N.Z. WAGE INCREASES MAKE THE WORKERS WORSE OFF

Grey River Argus, 25 February 1949, Page 5

N.Z. WAGE INCREASES MAKE THE WORKERS WORSE OFF

Mr Holland Says Prices Rise Faster P.A. HAMILTON, Feb. 24 Mr S. G. Holland, Leaaer of the Opposition, in Hamilton to-day, gave an address to the Junior Chamber of commerce in wnich he referred to wnai ne termea me mounting cost of living, ana eiioiis by a section of wux.-vers to secure suostantiai wage increases. He said: “This will only make the matter worse, unless it is accompanied by an increased production, which, alone, can increase living standards.” He said that the worker and his womemolk were beginning to realise that higher wages aid not provide the answer to their living cost problem. There were several lactors chat prevented the worker from being better off from wage inflation, the main one being Mr Nash, with his “double headed penny.” Mr Holland continued: “First, he has his cut ol the increase by deducting is 6d in the £• for social security. Then he has another cut of 2s 10d in the £ income tax, where it is payable. But Mr Nash gets another cut at the other end by loading 20 per cent on to many lines by way of safes tax. A wage increase to the award workers starts an all-round increase m all costs, and that is tantamount to cuts in the purchasing power oi all pensions, wages, incomes, and savings. The greatest need is tor a stable internal price level, and this process of wages chasing prices is the very reverse of that.” He said that prosperity was not determined by the quantity of money in circulation, but by how much that money would buy. If the. wages of the boot and shoe makers were increased, then the price of boots and shoes must increase. But, to a greater extent, that increase was received by the worker, because the wholesaler and the retailer both added their respective margins on top of the increase. “It is not just the cost of production that goes up,” he said, “but all other distribution costs go up too. The costs of material would rise, overhead costs would increase, all transport costs would increase, and the cost of Government would go up, because, it a privately-employed worker got an increase, it would be manifestly uniust. to leave publicly-employed people out- ~ ~ ~ ■•it would be safe to say,” said Mr Holland, “that by the time Mr Nash gets his cut out of an increase by wav of social security tax, income tax, and sales tax, and by the time that the wholesaler and the retailer have added their authorised margins, n, means, in many cases, that, for every twenty shillings increase received by the worker, the prices of goods would increase by thirty shillings.

Drivers’ Federation Wants More Effective

Price Controls

P a. WELLINGTON, Feb 24. Declaring that the Price Tribunal and Economic Stabiliation Commission had failed to control rising prices effectively, the National Council of tiie New Zealand Drivers Federation has decided to ask the Government for an immediate mvestigatlCThe federation will ask for an investigation of the activities of both the commission and the tribunal, and. will propose that, if legislation, is necessary to achieve more effective control, then the Government should legislate accordingly.

Workers’ Claim for £2 Rise Weekly

’DUNEDIN, Feb. 24. Following an address on the Dominion’s economic situation by Dr. H. Silverstone, a largely-attended meeting of trade unionists in Dunedin decided last night to support the claim for a general increase of £2 a week in wages. The motion carried held that the increase, with equivalent rises in the social security benefits, was necessary if workers were to '• regain the relative economic position which they occupied in 1939. “If the workers’ share of the national income last year had remained the same as in 1939, their net income would have been £39,000,000 greater than it was,” the resolution said. “Thus it will be seen that the demand for a £2 increase .is entirely possible and far from being in the realms of fantasy, as Mr Fraser claims. It can easily be borne by those whose earnings from profits, interest and rents have been increased out of all proportion during the past 10 years.”

Delay m Making General Wages Claim AUCKLAND, Feb 24. A special meeting of the Auckland Tades Council next week will hear an explanation by the secretary of the New Zealand Federation of Labour, Mr K. McL. Baxter, concerning the’ delay in lodging the recent application for a general wages increase. The national executive’s policy has been severely criticised in the Auckland Trades Council. There was an uproar at a meeting of the council on Thursday when the question was under discussion.

Wages Increase for

Dairy Workers WELLINGTON, Feb 24. . An all-round increase of 6s 5d weekly in dairy factory workers' wages has been granted in a new basic rate, for adult workers, £6 15s weekly. The increase will operate from December 20 last, but workers employed in the industry on that date will be entitled to payment of arrears of wages at a l‘ al; rate 6s weekly, back to August 1.