THE NEW BONUS.

Press, Volume LVI, Issue 17017, 14 December 1920, Page 6

THE NEW BONUS.

■■ 0 . 1 REDUCED FROM 9 - TO 3 - ASSITKATION COURT' & PRONOUNCEMENT. (PRES3 ASSOCIATION TELEGRAM. - ) WELLINGTON, December 13. I In a reserved judgment, delivered todav. the Arbitration Court awarded a cost of living bonus of 3s, in place of the bonus of 9s, now being raid. ! In giving the judgment of the Court, the President (Mr Justice Strin-icr) dealt oxhsustivelv with the arguments pro nnd con adduced before the Court a few days ago. "With regard," he sa'd, "to the contention of the employers that the statistician's computation of the bonus upon which we mndo our announcement as before mentioned was erroneous, it was shown rlcmly that owing to an unfortunate misunderstanding, : which was explained at the? hearing, the bonuses granted to the workers for the periods ending September, 1319, and March, 1920, were based upon calculations mado by the acting Government I statistician on the basis of the monthly index figures, instead of, as intended by the. Court, the moving average index ! figures for i'ood, rent, fuel, light, and clothing; and further tnat the bonus now under consideration had been arrived at on the same erroneous basis, It is not disputed tliat if the comrmtatiou of the bonuses had been mado on the movin" avera-go andex numbers as intended by the Court the uonus lor encli pWlod would havo-beon as follows:— March-September, 1919, *d an hour, or % week» . September 1919, March 1920, l*d an hour or 6s a week. March 1920— September 1920, ljd an hour or 7s a wools. "It is evident tliereforo that the. correct bonus for the last period is 7s and not 9s, as previously announced. Hut since the total amount of bonus over the whole period should have, been 3Jd an hour or los a week, and since. 2*d an hour or 10s a week is already being paid, the proper amount to be paid for the last period is a difference of ljd an hour or 5s a week." ' The President then proceeded to deal with the question whether any bonus should be given at all. He said he regretted that when the War Legislation and Statute Law Amendment Acts were passed in 1918, some attempt was not made to control the increase, fli the prices of commodities as the result ot increased wages paid to tho workers. "It might, ft seems to me. have boon possible to co-ordinate tho functions of the Board of Trade with those of tho Arbitration Court in such a way that no increase in tho cost of commodities as tho result of increased wages to the .workers engaged in the industry producing such commodities should nave been allowed, unless tho Board of Trade were first satisfied that the profits of tho industry were not already sufficient to meet such increased wages, or in tho event of it being thought proper to allow an increase in tho price of the commodities affected, that .such increasa was not more than was fair and reasonable. In the absence of such control, the conditions of trade during and since the war have been such that many, if not most, of the employers, irrespective of their former profits, have been ablo to increase the prices of their commodities by the amount of the increased wages plus a considerable profit thereon, with tho result that while their workers were deprived to some extent of the benefit of thoir increased wages, the whole community has been put under contribution to enhance the profits, possibly already quite of the employer concerned. In thisAvay i feel satisfied a good. deal of what may bo called automatic profiteering has taken place." Tlie President then rcviowed the economic unrest at Home, in Canada, and in Australia, anci the indications afforded of grave social and .economicdisturbances, and proceeded: "Taking all theso matters into consideration, I *iavo the gravest doubts *ns to whether I am justified in granting any further increase in wages at tbo present time* In view, however, of the fact that tho bonus, whatever the amount may bo, although parable in the future, is in respect of the six months ending September last, I think the workers should be granted some measure of relief, which, however, for the reasons before mentioned, and in tho view I tako of the circumstances, should be kept as low as it reasonably can be, both in the interests of tho community generally and of the workers themselves. The correct amount of additional bonus .calculated on our intended basis , is, aa~" before stated, 5s a week, but taking into consideration the fact that from the first day of January to the thirty-first day of _ October the workers were receiving 2s a week in excess of the correct amount for that period, it is, I think, fair and reasonable that the overpayment should be adjustou by reducing any new bonus by a similar amount for a poriod of six metiths, when frenh adjustment of the bonus will bo made, and restoration of the 2s will be given effect to. On such adjustment, this would reduce the bonus tor tho current six months from 5s to 3s, which is in mv opinion as great as is warranted, having regard to the present financial ;ind industrial outlook in New Zealand, as disclosed by tho evidence" auduced at tho hearing." It was quite impossible, Mr Justica Stringer Baid ( to reopen the question aa to the original basis of tho bonus which was alleged by tho workers to !)c unfair. With reference to the Beyond contention of the employers, tho Court referred to the argument before the bonus legislation was introduced that the increased cost of living should be borne by tho whole community. Tho spo?ial statute had always been intcr-:>'-etofl by the Court to mean that, uness relevant considerations were shown ( to the contrary, any increases since an J award in the cost of living should be met by a corresponding incrcaso in The interpretation was never < Mi a" taliped 'h- the employers. "In eon-Tiision, said Mr Just-ce stringer, "I have to sny that I alono im responsible, for this judgment and ho opinions expressed thcMvin. Both I < >f the other members of tho Court die- I ipreo with my determination, wljich I ' iave not arrived at without niurh mx'O'is Mr Sro't ! Rat the fin anci.'' nnd industrial condi- i ions of the Dominion fire such thnt no | >onus at all should tie. prmitod nt the ; >ro«pnt time. whil° Mr'McCiiuWrh, on • im oHner hand, tilings t Tl nt n-> yvffir. : -cnt ■ rrounds have been shown to justify the !'onrt in refusing to the workers the | 'nil bnnus of 7s a week, j> nr] thnt in : iTiv view of th« case the bonus should j Lot ho le c « thnn 5s a week. - If e.v-Ji j p.embcr of Covrt ndhrre'i Vs own. j ni" ; on n would ns a : , oehinn of th» Court ran only bo given ' v n Tiia'or'ty of the nifmliors, As, inwove: - , we p]\ acrree that it is hipdilv IcsirnWo in the interests of employers -. ■orkers. and the generally j j Jv»t tbrre should be n e'efin't" r'etor- j of the question* raided in j hefcc nro n rT>ri'm( r *. thf,ot.Vi»r memhors nvo withdrawn tlic'r nniect :n n', 5 r > t ,l " 1 TV may become that of tho burt." * : ' ( VOOLSTON" COTJNCHi'S '' POSITION. The Vrnohtr-r, Roi-nifh C^' n /-'<l wns pp o f tho oni'ilov'n" , bodies pn' , ' nt ih" bfiTiu<s of 9s p wer-k without n't'Ticr for +Ke final f>f tl-.e i rbit.rntion Curt. Cr. L. r"- i larked at tho meeting of the Council

last night that the Council could hardh ' asJ; the workers to refund u vo -thirdserf the i!ic|cy.isal bonus which thov had jwn lately rocciving. He wanted to know whor<> the Council stood in the nintter now. as it had already resolved to p.n- ih t - extra Hs n week. The M.'yo:-: You will mvil to rescind that rosol-.ucr,. Cr. Unit pavo notice o f niotum that vho ro-olntion that a bonus oj <>s :i «wk should be paid the Conncil s general staff bo rescinded.