SALARY CUTS

Evening Post, Volume CXVII, Issue 114, 16 May 1934, Page 10

SALARY CUTS

PUBLIC SERVICE

KESTOKATION URGED

COUNTRY'S FINANCES

MR. FORBES'S ASSURANCE

An assurance that the Government would consider the restoration of some portion of the wage and salary reductions, particularly in the case of the lower-paid employees, when details of the country's finances were available, was made by the Prime Minister (the Rt, Hon. G. W. Forbes) in reply to a deputation from the various branches of the Public Service today. The organisations represented included the Amalgamated Society of Railway Servants, the New Zealand Locomotive Engineers', Firemen, and Cleaners' Association, the New Zealand Railway Officers' Institute, the New Zealand Railway Tradesmen's Association, the New Zealand Post and Telegraph Employees' Association, the New Zea,land Post and Telegraph Guild, the New Zealand Educational Institute, the New Zealand Secondary School Teachers' Association, the New Zealand Technical School Teachers' Association, and the New Zealand Public Service Association.

In introducing tho deputation, Mr. A. Burgess, president of the New Zealand Public Service Association, said that they had the support of the-whole of tho Public Service of the Dominion. It was'hoped by the various branches that the present position would be reviewed. Never in the history of the Public Service had the different branches been so united in their feelings that the service had a strong case to put beforo tho Government.

Mr. F. W. Millar, general secretary of the New Zealand Public Service Association,' said that there was no means open to the Public Service to have the rights and wrongs in the matter of the general rise or fall in salaries dispassionately surveyed and equitable provision made. The absence of any tribunal had, in the last twenty years, left the service with but one means of redress —that of placing before the Prime Minister a resume of the case, with no opportunity to thrash out the pros and cons, no power to negotiate with the object of coming to a definite agreement based on equity.

REDUCED TO BREAKING POINT.

The effect of tho salary reductions had been to reduce the level of the major portion of the members of tho Public Service to.financial breaking point, at least, in the case of married men, and the vast majority camo within that category. The salaries of the responsible officers had been so whittled away that their salaries were out of all proportion to the responsibilities they carried. Thus there was a grave danger of the efficiency and morale of tho service beisag assailed. In the case of the administrative, professional, and expert groups, too, the reductions had placed their salary scales on a basis that underwrote the whole status of the service, and placed them in such an unfortunate position in relation to similar groups- outside the service that tho situation cried for salary development. Mr. Millar quoted . the salaries received by administrative, professional, expert, and semi-administrative officers and suggested that they inspired New Zealand's most capable and ambitious young men to avoid the Public Service; if they were anxious to go far in tho world, or if they wero already part of it,' or compelled by sheer lack of employment to- become members of the service, they regarded their position as but a stop-gap until opportunity presented itself. The Public Service in tho past had suffered many losses of good and trained employees, but the higher credentials possessed by many.today— and • tomorrow—would .intensify the leakage in the near, future. The Stato should value its servants at least as much and as highly as a public company. In addition to tho reductions in salaries imposed on public servants, special reductions in salaries had been imposed'on teachers; children had been •excluded from the schools, causing the salaries to- be reduced and teachers to be dismissed or transferred* No 'junior ■ assistants (probationers) weTe appointed, organising teachers were dispensed, with, the inspectorate was reduced, remote allowances were withdrawn, no assistant ■ director was appointed, and the number of relieving teachers .was reduced. Certain avenues of promotion for both men and women were closed by abolishing certain positions, and other retrenchments were aimed directly at the primary school service. The result had been further reductions in salaries and curtailment of promotion. During tho last few years, owing to a less than normal increase in the number of secondary school children, thero had been considerable congestion in the various grades, and many teachers had been denied the promotion to which they had confidently looked forward. That meant that the great majority of those teachers were on a maximum salary— many for a number of years—and wore likely to remain there for some time. EFFECT OF REDUCTIONS. Mr. Millar dealt with the position of the great clerical groups in the various branches of the Public Service, comparing salary scales operative in 1914 with .those in 1920 and 1934. In the first five classes the maximum salaries were now below thoso in operation in 1914. In the case of class six, the maximum salary in 1914 was ft 260, as against £350 in 1920 and £271 7s in 1934. In class seven, which comprised most of the officer in tho service, the maximum was now £230 -19s, as against £320 in 1920 and £220 and £245 in 1914. The figures showed how ill:equipped the lower grades were for meeting* the increase in the cost of living, which today was 28 per cent, above the 1914 level, and also glaringly displayed the salary-cramping of the higher grades, the officers of which carried the maiu responsibilities. Tho salaries paid to clerks and typists were substantially less than thoso paid by the banks.

Among the general division employees, the engine-drivers, firemen and cleaners, had been hard hit by the salary reductions. The maximum for firstclass engine-drivers (a position which could not be reached until the employee had twenty years' service) was £255 per annum, against £.319 in 1920, while firemen and acting engine-drivers had been reduced from £257 to £213. Firstclass railway tradesmen were now receiving a maximum of £218, as against £289 in 1920, and that maximum was less than the minimum wago paid to outside employees. Tho first-class railway artisans were on a dead level wage, with no incentive for the highest quality of workmanship or skill. The maximum for guardswas now £228 for v -18-hour week,.as against •£ 307, for a

48-hour -week in 1920. The same position applied to the post and telegraph groups and general Government departments. IMPOSSIBLE TO CARRY ON. "The figures relating to all general division employees, wo submit," said Mr. Millar, "tell their own story of the manner in which all sections of the Public Service have been stripped vitally until a level has been reached which renders it impossible for the lower-grade married men to carry indefinitely thoso financial restrictions imposed upon a self-re-specting citizen." Although the Government Statistician had recorded a 12 per cent, reduction in the cost of living, the Public Service had by no means received the full benefit. The result of the 20 per cent, reduction in interest meant to many public servants considerably less than that percentage, for the reason that they had State Advances loans of long duration. So far as the rent-reduction provisions were concerned, the Government had definitely legislated itself out of the responsibility of rcducting rents of State-owned dwellings, many of which were occupied by public servants. Neither had the State provided for reductions in board and lodging charges for certain officers. Approximately 45,000 of the total number of public servants were paid £239 15s per annum or under, and about 80 per cent of that number were actually receiving £.213 15s or under.

"Quite frankly, the State has placed them on a basis that makes it impossible for them to clothe and feed their families adequately, lot alone carry existing fixed charges," said Mr. Millar. "And they can do not one whit to help themselves, for a public servant is barred from earning by added industry in his spare time, and even his wife is in the main not permitted to earn a penny towards helping to maintain the family fortune. Men who havo never been in- debt in their lives aro in the toils, and their only hope of rehabilitation lies with recognition by the State that one of its highest duties should bo adequate payment to its employees—just wages for services rendered. Wo say deliberately that the Government is failing in that duty when it permits its employees to be financially submerged—employees who are working just as long hours (longer in many cases) and just as efficiently as they ever did. SETTING AN EXAMPLE. Mr. Millar contended that the increase in salaries would stimulate purchasing power and improvo internal trade which had diminished since the cuts had been imposed. That fact was generally recognised, and many traders and local bodies had already made a move- towards wage restorations. In Great Britain, Canada, and Australia the salaries of State employees were being increased, and by following the example of other countries the New Zealand Government would bo in the forefront of the movement, for wage and tratlo stabilisation within the Dominion and would place the whole community and the State itself in a better position to face any continued difficulties that might surround the external trade. WAITING FOR DAYLIGHT. In replying to the deputation, Mr. Coates said lie felt that tho Government owed its thanks to the Public Service on tho way it had stood up to its responsibilities. Tho Government sincerely hoped that tho improvement which had taken place.in, tho finances would continue. He could not speak for the Government, but as a member of the Government he was not unmindful of the manner in which the public servants had stuck to their guns during very difficult times. It had to be remembered that it was tho Government's duty to conserve the interests of tho whole. He regretted that it was not possible for him to give any indication at the moment of the Government's financial position. The Prime Minister and ho had discussed the position on many occasions, but until they could see daylight it was not possible to say to what extent the country could stand up to alterations in tho existing scales. PRIME MINISTER'S REPLY. Tho Prime. Minister said that the reductions which had been made had not been put into operation in tho belief that tho civil servants were overpaid. ._• In fact, he was quite satisfied that, in comparison with those outside the service, tho civil servants were not weir paid. He had been in charge of the finances of the country at the time that the first cuts were made, i and had realised that unless something was done to reduce expenditure tha country would very soon be landed into very serious difficulties. Tho reductions had not been mado with aav degree of pleasure, but it was realised that the only other alternative would have been a reduction of staff, and the Government %vas anxious' to avoid that.' It had been argued that taxation might have been increased, but-that would have imposed a greater burden on industry and would havo added- to the army of unemployed.' Now applications ■ were being mado bo the Government for reductions in taxation. Ho-agreed that many of the salaries in the ■ Public Service were vo/ry low indeed,-and if - there was anybody who was in- need -of -assistance at ;the present time it was the men on tb.o lowest salary, scales. .

What the Government could do depended entirely on the country's financial position. Frankly, he "would like to see salaries increased, bsjt the Government -was not yet in a position to say what the state of its- finiances would be. They would not knoiir what the position, was.for. some time yet, but they were hoping that th/are would be a considerable improvenient shown. When they had-the figures they would be in a better position to say what could be done in the wetter of wage 3 and- salaries. He -was ,'afraid he could not carry-the question itny further than that.-

Mr. Coates: That is exactly tho positioiu It will be some little time before I will be in a jposition to. supply the Government' with an estimate of the revenue'arid'expenditure for tho year.

Mr." Forbes poiirted out that the Government also had a responsibility towards those who were not in employment at all. Ha' assured tho deputation that the Public Service had the Government's sympathy. ,