ABILITY TO PAY

Evening Post, Volume CXXV, Issue 144, 21 June 1938, Page 10

ABILITY TO PAY

BURDEN ON INDUSTRY

ARBITRATION COURT AWARDS

INCREASING COSTS

T'.T! manufacturing industries of \~\~w Zealand are bsing crucified upon ! a cress of political expediency, declares Uho New Zealand Manufacturers' Federation in commenting upon the statcj ment mads yesterday by Mr. F. D. j Cornwell, secretary of the New Zeailand Federation of Labour, with reference to Arbitration Court awards. "The statement by Mr. Cornwell has made it plain to everyone,in the Dominion that our manufacturing industries are being slowly but surely squeezed out of existence," says the federation. "He pointed out that Judges of the Arbitration Court had stated repeatedly that an industry which could not pay a living wage did not deserve any consideration; he pointed out also that the Court says that the matter of tariffs is one for the Legislature and not for the Court. "The Court goes steadily on with its practice of increasing costs, the Government goes steadily on with its practice of ignoring the consequences of the increases. The manufacturing industries are being crucified upon a cross of political expediency. Under these circumstances, every sentence in an award means, in the final issue, a hundred workers out of a job. COST-RAISING BURDENS. "In regard to the doctrine that an industry which cannot pay a living wage does not deserve any consideration, we must point out that industries which paid their way for many years cannot do so today—and through no fault of their own, as a result of costraising burdens imposed by industrial legislation. They are, therefore, to be considered, in the eyes of the Arbitration Court, as unworthy of existing. In these industries, the empty benches and idle machines are a tragic sight. "Mr. Cornwell refers to a living wage. What foundation has he for the statement that the scale prior to the new award was not a living wage? Can he tell us what relationship any of these recent awards has had to the

living-wage scale? The living-wage relates to a man, wife, and three children. The awards prescribe wages for adult males and females irrespective of condition.

"Is organised Labour out to get its maximum regardless of the ability of industry to pay? If so, it should state it frankly and openly. On a 1926-30 base of 1000, the latest Abstract of Statistics gave the price index (retail) for March as 942, and the wage-rate index (adult males) as 1063.

"Meantime, the Arbitration Court is just as active .in its work as the Government is inactive in its duties and obligations to the producing industries of the Dominion. Accordingly, every industry subject to overseas competition must look forward to qualifying sooner or later for the category of industries which cannot pay a living wage. When that time comes for each of them, it 'will'not deserve any consideration.* . "As in all such situations, it is the public which will be the sufferer and will bear the burden. A country \fith its producing industries destroyed is a country doomed to destruction."