HIGHER WAGES

Evening Post, Volume CIV, Issue 21, 25 July 1927, Page 11

HIGHER WAGES

NEW SOUTH WALES

THE EMPLOYERS' BILLS

PEOPLE WILL PAY

(From "The Post's" Representative.) SYDNEY, 7th July.

Sydney, a? at least that part of it which has to pay the wages bills, is all aflutter over the pill which Mr. Piddiagton, the Industrial Commissioner, has given to employers to swallow, in the form of an increase in the basic wage. This increase, while it looks inconsequential on the surface, constitutes a pretty tidy sum when spread over a vast army of employees, and when it is superimposed upon the family endowment that is to operate in August. On top of it, came the increase for bank officers, and a special endowment scheme for their families, which staggered the bankers. The trouble about the banks is that they always look so rich and imposing, at least in Sydney. They always seem to appeal to one as an expression, not only of financial stability and of faith in the country, but of positive wealth in all its glory. The bankers, however, in common with the employers who will have to find an increase in the basic wages and meet a big share of the cost of the endowment scheme, are now telling the public how hard they will be hit. The general impression was that it was only the exclusive rich who drew dividends from the trading banks. The public, however, is now informed that of the thousands of shareholders iii the big banks the very large proportion are those of only very moderate means, and dependent largely on their small holdings in these institutions for a living, and that it is they, and not the bloated capitalists, who will be directly hit by the increases and other benefits for the bank officers. It looks as though it would be a tactical move on the part of the big banks in future to establish themselves in lowly tenements, instead of in buildings which, with their massive columns and other rich adornments, seem to fairly exude wealth. The banks will, no doubt, inquire whether if .they have to pay a generous endowment to their officers with families, as well as "an increase in salaries, they will also be compelled to pay into the consolidated revenue the 3 per cent, upon the wages bill as provided by the Family Endowment Act, as an obligation upon employers generally. It must be all very puzzling and perturbing, to those who have to foot the weekly bill. THE BUILDING TRADE. The increase in the wages and the tax on employers to meet the endowment scheme will, of course, be passed on to the public. Take, for example, the building trades. The increase of one shilling in the basic wage does not in itself appear to be very serious, but on an outlay of between £13,000,000 and £14,000,000 spent on buildings in the city and suburbs, it means a tidy sum for builders to find out of their contract prices. In addition, there is the Family Endowment tax. During the past three years the average amount expended on buildings in the metropolitan area was well over £13,000,000. Tho extra amount involved in the two latest increases will approximate £500,000. The average prico for workmen's homes during the past twelve months would be about £900. With the new living wage and family endowment in operation, such a house, it is estimated, will now cost in the region of £950. What the worker gets with one hand from a paternal Government he will havo to pay out with the other, for homes and for general commodities.

For soino time Victoria, has beon gaining business at tho expense of New South AVt.ies, in consequence of what is regarded as restrictive legislation in tho latter State. It looks now as though it is going to bo in a still better position, if tho alarm expressed by employers in New South Wales is any guide. Tho unions arc disapointed. They warned more. Tl.o more militant of the employees regard tho now basic wage as a:i insult to tho working class, which, however, it must fairly bo admitted, is not being ungenerously treated under the endowment scheme. There will also bo the benefits undw tho national insurance schcino, tho passage of which is only awaiting the sitting of the Federal Parliament.