The Hawera Star. THURSDAY, AUGUST 15, 1929. AN ENGLISH INDUSTRIAL PROBLEM.

Hawera Star, Volume XLIX, 15 August 1929, Page 4

The Hawera Star.

THURSDAY, AUGUST 15, 1929. AN ENGLISH INDUSTRIAL PROBLEM.

Delivered every evening by 6 o’olook in Hawera Manaia, Normaaby. Okaiawa. Elthazn. Mangatoki, Kaponga, Alton, Hurleyville. Patea, Waverley. Mokoia Whakamara, Ohaugai, Meremera, Fraser Boad. and Ararat*.

Business is usually reluctant to cut wages, knowing that wage reductions | are not always the best way to success. A point is sometimes reached, however, as in the ease in the Manchester Master Cotton Spinners'' Federation, when employers feel that such action is the only course open. In the present ini stance, one reason advanced for proposing a 12.52 per cent, reduction is that Japanese cotton workers produce goods ! similar to the Lancashire make for onc■half the British cost, the standard of living in England being higher than in Japan. While the manufacturer undeniably faces' a dilemma, the employees also have a problem. Naturally, they are opposed to a cut in wages. To'.support . their case they advance a claim which in the light of experience has economic merit. They point out that, if the manufacturer .for whom they arc working reduces wages and prices, immediately his competitors will use the same argument t'O l further reduce their wages and prices. Such a course, they argue, would only aggravate the situation and hasten worse conditions for both employer and employee. While lowest possible prices still have a value in .the buyers ’ market, experience has taught sellers that competition, if restricted to a battle of prices alone, can be carried to a point of destruction. There must be some profit if a; business is to continue. Consequently, in recent, years business has been inclined to level up prices to. a. point where, all could live and prosper. So far as possible, the necessary savings have been made through economies other than wage cutting. Wage cutting superficially may seem to be the shortest route to a given point, but sometimes the longest way round is the best wav home. In addition toi the natural rejslstanco of the employees to reduced wages there is the -economic fact that the market of buyers is- reduced in proportion to the reduction an wages. Consequently, both employee and employer are brought .together on this common economic ground Where -a tine balance is necessary. The steps that will lead to 'the solution of 'the problem which affects nearly 500,000 workers in England, as well as great financial and business interests, promise- seme valuable material for future consideration and guidance