WAGES REDUCTION

Evening Post, Volume CXII, Issue 8, 9 July 1931, Page 10

WAGES REDUCTION

EXEMPTION SOUGHT

FIRST UNION APPEAL

The first application by a union to the Arbitration Court for exclusion' from tho operation of tho Court's general order of 29th May last by which all rates of remuneration were reduced 10 per cent., has been unsuccessful. The applicant was tho Canterbury Manure, Tallow, Acid, Soap, and Candle Workers' Union, which based its appeal on the special grounds of the casual and intermittent nature of the work, and the consequent low wages.

The judgment of the Court, delivered by Mr. Justice Frazer, stated that casualness and intermittcncy of work wero not necessarily special grounds, for a very largo number of awards dealt with trades and industries in which work was always casual and intermittent. The evidence adduced at the hearing did not show that the work in this particular industry was more casual than in many other industries. In fact, any increased casualness was largely due to the men themselves having requested the management, and the management having acceded to the request, to spread the available work ovc the same number of workers as were formerly employed. Apart from that special circumstance, it was impossible to increase production and reduce casualness of employment, unless manufacturing costs were brought down-to a level that would enable the product to be sold at a price within the reach of farmers. COST OF MANURES. "In so far as the manure manufacturing section of tho industry is concerned —and the workers specially affected by this application are the manure workers—it is notorious that farmers are finding it difficult to finance the purchase of manures, and it is essential that the price of manures to the farmers, and consequently the costs of production, should be brought down," said his Honour. "Bedueed production, due to reduced consumption, means a greater relative cost of production, because of the higher ratio of overhead costs to other costs. On the question of tho economic and financial conditions affecting the industry, it is clear that only lower costs and prices can stimulate consumption, and that accordingly a claim for exclusion from the provisions of the general order cannot succeed on the ground that tho financial and economic conditions of the industry warrant the claim being granted." DISSENTING OPINION. Mr. A. L. Monteith (workers' representative) dissented from the decision of the Court. "Farmers," he, said, "will certainly not be able to sell their produce at increased prices, or maintain present prices, nor purchase manures in larger quantities, if consumers generally find that they are placed in the position of having by reason of smaller purchasing power to consume loss than formerly. Tho last award gives some idea of the position of these workers at that time. It is true that a large number of awards fix rates for casual employment, but such rates vary. Since tho general order the employment has been more casual, and even before the general order these workers had asked tho management for an even distribution, so that the hardship should be spread as evenly as possible, and now there is the general order and more casual employment. Taking these factors into consideration, I believe tho Court should have eased the burden."