THE WAGE LEVEL

Evening Post, Volume CXVII, Issue 18, 21 July 1934, Page 11

THE WAGE LEVEL

LABOUR'S ATTITUDE

"A REASONABLE

KEPLY TO EMPLOYEES

"It is to be regretted that tho memorandunV submitted by the Now Zealand Employers' Federation to tho Primo Minister pri: Thursday last did not contain some definite' or specific reply to.tho facts;and figures submitted by tho deputation; from tho Now Zealand Alliance of Labour and the Labour jJParty which made representations to :th'o fEight Hon; G. W., Forbes on the ■previous day," said Mr. J. Koberts, secretary of the Alliance of Labour, and .yice-president of tho Labour Party, in a statement made to "The Post" today. j'Those who presented the case on behilf'.of the Labour movement made a most reasonable request, viz., that tho Government should convene a national conference ;of representatives of , tho "employers and;; representatives of tho workers throughput the Dominion': in ?rd«r'to giye those difoctly concerned in,; the production and distribution of goods ah opportunity' of discussing wage rates, hours of work, and other economic questions, all of which are of serious importance to the people of the Dominion.' •.- ■ ■ '•:■-. "-.-•.

, 'If the" Employers' Federation' is bp- , posed to the proposed.conference, they should say so," Mr. Koberts continued. "If, on the. other hand, they are agreeable to, meet the representatives of 'organised Labour and discuss with ■■thorn .methods by; which the unhappiness, misery, and economic insecurity' now so amongst tho •workers and their dependants can bo remedied, they should oxpross their willingness to co.operate With the Labour movement in ■their, request to;the Government for a conference. '.* ■ . -: ISSUE EVADED. .: ~,^lnstead: of doing so, however, the memorandum -of the Employers' Federation evades tho issue altogether, first by agreoing; with the statements submitted by the deputation, then by disagreeing with-- them, and finally by attempting^ to convey to the' publics .that-the niain argument of the Alliance of-Labour was that New Zealand could establish a self-contained community with a high standard of living. -.:,'' The memorandum: of the Employers' . Federation agrees with the- Alliance of Labour that the increase in purchasing power .of; the, community is a step towards ; restoration of Ytho country's prosperity, but it qualifies that '-state-' -ment by,saying, that' the-, purchasing power, of the community must be considered as a whole, and.not in sections. i;, : EPFECT OP THE CTTTSV ; : f "lOas been estimated that the.total number'of breadwinners ;iri New 'Zealand is approximately 540J000, and out of. this number there, are approximately 350,000 to 400,00,0 wage and salaried workers. The deputation, pointed, out that the wage cuts imposed by the Government, tho Court of Arbitration, and th'o Employers' Federation reduced the purchasing power of this, the largest section of tho .community, .and mitted figures to show that this reduction in.purchasing power'restricted the1 importation of tho necessaries ."if "life and the 'production of manufactured goo'dain New Zealand: In addition, it was-pointed out that this, section of the community-was paying a'large proportion of the 25 per cent, exchango rate '^rhichhas artificially increased overseas price levels.' "' •■.'.■'■- .'.'''''."*./, "May we point out further that the deputation1 clearly- indicated that increased purchasing power ;of the workers in New Zealand would increase tho income of tho farmers'?" Mr. Roberts continued. >"Therefore, the statement of. the Employers 3 Federation .that the Labour; movement suggested an increase in;purchasing-powor of one section ;of community only is incorrect. TALL IN PRICE LEVELS. .-. '' The .argument of the V Employers' ■Federation on this question is difficult to .understand," said Mr. Roberts;'"for "it stated that a fall iri price levels;is .'a rise in purchasing power of money, and that a given sum of money not only in N.ew Zealand, but in, any part, of the world,: will buy a great deal more ■ today, than it,would in 1914; further, that a process, of adjustirient must take place, until"th& new. vjrieo^leyel' and equilibrium is onco more'restored. If wo accept this economic dictum, the price leyel of New; Zealand goods in the homo •or1 overseas markets does not matter a ;fig; for tho reasoning- of tho Employers' -■Federationseenis to be 'that if price -levels dropped in tho overseas and Home markets oven to lower levels than they are at. present, tho purchasing power of •the "people will bo just as great and a high standard of life can bo maintained. " Experience', since. wage cuts wcro imposed has:proved otherwise, for it must -be admitted that the general standard ■of life is slower, that the people of New Zealand are actually compellod to go without tho necessaries df life, and that ,70,000 unemployed ,. workers are always on the poverty line, if this happy equilibrium could be obtained it would surely havd manifested. 'itself during the last four years. 5' V; ':,: Mr. Koberts supported his contention that' low;er -price levels and purchasing power had not'adjusted themselves in.i New. Zealand by quoting . tho docreaso of. 597,000 pairs of- boots and shoes imported and made locally in 1932-33 as compared with .1929-30. He also referred to the drop ..of nearly £.2,000,000 in the value of wearing apparel purchased in the same years. It was indeed remarkable,- he said, how .tho.,. Employers' Federation always harked ..back/to the 1914. level. -, The .•productive capacity, of tho people of New; Zealand' had doubled itself since then; rWere ;thoy not .entitled to, an improvement in tho standard- of living, ■or.idid tho employers suggest that the people--should obtain no benefit from tj?e improved methods of production and ' distribution? Was, it "their considered policy that, the 1914 . living standard ..should remainfor.all time?' If so, why not go back to 1814, or tho middle ages for that matter? . /'; ; \ "The primary cause of tho present economic trouble in New Zealand is the fact that the Employers' Federation and tho Government havo consistently refusodtb allow living standards to bo , raised in accordanco with tho ability of the'people of the nation to produco goods and render, services," said Mr. Koberts. "It'is at this point that the economic equilibrium, must bo restored before we can regain prosperity. v: . •fABSUBD SUGGESTION." .".The suggestion that the wage and salaried, workers are at the presont time the prosperous section of the- com.m9Sity ,is : so absurd that ono is driven to; the conclusion that the Employers' Federation ;findsLitself in-such-a desperate 'position that it' cannot find even reasonable excuse for its 'fodder' wage policy." \ Mr. Boberts ' clainied /that the expenditure of the wage and salaried workers on such-items as house rent, lighting, heating, insurance, rates, ■costs of education, and other necessaries of life'had remained at the 1929 level, while there had l?cen increased taxation, and overtime and other extra earnings had been cut out, and, in addition, wages had been reduced by from 15 to 30 per cent. ' / THE UNEMPLOYm?. "The concern of the Employers' Federation for the unemployed " and

casually employed workers is surely an eleventh-hour repentance," ho continued. "Will any of tho officers of that organisation inform us if at any time during the past four years they have protested against the inadequate allowances given to these workers"'and thoir dependants? Havo the Employers' Federation at anytime suggestod that tho conditions of tho unfortunate unemployed workers bo improved? No; tho Employers' Federation havo supported- tho Government that has roduced tho allowances of tho unomployed and their dependants to tho semistarvation level. They havo agreod with tho unjust unemployment taxation proposal which oompels the workers in employment to pay almost threequarters of tho total unemployment tax. They havo cut wages and thoreby created unemployment and cast on the industrial scrap-heap thousands of potential wealth producers. "The concern, of the Employers' Federation for tho casually employed workers is demonstrated by their definite .and determined opposition to an increase in tho .wage rates of casually-employed watersido workers whose earnings have been reducod from an average of over £4,per week in 1929 to less than £2 per week at the present' time. , .

"The representatives of tho employers expressed their, grave concern as to the-welfare of the unemployed in 1931 when they were demanding wage cuts. They th,en stated that the cut in the wages!of the employed workers would be transferred to the unemployed ..by way of further employment. The actual results of the wage t cuts were that after wages were reduced in June, 1931, tho number of registered unemployed doubled in three months and trebled in one year., v '..'.,'' : SELF-CONTAINED COMMUNITY. "The employers' memorandum, contained the. following statement: 'Tho argument: of the Alliance of Labour that we could establish a self-contained community with. :a, high standard; of living is hopeless.' First of all, the Alliance of Labour has never at any time made such a statement, and.certainly did not mako it to tho Prime Minister on Wednesday last. Was it, then, ior. lack of material that the Employers',.. Federation. ■ erected this straw man. and knocked it down byfigures showing the percentage, of Now Zealand's primary products sold in the overseas markets'? '.'..;'''. '. '.:.'. .-. ,'".',., " 'New Zealand Is in the world stream,' says', tho memorandum, 'and must stay in it.' What aro the real facts?; Thp. Labour movement pointed out to tho Prime Minister that wage eutsr reduced the- purchasing power of the workers and as a resultthey could not purchase goods from overseas, and this restriction in the import of goods from Great Britainwas the main reason •why the British Government demanded restrictions in .'tho import of Now Zealand goods into that country.., The foregoing is surely an indication from tho Labour rn.oye.ment that we must.rotain the overseas markots.for, tho surplus goods that we produce in this.country. Wo desiro to remain in the stream of trade, but. the wage-cutting policy of the Employers' federation lias prevented tho ..flow of trade: from Great Britain to New iZealand. i The fact that ships are comingl to this'.eountry day after day in ballast, is a clear indication that the stream,of trade is restricted not by tho policy of tho Alliance of Labour but by ;thb policy Of the Employers' Federation-and the Government. .;,; : ;;;,. .CASE SUMMARISED: ' '. ".Summarised, tho representations made- ..to the. Primo Minister by the "Alliance; of Labour and tho Now Zealand Labour- Party, .'were as ' follows :— li That-wage-cutting restricted purchasing, power of the great; majority of tho people of New. Zealand,'and this in turn restricted' internal production and thef importation .of goods = from byerse'asJ-1";■.;■--.,-■'' '." ■ ' .;. '.. ■' ; .':. : 2.-. Tliat; the" poople of this . country were entitled to a standard of living in accordance with their ability to p.rodufic goods 'andsorviccs. ~ . ;' . :3. That if, there was a low price level for -New--'Zealand • primary products overseas that was not.a roason why tho people..of,'/Now .Zealand should ■■■bo denied tho necessaries of life. ,' 4. That.unless the wages and salaries .of the workers of .'Now Zealand, were raised and purchasing power increased, normal economic life in New- Zoaland conld not be restored. s._That tho fai'mers Sfhp; render . a service '.were '•; entitled, to a price . for their which would : give them a fair standard of living. •-. ■ 6:': That the people of New Zealand should;.not bo forced to. lower'their stamlard ( of living to the level of those countries where tho commodities 'produced !in this country were, gold; i.e., Japan or ; westorn European countries. .'■'• 7;: Miat.tho wage cuts imposed in 1931 reduced purchasing power of the wage,^and salaried workers by) from £ 25;000,000 ; to £27)000,000 por annum, and this had resulted in increased unemployment and^roduco'd output in New Zealand's factories and workshops. ' - .8.: That in view of; tho forogoing it -was ..tho' djity of. the Government Jto convene a ■ confoKenco of tho parties directly responsible) for production and distribution in New Zcalana to consider the' question-of w.ago rates and hours of work, '■...•... . , '-.. .■,.',-..• ; • STANDAKD OF LIVING. / "Will tho."-Employers' - federation assort that tho people of New Zealand are not entitled- to a. standard of life equal to their ability to produco goods and services?" Mr. Eoberts asked. "Will they deny that'the importation of goods, as well as the manufacture of .goods in New Zoaland, has- fallen off considerably since wages were, cut in. 1931? Will these gentlemen question tho statement made that thousands"' of 'workers ■■ havo been dismissed f roni' practically -all agoncios of production and'distribution since 1931? '' May wo not also ask tho question if the Employers' Federation in its memorandum, represented tho opinions of manufacturers and traders operating within'this .country, or did it represent only the'opinions of the large farming interests, ; meat freezing companies, stock and station . agents, mortgage holders,, and those large concerns who sell New Zealand's primary products in tho oversoaa nlarkets? V The Labour movement contends that the overwhelming majority of manufacturers, retailers, and-, traders generally operating in New Zealand are in agreement with tho submissions' made; by tho! Aliiarico' of Labour and the Labour Party to tho Primo Minister."