ARBITRATION

Hokitika Guardian, 15 July 1940, Page 6

ARBITRATION

WAGES IN INDUSTRY.

(Per Press Association—Copyright)

WELLINGTON July 15

Mr D. ]. MacDonald .opened the employees case in the application by Neiv Zealand Painters and Decorators Federation in the Arbitration Court for a general order to fix wages in industry. At the outset he emphasised that the resolution of the April conference between representatives of employers and orkers, recommended a« a temporary measure for the duration of'the war, and six months. To authorise the court to amend wages, this provision must not he taken as a recognition by employers that there was any justification for increasing wage rates. The resolution merely recognised the possibility or necessity of increasing or decreasing wages by a general order. Mr MacDonald emphasised New Zealand’s dependence on primary production. He put in statistics showing the relationship c-1 wages to the added value in factory production. He' said factory added value figures did not take into account the labour costs incurred it? the production of raw materials or in the distribution of [the finished product. If these additional costs were included the seriousness of the cumulated effect of a general increase in wages on costs and prices would be appreciated. Past, experience had shown that a vicious pile of rising prices resulted from increasing wages rates, in- accordance with the cost pf . living- figures. The workers request was based only on the cost of living, hut the Court must take account also the economic and financial conditions affecting trade and industry, j-and all other considerations that the Court deemed relevant.