CLOTHING TRADE COSTS

Press, Volume LXXIV, Issue 22431, 18 June 1938, Page 13

CLOTHING TRADE COSTS

HIGHER WAGES UNDER NEW AWARD

EFFECT ON MEETING OVERSEA COMPETITION

(PKEB3 ASSOCIATION TELEOEAM.)

AUCKLAND, June 17

“The effect of the high wages granted by the Court of Arbitration in the Dominion clothing trades award will be to complicate still further the position of the industry in meeting overseas competition,” said Mr F. N. Ambler, immediate past president of the Auckland Manufacturers’ Association. Mr Ambler mentioned that in the shirt manufacturing section of the industry, with which he was intimately concerned, labour costs before the award that had now come into operation were practically .double those ruling in England. That the present tariff protection was only 20 per cent, meant that the industry was exposed to the full rigours of English competition. “Already most clothing factories are working on short time and reduced staffs, and this latest development will put the position from bad to worse,” continued Mr Ambler. “Last year the importations of shirts, collars, and so on were sufficient to keep a factory employing 300 girls operating for 12 months.

“In making its decision, the Court said that competition from overseas had to be disregarded by it as this was a matter for the Legislature to deal with,” added Mr Ambler. “It is hoped that the Government will note this, otherwise it may find itself with additional unemployed to support.”

“PROFOUNDLY DISTURBED” BY COST INCREASES

MANUFACTURERS’ FEDERATION STATEMENT

(PBESS ASSOCIATION TELEOBAM.) WELLINGTON. June 17. ' “The New Zealand Manufacturers’ Federation is profoundly disturbed by the effect of cost increases on the industry,” said the secretary (Mr R. O’Shea), commenting on the Dominion clothing trades award, which was issued to-day. “Moreover, it is concerned also about the possible public reaction to the ever-increasing costs and the possibility of increasing unemployment through this cause.”