HIGHER WORKING COSTS

Dominion, Volume 29, Issue 195, 15 May 1936, Page 10

HIGHER WORKING COSTS

Industrial Legislation MANUFACTURERS TO RAISE PRICES Dominion Special Service. Auckland, May 14. To protect themselves against higher working costs anticipated as a result of the Government’s legislation relating lo increased wages and shorter hours, some manufacturers in Auckland have raised their prices to retailers for deliveries after July 1, when the legislation becomes effective. Other manufacturers making contracts for supplies after that date are quoting a price “subject to Government legislation. ’ In the case of the boot trade orders delivered up to July 1 are being supplied at normal rates, so it is not expected that retail prices will be raised appreciably if at all before then. At least one large factory is quoting 1/- a pair for men’s and women’s footwear and 6d. additional for children’s footwear delivered in July and later, while other concerns, unwilling to risk a specific contract price, are concluding their agreements with the provisional clause mentioned. Most boot manufacturers are exceptionally busy at present, and many factories are working overtime. Shorter hours will require the engagement of additional hands, and this factor and others, it is stated, will bring about a substantially increased price to retailers, particularly if the present demand keeps up. Some manufacturers anticipate the ultimate increase in the wholesale price of footwear will equal between 12 per cent, and 15 per cent. Footwear advanced between 6d. and 1/- a pair wholesale some months ago following an increase in the cost of hides. Overseas buyers became mure active in the market than usual and their competition forced up the price. Only a portion of this increase, it was stated, had iteen passed on to the public by retailers. Shirt manufacturers also are adding 5 per cent, to quotations for forwavl delivery. It is possible that Governs ment permission will be obtained to put this increase on to the price of orders contracted for some time ago and which will be delivered after July 1.

Although there is no connection with the Government’s legislation, Auckland warehouses have advanced their prices for English china, earthenware, and glassware in order to cover the extra landed cost caused by increased overseas prices. English quotations recently were advanced 5 per cent, for china, and another increase has now been made of 5 per cent., so the effect on wholesale prices is based on a 10 per cent. rise. Earthenware has gone up 5 per cent., and glassware 8 1-3 per cent. The local increase on these lines is greater than the actual overseas advance, for 25 per cent, exchange is added to the gross amount, other landing charges also being based on the new price.