winter excitement British Columbians like best! so more like it! 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