WAGES PROBLEM

Gisborne Times, Volume LVIII, Issue 9669, 16 April 1923, Page 5

WAGES PROBLEM

ARBITRATION COURT REVIEWS COST OF LIVING.

DROP EQUAL TO 2/- PER WEEK

NO GENERAL ORDER TO BE MADE.

AUCKLAND, April 15. The pronouncement of the Court of Arbitration re cost of living for the six-monthly period, October, 1922, to March, 1923, is as follows: As on all other occasions, the Court has made use of all the groups of statistics and has worked on the principle of a six-monthly' moving average. When prices were rising, yvages yvere increased for the current halfyear in accordance yvitli the average increase in the cost of living during the half-year. When prices began to fall bonus additions to yvages were reduced for the current half-year in accordance yy'ith tho average decrease in the cost of living for tlie half-year. We have, on former occasions, stressed the fact that, on a rising* market the adoption of the sixmonthly moving average operates someyvhat to the detriment of the 'worker, for _ his yvages tend to keep behind the increasing cost of living, though this is usually offset by great- , er regularity of employment, more overtime and a tendency on the part of employers to pay more than the award rates to the large percentage of ' their employees, yvhile on a falling 1 price-market it operates in favor of ; the worker, who then starts the halfyear yvith wages some points ahead of the current cost of living' and increases his advantage month by month. With the exception of rent, j yvhich has increased by 7 4.60 per cent, during the half-year, all groups and sub-groups show decreases ranging from 2.32 to 4.55 per cent. Tho group figures are as follows:

Half-year ended 31st March, 1922 30tli Sept., 1922 31st March. 1923

Percent, increase over July, 1914

Measured in wages, the decrease in 1 the cost of living is equivalent to a '■ reduction of id per hour, or 2s per • yyeek in the male adult wage. It is to be noted that the fall in the cost of living yvas smaller for the past half-year than it yvas for the preceding half-year. There has been a ten- , dency, too, in a number of lines to- 1 wards hardening prices during the' last few months. This yvill, in all probability, not be permanent, but it may be more than merely seasonal. Rents are still increasing and are not likely to fall until building costs are reduced and the housing shortage ov rercome. These circumstances lead us , to the conclusion that, if the money ‘ yvages are diminished by 2s per week ! for the half-year May-Octpber, 1923, 1 the result may be a reduction not j qnlj 7 in money 7 wages, but in purclias- I iiig power, which means a reduced standard of living. The Court is required by section 9 | of the Industrial Conciliation and At-*; titration Amendment Act, 1921-22, to : have regard to a fair standard of liv- ; ing for yvorkers as yvell as to the general financial and economic position of trade and industry in tho Dominion. The general position has, undoubtedly, improved, though at least another good year is necessary 7 to on- ■ able us to say that financial stability ; has again been attained. All this, taken yvitli the fact that, in many i trades, employers did not find it neces- j sary to put the last reduction of mon- ' ev wages into operation, leads us to conclude that it is unnecessary and.' undesirable to make a general order, ! reducing money yvages for the ensu- i ing .half-year in accordance yvitli the j statistical finding quoted aboy'e. Furthermore, Mr Scott informs us ' that he is authorised by employers ! generally to say 7 that, in the event of j tiie cost-of-living statistics showing ! only a small decrease, they will not j ask for a general order reducing the j money yvages if the Court, in vieyv of j the information it has at its disposal, j considers the making of such order to he undesirable. For these reasons, ! we do not propose to make a general order altering the rates of remuner- j ation of workers for the period May- , October 1923, but to carry forward : the result of our calculations to the next half-yearly investigation. . The decision of the Court not to , make a general order does not, of , course, operate so as to prevent em- ■ ployers hound by any award or industrial agreement from making applica- ' tion to the Court on special grounds for a variation of the rates of the re- i muneration fixed by 7 that ayvard or in- I dustrial agreement. Such applica- i tion may lie made to the Court in the ordinary yvay and yvill he considered 1 on its merits.—P.A. j