WAGES AND WORK

Evening Post, Volume CXX, Issue 136, 5 December 1935, Page 11

WAGES AND WORK

GENERAL POLICY URGED

"DEFER INCREASES"

EMPLOYEES' REPORT

Unemployment and wage increases are two subjects dealt with in the annual report of the New Zealand Employers' Federation.

"There has been some improvement in the employment figures during the past year,"' says the report, but the fact that there remain approximately 50,000 men on relief work or in receipt of sustenance is sufficient proof that unemployment is still a major problem. Although there has been a marked recovery in Great Britain during the last two years the unemployment there has been reduced only from 17.6 per cent., which was the average for 1932, to 13.9 per cent average for 1934. If that be accepted as a guide, it appears that while we in New Zealand may expect to improve our position, the elimination of unemployment altogether is likely to be a slow and difficult process. The chairman and members of the Unemployment Board have a very difficult task, and the way in which they are dealing with it entitles them to the whole-hearted support of the employers- of the Dominion. WAGES. "In our last annual report was included a full statement on the subject of wages, and relevant considerations in view of New Zealand's economic position were discussed. Since that report was written there has been a general trend upwards in wages and in agreements concluded with organised workers in the.interim increases averaging about 7i per cent; on the 1932 rates have been granted. In one case 1931 wage rates were agreed to without reference to our federation. "We think it necessary to emphasiisc the value of adherence to a general policy on the wages question, and to draw attention to the difficulties which employers as a whole may be faced with if small groups depart from the general standard and establish new precedents. The fixation of wages should always be undertaken with due regard to fundamental economic principles. Any group of employers dealing with wages has a responsibility to industry as a whole. "Most industries have been carried on during the last few years either without adequate profit or actually at a loss. Under such conditions there can be no increase Of employment. An upward movement has now definitely begun. Production is gradually increasing and is approaching more nearly to capacity. Increased production in cases where this has been well below capacity means reduced cost and competition wlil probably lead to the reduced cost being reflected in prices. This in turn should lead to increased demand and so to increased employment. Wage increases have an immediate effect upon costs, and care is necessary to make sure that the progress of recovery is not retarded by too precipitate wage increases leading to increased costs which would retard sales and again check production. BETTER TO GIVE WORK. "It is more valuable both from the economic and from the social point of view to increase the numbers of workers employed than to raise the wage level of those now in employment. Increased production approaching capacity will benefit workers in two ways, lower prices and more employment, and if organised labour will realise this and refrain from pressing demands for increased wages too far until recovery has made more' progress they will be wise. . • "At present the purchasing power of/wages is higher than in 1929, cost of living having . fallen more than wages, and this answers any accusation of unfairness which might be raised. As already stated certain wage increases have been granted during the year, perhaps .somewhat in excess of economic justification.

"We suggest now that further increases should be deferred until economic recovery has become more assured and industry as a whole has again reached a. profitable stage."