PENCE OR SHILLINGS?

Evening Post, Volume CXXVI, Issue 7, 8 July 1938, Page 11

PENCE OR SHILLINGS?

A QUESTION OF WAGES

"Mr. A. S. Richards, M.P., is reported to have stated that a 10 per cent, increase in wages means only an additional l£d in the pound sterling to the manufacturer," says- a statement by the New Zealand Manufacturers' Federation.

"It would be difficult to find a more inaccurate statement in regard to the position of industry. Wages as a proportion of total cost vary considerably in different industries and in some cases they go up to 75 per cent, of the total factory cost. It will be seen that in such cases the factory cost addition in the case of a 10 per cent, increase in wages is Is 6d in the pound. To talk of l£d in the pound is the height of absurdity. .

"Even where the value of materials bulks largely" and wages are only 20 per tent, of the factory cost, a 10 per cent, increase in wages means 5d in the pound.

"Mr. Richards is reported as stating that business firms are doing a larger business at a lower percentage of cost in proportion to turnover than they have done during the last thirty-five years. Unfortunately, this statement is just as palpably erroneous as the former.

"Union officials have stated publicly that employment in their industries is dropping off at an alarming rate, tin one centre a union official stated publicly that a factory with 260 employees had been compelled to reduce its number of workers to 150, and was working a thirty-hour week. The thirtyhour week is, of course, equivalent to a reduction of another thirty to forty hands. '

"We feel that we must ask if Mr. Richards has become confused with the basis of his own figuring.!'