ARBITRATION AND WAGES.

New Zealand Herald, Volume LX, Issue 18460, 25 July 1923, Page 8

ARBITRATION AND WAGES.

According to information telegraphed from Christchurch, 'the recent refusal of -the Arbitration Court to increase the standard rate of wages for skilled workers is arousing keen interest among trade unionists. There is prophesied a falling-off in Arbitration Court litigation ; for, as carpenters have failed to obtain a rise— the small allowance of Jd an hour to men on outside jobs— skilled workers will be deterred from making application to the Court. But this does not indicate any loss of prestige or serviceableness by the Court. It betokens rather a reasonable recognition of the limits of the Courtis powers. \ They can never over-ride the economic forces at work in fixing wages. At best the Court acts as fa brake on the tendency of wages to fall below a minimum in keeping with the cost of Irving. It cannot ,' avail to force wages above a level admitting of profits to employers,, for compulsion so directed would result in the closing down- of the industries concerned rather than in their running at a loss or without profits. But it can fix a legal minimum wage based upon a reasonable standard of living. This prevents exploitation of workers in attempts to maintain profits when industries become unable to pay both adequate profits and adequate wages. It saves wages from being robbed to pay profits. In this way the arbitration system has been a bulwark of labour and, while there may have been, in the Court's earlier days, a tendency to regard the minimum -wage as a maximum, its,award rates have of late been accepted more and more readily as minimum rates only. The difference between the legal minimum and the actual maximum paid has varied in accordance with the ratio obtaining between the demand for highly-competent labour and the supply offering. The interplay of these factors has not been, and cannot be, obviated by the arbitration system and this the applicant unions have been constrained to acknowledge. They have evidently noted that, so long as any degree of shortage obtains in the supply of skilled labour, its average remuneration will remain above the award rate. But this is only of doubtful benefit when the facts are viewed in' all their bearings. To have a shortage of skilled labour, while a large surplus of unemployed unskilled labour exists, means an aggregate loss to a community, however benefited some few individuals' pockets. may be. In 1 the interests of all, the supply of skilled labour should be maintained and blindalley occupations ' avoided. Although this will tend to the lowering of the average wage of skilled labour, the purchasing power of the oomrannity will, on the whole, be greater, general unemployment be .tedaced to a minimum, and prosperity be widely distributed. To the maintenance of an adequate supply of skilled labour the unions will do well to devote nome serious, practical thinking, in common with the rest of the community. f

MAIN HIGHWAYS SCHEME: The conference between county representatives and members of the Main Highways, Board, , held at Hamilton yesterday, is visible evidence that the newly-constituted body is taking its duties seriously and losing no r." time in beginning work. Arrangements for co-opera-tion between the board and local authorities are provided in the Main Highways Act. One of. the functions of the board is to assure that the co-operation will; be wholehearted and intelligent,. . Such conferences as that held yesterday are the essential first step. It is a good reason for satisfaction that they have been begun so promptly. The proceedings show that the board is prepared to give all the information it can to the counties. The explanations by Mr. Jull and Mr. Murray make perfectly clear and understandable the relations between the parties and their respective responsibilities' in construction and maintenance work. None of this information, strictly speaking, is new;, but it has been presented with a new freshness and vividness. Some of the difficulties apprehended by delegates were not fully met by the board members, for the whole policy is not yet laid down. An example is the suggested case of a county declining to raise money for its half of the cost of road construction. Perhaps human nature may step'in to smooth away this difficulty. Tf the county sees the prospect of obtaining a good main road, at half cost, there should not be much hesitation in resolving to find the balance. Again, if one county agrees and work. is begun, the example of benefits secured will powerfully affect any neighbour inclined to be recalcitrant. ' Disputes over route and other details are quite possible. Even so. the desiderate need for Rood ronds. and the excellent nrospcict of obtaining them should be a powerful aorency for securincr compromises where reouired. In any eyent, it is a mistake to dw 1 ! too Itea-vilr upon the possible difficulties of the future. The pitnn**on at present is th*t most main roads are in a denlorable condition : an orrart. i"»,tion has been created to work for amelioration : it has commenced to nranple with the nrf»l?Tninarv T>robVms. are elements of hone hen* th« country should greet with satisfaction.