BASIC WAGE

Greymouth Evening Star, 29 June 1921, Page 7

BASIC WAGE

N.S.W’S PROBLEM. SYDNEY, June 14. An example of the danger of adopting entirely new schemes involving legislative or socialistic experiments without seeing clearly where they are going to lead is afforded at the present time in New South Wales in connection with .the basic wage arrangement. At the end of the war and during the post-war period, when economic conditions throughout the world were practically in a fluid state, and wages were trying to follow the cost of living in a mad climb skyward, the New South Wales Government adopted the basic wage system. A Board of Trade was authorised to make a close inquiry into the cost of living in the State, take all the contributing factors into consideration, and declare the lowest amount on which a man, his wife and three children could live for one week. This was then declared to be the “basic wage’’ and no adult male worker in the State was to receive less than this, except in very exceptional circumstances. This wage was fixed every year, and it certainly helpd to keep labour quirt at a time of great difficulty. Prices were steadily soaring, and of course the basic wage increased year after year. I.ast October it was declared to be £4 5s per week, and the Boaid is now getting into action with a. View to making this year’s declaration next October. Now comes the- reverse side of the picture. Organised labour had a score of reasons for lifting the basic wage, but it was raised because tiie cost of living was greater. Or-

ganised labour still urges its reasons, but the cost of living has fallen and, therefore, the basic wage must come down too. J’rices reached their peak in this country in September last, and the fall since then, in common foodstuffs alone, represents 18 per cent. The trading and employing class, who find present conditions a tremendous handicap upon commercial enterprises, are clamouring 1 for a Lower basic wage ; but organised labour is giving every indication that it will fight to the last ditch against' any reduction whatever. Which is just what organised Labour might be expected to do. The Board of Trade is composed of trained business men, who have some slight knowledge of economies, and in fairness and reason they must make some slight reduction in the basic wage. Otherwise the basic wage arrangement becomes a farce. The Labour organisations, of course, see a fight coming, and are rallying their forces. Tlie Labour Cabinet in this State is in a dilemma. It is suffering great opprobrium because of the deplorable state of its finance—which is caused mostly by the basic wage in the civil service. But it dare not defy the unions.