NO PRICE INCREASE FOR MANUFACTURERS OF CLOTHING

Grey River Argus, 24 March 1949, Page 7

NO PRICE INCREASE FOR MANUFACTURERS OF CLOTHING

WELLINGTON, March 23. The Price Tribunal has ruled that the clothing manufacturing trade has capacity to absorb the increased labour cost involved in a-recent wage increase granted to New Zealand clothing trade workers, which is estimated to cost the industry at least £?5O 000 a year. Neither the tribunal nor the New Zealand Manufacturers’ Federation had any statement to make to-day, but it is understood that in adjustment of the manufacturers mark up from 71 per cent, to 61 per cent, has been made to force the trade to meet the cost of the new wage rates. A reduction of 11 per cent, in the mark ups of manufacturers’ wholesales has also been made.

The wages increases agreed upon by employers and workers in conciliation council and effective from February 8 average 5s a week. They range from 2s 6d a week for juniors to 'ss for adult women and varying amounts up to 7s 6d for adult men. These increases were later ratified by the Court, of Arbitration and incorporated in new awards for the industry. They affect clothing trades gener’allv, with the exception of woollen mills and knitwear and hosiery factories.

Manufacturers are said to be seriously perturbed at the decision of the Price Tribunal. They say the employers are not likely again to agree to wage increases in these circumstances.

It is feared that some manufacturers now making such lines as boys’ shirts, men’s working shirts, pyjamas and certain lines of plain clothing and underwear may have to cease production on these lines to avoid working at a loss.