The Dominion SATURDAY, DECEMBER 18, 1926. THE BASIC WAGE

Dominion, Volume 20, Issue 72, 18 December 1926, Page 10

The Dominion SATURDAY, DECEMBER 18, 1926. THE BASIC WAGE

One of the periodical outbursts against the artificial fixation o£ wages standards is at present disturbing Labour circles in New South Wales. In seeking to fix a basic wage for industry, Mr. A. B. Piddington, K.C., who was entrusted with the task, appears to have pleased nohodv and made himself extremely unpopulai in Labour circles. Whatever decision he had reached it is fairly safe to say he would have caused equal dissatisfaction to one side or the other. r . . It is a well-nigh hopeless undertaking to fix a basic wage on sound economic lines and give satisfaction. In the case undei leview, the employing interests fought for a basic wage of £3 18s. 6d. a week, while the Labour unions asked for £6 10s. In fixing the amount at £4 45., Mr. Piddington, whose sympathies generally are regarded as being’pro rather than anti-Labour, was guided, presumably, by the effect of his decision on the economic condition o’f the country and its capacity to support a given standard of living. It was Mr. Piddington who investigated and reported on the question of the family wage. He considers that the only.sound and just apportionment of wages is in relation to the family. If he had his way he would fix a basic wage meeting the normal needs of the individual and increase the amount up to a given figure in proportion to the family responsibilities, of the wage-earner. Labour unionists generally do not favour this plan, because they fcai that it would mean a lowering of the basic wage in order to increase the wage of the man with a family. The present industrial crisis, however, has nothing to. do with this particular aspect of the wage issue, Mr. Piddington's judgment being in relation onlv to the basic wage. With Labour conditions as they are in New South Wales it is. not surprising to find 1 the Labour unions, having been defeated in their efforts to gain their way through the appointed tribunal, turning to their Labour Government to put-things right. It is urged that the Government should over-ride the decision given, and fix a basic wage more in accordance with Labour union desires. And to all appearances, the State Government is seriously considering this dangerous proposal. Whether Mr. Piddington is right or wrong as to the exact amount he has fixed as a fair basic wage, theic can be no doubt that- if a party Government is going to interfere and fix the standard of wages in industry to suit the views of its own political supporters it is going to land itself and the country in grave tiouble. Industry can only pay wages in proportion to production and pi ices; and artificially fixed wages, if economically unsound, must check or kill industry. Behind this problem, too. is the position of the primary producer. His returns cannot be governed by locally-fixed prices. He has to compete mainly in outside markets, and, broadly speaking, has to take the ruling prices fixed by world competition for his meat and wool and dairy produce. Yet he is expected to bear the burden of the increased cost of his goods and services due to the claims of the workers in secondary industries for artificially-fixed wages on a higher scale than is economically’ justified. No one guaiantees the primary’ producer a fixed basic wage —be has to take what he can get. ° Here in New Zealand at the present time there, is a growing discontent amongst our farmers over awards of the Arbitration Couit, which they consider fix wages on an uneconomic and inequitable basis, throwing the burden on the man on the land.. In Australia somewhat similar conditions prevail. It is a most difficult pioblem to attempt to hold the balance and do justice to all the interests affected. A fair standard of living for workers in our secondaryindustries is recognised to be just and proper, but a basic wage which vitally affects the existence of our primary- producers,, and through them the welfare of the whole country, must be economically’ fair and equitable to be justified.