STANDARD WAGES RAISED BY 3d AN HOUR

Greymouth Evening Star, 16 August 1947, Page 7

STANDARD WAGES RAISED BY 3d AN HOUR

Amendments Effective From October 1

Gross hourly rates of 3s 7d ah hour fdr skilled workers, 3s 2jd to 3s sid for semi-skilled workers, and 3s Ijd an hour for unskilled Workers, the rates not to be increased by the apjolicatioii of the pffr visions of the two general orders bf 1J)46 and 1942, have been fixed by the Arbitration Court as the standard ihiriimuin rates of wages for adult male workers in future.

Making this pronouncement signed by Mr Justice Tyndall, the Court says that all amendments to awards and industrial agreements which may be made to give effect to this pronouncement before October 1 next will operate from that date. The Court proposes, as a result of the pronouncement, to increase the rates of remuneration of adult female workers broadly by such amount as will bring them to a level approximately 10s a week above the gross rates which in most cakes operated from April 1, 1945.

“The pronouncement does not mean that a geheral increase of 3d an hour will be granted in all awards and agreements,” said Mr Justice Tyndall. ‘Tt is to be clearly understood that this pronouncement is not in itself a general wage order and therefore has no operative effect. It is merely an indication bf the rates of wages up to which the rates.prescribed for skilled, semi-skilled, arid unskilled . workers in a certain number of awards and industrial agreements are likely to be brought by means of individual amendments. Regulation 39c of the Economic Stabilisation Emergency Regulations makes it abundantly clear that when the court amends any award or agreement for the purpose of giving effect to a pronouncement it must have due regard to any increases in the rates of remuneration of the workers affected by such award or agreement granted by the court since March 17, 1945.” The effect of the court’s pronouncement is that if awards and agreements are amended the minimum wages of workers, on a 40-hour week basis, as from October 1 will be as follows:—

“Price increases in the immediate future must result in a temporary reduction in the real wages of the workers and when the standard rates are to be varied for other reasbns, it seems reasonable and just that some provision should be made to meet the effect of the withdrawal of subsidies which has been announced,” says the court’s pronouncement.

Withdrawal of Subsidies

The court’s written judgment contains the letter from the Minister of Finance (Mr W. Nash) to representatives who attended the original hearing On the standard wage increase application, and the court says it appeared clear from the letter that, the cancellation of subsidies would be followed by price adjustments which must necessarily affect the cost of living and the war-time price index. “In reaching a decision, the court considers it desirable to make some allowance in respect of the administrative intentions of the Government. We anticipate that the war-time price index will show an appreciable upward movement in the next few months, and that an important fraction of that movement will be attributable to the withdrawal of subsidies.”

The court, proposed, therefore, to make such provision, adding: “We do not consider that any portion of an increase in the standard wages rates which we may consider to be justified for the purpose of restoring or preserving proper relationships should be regarded as a set-off against future increases in the war-time price index due to the withdrawal of subsidies, for the reason that many workers have already received the benefit of increases over and above the standard wage rates. Other less fortunate classes of workers are entitled to have their rates of wages brought into line independently of any allowance made in respect of anticipated increases in the cost of living, which will be universal in their incidence. Price Index

“While we express no view upon the submission that the war-time price index is an inadequate indicator of variations in the cost of living, we are bound to point out that its deficiencies, if they exist, have not resulted in any reflected retardation of wages rates,” says the pronouncement.

The war-time price index for March, 1945, was 1006, while the figure for March, 1947, was 1013, an increase of 0.7 per cent. The figures for the weekly wage index for the same months were 1287 and 1454 respectively, an increase of 13 per cent. WOMEN WORKERS’ WAGES: COURT GIVES REASONS

To grant the claim that the rate for adult female workers should be fixed at 90 per cent, of the unskilled adult male rate would, in the opinion of the Arbitration Court, involve going beyond the purpose of the Stabilisation Regulations as to the desirability of restoring or preserving a proper relationship between the rates of remuneration of various classes of workers.

It appeared to the Court that one result would be to increase substantially the spending power of an important section of the community without the prospects Of a .commensurate increase in the production of coiisumer gbods and services. Further, it was ihclihOd to the view that the main question at isslte was one i’ratight With such grave Social and economic consequences that it Was more a matter for the direct Consideration of the legislature, specially as Parliament had already given an indication of its Will ih~ the Minimum Wage Act, 1945. The Court proposed to increase the’ rates of remuneration of adult female workers, broadly, by such amount as woUld bring them to a level approximately 16s a Week above the gross fates, provided fof ifi the amendments which followed the 1945 pronouncement and which, in most cases, operated from April 1, 1945.

Present New Increase. Rate. Rate £ s d £ s d s d Skilled . G 12 9 ' 7 3 4 10 7 Semi-skilled . . 5 18 8 6 8 4 9 8 to to to 6 7 6 6 17 4 9 10 Unskilled . 5 15 3 6 5 0 9 9