Claim Questioned

Press, Volume CI, Issue 29767, 9 March 1962, Page 14

Claim Questioned

Mr McDonald, when he was being cross-examined, was asked by Mr Luxford to name one worker who earned no more than the minimum rate. Mr Luxford was commenting on a statement in the Federation of Labour submissions which said: “Ruling rates of wages have continued to increase, but they are of no benefit to the workers who are tied to a minimum wage scale of wages or salaries which often is also the maximum they can receive.” Mr Luxford said the Court now had an opportunity to find just who those people were, and asked Mr McDonald to whom the submissions referred Mr McDonald said hu would be glad to know details of them himself, but could not find them out. though he had spoken to some of them personally. Mi Justice Tyndall: 1 must intervene here. You have addressed them personally? 1 would like to see those chaps you have addressed because tor a long time we have not had one worker m the witness box who has known what his wage was Mi Luxford saio the existence of minimum rate workers seemed to be a plank of the submissions Who wen they? Mi McDonald said he was aot in a position to say who thev were Question By Court It an employer calculated overtime at award rates, and then added substantia, bonuses, was the employee to be regarded as a minimumrate worker because the overtime was calculated at the award rate? Mr Justice Tyndall asked. M McDonald saia they were not the people he had in mind as minimum-rate workers Local body workers might be an example. His Honour: Start with the Wellington City Council. Are its workers on award rates? Mr McDonald: i don’t think so Bui you believe there are some people on minimum rates without any accretions?—Yes Hif Honour said that was a matter of faith. “Your statement is certainly not supported bv the ruling rates survey " Mi Luxford described the ruling rates survey as a sys-

tern by which some occupations were surveyed for the pjirpose of assessing what average ruling rate was being paid by private industry to its employees. According to the survey the average gross wage for 40 hours, excluding special payments and overtime, of a carpenter was 14 per cent, above the award rate, said Mr Luxford Would Mr McDonald considei they were sufficiently remunerated?

Mi McDonald said it would be difficult for him to agree.

Mr Luxford: You are seeking a 10.4 per cent, increase with the knowledge that the ruling rates survey shows an increase of a similar amount? Mr McDonald: It could mean a considerable increase there, largely because of the demand for labour in that industry. But I agree that is more than the 10.4 per cent Mr A. B. Grant (workers assessor): Not all workers get those- wages, and those who do. get them only because the employers are competing for labour

M; Luxford: That may oe, but in view of the national situation we cannot confuse ourselves with isolated exceptions We must consider the national average Mr Grant: Well you asked Mr McDonald for the names of workers who were on minimum wages It is just as difficult to do that as to prove that all workers are getting more than the mini mum scale of wages. Mi Luxford: Thousands of workers in this ruling rates survey support the contention that above award payments are being made. Doesn’t the market really determine wage rates?

Mi Grant: that is why we want minimum rates and not ruling rates In reply to turthei questions Mr McDonald agreed that the increase sought would raise production costs Asked If such an increase would help New Zealand sell its exports, he said the main exports were primary products which were sold at world market prices. Asked if he thought that in view of the state of New Zealand’s economy at the presen’ time purely because the Court had previously given increases. Mr McDonald said' ‘‘The Prime Minister himself said the state of the country wa« good ”