Employers Oppose Wage Increase, Price Control

Press, Volume XCVII, Issue 28766, 11 December 1958, Page 27

Employers Oppose Wage Increase, Price Control

(New Zealand Press Associaeionl

DUNEDIN, Dec. 10. Now was not the time for a wage Order application, said Mr W. M. Smith today, in his annual report to the Otago Employers' Association. ; It was a known fact, said Mr Smith, that the country had been subjected to unfavourable trading conditions, which resulted in reduced incomes for many industries and individuals. But if ah application were granted, it would intensify difficulties and react against the very workers who sought an increase. The only argument which had ben advanced to support an application was the recent increase in the consumers’ price index. This increase was mainly due to price increases in tobacco and alcohol. “It is ridiculous to think that people would support a claim that there should be an increase in wage rates due to increases in i these items, which cannot be regarded as essential family expenditure.” he said. “Many people seem to have the mistaken idea that the price index is the only determining factor for a general wage order. -hough it is correct to state that any upward movement in prices is of major importance and warrants close examination, the Court of Arbitration, in considering an application, must by law take into consideration the economic conditions affecting

finance, trade, and Industry in New Zealand.” From reports recently published. it appeared, said Mr Smith, that the Federation of Labour was concerned over the general increase in the cost of living, due mainly to the Budget. It appeared that the federation was advocating the reintroduction of price control with the idea of striving tnore for'.lower prices than tor higher wages. "It is a \Vell-known fact from past experience that price control does not keep prices down, as increased costs, including wage increases, have to be passed on.” he said. “There is only one answer to keeping the cost of living down while wages remain level—and that is more production."