MR HEWITT’S VIEWS

Press, Volume LXXXIX, Issue 27203, 21 November 1953, Page 8

MR HEWITT’S VIEWS

“SURPRISE AND CONCERN ”

RETROSPECTIVE DECISION CRITICISED Surprise and concern at the amount ordered by the Arbitration Court are expressed by Mr W. N. Hewitt (.employers' representative) in his dissenting opinion. “Undoubtedly some wage earners, particularly those with few or no family responsibilities, greet any general wage order with enthusiasm; today many housewives and other people throughout the country, in the light of past experience, will greet this one with very mixed feelings,” he writes in conclusion.

Mr Hewitt says his comments follow the quotation taken from “Reasons for Judgment” recently issued by four judges of the Commonwealth Court of Conciliation and Arbitration: —“The Court does not accept the theory that nominal wage increases, although purporting to meet increased costs, have not played an important part in past price inflation. “What has been described in a contemporary report as ‘built-in instability’—long in vogue in Australia—has been but recently discredited. Its twin ‘induced inflation’ is now being further implemented by the decision of the majority of this Court, who, on the assumption that the increase is regarded by them as ‘of any magnitude,’ are patently inviting and expecting parallel increases in the price structure,” he says. “It is equally patent that m assessing the quantum of the increase the Court has had high regard to the not inconsiderable pressure placed upon it bv recent amendments to the Economic Stabilisation Regulations: it has in fact accepted the hypothesis that it is bound to take a more liberal attitude than hitherto because of those amendments. By so doing it may well undermine stabilising influences of the past year, oart of which can fairly be said to have resulted from the standard wage pronouncement of September, 1952, or, perhans more properly, to have resulted from the Court continuing to relate wages subsequently awarded more closely to its pronouncement than seems to have been the practice on former occasions,” said Mr Hewitt. “All Else to Providence”

Considerable emphasis had been laid on the workers’ share of the “National Income.” He suggested that a decision cf the Court, particularly when by way of general order were certain criteria laid down by regulations made under an “Act to promote the economic stability of New Zeqland” had to be weighed, should be just and equitable to both worker and employer and should be considered in the«light of the immediate and long-term effect on all other sections of the community. He could not subscribe to the belief that the Court should, in such circumstances, make a decision of monetary weight which should more than satisfy the applicant but which left “all else to Providence.” The memorandum was more detailed than usual, and was worthy of examination at leisure. He lists without comment the following matters not necessarily mentioned therein:— (a) It appears that Australia has not found it possible to restore and maintain by artificial means (i.e.. solely by automatic general wage increases) a given standard of living. (b) A fair inference from the New Zealand 1953 Economic Survey (page 23) is that the volume of exportable oroduction per head may be expected to decline. True, this survey takes a long term view, but accelerating factors are present. (c) It is a fact that certain important by-oroducts of primary industries are costing more to produce than their present market value. (d) To what extent and by what means can New Zealand manufacturers compete and continue to compete with goods imported from abroad? (e) To what extent can New Zealand manufactures on present or rising costs be marketed abroad? Review of Awards <f) Mr E. C. Fussell, Governor of the Reserve Bank, said in reply to a question related to the merits of a general order as against the individual review of awards, “I have thought about that since. If *it were possible for the Court to consider every new industry and deal with it in the light of the circumstances there instead of having a general order, I think, if it were possible for it to do it, my own personal opinion is that the degree of equity would be greater.*’ “It is clear that the employers’ reply, however well founded, to the submissions of the applicant union has been almost completely discounted,” says Mr Hewitt. “Without apology, I dissociate myself from the decision to make the order retrospective to September 15, 1953. The history of the application is as well known as the procrastination of its sponsors, who could have applied for an order effective from January 13 last. Suffice it to say that under cover of a belated amendment, sought by those same sponsors, to certain regulations, the majority pf the Courfehas burdened in* dustry with a very considerable immediate debt, an amount presumedly

i “It is certain that many undertakings will have great difficulty m meeting their obligations under the order. The principle of retrospective pay has been previously so gravely in disrepute as to require amendment to the . Industrial Conciliation and Arbitration Act to allay what was a recurring evil. The amendment to the regulations making retrospective payment possible in this case was made after the application for a general order increasing wages had been filed. Now that the majority of the Court have ‘thought fit’ to apply such special power to its utmost limit, I can only record my strong dissent. Any conclusions to be drawn will no doubt be fully canvassed in the immediate future.”

“ SHORT OF ADEQUATE SHARE”

MR ALLERBY’S OPINION “While wages have to a marked degree been stabilised over the last year, retail prices and rents have continued to increase,” said Mr F. C. Allerby in an attached opinion. “To meet these increases it is imperative that award wages be increased substantially.”

The economic survey issued by the Prime Minister stressed the growing and buoyant economic position enjoyed in New Zealand today. Returns and volume of primary production were still on the upgrade. Trade generally was very satisfactory. Statistics confirmed that.

The workers were entitled to their fair share of this increased national prosperity. The amount awarded, while assisting in that direction, fell short, in his opinion, of giving an adequate share of the increased national income to the workers, commensurate with that enjoyed by some other sections of the community.

“£3OOO HOUSE £lOO DEARER”

(New Zealand Press Association) AUCKLAND, Nov. 20. The higher pay will mean a rise of at least £ 100 in the wages bill for a £ouoo house, said Mr F. G. l.abone, preside! t of the Auckland Master Builders’ Association. Builders would be out of pocket on work in hand, he said.