TEN PER CENT. CUT

Evening Post, Volume CXII, Issue 90, 13 October 1931, Page 11

TEN PER CENT. CUT

MILK DEPARTMENT

EMPLOYEES' WAGES

IPPLICATION TO COURT

In mi application made to the Arbitration Court to-day the Wellington City Council Dairy Employees' L'niou sought exemption from the general order of the Court reducing wages by 10 per cent. Setting out the case for the union, Mr. A. W. Croskery submitted that there should be no difficulty in passing on in full any reduction in overhead charges consequent upon the "cut," as the City Council had an absolute monopoly. If it failed to pass on reductions, it was clear that the position was being used to increase profits. Since 1929 the price of milk had decreased from 13d to 11.245 d a gallon and the average cost of milk delivered at the depot had decreased from 13.901 dto 12.613 d a gallon, a saving of I.2SSd. The net profits as shown by the balance-sheets before the general order was made were: 1929-30, £6855; 1930-31, £7997. There would be a further reduction in overhead charges this year, as the cartage contract showed a considerable saving. Mr. Croskery contended that, the equitable way to view the application was to compare the rates paid to the Milk Department's employees with those paid to the City Council drivers. Dairy employees at present received £i Ss and drivers £4 15s 4d a week. NO SPECIAL GROUNDS. 1 The application was opposed on behalf of the City Council by Mr. W. J. Moiintjoy, who submitted that no special circumstances had been disclosed which could be claimed to bo special grounds. Before the union could succeed in its application it must show that special circumstances existed which placed the employees of the Milk Department in an exceptional position when compared with workers E<?nerally in. New Zealand. It was contended that they were in a happier position than many other classes of workers employed under awards. Their award was made in 1927 when trade and conditions in New Zealand were good and the cost of living high. The fact that the rate of wages set out in the award were agreed to by both parties indicated that the union considered them lair and just remuneration. Since 1927, the cost of living had been reduced considerably and in greater proportion than the 10 per cent, wage reduction. The hours of work were 46 a week for roundsmen and 48 for other workers, and the wage fixed was £4 8s a week, plus a quart of milk a day, making a total of £4 11s 2%d a week, and a voluntary bonus granted to roundsmen foxearly starting. Since the coming into operation of the general order the Milk Department had made a late night delivery instead of an early morning delivery, but had paid 3s by way of voluntary bonus. Further, every worker was allowed a fortnight's holiday a year on full pay for every year of service. When the wages paid under the award were compared with those earned by skilled tradesmen in the various building trades, it was found that the milk roundsman was in a much happier position than the average tradesman. He was assured of constant weekly employment and was also provided with a free uniform. Of all the dairymen receiving benefits under awards, the City Council's employees were the most favoured. Mr. Mountjoy said that since the making of the general order the City Council had reduced the price o£ milk to the consumers by a penny a quart. If the application were granted, it would hayo the effect of increasing the price of milk and of disturbing the good relationship now existing among the council's employees by .showing a preference for a small section. Mr. Mountjoy added that it was incorrect to say that the Wellington City Council had a monopoly in regard to the distribution of milk; it had no less than 70 competitors. . ... .■•■•. "NOTHING PASSED ON." "in reply,- Mr. Croskery said that the bal-ance-sheets showed that the Milk Depart- ! ment was still making substantial profits. He claimed that cartage costs had been considerably reduced. The City Council has passed nothing on yet," ho asserted. "If it is not prepared to assist in reducing the cost of living, the Court should not be made the means of bolstering up profits." Mr. Croskery pointed out that since the hours of delivery were altered the roundsmen had to work more hours of darkness with the voluntary bonus cut in half. ' , So far as profits were concerned, said Mr. Mountjoy, the position was that during the past two years the department's profits did not amount to more than -%d a quart. In other words, if the price had been reduced by only that amount, no profits would have been made. He submitted that the action of the City Council in granting a 3s' bonus was a very generous one. The Court reserved its decision.