WAGES CUT APPEALS.

New Zealand Herald, Volume LXVIII, Issue 20977, 14 September 1931, Page 10

WAGES CUT APPEALS.

GOLDMINING INDUSTRY.

COURT REFUSES EXEMPTION.

POSITION OF WAIHI COMPANY. The position of tho goldmining industry as a whole, and the operations of (lie Waihi Cold Mining Company in particular, are dealt with by the Arbitration Court in its decision regarding the applicaliou by the Waihi goldminers for exemption from the general order of tho Court reducing wages by 10 per cent. Tho Court refuted (lie Application, the employees' assessor, Mr. A. L. Mouteith, entering a dissenting opinion. The grounds of the application were thai, the goldmining industry was not affected by tho prevailing depression as other industries were, but that the output and balauco-shcels of tho mining companies showed that tho industry was prosperous; that there had been no reduction in tho price of gold and no falling off in the demand for the metal; and that a reduction in costs could not bo passed on to the consumer. The, employees' representatives, Messrs. J. Roberts and J. Read, claimed that tho Waihi Company was one of tho most profitable enterprises of its kind the modern business world had seen.

" Industry Not Prosperous." In opposing the application, the company took tho view that, production costs had risen to heights much above the level of those ruling in 1914 and for more than 14 years tho industry had been the only oiio which had been unable to pass on increased costs to tho purchasers of its output. Had the workers been willing at any time to accept less than the increases in wages allowed by the Court they might liavo some justification for exemption from tho cut. " Goldmining is certainly not in a prosperous condition," stated the Court in its judgment. " Very few mines are working at tho present time and most of them aro barely paying expenses. It is true that tho affairs of tho Waihi Gold Mining Company aro in a sound condition, but tho costs and conditions of mining have made it unprofitable to work a smaller mine, that of the Waihi Grand Junction Company, except in conjunction with the larger mino. A large portion of tho Waihi Company's profits comes from outsido investments. It may fairly be said that the company's financial condition is good, but the Court is required to consider tho economic and financial condition of the industry, not that of one employer, which is making profits apart from its returns from gold mining. Increase in Costs. " Tho position in a nutshell is that it is only by tho adoption of large-scale and economical methods of working that it is possible to work low-grado ores; that costs have increased considerably above pre-war level; that gold is hringing only the pre-war price, owing to tho reversion, some years ago, to the gold standard; that silver, which is produced by the Waihi mines in the ratio of seven ounces of silver tu one of gold, is now selling at so low a price as to more than offset any advantage to bo gained from the exchange premium on gold; and that tho ore reserves are diminishing. " There can, in such circumstances, bo no ground for the contention that workers employed in tho industry are entitled to have their rates of remuneration maintained at a relatively higher level than those of other workers," concludes the judgment. " The economic and financial position of the industry does not warrant any differential treatment."

Dissenting Opinion. In his dissenting opinion. Mr. Monteith reviewed the annual report of tho company, which showed that since 1914 the best years were 1927 and 1930, the amount of bullion won iu 1930 being £396,268. Ihe profits of the company from 1893 to 1930 worked out at 8s in tho pound over tho whole period, or equivalent to 40 per cent., including the gift of bonus shares in 1927, or 59 1-3 per cent., excluding those shares.

" 11, is (rue that, thn price of gold lias remained at a fixed price and tins was cunsidei c-d when fixing wages on tho up grade," concluded Mr. Monteith. " Today tho miner is receiving a minimum of 13s 9d a shift, a very low rate for underground work. In view of the low rate and flic large profits, which were admitted by the company's representative, I am of opinion the exemption should have been granted." WOMEN IN BOOT TRADE. SUCCESS If UL AVPLIO AT J OX. Exemption from the general order inducing award wages by 10 per cent, has been granted by the ' .Arbitration Court in the case of female assistants in the boot, trade, the exempt ion covering the whole Dominion. The New Zealand Federated Boot, Trade Union recently brought an application before, the Court seeking exemption iu every district. The Court's order provides exemption for female assistants employed on or before June 8 to tho same extent as if they were, apprentices, the exemption to remain in force during the period of their assistant ship. The order is to take effect from September 18.