STANDARD WAGES FIXED

Press, Volume LXXIII, Issue 22193, 9 September 1937, Page 12

STANDARD WAGES FIXED

Court's Pronouncement For Casual Labour

SKILLED MEN 2/9 AN HOUR

Mr Prime's Dissenting Opinion

"In arriving at its conclusions the Court necessarily has had regard for certain practical considerations," states the judgment "Wages in aU occupations bear a relation to each other, and hence they always tend to a common level. Quite recently the minimum ■wage of waterside workers was fixed by agreement at 2s 8d an hour, in addition to which each man is guaranteed a minimum weekly w»ge of £2 10s. Under the Wellington Industrial District Laundry Workers* Award, which came into force on March 15 last, the minimum wage of adult workers is £4 10s a week, though the work being independent of weather conditions, is necessarily continuous throughout the year. "In the face of facts like these, it appears most reasonable that in respect of the more skilled occupations wherein long terms of apprenticeship are required, the minimum rate should be at least 2s 9d an hour. As for unskilled labour, there are already industrial agreements under which general labourers, in addition to insurance o* constant employment, are being paid £4 4s, £4 Bs4d, £4los, £4 12s 6d, and £4 15s a week—all with payment for holidays*- In Queensland the award rate* for builders' labourers is 2s 4d, and in "Victoria 2s 4jd an hour, and it seems to the Court that New Zealand has not been less favourably endowed by nature than Australia. Principle of Weekly Employment "The Court considers further that it should maintain the ratio as between skilled and unskilled rates observed in its previous pronouncements. As already indicated, the rates are standard hourly rates for casual workers who may lose time because of weather conditions, short jobs, or changing from one job to another. Unlike weekly ■workers, these men receive no steady income. ... "Inasmuch as it is reasonable, however, that workers employed by the hour should receive some consideration, it is equally reasonable that due allowance should be made where employment is constant, and in this connexion the Court thinks that in many cases provision should be made for employment by the week. In other words, there appears no good reason why the principle of weekly employment should not be extended. This is a question that parties would do well to consider in councils of conciliation and in negotiating industrial agreements. "The Court disclaims the extravagant functions ascribed to it by certain speakers during the hearing. Mr P M. Butler, secretary of the Wellington Builders' and General Labourers Union, for example, stated that the Court is more than an industrial tribunal,' and he proceeded that the Court is called upon to measure out to the producers the portion of the national income which is considered to be their due.' Jurisdiction of Court "The obvious reply is, first, that all the recipients of the national income are not within the jurisdiction of the Court, and, second, that the rates of wages in all occupations are not determined by the Court, but by the price of land, a fact which was well understood by Edward Gibbon Wakefield when he proposed, as an essential feature of his scheme of colonisation, that a fictitious price should be placed on land to ensure a plentiful labour supply by preventing labourers from becoming landowners too soon.

(PBEsa ASSOCIATION TSLBCKAM.) AUCKLAND, September 8. The pronouncement on standard wages was made by Mr Justice O'Regan, on behalf of the Arbitration Court, this morning. "Having heard evidence and argument," states the Court's pronouncement, "the Court has now considered the question of standard rates of wages and has decided that, apart from special considerations, the rates for the several classes of workers shall be:— Skilled 2s 9d an hour Semi-skilled .. 2s od to 2s 7*d an hour Unskilled .. • • 2s 4d an hour "These minimum rates are intended as a general standard minima for casual labour, and hence they are not necessarily applicable where employment is regular throughout the year adds the judgment. "On the other hand, there may be additional payment where circumstances warrant it, as where work is carried on under exceptionally unpleasant conditions, or •where special care or experience is required."

It is not generally realised the Wakefield plan, instead of being of historic interest merely, is actually in full operation in this country to-day "Here we have a country more than six times Ihe area of Denmark, having a population of only 15 people to the square mile, in which there is an artificial dearth of land for settlement and in which the fundamental industry of agriculture is, relatively speaking, languishing. "Despite its wealth of statistical information and the use made of same at the hearing, it is a matter for comment that the Year Book does not disclose the number of farmers m this country. We have Professor Tocker's evidence, however, that the proportion of the people who are farming has decreased considerably in the last 30 years.' "Need For More Farmers" "This state of affairs may be contrasted with that obtaining in Denmark, where half the population is engaged in agriculture. Under the circumstances, it is not surprising that Professor Tocker agrees that we need more farmers. The urban population has its part to play in ths national development, but it is clear that the centres are growing increasingly top heavy,' as it were, in that they are not buttressed by an adequate rural population. The result is tnat there is undue competition for employment in the secondary industries, and hence the tendency of wages to decline. "Like all natural laws, the law of supply and demand is altogether beneficent, but operating under unnatural conditions it is blamed for evils which carf be qorrected only by removing the cause That is a matter exclusively within the jurisdiction of Parliament. Labour advocates accordingly would do well to realise that this Court cannot claim functions peculiarly within the province of Parliament. "Confronted with an unhealtny social situation, the Court can at best endeavour to palliate the effects of evils which it is powerless to remove. Professor Tocker's View Rejected "The Court is unable to agree with Professor Tocker's view, well epitomised by Mr D. I. Macdonald (for the employers) that 'it is the market for goods that determines the level at which wages can be fixed.' It" is only i necessary to point out that, in spite oi the great advance m the price of gold, the wages of goldminers in this country have not increased proportionately beyond the general level of wages. "Assuming the validity of the argument, however, the position of New Zealand's exports is quite healthy, and we have Professor Tocker's estimate that production for home use this year will probably exceed that of last year by £10,000,000. The future is not less bright. Wool prices have increased substantially and should be maintained, if not further increased. Butter prices are firm, and the output increasing. Beef shows a greater return as the result of chillers replacing freezers. For the 1933-34 season the export was 19,57,6 quarters, but there is every reason to anticipate that tne export for the present year will be approximately 200,000 quarters. Mutton also shows increased prices, and generally the outlook for meat is good. "In Britain there is increased prosperity, and this cannot fail to react favourably in this country. • Our internal trade also is increasing, and the farmer is prepared to pay higher stock prices. Local market prices are improving. Generally, company dividends and reserves are also increasing, and all these factors have been taken into consideration. Allowance for House-Rent ! "The question of house-rent has been considered also, and the Court is satisfied that the amount allowed in the past in this connexion is no longer sufficient. Time was when it was estimated that a working man could pay his rent with one day's wages, but that is no longer the fact. "Another factor influencing the Court is that since the last pronouncement there has been an increase in the rate of exchange, of which the effect has been increased protection to the manufacturer, and increased prices to the primary producer, but these advantages have been conferred at the expense of the rest of the community, and there has been no corresponding direct benefit to the workers to compensate them for the increased prices. "We have it on the authority of Professor Tocker that usually production for the local market expands about a year later than export receipts, in that the increased income must circulate and cause increased demand before the means to satisfy that demand are provided. Taking the 'time-lag' of one year into consideration, and the healthy position at home and abroad, the Court is of opinion that it is quite reasonable and in accordance with public policy to allow the increases hereinbefore prescribed."