WAGE CUTS.

Grey River Argus, 15 May 1922, Page 6

WAGE CUTS.

CASE FOR LABOUR. MR McCOMBS’S STRONG ARG GM ENTS. In the course of hi.-, argument before the Arbitration Court at Weilie/ton recently against the wage cuts. Mr Jas. McCombs, M.P., continued as follows: — WAGES ALREADP REDUCED. We would point cut that in ;»d*lition to the reduction already alfected by witholding the 5s bonus actual wages have also been reduced. io many instances employers who paying considerably more than the minimum provided by the Court nave reduced. wages to minimum rates thus affecting other trades and industries by reducing the spending power oi the peop-e. There is also the reducvion which intermittent employment means When prices were on the up grade, the workers wt re not granted im Tea lies equivalent to the increases in the cost of living. Three principal de<’sicns of the Arbitration Court operated to prevent the workers receiving increases in pay equal to the in< ceases in the cost of living. It was not till November. 1918, that the Court nus giv<n definite power to review existing awards and increase wages in |>ropo>rtion to the increase in the cost of living, and it was not till March, 1919, that the Court exercised the powers conferred by the 1918 legislation during all that period from 1911 to March, 1919 wages were not lagging far behind the. cost of living. In giving judgment in March 1919. Mr .’i;stice 8t ringer stated tJibt ‘ notwithstanding several increases granted by the Court during the war to workers in different indiistr s. they a.re ' V a worse pos tio. iiim'i’.vbilly tlru were at the oi ’break of the v: i k OWU h as Cteir real as distftij.u sh A ’ W their i” m.'nai wag< s has »/•«•» ' fc.” That position lemains to■‘.ills'* all increase, granted won oil ii cement did not go '• I than th. -i?. months *: In fact the pos tion stat Mr Justice Strinyer regarding rnc reduction of real wages has .net been accent naled firstly b\ a i.'otlioi l of computing bonuses which the < > vernn.erit Statistician s id v;<- no satisfactory, but which the ( :r( ni listed on, pimti’y t-'n < omtputnt <>: of aJII bonuses on the influenza ep’demic price j>eak period as nasc when food prices rose nearly 190 points in three months. If in tin* first place the workerhad been given any allowaaue in wages - vd <y>m.|M‘nsato for abnormal j.ricc p«ik there might have been some jus tafi cation for the Court insisting that price increased should be measured upwards commencing from the mean of this mountain peak of prices. 'I he result was that the workers lost 6s of the 9s bonus which the acting Government Statistician said was dm', Ju having made his computation on 'mes which he considered fair and reason* ab'e That the Employers Asset a ton realised that a 9s bonus was due even before the Court made its pronouncement is evidenced by an interview given to the newspapers the day after the 9s bonus was announced. The report road as follows-.— “A REMARKABLE PREDICTION. ‘‘Mr Pryor is as haviim remarks! incidentally that all direr declarations of the Court bad heee predicted months and months ago .vtl remarkable accuracy by Mr Cooper Secretary of the Christ' hnri h Enn’lovers* Association. He was a man tin i oughly familiar with statistics, ami made his conclusions by mea t( , cl mathaint-tieal deductions. \\ hen Lt declared his conviction that the No. vember bonus w< dd l.e at lea-t 9« j>er week, Mr Cooper had lieon 'aligned at, but the recent dt < lara t ion ol the Court h id proved h-s g-p; ositi.'m> correct, as in the case of the pre: • ions bonuses of 4s and 6". Lastly there wa< th Stabilisation pronouncement which has not soiled out exactly as the Court anti, ip«nUd although that matter can m>w be adjusted by extending the pencil of Stabilisation.. In view” of all these circumstance I ', it would be obviously uni air to reduct' wage's to the full amount shewn by the reduction in the cost of living because wages weio not so increased on the up grade To do so would multiply by two the disadvantages and hardships which the workers had to put up witn miring the war period and since*. 'Hie net result of these various derisions and policies is that the workers are not now’ receiving with bonuses included a raette of remuneration sufficent to “maintain a fair standard ol Irvine. OTHER COUNTRIES. It is quite time that wages in other countries have fallen, but the i icti in stances were altogether doifc rent to that whic h has obtained ’n New Zealand when prices were on th * upgrade and the circumstances uh eh obtain in New Z.sdaiid to-day. In England, in America, and in the neutral countries on the Coni inent wages increased in a- greater ratio than the increase in the cost of living and consequently when prices fell to a greater cxt ’nt than in New Zealand, there was gr* ter opp.ortunity for r<‘du':tion of wages. A year ago a cable Irom ( -n I’hagen stated that - The Employers’ Association hais increased on an average 289 per cent since 1914, while the living costs in the same period increased 168 per cent.” Tn New Zealand owing to thrf ditfe-ent prim ip les laid down by the Arbitration Court —first bearing the war burden : sec- ’ oct, calculated on the optiod ; wng ° S

-The workers in New Zealand have ’ only received a (ill to (5o per rein in- i Hase in wag's to meet an So to 90 | per cent im-reasr in the cost ot living. E( O.NO.MK CONDI TIONS. Passing now to the (-oiisideralioTi of other matters which the Court re- » (piired io consider such as the eu’ect ' an trade anil industry and any ether revclant considerations wc would point .mt that there' is evidence of imrensnig prospirity lor New Zealand, tlur exports for the last fourteen months ending Ee-bruary exceed SP» millions sterling wh’.'e our imports were 18:] millions (air experts for the vear just closed exceed in amount the total 'or th.* two pre-war years. That, there is every reason why New' Zealand ■ should be the most pa - o>perous 'Oiiniy in tin- world if it was properly managed is further evidenced by the I fa<t that our total exports tor the] last ihrer years exceed Ila mill'ons sterling, and our imports 135 millions. \m cxporis for 1919-20-21 evcoedi’d by four milbi’tis the total exports tor the bets seven pre-war ye:vr.s. The heavy importations in 1920 mid in the* beginning of 1921 only temposirily disturbed the balance of trade Hid if there- art' any to-d:vy with surplus stocks we submit iliat keir position wdl not hr relieved l;.v reducing the spending power of the pc'oplr. In a Gddliall speecli, deliver, ed eight months ago. Mi Lloyd George, in discussing the probh»m of glm-iod. markets said, ’■you must create ] ur•hasing |>ower.” > BLSINESS PROSPECTS.

One of the* finest institutions of its kind in the world is the Harvard Ecc.ni>nii< Service. It has been making invest igi't : ons in regard to business pios_ )C€-ts and th<- probable trend of prices in 1922 ;.>nd 1923 and in one nt >ls weekly It tiers <>l January this year t stales inter aha. (a) that the storks •I' I'a. r.i produce a.re moderate, (li) '1 bat the d' in the output of manu‘fadured goods in 1921 nas greater than tl’<‘ decline in the consumption •f such goods, (c) 'That although wholeal<- preies of mamifacturccT goods are 'till high relative to minerals, raw materials, and farm products, the wages nd retail prices s tuation offer resist. int(‘ to rtidical reductions in tlic price's such goods (dl That, a considerable rise in the prices of farm I'rodiicts is die line of l<«a,st res : »?.ta-ncei toward *<■l dying the pit-sent prices maladjustment. Th> la'tter statement, ought to lie .rood news to our farmet.-, ami rt is •ertuinly borm* out by the rises wiib h Give taken place recently in the pines , if w<»o|, meat, am' r»utiv». What Ims been sa : d in regard to the prediahdity of improving I'.usiness and 'filjier general commodity prices hi ’922 23 shomd not lie interpreted as meaning that a business boom is in irospect, because the numerous adcrs*.' factors in. the situation make meh a development high improbable, fncomple'te liquidation, a 1 larinmg community with low purchasing power, xce-ss'ive taxes, and the very critical European s’tuation are* all obstai l<‘s vhich tend to retard business Biit. when a''l factors are duly wo.gh*d it prcdiabte that 1922 will be a year of easier money, betterlms;ness. mere stall!*.* prices, and higher profits than was 1921, and there is evidence, a-lso, th.at the g’em-ral movement of business a-ml uholsale price's will he upward. 'Then* no iv-ason, however, to anlivipate a boom n 1922.” The xopansion of our secondary inlustrios in Nev. Z*‘aland iis a’so a* matter for congratulation. The total alim of goods macula* tur< d in 1916 was 451 millions. The total value lof 1921 was 82.1 millions. Almost entirely tin* w hole of these manuiactuied article's are sold on th heal market and if this expansion <>t business is to be maintained the purchasing Kiwer < f the people must* not lx* icduced. Ji reduction in wages oi 5s v week wore made* to apply to salaries as well as wages it would oriy ..•mount f I per cent on the* total value of the manufactured art-cle. A reduction of |x*r cent otild not be appreciable and could hardly Ih passed 5 on to the consumers. I Dr Shadwell in his work on “IndusI trial Ethcieiic-y" points out how the I manufacturer is not advantaged by i‘.n all round reductieii in wages, lie says A manufacturer liardpressed by competition seeks 'to reduce cost oi production and out item which hes readiest to hand is the- wages bill. He cuts it down or tries to cut it down but it is the truer economy tn make it the last instead of the' first l<> touch.” T'lie New Zealand industrial Census for 1920-21 shews that- ilie avc*ia w ages paid ro .nales »n ail industries was £'2lo (is and to females £96 ]>er annum. This represents an incresase of per cobt er. tin* wages and salaries pa'd in 1915-10. in round figures the* employees reccivhed a6O ' per cent increase* in wages to meet an 85 tto 90 per cent incrc'ase in the total cost of living budget including groceries, porduce. mete, rent, iuel lights, clothing ami nUscellnnorns expenditure, food price’s a loin* went to s>o per c-ent while clothing and dtarpery vu*r<‘ up hundreds per cent, 'lhe* total number ' I employees i** Nw Zafand in all industries was 78,853. The average vnrue of output p< r productive employee in 1911 was £.>6l land in 1921 it was £ll7l which mca-ns that the value of output |M‘r producI live employee had more than doubted. , It may be argued that the latter value is calculated in inflated currency 1 but so was the wages and so is lite wages to-day. Tn 1911 tl’e productive

’ adedd val'ue. given ter the ai'tick's in i the process of manufacture when'a-s lin 1921 tliey received only 46.62 per | cent. The following table Axpkiiins ALL I.NDESTRIES. i The lirsi column indicates the voial I value of manufactures or produc t ; the second column indicates the t<’tal cost of maleriaLs used or operated upon and total salaries and wages; the third column indicates the gross surplus. £ £ .£ 19IG 15,15 I.OOG 37.972.000 7813.,000. 1919 55.37 1.000 IS. 172,000 9.9U2JW. 1920 69,789.000 57,056.000 12,732.000. 1921 82,173.000 70,1 16,000 12,326,0(K).

NEW ZEALAND TRADERS. Xmv I to the ordinary trader who has at least to gain hy all | round reduction in wages. It profit the aulixidn.nl trader if he could confine a reduction in wages to | his own particular business hut his advantage even then would bo very slight, k, ..roeerv business for instance I wages represents only 10 per eent on the turnover-. As As a week means a 60 per cent reduction in wages it would amount to •'!-> of on -ei fl " of the turnover. Against tins "’y arlvantage which might or nut bo passed on to the pubhe would be the enormous disadvantage which would come from an all reduction in the spending power ol the , IM . ople . |t is the traders last thousand pounds worth of business, when ! r-ujrt and all ovoi'nerid mi'e I hi'err met, which P :, .' s best. I wh-at the trader looses by an all i round reduction in the spi-nrlrng power ! of Ids customers. I Better- for bun n| d tl ’ reduce >HS ex|X‘nditure by three filths ol on pn 'cent if it means rn loss ol 6 per cent ior more in his biisines bi rent and - (other capital' charges which will net l«. reduced having thr u to be met out ■ - of a. reduced total volume of business. The reduction, in wages which have al- ' reardv taken place by reducing wages ■; to the Arbitration Court minimum 1 |I as affected trade ami >» its turn, ’ industry also. This lowering of wages by reducing ' the volume <>t business creates vn- - emplovment mid rhe unemployment - th’us. r. -ried moal-.-s more unempluyt High wages (stabilised if l">s- ' sible) and not low wages creates cin- ! I plovment. COST O IT.IVISG. 1 I It is all nonsense for the New Zea- . ' l nn ,| employers to talk about n-dm-ing 1 | the cost of living because it is large. ■ lv Ireyond their control and anyhow I very shstanbial reductions in prices ' ' should take place before wakes are 1 reduced. On the upgrade writes 101-1 1 lowed prices a Imig w rr.v IKt ; ('Until the distance between tbe* i.n--1 ! creases in wages ami pries lias been ‘ overtaken wages should not come down. As we have aiieaviy poinCec. o»n ««igos is not a v rv bi.g factor in ix-glathig ' prices in ilu* Foof Groups which tlie ' b’ggest item, the prices of .New Z< a- ' , kind product* is hxed by their export ’ ; value. The prices of dairy produce ‘ l lor instance, art not affected by va'ge.s paid in Neu Zealand, bt by its expert parity. As regards imported .articles ' their prices to the consumer are only ' 1 very affected by the prices pmd to shop assistants >omc items in the budget- would bp affected to a gieatei extent, but the net rrsult of a 10 p-r cent reduction in wages v.-uld not re } ! diice the total cost of living by an 1 i appreciable amount. | But under the legislation of hist session all these questions are snbs’duary h to the maintenanc of a lair standard 9of living mid what th employers re- ’ i presentative will have to do to rightly succeed will b to shw that a. remuneration of £1 2s 6d including bonuses is more than suliicient to “maintain a ■ fair stadard of living” and should be reduced to 03 18s 6d or lower 7 ( In conclusion might i urge on the i 'Court that if we succeed in proving] ' , that the present basic wages does i'ot . ■'odraif a fair standard of living, the Court will not only not reduce wages ' on tlr'.s occasion, lint will udge upon the Government the appointment of ’ 'a? commission to go into the question of 1 what is a reasona-ble standard oi livI ' g or that the Court will itseli go into the matter during the coming year in the various centres which it will hi' visiting. 1 i —

SURE TO GET IT AT KILGOUR’S. I I Our stocks ere now replete. We arc continuously opening overseas novelties. Writing Tads, see this line, price 6*l; i Writing Pads, two very special lines. 1 I IGO pages, price 1/-; Writing Pads, the exquisite lawn writing tablets, price i 1/6, extra good value; Cambric Linen ■ [Writing Tablet, good and dainty paper, price 1/6; Good Envelopes, see * | these, very special, 9d packet; sonic- . thing very special in Cream Woven ■ I Envelopes, 10/- per .1000, three packets for 1/-; the Unity Fountain Pen, 10/-; 1 | tlie Swan F< untain Pen, 25/-; tlie Waterman Pen, 25/-; tlie Onoto Pen, 20/-; tlie Service School Exercise Book, price 2d each! tlie Victor School Exercise Book, price 3d each; Collins’s Pocket Diarys, 1/11, 3/11, 4/11; Collins’s N.Z. Desk Diary, 3/<*. A. E. I Kilgour, Bookseller and StE'oner. — Advt. KING GEORGE IN FRANCE. PARIS. May 12. I' “ L.* Gaulois” states that President Millcrand asked King George if he L would like him to accompany his Ala- ■ jesty on his visit to the F. meh d-'• r.s- . rated regions and tlie British soldieis’C • The King replied that while Tie was p greatly touched by Millcrand’s offer, . it seemed lo him better to preserve the . _ ’ 7T: - of the visit, and tire homage attachiilhU