AWARDS AND WAGES

Evening Post, Volume CVII, Issue 22, 26 January 1924, Page 8

AWARDS AND WAGES

MINIMUM, NOT MAXIMUM,

FIXED

A REPLY TO MR, READ,

Commenting on a statement by Mr. J. Read, president of the Wellington Trades and Labour Council, which appeared in yesterday's issue of "The Post," Mr. B. L./ Hammond-, assistantsecretary to; the New Zealand Employers' Federation,' remarks:—

,"Mr. Read's statement to the effect that empldyers are not adhering strictly to the award rates oflwagea, but are paying more, is an admission which employers welcome. Employers have repeatedly asserted- that they do not regard the award rate as a maximum and that in actual practice they pay more, but the workers' advocates'have invariably denied the fact. In submitting argument upon rent statistics and/the basic wage the workers' advocates would. have the public believe that the general award rate is £3 16s Id per week and that employers'pay no. more. They 'do not mention the fact that the figure £3 16s Id is based upon the lowest award rate, namely, that fixed in respect of the. casual labourer,* or" admit, as Mr. Read has done, that the award rate is not in reality the actual wage paid/ • . ..•■■'■..■

"Mr. Read implies that tKe interpretation to be placed upon the employers' action of paying more than the award rate is that employers are doing so out of a desire to remedy .an injustice inflicted upon the. workers by the Arbitration Court. Such an interpretation is erroneous,, and can only result from an entire misconception of the Industrial Conciliation and Arbitration Act and the purpose-of an award. The award wage is s fixed as a minimum wage only, andi in departing from it in order to give recognition to special merit, whether it be abiilty or length of service, the employers are merely giving effect la the spirit'of awards and the intention of the Court. - ■ •'..'.'

"Not alone this, but in some trades, such as carpentering, the ruling rate of wages is to some extent dictated by the shortage of labour. It is true, as Mr. Read states, that a few years ago employers were more disposed towards treating the award rates as a maximum, but, at that. time, economic conditions were such that, employers were forced to adopt one of two methods of retrenchment—to reduce all employees to the bare award rate, or, alternatively, to curtail staffs, and, by doing so, swell the ranks of the unemployed. They chose the former course out ,of consideration for. those who would otherwise have been dispensed with, even though greater., economy could have been effected," by adopting the latter course. ,

A DANGER TO THE WORKERS.

" Fortunately, employers in some trades j are now able to give effect to the spirit of awards, and- are doing so, whilst others, unfortunately, are not in a position to do so. ' The time when award rates will be regarded by all employers as a true'minimum only cannot arrive until greater production is secured in some industries. In this respect there is ample scope for co-operation between the employers and employees. To interpret- the payment of higher rates as an indication that the award or minimum wages should be increased will have the effect of discouraging employers from paying any more than the minimum for fear of the actual wage being made the minimum. v

. "Whilst wages for the barely efficient workers are fixed having a regard to the cost, of living, 'that class of worker will continue to profit at the expense of the • more efficient one. So long as the inefficient worker continues to secure from an industry more than the value of the service rendered in return, difficulty will arise in giving to the highly efficient worker his dues.

SKILLED AND UNSKILLED.

"If the workers' .advocates really have the interests of the workers at heart,_ their efforts should be in the direction of maintaining a low minimum,' thereby allowing of a high maximum, ihey cannot have a high minimum as well as; a high maximum, because industry cannot pay both. 'Furthermore, a lower unskilled rate would tend fo produce more skilled labour and reduce the unskilled. At present, the unskilled rate is so high, and the disparity between that and the skilled rate so small, that there is" little or :no incentive to workers to become skilled. By that I do not mean that the unskilled rate is too high having regard to the cost of living, but in relation to the service rendered in return."