PUBLIC SERVICE SALARIES

Evening Star, Issue 20313, 23 October 1929, Page 9

PUBLIC SERVICE SALARIES

RESTORATION OF “CUT" IMPOSSIBLE PREMIER'S EXPLANATION MR HOLLAND'S ATTACK [Per United Press Association.] WELLINGTON, October 22. The following is the committee’s report, referred to in Sir Joseph Ward’s statement regarding Public Service salaries;—“ We have carefully considered the representations made to the Government by various organisations with regard to what may be regarded as the restoration of salary ‘ cuts.’ To restore the ‘ cuts ’ .in the several services at the present time, after making allowances for the improvements which have been granted, would cost at least a million per annum. We are of opinion that a general attempt to restore these reductions or to increase generally the salary scales is not warranted, practicable, or capable of equitable adjustment, mainly for the following reasons :

“ (1) That the present maximum salaries for the lower grades of the services are. largely in accord with the rates of remuneration generally paid in outside employment (as far as they can be reasonably compared). “ (2) That in individual or other cases where the responsibilities of officers warrant there is machinery by Way of regrading for meeting such cases without affecting the whole services. “ (3) That there have been fresh appointments to the services and new positions created, due to the extension of tlie State services since the ‘ cuts ’ were made.

“ (4) That there has been a subsequent general regrading of the services, which has taken into consideration the relative responsibility of the positions, both in relation to other positions in the services and to comparable positions m outside services. (5) That officers generally had the right of appeal to independent boards as to their salary and grading. “ (6) That the statutory quinqueainial regrading of services is again being undertaken this year, when further opportunity will he afforded to adjust salaries in relation to the value of the service rendered and the responsibility involved.

“ (7) That the restoration of the salary 4 cuts ’ as such or a general increasing of all salary scales would have a far-reaching effect, and would tend to create a false standard of values that is bound to have a reactionary effect. There may be certain cases of 4 hardship,’ but these can be individually considered in connection with the regrading which is under review. The determination of these cases, however, should be left to each separate administration to deal with.”

Sir Joseph Ward goes on to say : 14 The financial position of the dominion was pointed out plainly to the parliamentary deputation, and I think was fully appreciated by the members thereof. The present is not an opportune time for considering any claims of this nature, involving as they do an additional expenditure of more than one million pounds per annum, more especially when one considers the amount of unemployment which exists and the additional taxation for other purposes which it has been necessary to impose to enable the Budget to be balanced this vear. It must, I think, be apparent to all that the granting of these requests would necessitate a further burden by way of taxation, it will be observed 'from an examination of the statement given by the committee that the question raised by the various organisations is not so much a matter of restoring something the present employees of the service have lost (which the term 4 restoration of salary cuts ’ naturally implies, and which is apparently the impression of some honourable members) as an adjustment of the grades of salary. It will he appreciated that there have been a great number of changes in the personnel in the various departments by way of retirement, promotion, and alteration in individual classifications since 1922, and, as pointed out by the committee, the only question which can reasonably be considered is not one of a general increase of every public servant's salary, but adjustment by way ol regriicling or reclassifying, based on a careful analysis of the particular merits of each individual case or class of case. The loregoing explanation does, I consider, materially alter the complexion of affairs, and, indeed, 1 am assured that a large section of the officers in the Government service realise tne impracticability at the present time of making any adjustment by way of an all-round increase in rates of pay. The only practicable and reasonable method of dealing with salaries is by way of a general regrading of the service, which already lias been partially accomplished and is in course of completion, in the case of the second division of the railway service (which is not alfectcd by regrading) the rates of wages and conditions of work arc being constantly brought under review for'the purpose of making adjustments as circumstances may from time to time seem to justify; and a number of such adjustments has been effected since the ‘ cuts ’ were made. The Leader of the Labour Party (Mr H, E. Holland), in a statement to the Press, said lie was wholly disappointed with the pronouncement made by the Prime Minister respecting public servants’ salaries. Ho was certain that the whole of the Labour movement would be equally disappointed. It was clear that the public servants of New Zealand had confidently expected that the injustices inflicted upon them by the , Reform Government would bo righted by the present Administration. The reductions made under the provisions of the Public Expenditure Adjustment Act, 1921, not only heavily penalised the public servants, but depreciated the general ■ purchasing power of the community, and consequently adversely affected the whole economic conditions of New Zealand, it seemed as if part of the purpose of the Reform Government in making these reductions was to enable heavytaxation remissions to be made to tho very wealthy land and income tax payers. At the time of the passing of the Act a definite promise was given that restoration would be made when conditions improved, continued Mr Holland. This was insisted upon on more than one occasion by the members of the present Administration. For instance, on August 29, 1924, Mr Wilford moved in the House in favour of P. and T. employees earning -£320 a year and under bdng restored to the 1914 standaid. Tin's was defeated by 30 votes to 28. Among those who voted for the proposal were Messrs Atmore, De la Perrelle, Forbes, Ngata, Wilford. Random, S’dey and Veitcb. On August 30, 1928, Mr M'Combs. oh behalf of the Labour Party, moved to the effect that since the rates paid in 1920 were based on a 62 per cent, increase in the cost of living (which increase had become stabilised since 1924), the Public Service salaries should be restored to voted with the Labour Party were the 1920 standard. Among those who Messrs - Atmore, Forbes, Ransom,

Sidey, Veitch, and Wilford, so that no fewer than eight of the present Cabinet Ministers had in the past voted for what the public servants were now demanding, and which the Government had to-day refused. The acting leader of the Government (Mr Forbes), in justifying his support of the amendment, referred to and recalled the promise given that the cut would be restored when conditions improved, and argued that tho principles that would actuate a private employer in such a. ease should also actuate the State. After eulogising tho public service, he suggested that now that the service had come along and conditions had improved immensely in regard to the returns of departments, the Government should carry out the promise that was given when the reductions were made. He considered that the public servants’ appeal was irresistible, and he did not know how it could be disregarded. It seemed to him that they had established a very clear case. Mr Holland said that, in view of tho votes given and the pronouncements made by every member of the present Cabinet who was in the House on different occasions when the question of Public Service salaries was raised, tho country was entitled to expect that tho Government would honour the commitments so made. The statement of policy just issued, however, contained no glimmer of hope for an overwliH-miig majority of members of the Public Service, and the widespread dissatisfaction in tho ranks that had become more emphatically articulate within the past few months would be intensified a hundredfold. A DUNEDIN PROTEST At a largely attended meeting of tho Dunedin section of the New Zealand Post and Telegraph Employees’ Association held on Monday evening, the following resolution was unanimously carried:—“That this meeting seriously affirms the widespread dissatisfaction throughout this section because of the failure of tho Government to effect necessary salary improvements by means of reclassification. The attention already given the matter is hopelessly inadequate, and you are urged to represent our case absolutely on a reclassification basis. We urge thc_ immediate adoption of the association’s reclassification schedule which will provide increased salaries based on the value of the work performed by all officers, and which will further increase the efficiency of the service.” A copy of the resolution was telegraphed to the Postmaster-General (Mr J. B. Donald) and tho Otago members of Parliament. ANOTHER PROTEST At a well-attended meeting of the Thames section of tho Post and Telegraph Empoyees’ Association the following resolution was unanimously carried ;—“ That this section emphatically protests against the Government sidestepping the issue in regard to reclassification in the P. and T. service, and ignoring our rights to reclassification due from April 1 last. A restoration of salary cuts was not asked for by our organisation, and the action of. the Government in introducing the matter of restoring cuts to the Public Service as a whole is merely drawing a 4 red henring across the scent.’ Tho proposed promotion of 200 clerical officers to £320 a year will cause more dissatisfaction to the already disgruntled service. In effect this palliative is merely restoring the notorious cuts to 200 men, leaving thousands of others as they were with nothing done for the lower paid officers. Tho P. and T. service is a self-supporting oner and should be judged ou its own resources, and not with the rest of the Public Service. This section demands justice, and that the five-yearly reclassification from April 1 last be proceeded with independently of any restoration cuts to the Public Service.”'—Press As* sedation telegram.