COST OF LIVING

Evening Post, Volume CV, Issue 90, 16 April 1923, Page 2

COST OF LIVING

ARBITRATION COURT DECISION

RENTS STILL INCREASING.

(II TSUSORArH.—PRESS ASSOCIATION.)

AUCKLAND, 15th April. The pronouncement of the Court of Arbitration, re the cost of living for the sis-monthly period of October, 1922, to March, 1923, was as follows:—

"As on all otter occasions, the Court has made use of all groups of statistics, \ and has worked on the principle o! the sis-monthly moving average. . When prices were rising wages were increased for the current- half-year in accordance wit}} the average increase in the cost of living. During the half-year when prices began to fall the bonus additions to wage were"'induced for the current half-year in accordance with the aver-, age decrease in the cost pf living for I 'the jjasfc half-year. We have on former occasions stressed the fact that on a rising price market the adoption of the six-monthly moving- aveyage operates, somewhat to the detriment of the worker, for his wages tend to keejs him behind the increased cost of living. Though this 'is ' usually" offset by a, < greater regularity of employment, more j overtime, and a tendency- on the part of employers, to pay .more, than tlje award wages to a, larger percentage' of. their employees, while on a falling market it operates in favourof"the worker who then s|arts the.. half, ryear with wages some points.ahead of the current cost of living and increases his advantage month by month, with'the exception pf rent, which was increased by 4-60ths per cent, during, the half-year, all groups and sub-groups show decreases ranging from 2.32 to 4.55 per cent. . ■ ■ Percentage, ilalf-year Ended Increase over July, 19H. March 31st, 1922 67 .' September 30th, 192.2; ... 59.6 March 31st, 1923 56.2 "Measure ii> wages the. decrease-in the cost of living- is equivalent ■to a reduction ?f 44 P?r hour, or 2# per week, in the male adult wage. "It is to be noted that fall in the'cost of living was smaller for the past halfyear than it was for the preceding half-year. There has been a- tendency, too, in a number of lines, towards hardening prices during the last few months. This will, in all probability, not be permanent but it may be more than merely seasonal- Bents are still increasing' and are not likely to fall until building costs are reduced and the housing shortage overcome. . These circumstances lead us to the conclusion that if money wages are diminished by 2s per week fpr- the half-year, from May to October, 1923, th* result may baa reduction not only in money wages but in purchasing ppwer, which means a. reduction in the standard of living. '.'".. "The. Court is required by section 9 Of the Industrial. Conciliation and Arbitration Amendment Act, 1921-22, to have regard to a fair standing 1 of living fo* workers as well as to the general fjnan- ] cial and economic position of trade and ! industry in the Dominion. The general ppjitjon has undoubtedly improved' though at least another good year is neees.sa.ry to enable us to say that financial stability has again been attained. All this taken, with the fact that in many trades; employers did^not fjjnd it '■necessary-'tis \\ put'-'the F last reduction of money "wages into operation lead 3us to I conclude that it is unnecessary. and un--1 desirable to make a general order reducing money wages for.the ensuing halfj year iif accordance with the statistical I finding quoted abpye. Furthermore, Mr. Scott informs us he-is authorised by employers, generally,, to say that in the event of the.cost of living statistics showingl only a small decrease they will not j asfc for a general order rer during money wages, if tlis Court, in, view of the information" it has at its disposal, considers the making of such an order to be undesirable. For these reasons we do not propose to make a general order altering the rates of remuneration of workers for the period of May to October, 1923, but to carry forward the result of our calculations to the next half-yearly investigation. .

"The decision of the Court not to make a general ,order does not, of course, operate so as to prevent employers, bound by any award or industrial agreement, from making- an appljcation to the Court, on special.grounds, for a variation of the rates of, remuneration fixed by that award or industrial agreement. Such application may be made to the Court in the ordinary way and will.be considered on its merits."