31 
OUR INDUSTRIAL PROBLEMS. 
By “Bill Aurum’ (Mr. R. CONIGRAVE, 12 Macdonald-street, Kalgoorlie.) 
UnLL tie voces sul utledsed produc 
tion is firmly established in the minds of 
all Australians, we can never be as pros 
perous as we should be; hence educational 
propaganda to form public opinion on a 
sound economic basis should be the work 
of a permanent body of eminent patriotic 
Australians representing the Press, banks, 
primary industries. secondary industries. 
and workers, who would preach and pub- 
lish the doctrine of increased production 
for the good of all. 
The teaching and illustrations must be so 
gimple that the lowest intelligence can 
grasp the significance of the facts stated 
and their bearing on his or her own per: 
sonal welfare. ‘This is most easily and 
practically realised when the increased 
production benelits the worker. 
If; however, the wereased production 1s 
not equitably shared with every employee, 
but merely goes iuto the pockets of the 
proprietor or proprietors, or shareholders, 
then no employee has any particular in- 
centive to do his best for the concern. A 
great mauager recognises that, by study- 
ing the interests of employees, and by 
eaining their goo will and co-operation, 
fe 1s also studying the interests of the 
capital invested and. of himself. 
in a new country like Australia every- 
one who is willing to work conscientiously 
should be entitled to a wage sufficient to 
ensure a recent standard of living; also, 
over and above this, he or she should be 
entitled to share equitably m the pew 
wealth which 1s being created by the com- 
bined use #f old capital and present hu- 
man service. It is in the division of the 
new wealth oreated, and in the antagonis- 
tic attitude of mind between Labour and 
Capital that all the trouble lies, The em- 
plover thiuks tbat when he has paid the 
least possible in wagegs, he has done the 
best for himself or shareholders. The 
worker thinke that when he has got the 
highest wages for the least amount of ‘work 
he has done the best for himself and fel- 
low workers. Both are wrong, and fail 
to see that, mstead of using their forces 
in opposite directions. and pulling against 
one another to (Lei mutual navn, they 
would both benefit inmeasurably by agree- 
ing to pull together with the sole aim of 
producing as much new wealth as possible. 
The two forces represented by Capital and 
Labour acting -in opposition remind one 
of trying to drive a motor car with the 
brake on. With an equal individual share 
(over and above wages) in the final result 
or annual total increase of new wealth, 
each’ individual has a common incentive to 
make the total of new wealth as large as 
nossible, 
Sharing increased Wealth. 
Tor example, suppose £100,000 to be the 
paid-up capital invested in any particular 
industry, and that as a result of a normal 
year's operations a net profit (after als 
lowing interest on capital, depreciation, 
ete.) is made of £10,000. The fellowmg 
year with more eflicient work (not neces- 
sarily longer hours) and greater goodwill 
and co-operation on the part of all and 
with a common chjcct, viz, the creation 
of more wealth. a net profit of £12,000 is 
obtained. Now, merely as a result of 
greater goodwill aud co-operation amongst 
all engaped in the industry and without 
any addition to the paid-up capital, an 
additional profit of £2000 is made this 
year over the previous year. Clearly the 
employees, including the manager, have 
largely ereated the additional wealth and 
are therefore entitled to a large share of it. 
Without such co-operation the extra wealth 
would not have been created. Clearly, 
then, it is good business ou the part of 
capital representatives to gain the “eo 
operation and goodwill of their employees 
and to share with {lem the new wealth 
produced. 
Taking a ease which approximates to an 
actual fact, we have 100 employees and a 
total annual sales turnover of £200,000. 
if we allow 1 per cent. of the total sales 
for division amongst employees, we have 
£2,000 to be equally divided amongst 100 
employees; or £20 each. 'T'o avoid invidi- 
sus distinctions between one employee and 
another and to mduce a common incentive 
to produce all the wealth possible. the 
Pack all your troubles in your old kit bag and read ‘The Western Mail’