WAGES INCREASE

Manawatu Standard, Volume LX, Issue 219, 14 August 1940, Page 8

WAGES INCREASE

OPINIONS IN CITY. LONGER HOURS URGED. Opinions were expressed by several leading businessmen in the city today to a “Manawatu Standard” reporter as to the effect of the Arbitration Court’s general order for a 5 per cent, increase on award wages. All criticised the increase, but said there would not bc_ staff reductions on this account, the Increase in wages being, in effect, wholly an added impost for the employer. However, it was stated, on behalf of a large department store, that, should the difficulty of obtaining goods continue, this would cause staff adjustments. In one case it was mentioned that this difficulty had become so severe in certain directions that adjustments were now imminent. “The effect of the rise is inflationary. Wages rise, and these, being the biggest item in costa, make costs rise; prices then rise again,” commented Mr Iv. A. Henderson, speaking as president of the Palmerston North Chamber of Commerce. “The real solution in meeting increased costa is in extra production, both primary and secondary. At present primary production is being increased, but no steps are being taken to increase secondary production adequately. This can lie effectively increased by increasing the hours ol work. “The hours in every case of 40 hours a week should be increased to 44 and wages increased accordingly, at ordinary rates of pay, not overtime rates,”' Mr Henderson added. “This increases production, which is our real wealth, and enables more wages to be paid, besides giving a more economic distribution of this extra wealth. To increase wages without increasing production can only spell disaster in the “Prices which are now fixed by the Price Tribunal will require to be increased to meet the higher costs brought about by a wages increase in both production and distribution. This must occur, and another increase in wages will become necessars’ unless the problem is tackled from the proper angle—that production must keep pace with wages. “This problem has no doubt arisen from the national security tax, and although the Arbitration Court said this was not so, it is obvious that this tax has now been handed on to the employer. No employer objects to paying for the cost of the war, and most of them would have agreed to a graduated national security tax on wages and other incomes, varying from 1\ per cent. to 10 per cent. This burden could well have been shouldered by the tax-paying community if the Government had curtailed its other expenditure in pursuance of its socialistic ideals,” Mr Henderson concluded. “UNCALLED FOR.” “We think the order is absolutely uncalled for and, further, the award under which we are working is not equitably framed,” - said an executive of a city department store. “Some employees, we consider, are paid more than is warranted by the type of service rendered in comparison with the rates paid to others doing more important work. This increase will not bring about any reductions in staff, but, if the difficulty of obtaining goods continues, it will he obvious that there will’ not he sufficient goods to enable the present staffs to carry on.” This latter,view was confirmed on behalf of another large department store, although the speaker took an even more serious view of the situation, saying that staff adjustments in certain sections were already imminent. A leading public accountant remarked that the increase- was an added burden to such businesses as his’, because it could not be passed on to clients, whether companies or private persons, who were already affected by taxation under recent legislation. In the aggregate the sum to be met from the business turnover would he considerable. The position of the- bakers was pointed out, the statement being made that recently drivers working 44 hours a week had received a 5 per cent, increase in wages and this latest increase brought the total rise up to 10 per cent.