The Agricultural Wages Act, 1936, provided for the fixing of minimum rates of wages for agricultural workers, made it an offence for an agricultural employer to pay an agricultural worker less than the minimum rate, and gave the agricultural worker power to recover by civil proceedings any sums due to him on account of payment of wages at less than the appropriate minimum rate. The Act, however, did not provide any limit to the period in respect of which such arrears of wages could be recovered. That is one of the principal points dealt with in this Bill. There are five principal sections and as this is an amending Bill it would be well to deal with them. Section 1 deals with the definition of contract. Under the Act there are two types of contract of employment, one for a period less than five months and the other for a period of five months or over. In the first case wages are fixed for a week of 54 hours and, in the second case, there is no specification of the hours worked in a week. Section 1 is merely to bring the present amending Bill into conformity with the principal legislation and, therefore, is of no great importance. Section 2 deals with a point that gave me, personally, a great deal of trouble and worry during the last seven or eight years. Under the Principal Act the Minister has to determine whether the work is agricultural work or not. In many cases legal questions arise and I feel that it is not appropriate for the Minister to decide these; that it is better they should be referred to the courts to decide whether the work is agricultural or not. The effect of the section is to ask the court to decide that issue.
Section 3 is not of any great importance, because it would not be operative at all unless Section 4 becomes operative. The section deals with summary prosecution cases where an employer was not paying the appropriate wage, and where, incidentally, in addition to that offence, he was at the same time building up arrears of wages. Section 3 merely limits the arrears in such cases to two years, the same as in Section 4.
Section 4 is the principal section, as it seeks to limit to two years the period during which arrears of wages may be payable to the employee. It lays down that the employee must make the claim within two years of leaving the employment. As the legislation stands, if an employee has worked for less than the minimum rate for an employer, he can claim for the difference between the fixed wage and the wage he was working for, over any number of years. From the point of view of the employer and the employee, I think the present arrangement very bad. From 95 to 97 per cent. of the farmers are quite prepared to comply with the law, and are glad to pay a decent wage to an employee but a very small percentage, I must admit, of employers, for one reason or another, are anxious to get an employee to work at less than the minimum wage if they can get away with it. But the employee who takes such a position would be doing a great disservice to his colleagues, because in a particular district, where it is known that a particular man is working for less than the minimum wage, that has an adverse effect on the labour market, so that employees in that area are somewhat at a disadvantage in regard to the minimum wage. I should say, taking the cases that have been put to me, that it is much more important from the point of view of the employees to have this amendment made than in the case of employers, because employer have to pay in the end. But it has such a bad effect on the employee's colleagues that we should try to make it right as soon as possible. That is looking at it from the material interest of employer and employee, but looking at it from the higher standpoint, that of justice, in the case of the employer who gets a man at less than the minimum wage, if we say to an employee that he must come along within two years and claim what is due to him, and if we make that the law, I have no doubt that employees in general will come along within two years and that employers will have to pay up. Therefore, I think we may leave the employers out of the question, because we may take it for granted that they will have to pay in genuine cases of contract for agricultural service between the ordinary farmer and the ordinary labourer. Really what induced me to bring in the amending Bill was representations from the agricultural wages committees and the Agricultural Wages Board.
I cannot expect Senators to be familiar with all the details of administration. They may not be familiar with the constitution of these boards. We have the Twenty-Six Counties divided into five area committees. There are five or six counties represented on each committee, and on each committee we have representatives of employers and employees. These committees meet from time to time under the chairmanship of the Chairman of the Agricultural Wages Board. They make recommendations which are afterwards considered by the Agricultural Wages Board. The board is composed of four representatives of employers and four representatives of employees, as well as three neutral members. These are not farmers or farm labourers. They are neutral members, and are there to advise the chairman in case there is a clash of interests between the two parties. Now, as a matter of fact, in our activities so far, the board have usually agreed unanimously to any proposition that they did agree to, and the neutral members, therefore, had very little to do, but the point at issue here is this matter of arrears of wages. All these agricultural committees agreed unanimously —both employers' representatives and employees' representatives—that we should limit the period within which arrears should be paid. As a matter of fact, the limit that they unanimously agreed to and put up to me was 12 months. That proposal was agreed to unanimously by these committees and put up to me, but I thought that 12 months was too short a period, and accordingly I put in two years instead. That is the period that is fixed in this particular clause—two years.
Now, first of all, I should like Senators to keep in mind that where you have the ordinary case of the ordinary farmer and the ordinary labourer, and where the ordinary labourer, for one reason or another, agrees to take 36/- or 38/- a week instead of 40/- a week, which, I think, is the minimum wage for agricultural labourers in most parts of the country, it is reasonable to say that if the employee concerned gets sorry afterwards and wants to claim the balance due to him, he should get two years in which to make his claim, and no more, and that even from the point of view of his fellow-workers that is a good thing. From the point of view of the employer, although, to some extent, it may have been his own fault, it is also a good thing because, not alone will he have to pay up the arrears of wages, but he may be penalised by a fine in court, which might amount to more than the arrears of wages due. However, it was not the ordinary case that the agricultural committees had in mind, but rather some peculiar types of cases, of which I propose to give a few examples. No. 1 is the case where the employee is a relative of the employer, and No. 2 is where the employee is employed by an employer who has a shop in the local town as well as a farm in the country. Practically all these peculiar cases fall into those two classes. One case came before me in 1943. That was the case of a widower in the country who had a small farm. A cousin of his who was, as one might say, I suppose, at a loose end and looking for a job, came to the widower and said, in the usual way: "Well, I am a cousin of yours, and you might give me a job, and I will not expect much in the way of wages." They agreed between themselves, and they lived together. The wages were not very high, but the employee was treated in the same way as the employer; he dined at the same table with his employer and went out, I presume, in the evening, with the employer to the local publichouse, had a few drinks, tobacco, and so on; but the wages were not high. The employee was a rather oldish man; it was a small farm, and for the six winter months they had very little work to do. They just marked time, so to speak, attended to a few cows, and so on, and between them they did very little work in the day. After seven years, however, they fell out, and the employee claimed the sum of £303 12s. 2½d. If he had succeeded in his claim—I am not sure if he did succeed; I think he did not—it would have meant that he would have become the owner of the farm, and the other fellow would have been his employee. Not that that would have made very much difference in the particular case, and I suppose the same thing would happen again and they would both live together; but it just goes to show you what can happen where the rules and regulations are so rigid and where an employee must be paid a minimum wage.
That is one example, and we have many others, of relatives being employed in similar circumstances. Let us come now to the case of a small shopkeeper. In this case the shopkeeper was a lady who owned a small shop. I do not know if Senators have observed this in the country—I know that I have observed it many years ago —that a man is more willing to work with a country shopkeeper or publican with a bit of land at much lower wages than with the ordinary farmer.