WAGES CASE

Evening Post, Volume CXXX, Issue 16, 18 July 1940, Page 6

WAGES CASE

EVIDENCE CONCLUDED

FUTURE PRODUCTION

BEARING ON INCOME

The evidence.for the employers in the proceedings under the Rates of Wages Emergency Regulations, in which the New Zealand Painters' and Decorators' Federation is asking if or a general order fixing rates of wages in industry, was concluded in the Arbitration Court yesterday, afternoon, and Wie hearing was then adjourned until 'tomorrow morning, when the respective advocates will present their replies.

Mr. Justice Tyndall is presiding, and with him are Mr. W. Cecil Prime, emwloyers' representative, and Mr. A. L. Monteith, workers' representative.

Mr. J. Robinson, of Dunedin, with him Mr. F. D. Cornwell, of Wellington, is appearing for the workers, and Mr. D. I. Macdonald, of. Christchurch, is advocate for the employers.

In reply to his Honour, Mr. W. Machin, president of the New Zealand Employers' Federation, agreed that it looked as if the.total return from the current export year would be appreciably higher than the* previous year, assuming that the volume of production did not fall in the next six months. He was not sanguine that there would be any great response to the appeal for more production.

His Honour: If we have only a moderate increase in volume, plus an increase in value, the total return must show an appreciable increase.

Mr. Machin: At the best it will,

He did not think it was fair to say that because the. export return of the country was so much more because of increased production the worker should receive a higher rate.

His.Honour: I did not say anything about higher wage rates. All I was trying to get at was whether you agree that if we have a greater number of pounds and the worker gets the same share as in the past, then the number of pounds available for distribution among the workers will be greater this year than last year.

Mr. Machin: Yes. The amount of wages distributed to the workers out 61 the aggregate will be greater.

TWO ALTERNATIVES

There would probably be less workers in industry, this year, there certainly would not be more, said .his Honour. Those men, then, would either have to work longer hours at present rates or work harder within present hours. Sir. iviachin: Yes, if the total production is to be greater1. Further reference to the April conference of employers' and workers' representatives was made by Mr. Machin in reply to his Honour. He said that as president of the Employers' Federation and knowing the minds of the federation members', he could say that they would have liked to have . let wage rates continue as they were at present. However, since I the question of an increase "had been raised on behalf of the workers, it had been suggested that formal application for a reduction should be made to the Court, by the employers. They did not like the idea of doing it, but since they had been brought to the Court their attitude- was Chafer tbey: were entitled to a reduction in wage rates. His Honour thanked Mr. Machin on behalf of; the Court for the assistance he had given to the. Court in his evidence and for Ms. frank answers to questions. . -V EXPORT REALISATIONS. Mr. W. .Marshall, chairman of directors of the:New Zealand Co-operative, Dairy C0.,; Ltd., said .that in the.long run New Zealand was tied to export realisatioris;overseas. He could not see how the Government could control the Dominion's external economy. Referring -to Mr. Robinson's submission that the Dominion's overseas trade was in a-' very healthy position and likely to become more robust still during the preterit year, Mr. Marshall said that his company's organisation in England was of opinion that to restore the consumption of butter in competition with margarine it might be necessary to reduce the price of butter to between Ifld; and Is a pound. That would probably represent a drop in return of 35 to 40 per cent. A reliable estimate was that for the export year ended July 31 next the value of butter and.cheese would be £26,000,000. A reduction in the price of butter to the figures he had given would leave a deficit in the Dairy Industry Account, if-the volume of exports was maintained, of £9,000,000 or £10,000,000 a year.

Mr. Macdpnajd said that the employers were not asking for any reduction iri wage rates, but for a standstill in award rates under the present circumstances. The resolution carried at the April conference did not bind the employers in any way; they had merely agreed that the workers should be enabled to apply to the Court for a general' order.