HIGH WAGES POLICY

Dominion, Volume 30, Issue 64, 9 December 1936, Page 12

HIGH WAGES POLICY

Principle Recognised By Manufacturers “BUT THERE IS A LIMIT” Though approving high wages as sound business policy, New Zealand manufacturers are convinced that there is a limit to the extent to which costs can be raised if industry is to survive. This was a declaration by Mr. A. W. Nisbet, employers’ agent, during the hearing of the gas meter manufacturing industry dispute iu conciliation council yesterday. Mr. Nisbet said the manufacturers as a body recognised’ that their best customers were the workers employed in the industries of the Dominion. The higher the wages were the greater the turnover of the factories. But there was a point above which costs could not be raised, if it were exceeded New Zealand’s industries could not compete with Imports. The margin in favour of local manufacturers disappeared and orders went overseas. Mr. Nisbet's observations were prompted by a clause in the workers’ demands asking for a fortnight's holiday on full pay in addition to the eight statutory holidays on full pay, which were agreed to. The manufacturers were living on promises by the Prime Minister, ever since the Government came into office, that New Zealand s industries would not be allowed to suffer from the industrial legislation. So far there had been nothing but promises. Orders were now going, overseas to an extent that would astound New Zealand.

The workers’ representative, Mr. A. Black, said that New’ Zealand industries had never been busier than today.

Mr. Nisbet: Yes, but wait until after Christmas.

Mr. Black: Don't bring Father Christmas into it. We hear this every few mouths. All the employers are doing very well. I know of several industries that are extending their factories.

Mr. Nisbet: That may be so in some industries, but there will be a different story in a few months unless the Government redeems its promises to safeguard our industries against overseas comfietition.