WAGE REDUCTION

Ashburton Guardian, Volume 51, Issue 133, 18 March 1931, Page 3

WAGE REDUCTION

MEASURE BEFORE THE HOUSE. STATEMENT BY THE PREMIER. A NARROW VIEW DEPRECATED. (Special to "The Guardian.") WELLINGTON, March 17. ' In moving the second reading of the Finance Bill in the House of Representatives to-day, the Prime Minister (Mr G. W. Forbes) reviewed the conditions as he found them on his return from the Old Country, and the announcement he made relating to the steps he considered necessary to meet the position. He said New Zealand in the past had been prepared to face facts and make sacrifices when necessary. He had .the utmost sympathy with people who faced reduction of wages and salaries, but there was no alternative if solid conditions were to be maintained within the country. He knew there was resentment among those taking a narrow view of the position, but chose taking a broader view would, he felt sure, not entertain such feelings. If New Zealand was able to get through with no more sacrifices than the Bill contained, it would lie very lucky. The Government was endeavouring to balance the loss ol wages by taking all possible steps to bring down the cost of living. A good many employers had followed the (iovernraent's lead in the matter of reducing wages, and bad assured him that the beneiits were being passed on to the people. He added that if there was any disposition not to pass the benefits* on to the public, but simply use them to put more money in the pockets of businessmen, the Industries and Commerce Department had been instructed to watch the position very closely. (Labour laughter.) Dealing with references to "breach of ecutracts" with the workers, Mr Forbes said there could be no contract where a worker was not bound in any way. He always was in the position of being able to state that he would not work for award wages. There was a very material downward trend in the cost of living, Mr Forbes continued, and he felt confident that the downward trend would be maintained. He had estimated a four and a half million deficit, and that gap would have tj be bridged. He had investigated the possibilities of a sliding scale reduction in salaries, and had found that it would save only £688,000, compared with £1,391,000' from a ten per cent, flat rate. Other scales gave similar results, and at a time like this it was no use considering them. In addition to the cut, those receiving over £3OO per year would be asked to pay additional income tax. He regretted having to propose a cut in salaries of members of Parliament, because all the expenses they were put to their salaries were very small.

Mr H." E. Holland: "Members will not waste time fighting for their own salaries.'' In reply to a question, Mr Forbes said the Government had no power to reduce Judges' salaries. Labour members: "Can we increase them?" Mr Forbes: "I haven't gone into that." (Laughter.) The debate was adjourned on the motion of the Rt. Hon. J. G. Coates, and the House rose at 8.40 till 2.30 tomorrow.

PROVISIONS OF THE BILL. WAGES AND CIVIL SERVICE PAY. WELLINGTONS March 17. A Finance Bill incorporating the powers to be given the Arbitration Court to make general wage orders and authorising the Government to reduce the salaries of the Public Service was introduced immediately the Address-in-Reply debate concluded. The Bill proposes a 10 per cent, reduction in the salaries, allowances and every other emolument of public servants, temporary or permanent, including the salaries "of Ministers and Members of the "Legislature, who are still under the 10 per cent, reduction imposed in 1921. The Bill specifically mentions the Public Service Commissioner, the High Commissioner, the General Manager of Railways and the Samoan and Cook Islands services. The only exceptions are the Governor-General and those employed for a limited term, under contract made out of New Zealand. Overtime and lodging allowances are included. The same reduction: applies to grants utilised in the payment of salaries for education- boards, governing bodies of university colleges and secondary schools, while subsidies payable to any local authority, hospital board, fire board and the Rotorua borough, in accordance with the Appropriation Act of 1916, will be reduced by 10 per cent. Superannuation contributors will be given the option of continuing their contributions on the scale of their salaries prior to the cut. Statutory salary increases and' increments are also reduced proportionately. A special provision enables Superannuation Fund contributors, who are retired through no fault of their own, to add not more than five years to their service or age to receive superannuation on a basis determined by the Government actuary, imposing a liability on the fund not greater than that involved under normal retirement. Voluntary retirements in the i'ublic Service, in the railways and in the teaching profession are also permitted subject to Ministerial approval. Four clauses deal with arbitration awards. The Court is given power to make general orders respecting rates of wages, taking into account the economic and financial conditions affecting trade and industry, and making such decreases and increases as are considered just and equitable. Such orders are to bo made at intervals of not less than six months. The Court is empowered to exclude anv class of worker.

Applications for orders or variations must he approved by members of the organisations concerned, following the procedure involved in applications lor awards. Apprenticeship remuneration is included, except that existing contracts are not affected. Clauses relating to the variation of awards will not operate alter December 31, 1932.

REDUCTION TO BE OPPOSED. ALLIANCE OF LABOUR CAMPAIGN WELLINGTON, March 17. An official report of the recent conference convened by the Alliance ol Labour deals among other matters with the decisions arrived at in respect of the proposed wage reduction. The report says that the opinion of

the conference was that further reductions in wages would make it impossible for working people and their dependents to exist. The conteience decided unanimously to oppose wage cuts and a Central Committee was appointed to advise and instruct trade unionists throughout the Dominion on the action to lie taken. This Central Committee will he composed of representatives of trade unionists in each centre, who will act in conjunction with the National Council of the >\v Zealand Alliance of Labour. '•The committee has been instructed to commence an organising, campaign amongst omnlovod' and unemployed workers throughout the Dominion with a view of preparing for widespread and' effective industrial action in the event of wage reduction being enforced," says" the report.