WAGES AND INDUSTRY.

New Zealand Herald, Volume LXIX, Issue 21142, 28 March 1932, Page 5

WAGES AND INDUSTRY.

EFFECT OF 10 PER CENT. CUT. ARGUMENT IN AUSTRALIA. JUDGE'S ANSWER TO CRITICS. [from our own correspondent. ] SYDNEY, March 17. An intensely interesting argument has been proceeding before the Full Bench of the Federal Arbitration Court concerning the effect of the 10 per cent, wage cut ordered by the Court, as an emergency measure, early in 1931. The majority of the unions contend that the emergency lias passed, and that the cut failed to achieve the object hoped for—an increase in the avenues of employment. Rather is it claimed that since the cut (here has been a substantial increase in unemployment. For that reason, it is argued, the cut should bo restored. The Court has- not yet given its decision, and it is likely that tbo argument will extend over many more days yet. As an advocate of the unions, Mr. C. E. Mundy sought to prove that since the cut unemployment had increased in al| industries which produced commodities and services necessary to the workers. He produced elaborate charts based upon tho figures of the Commonwealth Statistician to support his argument that, since tho cut, unemployment in all registered trade unions in Australia had increased from 23.4 per cent', in December, 1930, to 28.7 per cent, in December, 1931. There had not been a corresponding increase in unemployment in Great Britain and Canada, where there had not been a wage cut. Chief Judge Detheridge: As soon as England went off the gold standard wages in that country automatically fell. And there, as everywhere else, expor-t industries flourished for a time because of the depreciated currency. It is, changing again now. Opposing Contentions. Mr. F. Derham, representing the employers, said that he would produce independent figures to show that the actual industries in which the 10 per cent, cut applied had responded beneficially by increasing the number of employees. Mr. Mundy sought to prove that the Court itself had regarded the 10 per cent, cut in the nature of an experiment; and that the experiment had proved a failure. It was expected that the employers who had the benefit of a 10 per cent, reduction in their wages bill would immediately increase the number of their employees. The reverse had been the effect.

It was argued bv Mr. Mundy that when the Court made the cut the nation was faced with a difficult situation, The Court tried the experiment of reducing real wages by 10 per cent, to see if that would have any material effect on the rehabilitation of industry. He produced a volume of reports and statistics, for Australia and for other countries as well, and he argued that in the countries where wage reductions had taken place, such reductions had been in accordance with a decrease in the cost of living, and in no country, except Australia," had there been a reduction in the real standard Action In New Zealanfl. Chief Judge Dethevidge: Was there not a cut in real wages in New Zealand? Mr. Mundy: No. In New Zealand it was merely a cost of living adjustment. Chief Judge Detheridge "(warmly) : Statements are frequently made that the Court favours a lowering of w-ages, and these statements are accepted by the uninformed minds of the masses, although they have no foundation. On the con : trary, this Court is opposed to low wages and believes that the highest wages possible should bo paid in the best interests of the community. The lowering of wages is heartrending and disgusting to mo. Only the force of circumstances could justify it, and we have done what we conceived to be right in the circumstances. Union representatives are endeavouring to convince the Court that the whole method of arriving at the cost of living is wrong, and that the statistics prepared with such great care do not tell the story from the point of view of the worker who is on the basic wage. QUOTATIONS FOR SILVER. LONDON, March 2:.. Silver was quoted yesterday at 17 15T6d an ounce spot and forward, compared with 18 3-16 d both posit ions on March 23.