STANDARD WAGES

Grey River Argus, 19 March 1945, Page 5

STANDARD WAGES

3Jd HOUR RISE Arbitration Court’s Decision P.A. WELLINGTON, March 18. The Court of Arbitration has issued a pronouncement on standard rates of wages. The pronouncement follows the representations from the employers’ and the employees’ organisations, heard on March 5, 7 and 9. The pronouncement says:—- i “The Court has decided that standard minimum rates of wages for adult male workers will, in future, be as follows: Skilled workers: 3/OJ.d per hour. Semi-skilled workers 2/BJd to 2/11 per hour. Unskilled workers: 2/7ad per hour.” The new rates compare with the last standard wages pronouncement made by the Court, in September. 1937, when the rates fixed were: Skilled workers, 2/9 hourly; semiskilled, 2/5 to 2/7i hourly; unskilled, 2/4 hourly. The pronouncement says: Tim new rates are to be increased in the maimer and to the extent prescribed by the Court’s general orders of August 9, 1940, and March 31, 1942 It continues: “It should be made clear that this pronouncement is not, in itself, a General Order, and therefore, has no operative effect. It is purely an indication of the Court’s future policy. It also is to be clearly understood that the adoption of the foregoing rates does not mean that a general increase of 31d hourly is necessarily to be granted in all awards and industrial agreements. Parties are reminded that this pronouncement is made for the purposes' of the Economic Stabilisation Emergency Regulations, and those regulations authorise the Court to amend awards and industrial agreements for the purposes only of restoring or preserving the proper relationship between the rates of remuneration of various classes of workers. A flat increase to all workers would not correct, but merely would perpetuate, existing anomalies. “The Court does not intend to make any pronouncement relating to the standard rates for female workers, or for juniors. “As soon as possible after this pronouncement issue, the Court requests that, in all cases where applications for amendments are made pursuant to the .amended Stabilisation Regulations, parties should confer with a view to reaching an agreement as to any amendments that should be made. Where agreement cannot be reached, applications should be made to the Court for a hearing. , The circumstances are such, however, that the Court will have to insist that all submissions of parties at such hearings shall be brief and to the point.” The Court announces that all such amendments made pursuant to the Regulations in respect of applications submitted within a reasonable time will be directed to have effect as from Aj*ril 1, 1945. The pronouncement, after surveying recent economic trends in New Zealand, says: “On the whole, it would appear that the standard wage rates of 1937 can now be adjusted within reasonable limits without undue embarrassment to industry, or without any serious inflationary effect. Upon the other hand, having regard to the'preferential position in which a very large number of workers have been placed as the result of recent decisions, we are of opinion that, if adjustments are not made, there is bound to be serious, but understandable repercussions throughout industry, which would undoubtedly react unfavourably on the economic stability of the Dominion. It perhaps is not out. of place to mention that an easing of the restrictions on wage adjustments imposed by stabilisation policies is very noticeable in other countries. That is not to say, however, that dangers of inflation are past. Indeed, with an improvement in the war situation, there is need for greater vigilance than before. The workers of New Zealand have saved many millions during the period of the war. A degree of inflation would inevitably react unfavourably on those funds by reducing their purchasing power. Lessons of lhe years following the 1914-18 war should not be -forgotten.”

STABILISATION THE MAIN OBJECT The Court pointed out that the basis of the present pronouncement differed in important respects from that of previous ones Previously the Court was required to consider, principally, general financial and economical conditions affecting trade and industry, and fluctuations in the cost of living, whereas the present pronouncement lias been made under the amended Stabilisation Emergncy Regulations issued on February 13. The Court says: “It is clear from Regulation Thirty-eight that, in specifying standard rates for the purpose of "the regulations, the Court shall not have regard to any fluctations in the cost of living. Matters to wliirh the Court is required to have regard are the general purpose of the regulations and the desirability of so fixing rates of remuneration as to restore, or preserve, a proper relationship with the rates of remuneration of other workers or classes of workers.” The Court states: Since the stabilisation regulation became operative on December 15, 1942, the rates of wages determined by the 'Court have not varied to- any great extent, and where increases have been granted, they have been relatively moderate, In the last fewf months however there has been a noticeable tendency tor employers to agree to increased rates in Conciliation Councils, or in negotiations for special aggrements. The relative position of certain limited groups of workers has been appreciably improved in the past two years: possibly, in some cases, as a result of the adoption of militant tactics. Nevertheless, the index numbers for weekly money rates (adult male workers) prepared by the Government Statistician showed an increase from December 1942 to December 1944, of one decimal of twenty-eight per cent. The regulations indicate that the Court, in" considering wdiether adjustments to wage rates are necessary, may take into account the ■wages of workers or classes of work-' ers whose remuneration is fixed otherwise than by award or by industrial agreement. RECENT WAGE RISES . tliD last few weeks decisions have been made the effect on which is to increase the rates ot l emunerat on of several large groups of salary and wage earners, prtnMnallv in the service of the State. The total number of salary and wage earners in the Dominion, including tlTeTei^t 0 Zemand d is F°sotsibly C in e th?vicinity of 550-’thousand we estrnmiU that, are. to benefit twenty-three already anounfrom the planted range" from yearly. Workers on hour£lB to £75 , , (-atps broadly have ly and weekly a U nciease been granted approximately to hourly, equivalent £3O oer annum. also , tQ increas es • The Co nrit on granted to agrlculin remuneration s z

tural and orchard workers, and coalminers during the period since the stabilisation regulations were introduced, and adds: “It is manifest from the above information that the standard of rates and wages fixed 1 11 1937 are completely out of balance with the minimum rates now payaole to at least thirty per cent, of the workers in the country. It is necessary and indeed only just, that the standard rates should be revised.

INFLATION QUESTION. In its examination of whether desirable and necessary adjustments to a standard wage rates are likely to promote the economic stability of the Dominion, the Court observes that the possibility of inflation is a matter which requires, at all times, to be carefully watched, but it says that there appears to be some indications of a decline in inflationary tendencies.” In the last calendar year, there has been a deflation of bank credit. That is a development, however, which might only be temporary. The total volume of consumer goods and services available for the civilian population shows signs of an increase. There has been a little relaxation regarding the exports from other countries to New Zealand. A greater percentage of some classesof locally manufactured goods is being allocated to the local market. A falling off in the amount of overtime worked must result in a reduction of spending power.” Mr. Cecil Prime, at the end of the main pronouncement adds the following comment: “In view of increases in wage rates which have been agreed upon by employers in cases affecting large numbers of workers, in addition to increases recently announced for Railway, Publice Service, and Post and Telegraph employees. I agree that the rates set out in this pronouncement are necessary to restore a proper relationship. While increased spending power, which will accrue as a result of tins pronouncement, may not affect appreciably the economic stability of the Dominion, it will almost inevitably tend to increase inflationary tendencies which have been in evidence during the past few years. Workers . who have accumulated small savings must not be disappointed if they find savings depreciate in value,”