Mr Baker Agrees With Figures In Wage Claim

Press, Volume CI, Issue 29766, 8 March 1962, Page 16

Mr Baker Agrees With Figures In Wage Claim

< WX, Preu AMoetatioa, WELLINGTON, March 7. Quoting a Federation of Labour slogan—“a living wage for a 40-hour week” —Mr Justice Tyndall remarked in the Arbitration Court today that what the federation really sought was a reduction in working hours without a reduction in pay. Today was the second day’s hearing of the application for a general order to increase rates of remuneration in all awards and industrial agreements. The increase proposed in the application is 10.4 per cent.

Two witnesses were heard today. The first was the Government Statistician (Mr J. V. T. Baker) who was mainly examined on the accuracy of the figures contained in the submission by the president of the Federation of Labour. Mr F. P. Walsh, in support of the application. With some minor amendments Mr Baker agreed that the figures were correct. The second witness was the research officer of the Federation of Labour. Mr D. B McDonald, who was still in the box when the hearing was adjourned. Mr Baker said that while he appeared willingly to give the Court any statistical information it needed, he was not appearing in support of any party concerned in the hearing. Quality of Labour

Questioned by Mr A. R. Del low, advocate for the Manufacturers’ Federation. Mr Baker agreed there was a disadvantage in high wages from the manufacturers’ point of view, but, he said, the matter went further than that.

"I think our labour force is a higher quality force than in many other countries,” he said. The level of output, both per head of population and per head of the labour force, was about a quarter higher in New Zealand, for instance, than in the United Kingdom. The difference in output was not necessarily attributable to the efficiency of the New Zealand labour force. Such factors as higher physical fitness and better education came into it, making the New Zealander a better worker.

To his Honour's suggestion that this was a dangerous generalisation, Mr Baker said it would be dangerous to attribute the higher level of output to the efficiency of the labour force, but the higher output itself was a fact. Mr Baker was asked by Mr J. C. Adams, who is appearing for the Sheepowners’ Federation in the temporary absence of Mr A. P. O’Shea, whether he agreed that New Zealand was in a position of crisis and living beyond its income.

By not taking a grip of the situation in time the country had lost about £44 million in overseas funds, which it could ill-afford to lose. Mr Baker said. This meant it was not nearly as strong, as it would otherwise have been, if it had to meet a future crisis. However, the steps being taken now seemed adequate to meet the internal situation. "Less Inflation" To Mr Adams’s suggestion that New Zealand had too little money overseas, and too much within the country. Mr Baker said it was doubtful if there was too much money here. The situation was not as inflationary as it had been. Earlier Mr Walsh had taken Mr Baker through the federation's submissions page by page. On the statement in the submissions that there had been a recovery in world

prices for greasy wool, he said he had not seen any such recovery.

He was not prepared to forecast the total New Zealand export income for this year so he was unable to comment on the figure suggested in the submissions — £3OO million.

M.P.’s Pay Increases Asked by Mr Walsh whether the salary increases to members of Parliament would have any other than a minor effect on economic stability, Mr Baker said the effect would be small because the total sum involved was quite small. Mr P. J. Luxford, for the employers, asked Mr Baker whether any household budget showing greater expenditure than income could be strictly accurate.

Mr Baker said such a situation could not be sustained for long, but he could not say such a budget would not be accurate. Living Costs

Mr McDonald was questioned on a household budget survey he carried out between November. 1960, and October, 1961. The survey covered 137 families comprising of husband, wife and two dependent children living in towns and cities in various parts of New Zealand. All the wage-earners were members of unions receiving ruling rates of wages. The survey showed an

average expenditure by all 137 families of £lOO7 8s a year, the equivalent of £l9 7s 6d a week.

Taking into account that each family would be receiving £1 10s a week in family benefits, and would have paid taxation on the wages received, a conservative estimate of the gross wages needed to meet the expenditure would be £2O 3s Id.

Questioned by Mr Luxford. Mr McDonald expressed the opinion that given the extra £2 represented by a 10.4 per cent increase, these wageearners would tend to work less overtime than they did at present. In part, the effect would be to give them more leisure.

Mr McDonald did not agree with Mr Luxford that limitations should be put on wages to which a general order should apply if made. Mr Luxford pointed out that there were workers governed by awards or industrial agreements who would receive increases of as much as £250 a year if a 10.4 per cent, increase was granted.

They represented only a handful of people. Mr McDonald replied, and he could see no reason why, if it was right for their salaries to be ait their present level, they should not receive a corresponding increase to maintain their margins. The hearing will continue tomorrow.