COST OF LIVING

Dominion, Volume 16, Issue 178, 16 April 1923, Page 7

COST OF LIVING

ARBITRATION COURT’S FINDING > * NO FURTHER REDUCTION IN WAGES PRESENT RATES TO REMAIN UNTIL OCTOBER “The general position has undoubtedly improved, though at least another good year is necessary to enable us to say that financial stability has again been attained,” states the Arbitration Court in a pronouncement upon the cost of living for the six-monthly period ended March, 1923. “All this, taken with the fact that in many trades the employers did not find it necessary to put the last reduction of money. wag<? into operation, leads us to conclude that it is unnecessary and updesirable to make a general order reducing money wages for the ensuing half-year.

BY TELEG3.IPH. —BUMS ASSOCIATION.

Auckland, April 15. /The pronouncement of the Court of Arbitration in respect to the cost of living for the six-monthly period Oct'ober, 1922, to March, 1923, is as follows :—

Ab on all other occasions the Court has made uso of all groups of statistics, and has worked on the principle of a six-monthly moving average. When prices were rising, wages were increased for the current half-year, in accordance with the average increase m the cost of living during the half-year. When prices began to fall, the bonus additions to wages were reduced for the current half-year, in accordance with the average decrease in the cost of living for the past half-year. We have on former occasions stressed the fact that on a rising price market, the adoption of a six-monthly moving average! operates somewhat to the detriment of the worker, for his wages tend to keep behind the increasing cost of living, though this is usually offset by greater regularity of employment, more overtime, and the tendency on the part of the employers to pay more than award wages to a larger percentage of their employees, while on a falling price market it operates in favour of the worker, who thqn start the half-year with wages some points ahead of tho current cost of living, and increases his advantage month by month. With the exception of rent, which has increased by 4.60 per cent, during the half-year all groups, and sub-groups show decreases ranging from 2.32 to 4.55 per cent. All groups figures are as follows: — Percentage increase Half-year ended ever July, 1914. March 31, 1922 67 September 30. 1922 ... 59.6 March 31, 1923 56.2 Measured in wages the. decrease in the cost of living is equivalent to a reduction of sd. per houi?. or 2s. per week, in tho male adult wage It is to be noted that the fall m the cost of living was smaller for tho past haitvear than it was for the preceding Im ltyear. There has been a tendency, too, in a number of lines to '' a hardening prices during the last few months. This will m .all probability not be permanent, but it may be more

than merely seasonal. Rents are still increasing, and are not likely to fall until building costs are reduced and the housing shortage overcome, lhese circumstances lead us to the conclusion that if money wages are diminished by 2s. per week for the half-year MayOctober, 1923, the result may be a reduction not only in money wages, but in purchasing power, which means a reduced standard of. living. The Court is required bv section H of the Industrial Conciliation, and Arbitration Amendment Act, IPZI-YZ-to have, regard to a fair standard of living for workers as well as to the general financial and economic position of trade and industry in the Dominion. The general position has undoubtedly improved, though at least another good vear is necessary to enable us to sav that financial stability has again been attained. All this, taken with the fact that in many trades the employers did not find it necessary to put the last reduction of money wages into operation, leads us to conclude that it is unnecessary and undesirable to make a general order reducing monev wages for the ensuing half : year m accordance wtih the statistical finding quoted above. . ■ Furthermore. Mr. Scott informs us that ho is authorised ,by employers generally to say that in the event, of the ccs't-of-liting statistics showing only a small decrease, they will not ask for a general order reducing money wages if the Court, in view of the information it has at its disposal, considers the making of such order to bo undesirable. For these reasons we do not propose to make a general, order altering the rates of remuneration of workers for the period May-October. 1923, but to carry forward the result of our calculations to the next half-yearly investigation. The decision of the Court not to make a general order does not, of course, operate so as to prevent employers bound by any award or indn’ trihl agreement from making ap’ 4 *— tion to* the Court on special grounds for variation of the rates of remuneration fixed by that award or industri'’ 1 agreement. Such application mav be made to the Court in the ordinary way. and will bo considered on its merits.