NEW DAIRY PRICES

Press, Volume LXXXIII, Issue 25303, 1 October 1947, Page 6

NEW DAIRY PRICES

Retrospective Payment “40-HOUR WEEK PRINCIPLE” From Our Own Reporter WELLINGTON, September 30. “The general principle embodied in the extension of the- benefits of the 40-hour 'week as now enjoyed by othqr sections of the community” has been applied to the dairy industry by a decision off the Dairy Products Marketing Commission awarding a retrospective increase of 16s 6d a week for each male labour unit from November 1 of last year. The unit labour reward has been increased by 5s a week from the beginning of the current season, August The commission to-day announced a retrospective payment to companies to meet the increased labour reward from November 1, 1946, and also announced the new season’s guaranteed prices for butter and cheese which are raised from those of last year by amounts calculated to 'meet the two labour reward increases, the effect of the withdrawal of subsidies, principally that on fertilisers, and other increased costs. Details of Increases

The commission announced that an additional payment oi 1.716 d a pound would be paid on all butter-fat in cream or milk supplied for butter ana cheese manufacture from November 1, 1946, to July 31, 1947. This makes the total guaranteed price for u.ui period Is 11.391 d a pound butterfat. The payment of the retrospective increase will be made in the next few days on returns already submitted.

Prices to be paid for butter and cheese by the commission in the current season will enable dairy companies to pay to suppliers 2s 1.907 d a pound for butter-fat for butter manufacture and 2s 3.907 d a pound for but-ter-fat for cheese manufacture. These prices represent an increase in terms of butter-fat of 2.516 d on the adjusted figure for the period November 1, 1946, to July 31, 1947. The increase is made up of .52d for labour reward and 1.996 d for farm working and maintenance costs. The basic prices to be paid by the commission to dairy companies are:— butter (93 to 93J points). Is 11.852 d a pound; cheese (92 to 92J points), Is 1.62 d a pound. The “40-Hour Week Principle” Referring to the retrospective payment, the commission says: “This will increase the farm labour reward for each adult male unit of labour by 16s 6d a week. This amount is equal to 15 per cent, of the existing dairy farm workers’ wage of £5 10s a week. “It is being allowed specifically in respect of the fact that work has to be done regularly on dairy forms at week-ends and on holidays, thereby applying to i the dairy industry the general principle embodied in the extension of the benefits of the 40-hour week as now enjoyed by other sections of the community.” The increased allowance in the guaranteed price for “maintenance costs” makes provision for ascertained increases in costs and, in accordance with Government policy, costs previously met from subsidies. The largest factor is the increase in the price of fertiliser. There is an allowance of 1.54 d per lb of butter-fat’ for this purpose. This on 12,0001 b of buttdr-fat provides an additional allowance for fertiliser of £77.

In recent years the prices paid by the Government have been basic prices increased by allowances for increases ih farm and factory costs. These allowances have now been replaced by a direct increase in the prices paid to dairy companies. Calculation of Price The guaranteed price for butter-fat is now made up as follows: d per lb butter-fat Interest on capital .. .. 3.24 Farm working and maintenance .. .. .. 10.11 Labour reward .. 14.196 Less standard allowance for pigs .. .. 1.54

Total /. .. .. 25.907 The commission has referred the adjustment of farm labourers’ wages to correspond with the increased price to the Minister of Labour (Mr A. McLagan) for submission to the parties concerned.