F.O.L. Case For General Wage Order Outlined

Press, Volume CIII, Issue 30480, 30 June 1964, Page 3

F.O.L. Case For General Wage Order Outlined

rNew Zealand Press Association >

WELLINGTON, June 29.

The reluctance of employers’ organisations to pay wages which were adequate to meet living costs had made it increasingly necessary for workers to seek overtime, the president of the Federation of Labour (Mr T. E. Skinner) told the Arbitration Court today.

The Declaration of Human Rights stated a man was entitled to adequate remuneration to provide for a family without having to work longer hours than were considered necessary, he said.

This was the underlying basis for the federation’s application for a general wage increase.

The federation, in the name of the Carpenters’ Union,, asked for an 18,6 per cent rise in all minimum wage rates. This comprised 5.6 per cent based on increased prices and productivity during the two years since the last general wage rise, and 13 per cent representing the workers’ loss in their share of the country’s prosperity since the Second World War.

The application is equivalent to a rise of 3s 9d in the £ for minimum wage rates. Mr Justice Tyndall presided. With him were Messrs A. B. Grant and W. N. Hewitt, workers and employers' representatives respectively. New Zealand was now in the most favourable trading position it had ever known—its terms of trade were outstandingly good, said Mr Skinner.

But the value of minimum wage rates and wages generally had been adversely affected by rising retail prices. The greater increases had been in prices of commodities and ser-

vices which were necessities, connected with food and shelter. This made it doubly certain that the heaviest impact had been on the lowest-paid workers. “Business people working ion their own account meet this cut in income by raising prices to maintain their profit margins.” Productivity had continued to increase faster than actual wage and salary payments.

M.P.’s Salaries

“Economically, there are no dark clouds at present and none on the horizon except for those encouraged by the actions of the Government in financial matters which are beyond the control of the trade unions or the Court. “Incomes throughout the community, have been rising and are still going up. Members of Parliament have had a review made of their salaries and the result, yet to be announced, is unlikely to be less favourable than the up-

ward revision which has lately been made to top salaries in the Public Service. Adjustments in rates in the whole Public Service have been made to bring them into line with ruling rates. “Farm incomes have risen substantially. The majority of sheepfarmers are refusing the attempt by the Government to freeze part of the proceeds from the 1963-64 season. Dairy farmers have enjoyed a stable export price in excess of the guaranteed price. “Building and construction, and manufacturing are booming,” he said. “Cement supplies are unable to cope with the growth of building activity. Sawmillens have ! taken the opportunity to step up timber prices. As always, the consumer, will pay. Manufacturers, as the Prime Minister has stated, had a very successful year in 1963 and information now available shows that production of manufactured goods, particularly consumer durables, has been greater in the first

Retail trade has ■ . increased in volume, after making allowances for seasonal variations, in every quarterly period since the middle of 1962. Total turn-over in the first three months of 1964 was 8.6 per cent ahead of the comparable period in 1963. “Company incomes have risen, substantial dividends are being paid, and in a number of instances the actual return on invested capital has been concealed by the issue of bonus shares and the spreading of profits over a larger nominal capital. The share market has registered increases in share prices, reaching a record level,” said Mr Skinner.

“Trading banks have increased the amount of credit advanced to their customers from a total of £199.3 million in May, 1963, to a total of £235.9 million in May, 1964. This increase, at the average rate of interest of overdrafts of 5.84 per cent, would represent additional income of nearly £l4 million a year. Basis Of Claim "The F.O.L. submits this is an appropriate time to revise the cautious approach the Court has adopted in the last two general orders and increase minimum wages rates to an extent which will establish them as rates on which a worker can support a family in reasonable comfort. “This is not one of the criteria laid down in the Economic Stabilisation Regulations, but the workers consider it is implicit in the acceptance of a system under which men are employed in return for wages. It is the fundamental reason for gainful employment. Men go to work to earn a living for themselves and this should be the essential basis of the rate of pay.”

quarter of 1964 than it was in the same period in 1963.