WORKERS’ CLAIM

Gisborne Herald, Volume LXVIII, Issue 20624, 27 November 1941, Page 4

WORKERS’ CLAIM

INCREASE IN WAGES OFFSET HIGHER COSTS ARBITRATION COURT CASE (Per Press Association.) WELLINGTON, this day. The Arbitration Court, presided over by Judge Tyndall, heard further argument yesterday in an application under the rates of wages emergency regulations lor an increase in pay to cover the increased cost of living. The application is by the New Zealand Engine Drivers, River Engineers, Marine Engine Drivers, Greasers, Firemen and Assistants’ Union. Mr. A. McLagan, president of the Federation ol Labour, is conducting the case for the applicants, and Mr. W. J. Mountjoy, secretary of the Wellington Employers’ Association, is acting for the New Zealand Employers’ Federation. Mr. McLagan said that while there was conclusive proof that wage earners had done their part in providing the increased production necessary to maintain the nation’s economy, the level ol effective wage rates was declining. It was submitted that if wage earners were to maintain production, it was essential that they should be protected against the increase which had taken place, and which was still taking place, in the cost of living. The rate of production, he said, could only be maintained if the standard of living was protected. Purchases of N.Z. Goods “We submit that the court should ' bear in mind the fact that a considerable proportion of the expenditure of the average wage earner is directed to goods which are produced in New Zealand,” said Mr. McLagan. “Many food items fall in this category, as do housing, provision of fuel and light, and certain clothing items.” Mr. McLagan said the decrease in the total goods available for consumption was due to the decrease in imports. He submitted that if the 10 per cent decline in consumer goods shown in the index had actually taken place, the effect would be patent. New Zealand would be suffering from an obvious inflationary position, but that was not the case. He submitted that the index did not measure the total volume of New Zealand production and did not cover all avenues available for the expenditure of wages or other income. It would be reasonable to say that the services of approximately 200.000 persons were not covered by the official indices of the volume of production of goods available for consumption. No Danger of Diflation

The applicants submitted that, although there were particular shortages and many goods had increased in price, there was no general shortage of consumer goods and services which would lead to any danger of inflation if the court granted an increase in wage rates to cover the increase in the cost of living. To illustrate his submission that the official retail price index had many important omissions, Mr. McLagen said that the list, apart from potatoes and onions, completely excluded fresh fruit and vegetables.

“Apparently the Government Statistician does not consider these items as essential to the workers’ standard of living,” he said. “This is a major item of expenditure in an average household, and one on which it is not possible for workers to economise in any substantial degree without affecting the health of themselves and their families.”