CONCERN FOR WAGES.

New Zealand Herald, Volume LXVII, Issue 20690, 9 October 1930, Page 15

CONCERN FOR WAGES.

ANY REDUCTION OPPOSED.

LABOUR MOVEMENT PROTEST. DEPUTATION TO MINISTERS. [BY TELEGRAPH. —SPECIAL KEFORTER. ] WELLINGTON. Wednesday. A pretest against any proposal to reduce wages was made by a deputation representing ali sections of the Labour movement, which waited on tho actingE'rime Minister, Hon. E. A. Ransom, and the. Minister of Labour, Hon. S. G. Smith, to-day. It was contended that wages should be increased rather than reduced, in older to improve tiio purchasing power of the people and to bring about a greater consumption of locally manufactured goods. It was also urged that a commission should bo appointed to inquire into the cost of living. A fortnight ago a deputation representing tho commercial and employers' interests waited on you and urged you to introduce legislation this session to legaliso the repudiation of all awards and agreements at present operating in industry," said Mr. W. Bromley, president of tho Wellington Trades and Labour Council. "At the same time the deputation affirmed its belief in the principle of compulsory conciliation and arbitration. It is an open secret that in 1923 these same pcoplo were opposing the arbitration system; and, failing to destroy the system then, they now make suggestions which, if acted upon, would effect that which they failed to effect in 1923. " Destroying Workers' Confidence." " No more sure method of destroying tho workers' confidence in the Court could be conceived than that suggested by the employers. Tho basis of their case was tho drop iri world prices for our primary products and the consequent difficulties occasioned for industry generally, and the small farmer in particular. If the repudiation of the awards as suggested by the employers would bring back the high prices ruling a few years ago for our marketable products, or offer any solution of tho trade depression which is afflicting this country in common with other countries, it might be worth consicloi ation. We are convinced, however, that such a procedure, contrary' to bringing relief, would intensify and aggravate the present difficult situation." Mr. Bromley summarised his points as follows:

(1) For the Government to pass legislation to legalise the repudiation of awards would destroy the confidence of workers in the Arbitration Court; and it would r.ot build up a very popular opinion of the Government. It would certainly not very materially be of advantage to those farmers and manufacturers who were in difficulties. Bequest for Commission. (2) The great need to-day was for an increased power of consumption, which could otdy be brought about by a more equitable distribution of the national income.

(3) -As a first, aid to an improvement of the position, the Government, contrary to providing facilities for the wholesale induction of wages, should appoint a commission to inquire into the question of a living wage. (4) The Government should conduct an inquiry to ascertain to what extent over capitalisation had taken place and what proportion of the national income was meeting interest- charges on idle capital and capital which existed in name only. (5) The deputation asserted that any downward trend in the wages of the workers, instead of improving the position, would only intensify and aggravate the present difficulties. The secretary of the Auckland Trades and Labour Council, Mr. J. Purtell. said one of tlie leading economists in .Auckland had told hirn that, a reduction of wages would mean further unemployment, as the purchasing power of the people would be reduced. He was given io understand that the manufacturers in Auckland were not in favour of the employers' requests. " Fight to the Last Ditch."

Mr. A. McLaglen, secretary of the United Mine Workers, said that if the Government did not grant, the request of tho deputation the matter would not be allowed to rest there. "We will not consent to wage reductions, even if the Government makes them legal." said Mr McLaglen. "We will fight them to the last ditch." The Minister of Labour said the matter was entirely one for the Cabinet. He did not propose to say what his own views on the subject were. As a member of the Government he would -be glad to go fully info the representations and he was hopeful that before long Mr. Ransom would be in a position to announce the decision of the Government. The acting-Prime Minister said he was afraid there was an impression in '.lie minds of some of the workers that members of the Government were not sympathetic, toward them and were anxious to reduce their standards, but, tljat was far from being the case. The Government was just as desirous as anyone else of reaching a solution of the problem, although it might not view the problem through the same spectacles as the members of the deputation. The Standard of Living. Referring to tho statement of the deputation, that increased wages would mean increased consumption, Mr. Ransom said that as a primary producer ho was not at all in favour of reducing wages. A low standard of living was one of the worst enemies of tho producer, particularly when there was a. low standard in Great Britain, whirh was the principal market for the Dominion. Apart from thoso who were unemployed, he did not, suppose there were many workers in Now Zealand who wero going without the necessities of life. Mr. Ransom said lie quile. agreed that over-capitalisation and high interest charges wero two of the greatest problems they had to face, but if was very difficult to seo how (he Government was going to set about dealing with the problem, lie regretted that a member of tho deputation had seen fit to make a threat of action on tho industrial field if 'lie request of the deputation was not granted. They did not want threats. What was desired was a spirit of conciliation.