FOR SLACK TIMES.

Gisborne Times, Volume XXVII, Issue 2560, 22 July 1909, Page 2

FOR SLACK TIMES.

—«g> UNEMPLOYMENT t .*SURANCE. WHAT UNIONISTS THINK OF IT. The question of insurance against unemployment having apparently been brought within the bounds of practical politics by the Hon. J. A. Millar’s recent statement on the subject, a “Dominion” reporter set out to, discover how the idea is regarded in 'Wellington labor circles. The series of interviews which ho obtained proved to be all'in favor of the general idea* under discussion, but there were marked differences of opinion as to the actual lines that should be‘followed. - STATEMENT BY THE HON. J. RIGG The Hon. J. Rigg, MSL.C., regretted that he was unable,, at the moment when his view's were sought, to refer to his notes on the German system of unemployment insurance. Ho was convinced that that system comprised all that was required. Contributions were paid by the trade unions, the employers, and the State. A commission set up by the’ English Labor party had visited Germany to inquire into the system, and the report which was presented was, ho thought, not quite) so favorable as the opinion which he had formed. He was satisfied that the German scheme was the best in existence, and it would be to the/ advantage of New Zealand to proceed on similar iines. Its success would depend very much upon how it was administered, and it would, therefore, be necessary to consider very carefully the lines on which the scheme should bo organised. It should bo worked through unions or federations of unions. The contributions of the employers would be virtually a charge ’on each of the industries concerned. According to the modern theory of political economy, surplus labor was necessary for the carrying on of industries, and, if this was so, it must follow as a. matter of equity that the industries should make/ some contribution towards the support of such surplus labor, during the periods when it was not required by the industries. VOLUNTARY AND GENERAL SCHEME DESIRED. Mr E. J. Carey, secretary of the Cooks’ and Waiters’ Union, said be was in favor of insurance against unemployment, just as against accident or sickness but he recognised that no insurance scheme could, to any groat extent, prevent the recurrence of periods of unemployment. There was a paragraph in the minority report of the-Poor Law Commission, which should convince any worker that as long as the present system existed there would be unemployment. The paragraph, which was headed “Under-employment is a Cause of Pauperism,” was as follows: — “If we could to-day kill, or deport, or otherwise remove every existing pauper between the ages of 16 and GO, we should, if we made no other change, within ten or twelve years find as great a number on our hands

as at present.” It was the duty of all workers (continued Mr Carey) to guard against such conditions. Ho was against confining any scheme of unemployment insurance to the members of trade unions, as their membership only comprised 25 per cent, of the workers in the Dominion. An unemployed worker was a loss to the community as a whole, and no section of the community, whether connected with organised labor or with the churches, should be compelled to guard against this general less.

AVHAT THE LABOR DEPARTMENT MIGHT DO.

The evil was not so far-reaching in New Zealand as it was in other countries that had already legislated against it, and he thought the. Labor Department could extend its functions so as to open in all the centres unemployment insurance agencies, where any worker could, by paying a weekly contribution, insure himself against unemployment. The State should subsidise the contributions to the extent of 50 or 60 per cent., and should safeguard the interests of the office by such methods as were adopted in Switzerland and Denmark, so that the scheme would not be exploited by the unemployable. Certain trades unions in New Zealand alinsured their workers against unemployment, and they ought to be subsidised by the Government to the extent of 30 or 40 per cent., the administration being left entirely to the officers of the unions. Seeing that recent legislation had been in the direction of restricting the powers of the unions, and there were on the Statute Book measures which cut at the vital principles of unionism—like the anti-strike clauses of the Arbitration Act —he would advise all unions to resist any attempt to force them to arrange a compulsory scheme of insurance for their members. If the Government would restore to the unions the right to say who should join them, and to fix the entrance fees and contributions, he might then agree that the State should compel the unions to protect the interests of their out-of-work members. A voluntary State scheme, not confined to unionists, was the. only -one he could approve of as the law now stood, and he did not think the employers could be made a contributing party. With a scheme managed by the unions and confined to the separate industries, he. thought the employers could easily he compelled to pay their quota. Something would have to be done, as it seemed that unemployment would be recurrent, and a system by which workers would be given an opportunity of protecting themselves was very desirable. AVHAT ONE UNION DOES.

The Amalgamated Society of Carpenters and Joiners, which has 70,000 members, connected with branches in most English-speaking countries, runs a scheme of insurance, against unemployment for the benefit of its members. Mr J. T. Stobart, organising secretary for the AA’ellington district, when seen recently, gave come particulars relating to the fund, which makes payments for sickness, superannuation, loss of tools, accident, and death, as well as unemployment. He- stated that'the superannuation portion of the scheme wau taken by the British Government as the basis of its old age pension system. Any man who has been a contributor for 25 years, and has reached the age. of

55, is entitled, without further payment, to an allowance of 8s per week for the rest of his life. He has the. right to earn up to .half wages while in' receipt of this pay. The funeral benefit is £l2. Sick pay is 12s a week for the first 26 weeks, and 6s a week thereafter, even though the sickness may last for years. A contributor receives 10s per week during any period of unemployment up, to 12 .weeks, and 6s per week for another period of the same duration, at the end of which the benefit ceases. The compensation' for accidents is £IOO in case of total disable-, ment. Contributions are at the irate of 9d per Week,, in addition to the regular subscription of 6d per week to tlic general funds of the union. Members of the benefit section must he competent tradesmen, between the ages of 19 and 40, and must be. elected by ballot. In the event of the funds in hand in the benefit section falling below 2s. per , member, a levy is made at the instance of the executive in England. Such a 'levy? is being collected at the present time as a consequence of. the strain upon the fund caused by unemployment in different countries, where the society operates. LARGE SUMS HANDLED. Mr Stobart further stated that last year £112,253 was paid away in unemployment benefit, £45,292 in sick benefit, £46,779 for superannuation, £SOIO for accident paj T , and £3396 as compensation for loss of tools. The total income of the benefit section last year was £279,869. There were 65,000 contributors, the remaining 5000 members of the union belonging only to the trade section. “Seeing that the society, especially at Home,”' concluded Mr Stobart, “saves its members from asking for relief from the public funds, we think that our benefit fund should be subsidised by the State, as ia done in Denmark, where the Government pays one-third of all the money paid out by the unions for unemployment benefit. ’’ , GERMAN PROFESSOR’S VIEWS. Professor Manes, lecturer on the science of assurance at the Commercial University of Berlin, being at present in Wellington, his views on the subject of insurance against unemployment were sought by the reporter. _ He said the unemployed might be divided into three classes. There were those who'wanted to loaf as long as possible without working, and there were those who had always plenty of work in summer and little or none in winter. For the first of these classes insurance against unemployment was out of the question, and the only thing for the second to do was to save money during the summer. The third class consisted of those who were liable to be thrown out of work by commercial crises, and it was for these alone that insurance against unemployment was possible. It might be worked by compelling all the employers in a certain trade to pay a certain amount each to an insurance fund. The workers should also be obliged to subscribe regularly to the fund while they were employed, and it shoulcl be subsidised by the State. He would recommend such a> system, but lie did not think it ought to be necessary in New Zealand at the present time. A country like this should be able to prevent unemployment, or should at all events make a further effort to do so before trying to deal with it by means of insurance.