WAGE RATES

Evening Post, Issue 99, 24 October 1934, Page 8

WAGE RATES

GENERAL INCREASE

NOTHING TO JUSTIFY IT

EMPLOYEES' VIEW

A considerable portion of the annual report of the New Zealand Employers' Federation is devoted lo a discussion of the wages question. The opinion is expressed that "a general raising of rales of wages would not be in the economic interests of the community." "Studying the wholo position," states tho report; "ono can reach only this conclusion: That unfortunately there is nothing in the economic situation of New Zealand today to justify a general ineroase of wage rates, and the assumption that a raising of wage rates would increase purchasing power and restore prosperity is a fallacy. In fact, in so far as the raising of wages has the effect of increasing internal costs and prices the total purchasing powor of tho community would bo docreased rathor than incroased. "Another aspect of the wage question roquiros to be elucidated because of the public attention which has been called to it. It is claimed that bccauso tho Court of Arbitration was cmpoworod to make a general order affectin"1 all wages prescribed in awards and industrial agreements in 1931, that it should bo given powor now to mako another general order raising tho present wage levels, if on consideration of tho evidence it could bo found justifiable. EFFECT OF GENEBAL ORDER. "Tho circumstances arc entirely different. In 1931 New Zealand suffered iv common with the rest of tho world by the appallingly sudden fall in commodity prices. Our national income was so greatly reduced that economics in all directions wero necessary, Tho Government was able to effect economies in its own expenditure, but employers in industries apart from Government services wero in nearly all cases bound by industrial awards or agreements, and they could not effect any economies in wago rates until thoso awards or agreements oxpirod; and even then thero would havo been no uniformity iv tho reductions and tho general effect of a uniform reduction upon costs would have been lost. Further, although tho Court of Arbitration mado a general order as to wages under awards and agreomonts, it affected only minimum rates of wages and it was in no way compulsory that omployers should mako reductions which the general order authorised thorn to make. In tho intervening period, tho Arbitration Act has boon amended and as a rosult of that (intendment many industries aro today froe from awards or industrial agreements. A general order of tho Court could n°t now therefore bo made to havo nearly so wido an application as had tho general order of 1931, and' further, if a general order increasing wage rates wore to bo made it would bo compulsory upon all omployers irrespective of whether the industries wero all equally able to conform to it or not. CAPACITY TO PAY. "Tho federation has always enunciated as a policy that tho wages in any : industry should bo us high as that industry can afford to pay and that is all that can be enunciated today. "For the reasons above given we are of the opinion that a general raising of rates of wages would not be in the economic interests of tho community, but if there are some industries finding their circumstances so improved as compared with the circumstances existing in 1931-32 as to justify their raising of, their own wage rates, they can only be applauded for giving their workers a share in the improved prosperity."