CUT OF 5 PER CENT.

Nelson Evening Mail, Volume LXIV, 19 June 1931, Page 6

CUT OF 5 PER CENT.

CITY COUNCIL STAFF

SOMI- t:\CC.PSTONS MART. A special meeting of the City Council was lielil at (In- .Municipal Chandlers last evening for the purpose o! considering the estimates and striking the rales for the current year. There were [iresent: The Mayor (Mr \V. .1- Mol'fatf), Councillors F. W. Huggins, G. Page, U. Watson, 11. E. A. Washburn n, J. A. Stringer, 8. 11. Moynagli, 8. A. Gibbs, E. It. Neale, and \Y. Black. The Mayor, in opening up the discussion, said the meeting was perhaps the most important one any Council had held. All knew of the economic position and I lie Government legislation, which was followed by the Arbitration Court making a 10 per cent, cut-in wages. The Palmerston North City Council had recently decided l" make -I. cut on a sliding scale, and it was very evident from the report that the decision was eonie to reluctantly. No doubt Councillors had given the matter pvery consideration; and as the .Mayor was expected to give a lead he would stale his views, lie recognised when it came to dealing all round with the subject, that tho salaries of the leading officers of (lie Council, by comparison with other oflicers in towns of similar size, had always been lower. This being the ease, when it came to making adjustments, ii' it came to making a. 10 per cent, cut, they would find that their salaries would he considerably lower than those paid in other places. The salaries of the office stall’—mostly juniors—were very low ;md this was another matter for consideration. Until quite recently the principal clerk had been handling important departments at a very low rate of wage. In all the circumstances lie considered that a 5 per cent, cut all round would lie more equitable Ilian making any variation between one section and another us had been done in other places. in order to test the feeling of the meeting lie moved

That llie Council resolve to make a cut of 5 per cent. on. all salaries and wages with the following exceptions. (1) the cut shall not affect full time employees in receipt of less than £lO4 per annum. (2) That the cut shall not affect tho wages of those who although not working under an award would by the 5 per cent, reduction ho reduced in. wages below the amount received by t Imse affected by the 10 per cent, cut when working elsewhere under an award. The whole question lo be reviewed at the end of the financial year; and that tho resolution become operative from Ist July.

The Mayor then read a (otter from the power house engineers pointing out that, they received about 10s a week, and in the ease of tho junior engineer 255, less than the award rates of pay, and that they were not in receipt of concessions enjoyed by outside engineers. Continuing, the Mayor said the question of superannuation was one to ho considered by the Council. The matter had been discussed, hut nothing had come of it. It would he noticed by tho resolution, that the whole question was lo he reviewed at the end of the financial year. Most Councils of any importance had made provision for superannuation ; hut the Council had not yet done so, and this would he a factor to lake into consideration when dealing with wages reduction. ’The Prime Minister had expressed a hope that with a reduction in wages (lie cost of living would come down. It had been said in the local press that there had been a reduction ; but whether there was a total decrease of 10 per cent, in the cost of living, lie was not prepared lo say, although he did not think it was the case. There had been no decrease in rents. While lie realised |hub the ratepayers were looking to the Council lo deal with the subject, he thought they were fully seized with the whole position, and would agree that llm proposal was the fairest way the Council could deal with it. Councillor Gibbs, who seconded tho motion, agreed with the Mayor’s relorctice to superannuation, and the low scale of salaries paid to the executive offices and the office stall. He was very sorry indeed lo have to reduce wages of old officers, and he hoped it would not. last for long. Councillor Moynagli said he agreed with great reluctance with the remarks of the previous speakers, hub it was inevitable. Equity and justice would be done by adopting the resolution. Due reason that iudueliced him was that the relationship between the Council and a private employer was somewhat different. A private employer got_ morn in touch with the small circle of his employees and probably looked upon them in' a more intimate light than the Council did, and was in a better position to justify himself in. giving better wages than tho Council could" give. Probably the wages as a whole paid by the Council were less than those paid by people who were brought more intimately in touch with their staff. Another point was that tho salaries paid to tho head officials were very low. Both the inside staff and tho outside staff had been very loyal. He reiterated that it was with" the greatest reluctance ho supported the motion, but there was vital necessity for it.

GRADUATED “CUT’’ ADVOCATED

Councillor Watson, said it was always distasteful to have to lower Wages; but the Council, like the Government, had to balance its budget, lie thought it would be better, however, lo adopt a graduated cut. J’he Council must economise and make the rales as low as possible, as if a. big rate was put cm it might not be collected. It was up to everyone Lo help the country through the financial crisis.

Councillor Huggins said the impression. appeared' to be that all wore reluctant to make the cut, hut it was inevitable, and was just as business men had to do. lie was of opinion that even greater reductions would have to be made. They n'uisl come down lo prewar values before rock bottom was reached. The motion if carried would mean the saving of lid rate, and he hoped this would bn passed on lo Lbo ra lei (avers.

KENTS NOT DOWN Councillor Neale staled that he was largely influenced in voting for the motion by (lie fact that ho had long lieen aware of the fact that many ol the Council's officers had been underpaid compared with similar positions _ in other towns. The general public might not believe it, but it was pertcctiy obvious when it was gone into. Kents bail not gone down in Nelson as Llie.y had in oilier places. From bis own personal knowledge of the business there was still a strong demand for houses, inul so long as that existed he could not

see how rents would come down. In all the circlinistaiices he lliotiglil Hie Council was perfectly justified in not going as far as 10 per cent.

COUNCILLOR WATSON SUPPORTED

Councillor Page said lie had given the matter a. great deal of thought, and in lint- say lie was of the same opinion as Councillor Whitson legarding a graduated reduction. The man higher up could afford to pay more than the man lower down. lie recognised that a man. down to £250 or £’.loo could not pay very much. It. was known that rents had not come down; one of the reasons was that 1 [jc rates had not conic down. For a. £1 a week collage I lie rales were 4s. If was not that landlords were gelling rents, hub the rates were high. In some towns the rates were nearly a third as much as the rent. He fell that there should lie a graduated scale, say 7! 2 per cent, down to £3OO and 5 per cent, down to AY23O. All below that amount he would not touch, because he did not think a mail could live on much less than £4 8s a week.

The Mayor: “The motion was largely lo initiate discusssion. If you want to move an amendment it will be quite acceptable.” Councillor Huggins: “I take if we have no married men getting below £4 a week?”

'Pile Mayor: “No.” Councillor Washbiourn agreed with (he principle of making Hie cut uniform. Councillor Black remarked that although lie was not one who believed in cutting salaries, yet lie felt Councillors Imd a responsibility to the ratepayers. There was no doubt that, had he been a. member of Parliament he would have opposed (he Government cutting wages; hut when the Government made a cut it altered the whole position, and it must he remembered that many ratepayers had had their wages reduced 10 per cent. He sympathised with Councillors Page and Watson that a man who was receiving below £4 10s a week should not ho touched. It was hard enough for a man with a wife and family to live on that sum. Higher paid officers should have the biggest cut. Councillor Noale: “They are getting

AN AMENDMENT Councillor Black then moved the following amendment; Thai all wages and salaries above £250 he cut 10 per cent. Councillor Watson seconded the amendment. Councillor Stringer agreed with the motion, thinking it the fairest way of meeting tho position? Speaking to the amendment the .Mayor said that the reason, why 5 per cent, had boon proposed was directly because of the" low salaries paid to the chief officers compared with those paid in other places. Had the salaries been in line with those paid elsewhere tho possibility was that they would have been cut 10 per cent. Napier recently advertised for ail engineer at £750 a year. As to the Town Clerk, when his chief cleric was recently appointed town, clerk in a place smaller than Nelson he received the same salary, since increased as the Council’s chief officer. The Mayor added Dial the ratepayers had had the benefit of the good services of low paid officials and had never had to find anything for superannuation as was the case in many other towns. Councillor Huggins said the amendment would penalise skilled tradesmen. Councillor Watson said lie had always held that the Council’s leading officers had been paid low salaries, and lie had always supported increases; hut in a. crisis like the present all should bear Hie burden according to their pay. Councillor Black remarked that lie did not think comparisons with other parts of Hit Dominion were anything to go on. Auckland and Wellington had gone mad on administration. Ten pounds a week was enough for any professional man lo live on.

Councillor Neale: “Don’t you take into consideration the qualifications?” The amendment was then put and lost, only the mover and seconder supporting. FURTHER AMENDMENT

Councillor Page then moved a further amendment :

That all salaries and wages above

£3OO he reduced by 7i per cent. : from £230 lo £3OO, 5 per cent., with a minimum of £230. Councillor Black seconded the amendment.

The Mayor said that if the power house engineers went for an award, they would get, bigger salaries, even supposing a 10 per cent, cut was made. The amendment was lost on tho voices.

The motion was then put and carried, only Couneilloi's Watson and Page opposing.

MAYOR’S HONORARIUM The Mayor said lie wished the resolution to apply to his honorarium. * Councillor Huggins did not agree. The honorarium was fixed at a time when, filings were not too good, and had not been increased in good times. The Mayor received a small enough amount, considering the calls he had on his purse, more so now than ever before. He moved that the Mayor's honorarium he not included in tho cut.

Other Councillors strongly supported the motion, which was carried unanimously. The Mayor said he would seo that it went in liie right direction, The Council then went oil to discuss the estimates.