PUBLIC SERVICE CLAIMS

Press, Volume LXXXVI, Issue 26031, 7 February 1950, Page 4

PUBLIC SERVICE CLAIMS

EVIDENCE ON WAGES PAID IN INDUSTRY AWARD PROVISIONS OFTEN IN DOUBT (New Zealand Press Association) WELLINGTON, February 6. A factory inspector giving evidence before the Government Service Tribunal to-day said that in 95 per cent, of cases the increases given under the recent standard wage pronouncement were added by employers to the wages of those employees already receiving more than award rates. This witness, George T. Nation, was called by Mr J. P. Lewin in support of the claim of the Public Service Association for' increases in the salary scale. The hearing was resumed to-day after an adjournment since just before Christmas. The association seeks -increases of from £lO to £62 a year in salary scales from June 1 last and marginal increases of from £1 to £4O from the same date. The tribunal consists of Judge StiP well, Messrs J. W. Davidson (employees’ member), and J. A. Engel (employers’ member), and Messrs J. Turnbull (assessor for the association) and G. Bolt (assessor for the Public Service Commission). Mr Lewin is advocate for the association and Mr E. R. Winkel advocate for the commission. Mr Nation said the wage practices of employers varied in different industries and in different units of the same industry. Some employers paid straightout wages in excess of award rates while others ostensibly paid award rates, but made up the difference with bonuses or . more indirect methods, such as attendance allowances.

Seldom Related to Production The bonus schemes were frequently referred to as production bonuses, but seldom had any real relation to or effect on production. These practices had not decreased since award rates were increased—even more firms were resqrting to them. . The witness said the statements he had made were true of the engineering industry and building trade, and would certainly be true of clerical workers in all industries. Shop assistants had not benefited quite to the same extent as other workers. The printing industry had reacted in the same way as other industries and fully to the same extent. The printing industry was probably the last industry in Wellington to break away from award wages, but competition was eventually felt from Australia and quite a number, particularly skilled men. left for that country. About 1946 the policy of paying award rates to most employees and comparatively little more to specially good tradesmen was generally abandoned. Wages rose sharply and payments of £1 a week above award rates were not uncommon.

Evidence that for some time ruling wage rates had been higher than award rates was given by ,two trade union secretaries,. E. C. Matthews, of the Wellington branch of the Engineering, Coachbuilding, Aircraft, and Related Trades Union, and R. Adams, of the Wellington Painters, Decorators, and Display and Poster Artists’ Union. They said these ruling rates had advanced in sympathy with increases granted under the standard wage pronouncement. Awards were circumvented by allowances and bonus payments. Increases Above Award Rates

R. Kearney, field secretary to the Public Service Association, cited samples of increases additional to the standard wage pronouncement increase granted by the Arbitration Court. He also referred to approved increases in allowances of various kinds and to increases in the minimum wage payable on length-of-ser-yice qualification. The Court had also increased margins for responsibility apart from the increase in the margin for skill in the pronouncement. The witness said there was a further example of the unreliability of minimum award rates alone as a true indication of wage rates. That was in the provision made by the Court for commuting allowances into additional salary.

Mr Adams safid the payment of dirt money for all work done, whether dirty or not, was one way in which a Wellington firm increased its employees’ wages above award rates. Where the work was actually dirty additional dirt money, as prescribed in the award, was paid. Ship money was also paid, whether the men were working on a ship or not. Evidence was given also by W F Airey, secretary to the Reserve Bank, and G. E. F. Wood, Government Statistician.

The hearing will be continued tomorrow.