Wage Claim Effect Of Increase On Frozen Food Exports

Press, Volume XCVIII, Issue 28938, 4 July 1959, Page 12

Wage Claim Effect Of Increase On Frozen Food Exports

5 <fteu> Zeaiana Press Association)

WELLINGTON, July 3, A very serious blow to the export trade hi canned and froten foods in an intensely competitive world market would be delivered if the present application ter a general wage order was granted, the Arbitration Court was told to evidence today by James Wattle, managingdirector of J. Wattie Canneries Ltd., Hawke’s/ Bey. Mr Wattie said the total effect on his company’s payroll would be 16 per cent. Wage bills last year were £468.000 to factory workers and £500,000 to growers. The company had started in 1934 with a capital of £l2OO. There were 1300 shareholders. “We don’t send any canned goods to Australia now,” said Mr Wattie. “Tariff and high exchange rates are against us and import licences are granted only with reluctance. They do take some frozen foods, but that’s only because of pressure by the New

Zealand trade mission this year.” Mr Justice Tyndall: The picture should have changed to your advantage if it wasn’t for politicians? -

Mr Wattle: I couldn’t agree more.

Sal«i to Britain Mr Wattie’said United Kingdom gales were contracted about six months ahead, and any increases in costs during that period would have to be absorbed by the company. If a 16 per cent, increase in the wage bill occurred, there would be a double threat. The selling price in the United Kingdom would rise, quite probably pricing the New Zealand products off the market. That would mean that an industry geared for export, as well as domestic sales, would be limited to the latter, and therefore the domestic price would be loaded by the charges of idle plant, apart from the direct effect on the costing of local sales on account of a big wage rise. Many of the countries with which his company’s exports competed had a lower wage structure. He said the promising market in Australia bad dwindled practically nothing. Mr Wattie said that because of the high perishability of the products handled by his factories in the height of the season, it was necessary to operate 24 hours a day, seven days a week. Owing to the limits of availability of female labour—no overtime after 10 p.m. and not more than six days a week—a great deal of labour was at penal rates. _ x . Wages In Season In the vegetable and fruit season, between November and April, the gross weekly return to male workers was between £2B and £55, and for females about two-thirds of that.

The Hastings factory in the season employed 1000. and the Gisborne factory 480. At present the staffs were 400 and 200, some on maintenance work and others

on such canned lines * mJ foods. Mr Wattie calculated the extn cost in direct wage payments I his concern at £13,500 a year’l the present 18 pet cent, genen order were applied beyond th present limits. If that were sub stitUted by 34 per cent up to £1 a week, the increase in his wu bill would be £75.000 a year, be cause of the high overtime coin tent ip the industry. To Mr A. P. O’Shea (Federate Farmers) Mr Wattie said th Government had the increase la the consumers’ price index it their own hands to the extent ef the effect of high taxation. . *We hope to see the need this application removed not week," said Mr P—J. Luxfordf for the Employers’ Federation. Mr Wattie'said he was sure tht Government was sincere about wanting to expand export mar. kets and it was “not just a bit of flag-waving.” “InMne Taxation” Answering a question about tht reduced consumption of from peas, Mr Wattie . said this treat had been brought about by tht "gospels of gloom that have been preached so unnecessarily.’’ Ht hoped there would be no more ■insanity" on the question of taxation. His Honour: You would con. sider the granting of a general wage order as insanity? Mr Wattie: I would not anticl pate your Honour doing anythin! like that. His Honour: That’s an evasivt answer. Mr Wattie said he felt that tht Court should not make a decision before the Budget wm brought down.