Manawatu Daily Times [ESTABLISHED 21st MAY, 1875.] SATURDAY, NOVEMBER 19, 1921. WAGES AND LIVING.

Manawatu Times, Volume XLVI, Issue 1977, 19 November 1921, Page 4

Manawatu Daily Times [ESTABLISHED 21st MAY, 1875.] SATURDAY, NOVEMBER 19, 1921. WAGES AND LIVING.

It is generally acknowledged by both employers and employees in New Zealand that the present standard of wages cannot be maintained. The point upon which there is a grave difference of opinion is whether a reduction in prices or a reduction in wages should take precedence. The employer argues that if his overhead charges were reduced, he would be able to reduce the price of his commodities to the general public. The worker, on the other hand, contends that it is unreasonable to expect him to accept a reduction in wages until he is assured of a corresponding reduction in the cost of living. While both parties maintain this attitude, it is impossible to secure an adjustment which will be of permanent value to the community. The President of the Arbitration Court stated at Christchurch yesterday that during the past six months the average cost of living had declined by 7/- per week for a family of two children. If this is so, a basis for a reduction in wages is provided. But, unfortunately, it does not happen that the reduction is general throughout the Dominion. The president of the Employers’ Federation has suggested that a conference of employers and employees be held, with a view to bringing about a stabilisation of prices and of wages. This appears to be a rational proposal, and one that should appeal to employer and employed. It is manifest that the industries of this Dominion will not flourish until the overhead charges are reduced. It is equally manifest that Labour will nqt accept a wage that does not provide a satisfactory living. Obviously, therefore, the proper solution of the problem is for both sides to arrange for a simultaneous reduction. The existing conditions cannot continue. There is need for a better understanding between Capital and Labour. The one must be brought to realise that it is dependent upon the other. The worker, as a rule, is a reasonable individual. He only wants a fair thing. The employer, on the other hand, desires a return for the capital he has invested, and unless he can secure this he is not prepared to continue in business. The whole question, therefore, resolves itself into one of equitable adjustment. If both sides will meet in friendly discussion, the atmosphere of suspicion may be removed, and a fair basis of operations may be reached. Unless the subject is approached in a spirit of mutual confidence, and with a desire to secure the best results for all, the industrial situation wlll ( inevitably become a source of the ‘gravest anxiety.