FACTORS THAT COUNTED

Evening Post, Volume CXXIV, Issue 60, 8 September 1937, Page 12

FACTORS THAT COUNTED

TREND TO COMMON

LEVEL

RECENT WAGE INCREASES

Certain practical considerations weighed with the Court, such as the relation of wages in all occupations tending to bring about a common, level. The judgment quotes the recent minimum rate for watersiders fixed by agreement at 2s Bd. an hour, in addition to which there is a guaranteed minimum weekly wage of £2 10s, and also the fact that under the Wellington Laundry Workers' Award the minimum wage of adult workers is £4 10s a week, although the work, being independent of weather conditions, is continuous throughout the year.. In the face of facts like those it appeared most reasonable that in respect of the more skilled occupations necessitating long terms of apprenticeship the minimum rate should be at least 2s 9d an hour. As for unskilled labour, industrial agreements for. general, labourers, in addition to insurance of constant employment, make wages from £4 to £4 15s a week, with payment for all holidays. The Queensland rate for builders' labourers, is 2s 4d and in Victoria 2s 4Jd. "It seems to the Court that New Zealand is not less favourably endowed by Nature than. Australia," says the judgment. "The Court considers, further, that it should maintain the ratio as between. skilled and unskilled rates observed in previous pronouncements.' The rates are standard hourly rates for. casual workers who may lose time because of weather conditions, short jobs, or of changing from one job to another. Unlike weekly workers, these men receive no steady income." It is equally reasonable, continued the judgment, that due allowance should be made for constant employment and in many cases provision should be made for employment by the week. There appeared no reason why the principle of weekly employment should not be extended. FUNCTIONS OF COURT. Disclaiming the extravagant functions ascribed to it by certain speakers, the Court said that all the recipients of national income were not within the jurisdiction of the Court and' that the rates of wages in all ocr cupations were not determined by the Court, but by the price of land. "Here we have a country more than six times the area of Denmark having a population of only fifteen people to the square mile, in which there is an artificial dearth of land for settlement and in which the fundamental industry of agriculture is, relatively speaking, languishing. Despite its wealth of statistical information and the use made of same at the hearing, it is a matter for comment that the Year Book does not disclose the number of farmers in this country. We have Professor Tocker's evidence, however, that the proportion of the people who are farming has decreased considerably in the last 30 years." In Denmark half 'the population was engaged in agriculture. While urban population in New Zealand played its part in national development, the centres were growing increasingly top-heavy, not being buttressed by an adequate rural population, with the result of undue competition for employment in secondary industries and the tendency of wages to decline. Labour advocates would do well to realise that the Court could not claim functions peculiarly within the. province of Parliament. The Court did-not agree with. Professor Tocker's view that it was the market for goods that determined the level at which wages could hi fixed. Despite the great advance in the price of gold, wages of gold miners in New Zealand had < not proportionately increased beyond the general level. BRIGHT FUTURE. Assuming the validity of the argument, however, New Zealand's export position was healthy, and Professor Tocker estimated that production for home use this year might exceed that of last year by £10,000,000. The future was not less bright. Wool prices had increased and should be maintained, if not further increased. Butter prices were firm and the output increasing. • Beef and mutton exports are in a satisfactory position and a promising outlook seemed certain. "In Britain there is increased prosperity, and this cannot fail to react favourably in this country," continued the pronouncement. "Our internal trade also is increasing, and the farmer is prepared to pay higher stock prices. Local market prices are improving. Generally company dividends and reserves are also increasing, and all these factors have been taken into consideration. HOUSE RENTS. "The question of house rent has been considered also, and the Court is satisfied that the amount allowed in the past in this connection is no longer sufficient. Time was whan it was estimated that a working man could pay) his rent with one day's wages, but that is no longer the fact. Another factor influencing the Court is that since the last pronouncement there has been an

increase in the rate of exchange, of which the effect has been increased protection to the manufacturer and increased prices to the primary producer, but these advantages have been conferred at the expense of the rest of the community and there has been no corresponding direct benefit to the workers to compensate them for the increased prices. "We have it on the authority, of Professor Tocker that usually production for the local market expands about a year later than export receipts, in that the increased income must circulate and cause increased demand before the means to satisfy that demand are provided. Taking the 'timelag' of one year into consideration and the healthy position at' home and abroad, the Court is of opinion that it is quite reasonable and in accordance with public policy to allow the increase hereinbefore prescribed. This pronouncement represents the decision of a majority of the Court. Mr. Prime's dissenting opinion is attached."