WAGES INCREASE

Dominion, Volume 35, Issue 173, 18 April 1942, Page 8

WAGES INCREASE

Official Interpretation Of Court’s Order BASIS OF CALCULATION

The increase of 5 per cent, in wages under the general order made bv°the Arbitration Court applies to the amount actually received by a worker, and not merely to the minimuni rate provided for in the award, according to the official interpretation by the Department of Labour of the Courts order. .1 he Crown Law Office is stated to have given this opinion, and it is understood that it is supported by the Solicitor-General. The ruling, is contrary to that given by the New Zealand Employers' Federation to its members.

• The Court has .increased all rates of remuneration provided in awards and agreements by 5 per cent.,” reads a circular issued by the secretary of the Department of Labour, and dated April 10. "It has. however, under regulation 3A. excluded from the scope of the order a portion of the workers remuneration, for example, any sum in excess of £5 a week in the case of adult males, £2/10/- in the case of adult females, and £l/10/- in the ease of juniors and apprentices. Clause -of regulation 3A provides that the increase provided for in the rates of remuneration shall apply to the unexeluded portion of the remuneration of each worker, irrespective of his total weekly remuneration, and remuneration is defined as, meaning actual earnIllgs. "The effect of this, in the department’s opinion, is that the 5 per cent increase is payable on the unexcluded portion, namely, £5 in the ease of male adults, of the amount actually received by him, and not on the minimum rate provided for by the award, and such increase is payable notwithstanding that the worker is already in receipt of more than the minimum award rate.

"In the case of a worker receiving less than £5 a week, lie will receive his increase on the amount actually earned by him and not on the minimum rate provided by the award, for the reason that all amounts under £5 a week are an unexcluded portion of the earnings, the Court having excluded anything in excess of £5 a week. For example, assume the minimum award rate to be £4/10/- a week, the worker actually receiving £4/15/-. In such a ease the worker would be entitled to £4/19/9 (under the older).” The circular adds that this also jutplies to female workers and juniors, including apprentices, in respect of the portion of their earnings stipulated by the order'.

A FRIENDLY TEST CASE Attitude Of Employers In view of the conflict of opinion on the matter, the New Zealand Employers’ Federation has agreed with the department to take a friendly test case before the Arbitration Court in Auckland, probably next week. The secretary of the Federation, Mt. C. G. Camp, stated yesterday that it. the opinion of his organization, the interpretation given to the order by the Department of Labour was incorrect. He added that some eight or nine days ago the federation had circularized all employers to the following effect:— “Where the wages paid to any workers exceed the prescribed award rate plus the 5 per cent, increase required by the Court’s general order dated August 9, 1940, plus the further 5 per cent, increase now required by the Court’s general order dated March 21, 1942, such workers are not entitled to any further increase as the result of the provisions of the Court’s order of March 21. 1942.”

DEFENCE WORKERS

Increased Wages To Be Paid

-The application of 'lie general order of the Arbitration Court increasing wtiges by 5 per cent, to the rates of remuneration prescribed in the Defence Works Labour Legiclatiou Order tor workers on defence construction jobs was announced yesterday by the Minister of Labour, Mr. Webb. This, he said, meant that all such workers would receive an additional 5/- a week. "In accordance with a statement issued by the Commissioner of Defence Construction,” said Mr. Webb, "the recent order of the Court of Arbitration doe<? not apply to workers employed on defence construction works covered by the Defence Works Labour Suspension Order. The defence Works Suspension Order, however. was made before the date of the Court’s general order, and the rates of wages prescribed for workers on defence construction works ire based on the minimum award rates, » "It if> considered that if tlie.se rales bad been laid down by in award of the Court of Arbitration the increase granted by the Court would have tipplied. It has therefore been decided to apply the Court’s order to the rates of remuneration prescribed by the Defence Works Labour Legislation Suspicion Order.” The Minister added that this decision was reached with the concurrence of the Commissioner of Defelice Const met ion.