The Press SATURDAY, SEPTEMBER, 19, 1959. The Arbitration Court’s Order

Press, Volume XCVIII, Issue 29004, 19 September 1959, Page 12

The Press SATURDAY, SEPTEMBER, 19, 1959. The Arbitration Court’s Order

The words of its judgment suggest that it was only with substantial reservations that the Arbitration Court, by a majority, decided to make an order increasing remuneration in most awards and industrial agreements by 6 per cent, on the first £ 13. It was faced, the Court says, with an “ extremely “ difficult and controversial ” issue, one highly complex point being how far the Court should notice effects of the 1958 Budget on the Consumers’ Price Index. In two years from the 1956 order, the index increased 7.7 per cent., and of this increase the 1958 Budget was responsible for 3.8 per cent., chiefly in taxation increases on alcoholic liquors, private motoring, and tobacco. The Court had to consider whether it should, in effect, make employers pay taxes levied on their employees (as well as on employers, selfemployed persons, superannuitants, and pensioners). The Court also found that the share of the total income received by salary and wage earners had progressively improved during the last five years for which statistics are available, and that the share received by persons other than wage and salary earners had fallen. The'share of the total private income received by wage and salary earners had reached its highest level since the end of the war, and was in excess of the share

enjoyed in 1938-39. It was not surprising, therefore, that the Court thought the applicant union’s claim for an increase of 16 per cent, much too high. No doubt it was helped to its conclusion that it should make an order of some kind by the evidence of the Governor of the Reserve Bank and the Secretary of the Treasury, who “ did “ not support contentions that “no general order should be “ made ”.

It is regrettable that the clumsy procedure of adding percentages persists; but apparently this is the only general j approach open to the Court 'under existing legislation. The Court intends to consider incorporating in award rates as much of the percentage increases as it thinks “ just and “ equitable ” when each new aw’ard is reviewed. It would ;be desirable to have basic wage rates for skilled, semi-skilled, ;and unskilled workers laid down; as the Court observes, the virtue of greater simplicity in the computation of wages has become even more important under P.A.Y.E. However, for the time being the Court has put aside the question of calculating the percentage on earnings above £l3 a week. That this operates against the highlyskilled worker is obvious. That the Court allows an undesirable discrimination to persist is perhaps a commentary on its doubts about its order. One pleasing point is the Court’s expedition in reaching its decision.