EXEMPTION CLAIMS

Evening Post, Volume CXXX, Issue 53, 30 August 1940, Page 4

EXEMPTION CLAIMS

N.Z. MOTOR AND HORSE

DRIVERS

FIRST CASES HEARD

| The first of a series of applications for exemption from the order of the Arbitration Court prodding* for a 5 per cent, increase of wages were heard in the Court yesterday afternoon. An application was made by the employers governed by the New Zealand motor and horse drivers' award, who claimed complete exemption from Part 2 of the award, on the grounds that they were "precluded from passing on any portion of the increase in overhead, and that the workers affected by the part of the award from which exemption was claimed had been granted an increase of 5 per cent, less than three months ago; since then there had been no increase in the cost of living or other circumstances to justify any further increase of wages. Mr. H. J. Bishop appeared on behalf of the employers and Mr. F. C. Allerby on behalf of the workers.

The workers governed by Part 2, said Mr. Bishop, were chiefly those concerned in long-distance hauls and with primary producers, and worked on an 88-hour fortnight. In their case there was no justification for an increase, as their hours had been taken into consideration in granting them the 5 per cent, increase when the award wag reviewed.

Evidence was given by Mr. H, J. Knight, secretary of the New Zealand Road Transport Alliance that, over the three districts forming the alliance's No. 2 district (Wellington, Hawke's Bay, and Taranaki) an average owner- ■ driver's annual takings in 1938-39, after! drawing wages at £5 2s 6d a week, would leave him £66 profit. Figures were not obtainable for 1939-40, but, allowing for an increase in schedule ! rates, an increase of 3d a gallon in petrol over the year, and an increase in ; wages of 2s 9d a -wreck, he would come '.. out much the same as in the previous year. The 1940-41 position would be different. Wages were £5 10s 6d before the general increase, and now averaged £5 16s, and the increase in the cost of petrol would amount to £40, leaving him, if he did the former amount of business, with a profit of only £15. If one took into consideration the cost of tyres, it could be seen that the ownerrdriver could not pay 'interest on capital and depreciation, if he paid himself £5 16s a week in wages. UNION'S OPPOSITION. The union, said Mr. Allerby, opposed the application on the ground that the Court when making the award did not grant a general increase. The 5 per cent, extra was given to the 44-hour workers because of their anomalous position in having been paid the same wages as others who worked shorter hours. If the exemption sought were granted the workers under Part 2 would still be in an anomalous position, as the higher rates in Part 2 were on account of more elastic conditions. The cost of living was not taken into consideration when the award was sought, as it was understood that it would be dealt with when the General Order was heard. Employers could apply to the licensing authority at any time for a revision of their cartage rates. Decision was reserved.