WAGE COSTS INQUIRY

Dominion, Volume 24, Issue 200, 21 May 1931, Page 10

WAGE COSTS INQUIRY

Employees’ Evidence

CONCLUSION OF CASE

Mr. Bishop Replies Saturday

COMMENT ON BANK RATE

With tlie hearing of evidence from seven witnesses, the case for the workers in opposition to the employers’ request for a 20 per cent, wage cut, concluded in the Arbitration Court yesterday. After Mr. J. Roberts had briefly addressed the Bench an adjournment was taken until Saturday morning, when Mr. T. O. Bishop will reply on behalf of the employers. The court is scheduled to sit at West Coast towns at the end of the month and it is uncertain whether its decision will be given before its departure from M’ellington.

Most of the witnesses heard yesterday were union officials, and each dealt with different aspects of the employers’ request, from the workers’ point of view. The last witness was Mr. P. E. Warner, who illustrated his evidence bj’ means of graphs, and during a discussion that arose when he was being cross-examined, Mr. Justice Frazer remarked that the recent news about the reduction in the English Bank Rate seemed to be a hopeful sign of the coming of a change. His Honour expressed the opinion that no one really expected to get back to the prices of 8 or 9 years ago. Later his Honour said that if costs came down all round the fact of a lower price level would not be harmful

Bank’s Balance-sheet.

The first witness called when the court resumed was Mr. Walter' Maddison, who quoted figures from the balance-sheet of the Bank of New Zealand for 1930. He said that at the end of the financial year then it would have been possible to pay a dividend of 71 per cent., to allow 2| per cent, for reserve, and still allow a sum of £287,500 to be circulated. That was an amount sufficient to pay wages for 1150 men at £5 a week, and it could have been saved on dividends and transfers to reserve, while the employment of 1150 men would have provided work for another 1150 men. Witness gave lengthy evidence in which he made various estimates. He was not cross-examined by Mr. Bishop, who jocularly remarked that the statements sounded so good that there must be a catch in them somewhere, though so far lie had not seen where it was Extent of Rationing. Mr. A. Parlane, secretary of the New Zealand Drivers’ Federation, said that there had already been rationing of work in his industry, to the extent of from 10 to 28 per cent. That had been mainly at the request of the men themselves, however, in order to save unemployment. Mr. F. Turlev secretary of the Westland Timber M’orkers’ Association, said that a ten per cent, wage reduction in the sawmilling industry would result in a saving of only £4/7/6 in the cost of a six-roomed house. It could not affect prices of butter and fruit boxes, and he was unable to see how the primary producer would benefit. Called by Mr. J. McCombs, M.P., three union secretaries, Messrs. A. W. Croskery, J. Read and P. Salmon, gave evidence to the effect that wages in many of the industries had been reduced to award rates that as a consequence of rationing many workers had suffered a further drop in their real earnings, and that if wages were reduced still further some would have to go to the hospital boards for relief. Reaction Expected. Giving evidence on behalf of the Trades and Labour Councils’ Federation, Mr. P. E. Warner produced a number of graphs which he explained at some length. He was examined by Mr. McCombs and cross-examined by Mr. Bishop with reference to a graph showing the percentage of overhead costs, wages costs and residue in the course of ten years' operations in a number of industries including tanning, fellmongering, butter, cheese and condensed milk making, and meat preserving and freezing. He stated the graph demonstrated that in the tenycar period ending with the year 192930 of the added value overhead charges were represented by 29.1 per cent., wages by 38.8 per cent., and the residue by 32.1 per cent. To Mr. Bishop witness admitted that the falling tendency evident in the proportion of residue in the last few.years was likely to be continued when the current year's operations were taken into account. To Mr. McCombs witness stated that he anticipated this decline would soon be followed by a sharp rise. This, he said, would lie due to the sale at higher prices of goods which had been bought at low prices and which were at present being held. There would be a similar reaction to that which had followed the 1922 slump. Tlis Honour; To the same extent? Mr. Warner said lie could not go so Jar as to say that, but there would bn Some rise. His Honour: I think we all expect that. M’e would be in a very bail way if there were no rise. This concluded the evidence for the employees. “Should Have Caller! Conference.” Jlr. Roberts, in closing the case, said that thousands of working men and women in Now Zealand were looking to the court to protect their interests. The court could inflict more hardship on the people than any other institution in the country, including Parliament. Il could also bring more happiness into the homes of the people than any other institution. “I would say.” added Mr. Robert*, “that while we do appreciate the splendid opportunity the court has given ns to present onr case without any restriction whatever, our opinion is that if the other side required any easement from their economic nosit ion they should have treat rd the affairs of the country as a family matter and mot all parties concerned in conference, ns was done two years ago