OIL INDUSTRY.

Auckland Star, Volume LXVIII, Issue 31, 6 February 1937, Page 11

OIL INDUSTRY.

STATE CONTROL? UNION'S SUGGESTION. WAGES DISSATISFACTION. REQUEST TO MINISTER. -4s a result of dissatisfaction among the workers lie represents at their inability to secure increases in' wages, tie secretary of the Xew Zealand Federated Storemons and Packers' Association, Mr. W. Miller, has written to the; Minister of Industries and Commerce,| the Hon. D. G. Sullivan, on behalf of; the workers employed in stores of oil! merchants engaged in the wholesale sidej 0I " the oil industry throughout Xew; Zealand, suggesting that the Govern-i ment should either assume control of the industry or grant permission for an: increase in the price of petrol in districts where prices are at present controlled by regulations. The Minister has replied expressing; sympathy with the case of the workers,' and indicating that the question of per-! nitting increases in prices is being! thoroughly investigated by his Depart-j m ent at the instigation of the oil com-j panics. _ "We met the representatives of the oil companies in Conciliation Council on December IS last in connection with our application for a new award for oil store workers," stated Mr. Miller in his letter to the Minister. ''The council l Wet for three days without arriving at a settlement. The main question discussed was wages. The oil companies protested tbat they were unable to agree to anv increase in wages because the selling price of petrol to the resellers did nit allow a sufficient margin over the cost of the product, and the Conciliation Council adjourned sine die.

Petrol Prices Increased. "On December 12 last the companies increased the price of petrol one penny per gallon in all districts except those districts in which the price is lixed by regulations (Wellington city, Manawatu district and Christchurch city), but they still hold that this does not j give them sufficient margin of profit toj allow any increase to their employees, and that in order to allow them the sum needed to meet any extra cost made by an increase in wages, it will be neces-j sary also to increase the price by a similar amount in those districts where the selling price is at present controlled by regulation. "The matter has caused us much concern," added Mr. Miller, "and the men are getting very dissatisfied at what appears to be a deadlock. At a special meeting of oil storemen, I was instructed to ask you to intervene bytaking over, on behalf of the Government, the whole of the wholesale sale and distribution of the oil industry—a big thing, but probably the only satisfactory way of leaching a permanent settlement "of the difficulties confront-! ing this industry, in which distributing costs and taxation very largely add to the price which the consumer is called! upon to meet. "As an alternative our assessors havej instructed me to ask your Government to allow the selling price in the districts; in which it is fixed by regulation to bej increased by an amount equivalent to; the increase made in all other districts,; a matter of expediency but apparently a reasonable way out of the deadlock, and one which will enable the workers employed in the wholesale side of the; (oil business to participate in the general) I increase in wages enjoyed by most; w-orkers to-day, and which is necessary! j to meet the increased cost of living. "I might add," stated Mr. Miller in conclusion, "that when the conciliation | council adjourned it was to enable repre-1 sentations to he made to your Depart-. Iment to see if some arrangement could i (be arrived at either by a relief from; [taxation or by an increaca in price to i jennble the parties to overcon.j a difficult .situation.'' Statement by Minister. .fully and have noted the suggestion jmade by you that the Government should cither take over the wholesale sale and distribution of the oil indus- • try or grant permission for an increase i

in tiie price of petrol in districts where prices are at present controlled bv regu-j jlation," states the Minister in " reply. | i''l may say that representations have already been made to me by the oil ..companies asking for an increase in jprices, and a thorough investigation of i jthe whole position is at present being. conducted by my Department. You; may be assured that I quite appreciate! the position in which the employees are! placed, and the representations which; you have made on their behalf will ' receive my full consideration. I will advise you further as soon as, I am in . a position to do so."