ARBITRATION CRITICISED

Hokitika Guardian, 2 October 1929, Page 8

ARBITRATION CRITICISED

PURCHASING POWER REDUCED

“It is a matter of regret that the Arbitration Court cannot relax some of its rigidity and be a little more elastic in its awards to enable employers to meet the falling prices and changing trade conditions which are taking place. If this were done it would be a step towards a more rapid recovery and unemployment would be considerably curtailed. Unfortunately the Court has shown very little inclination to meet the position. In facty some critics are of the opinion that the Court has degenerated into a wage and conditions fixing tribunal regardless of production costs or the earning power of the workers in the various industries. t In these terms Mr Albert Spencer, the president, addressed himself to the annual meeting of the Auckland Provincial Employers’ Association last .week. , SMALL BENEFIT FOR WORKERS. “This wage-fixing court,” he added, “only directly benefits a small fraction of the wage earners of the country. The rest of the workers who come under no awards get no direct benefit from the court. On the contrary, the purchasing power o'f their wages is reduced. There- is a great number of people with fixed incomes, such as old age pensioners, widows, clergymen, shareholders, property owners, who find it almost impossible to live on the greatly-reduced purchasing power of their incomes. The same thing is happening in Australia under the Arbitration Act, but there when wages are increased the employers immediately make application to the Customs authorities for a higher duty on importations. In New Zealand the original intention was that the court should be •i court of appeal to decide disputes which could not be adjusted in conciliation. PROBLEM OF THE COURT. . “The rise in wages was simply a manifestation of the general rise of prices. Prices have fallen, in some cases to below pre-war level, and the court is finding itself unable to reduce wages accordingly. It has been found that many employers bound by the court awards have had to abandon manufacture of . certain lines, as the margin of profit had disappeared and a loss was being made. It would appear .that if the court attempted to increase hours .of work 'or .reduce wages the workers will not obey it. The recent strikes in Australia and the consequent suggestion to do away with the Arbitration Court altogether is a warning of what might ha'.ppen in New Zealand if a similar couhse is followed. If the court maintains" The rate of wages at the present uneconomic level and the oeople find that they are paying more for work than they can get it done for by those working on their own, the whole system will collapse under its own weight.”