THE BASIC WAGE

Evening Post, Volume CXX, Issue 133, 2 December 1935, Page 5

THE BASIC WAGE

METHODS OF FIXATION

AUSTRALIAN DIFFERENCES

Mr. Justice Cantor, who made the announcement by delegation of the Full Bench that the living wage rates would remain unchanged, said that the Commission had reached the conclusion that the living wage rates,' £3 10s for adult male employees and £.1 18s for adult female employees, throughout the State, declared in August, 1932, should be now adjusted at £3 8s 6d and £1 17s respectively, says the "Sydney Morning Herald."

"As the current Federal male basic wage for Sydney, £3 8s per week, has now, by adjustment, been increased by 25," added his Honour, "'and will be £3 10s from the first pay period in December next, whereas the State-wide adjusted male living wage of this tribunal at present current, £3 8s 6d per week, will remain unchanged, we think that we should briefly direct attention to a number of material facts."

The Commonwealth Court, he continued, in 1934 reviewed the Federal basic wage and established a new wage based on the determination of the New South Wales Board of Trade in 1925. The living, wage standard- of- that tri-1 bunal and its living wage finding, £4 4s per week for. a man, wife, and two | dependent children, was the foundation of the Federal basic wage, which now applied to the majority of, but not all, Federal. awards throughout Australia.] The Commonwealth Court decided also that, in the future, adjustments of the basic wage should, subject to important limitations, be made by reference to the changes in the cost of living indicated by the C series of index numbers tall items), prepared by the Commonwealth Statistician. For this purpose, and for the additional purpose of ascertaining the basic wages to be pre- ' scribed in April, 1934, it equalled the Board of Trade living wage of £4 4s. with the all items index number for Sydney, 1033 for the year 1926, and made the base index number oMhe all items series 1000, equal to £4 Is per week. LIMITS ON CHANGE. The rate thus derived for Sydney by reference to the Sydney all items index I number for the last quarter of 1934 was £3 7s, and that sum was declared to be the Federal basic wage for the area within 20 miles of the G.P.0., Sydney. The Commonwealth Court, in the exercise of its discretion, had directed that (1) the adjusted Federal basic wage should itself be adjusted each quarter; (2) adjustments should be made exclusively by the table mentioned; and (3) no adjustment of a current basic rate should operate unless the variation indicated by the table was 2s per week. With the basic wage standing ■ at any figure, it was clear on inspection of the adjustment table that, while it was divided into one shilling divisions or brackets, yet, in virtue of the I : 2s limitation, the all items index number might range through 37 points, or three divisions, without any change in the prescribed wage becoming opera- ; tive. . I

As a particular example, with the

wage standing at £3 Bs. the cost of living indicated by the all items index numbers might vary from a fraction of a penny more than £3 Cs 6d (index 321) to a fraction more than £3 9s 6d

(index 858) without any change in the

prescribed, wage. Thus'it was clear that the cost of living indicated might be almost. Is 6d more than, or almost Is 6d less than, the current prescribed wage. ..■'•■...

v The Commission's references, added his Honour, were not made in criticism of'the-Commonwealth Court. The Junctions of that^ tribunal differed in many important respects from those of the Commission, and the examination

of the determination, which the Com-

riionwealth Court had reached in. the jPerformance of its functionsr was forthe purpose of contrasting it with the State determination reached in accordance with the statutory directions. The method of varying wage rates in terms of changes in the cost of living solely by reference to the changes shown by inidex numbers was one which the

Commission had not adopted. Under that method, an adjustment trending either upwards or downwards, which would appear on examination to be likely to continue, might not be provided for, nor could protection be afforded against fluctuations of a temporary character, either one way or the other, which might be reversed in phase during the period of adjustment. PRICE MOVEMENTS. The Statute directed the provision of a wage which, during the period of the operation of the adjustment, would enable the domestic unit to attain the determined standard of living. In order to acomplish that the Commission did not regard itself as permitted merely to accept computed index numbers. It must examine also, in detail, the price movements upon which they were based and the latest available information which might assist it to prescribe effective adjusted rates for male and female employees throughout the State. It was necessary that both the declared living wages and the adjustments thereof should be based upon the relevant material. relating to the cost of living from both the metropolis and the country. '

■ Thb Commonwealth Court, by its judgment of April, 1934, read with the supplementary judgment pronounced immediately after the publication of the Commonwealth all items index numbers for the,first quarter of 1934, however, prescribed several'basic rates within the State of New South Wales. For Sydney the rate was, as stated, £3 Bs, Newcastle £3 7s, Broken Kill £3 Ss, and for the rest of the State £3 ss, which rates, except that for the rest of the State, were to be subject to separate .adjustment in accordance with their own relevant index numbers; The rest of the State had allotted the Sydney rate, as adjusted from time to time, less a constant 3s per week.

The following, table showed the existing Federal male basic rates for the State of New South Wales, the full rates operative from the first pay period in December next, and the comparable State-wide rate:—

THE INCREASE OF 2s.

It would be seen that, as a result of xhe recent quarterly adjustment, the current Federal rates for Newcastle and Broken Hill would remain unchanged, whereas the Sydney rate would be increased by 2s. This increase for Sydney would carry the rest of the State with it, and so *he new rate for that area would be increased by 2s also. The practice of the Commonwealth Court was materially different from the practice of the Comrn.ssion. First, the respective ' standards were different inasmuch as the standard of the New South Wales Board of Trade adopted by the Commonwealth Court had not been followed by the Commission since 1926. Secondly, the Commonwealth Court, though not actually identifying the Federal male basic wage with any family unit, founded that wage upon a living wage deemed sufficient for a man, wife, and two children. The Commission, oh the other hand, was bound to pay regard exclusively to the requirements of a man, wife.' and one child. ..Thirdly.;; IJie ..■Commonwealth Courf'ha^d. in'its discretion', prescribed different male basic.wages for. separate parts of the State, whereas the Commission was bound to prescribe a Fingle wage for the State as a whole. Due effect must be given by the Commission, not only to the movements of prices in the metropolis, but also to movements of prices in the provincial urban areas of the State, these movemerits being combined in their proper proportions. ,

Premature old age may come to women who sunbathe to excess, it was stated at the British Health Resorts Association meeting recently.

Federal Existing rales affer Stale Federal recent rale basic quarterly in each Area, rates. adjustment, uertud. £ s. d. £ s. (1. £ s.d. Sydney, within 20 miles of fi.F.O. 3 X 8O 3 10 0 3 S 6 Newcastle, within 20 miles oC O.P.0 39 0 3 9 03 S 6 Broken Hill, within 10 miles of G.P.O. 360 360 386 R..;t • of the Slate 350 370 3S6