WAGE-REDUCTION MOVE.

Auckland Star, Volume LXI, Issue 229, 27 September 1930, Page 10

WAGE-REDUCTION MOVE.

LABOUR COUNCIL HOSTILE. OPPOSITION PROMISED. OVER-CAPITALISATION ALLEGED. (By Telegraph;— Own Correspondent.) .WELLINGTON, Friday. Strong resentment was expressed at a meeting of the Wellington Trades and Labour Council last ..evening at the proposal made by a deputation to the act-ing-Prime Minister, Hon. E. A. Ransom, yesterday that, legislation should be introduced to give the Arbitration Court power to-reduce wages by general order. The following resolution-Was carried:- — "That this meeting of. .the council, I incorporating the district council of the ! New' Zealand Alliance of Labour, strongly resents " and will' oppose , any attempt made by the Government to introduce legislation ■ such as"' that suggested by the' Employers' Federation, having for its object the interfering .with awards and agreements made'between employers and employees and reducing wages by .general order,., ..-' Writing-down of Capital Urged. "The council is fully alive to the hardship which has befallen the primary producer due to the sharp fall in the value of the products in the world market.. A reduction in the wages of the workers who are under the awards of the Court would, however, not afford the primary producer any relief, and his difficulties are being used by the Employers' Federation as an excuse to reduce wages. If real relief is to be found, attention must be directed -to the very serious over-capitalisation in industries ; and a writing-down of the values, which were' written up "while the high prices for primary products were obtaining, would go much further in the direction of relief. This, should certainly precede any reduction in the wages of the - workers, who, by such reduction, would be less able to assist the primary producers in the local markets." The following statement was made, to'day:—"The attention of the was drawn to the fact that" the principal industries seeking a reduction in wages at-present were the freezing industry, the flaxmilling industry and tlie manufacturing section, of the engineering industry. In each of ' these industries, there is very marked over-capitalisation.

Resolution of-ajpompany. "The following • resolution was read at the meeting as having been carried during the /boom period by a company operating in one of these, industries:— " ' That the capital of the company be increased by the creation of additional capital to the amount , of £102,000, divided into-16,200 shares of £10 each; that all of such 10,200 shares shall be deemed to be fully paid up; that the said 10,200 shares shall be allotted to the present respective shareholders of the company in the proportion of two such shares for each single share at present held by the respective shareholders in the company; that the said capital of £162,000 is provided by capitalising the undivided profits of the company and by taking into due account the additional values of lands and assets of the company beyond the original cost thereof, which additional values are admitted to be :tlie present, •. actual and' reasonable values ; " • ' ■■ .."It is suggested that, if it is right and competent to write up values and burden industries with interest charges at a time' when ; trade* is good, it is reasonable that an opposite kind of resolution should be carried at present. Unanimity Questioned. , "It was further claimed that Mr. T. O.' Bishop, who represented the Employers' Federation on tile deputation, had over-stated'-the : case in saying that the employers and manufacturers were unanimous in the demand for a reduction in wages, because within the past two or three weeks the local Manufacturers' Association, in conference with: the executive of the Trades Council, stated emphatically that it was opposed to any reduction in wages. "A further resolution was carried that a deputation be arranged in co-operation with other labour bodies throughout the country to wait upon the Government early next week."