HIGHER WAGES

New Zealand Herald, Volume LXXIII, Issue 22401, 23 April 1936, Page 12

HIGHER WAGES

RESTORING CUTS THE 1931 LEVEL AGAIN G GYERNMENT'S TROMI SE GENERAL ORDER PROPOSED BENEFITS TO CIVIL SERVICE [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Wednesday The fact that the G ovcrnment proposes to issue a general order restoring salaries and wages to the 1931 level, as indicated by the Minister of Labour, Hon. H. T. Armstrong, early this month; was confirmed to-day by the Prime Minister, Mr. Savage. The Prime Minister said there would be a full restoration of cuts in civil service salaries, and ato the same time there would,be a clause in a finance bill which Would make a general order restoring the 10 per cent cut of 15)31 to all workers who had not already received that restoration. When, the matter whs first discussed by Mr. Armstrong, it was stated that the Government was fullv aware of the fact that full restorations to the 193T level had already been made in many instances. However, the Minister stated that there were some industries which could well afford the restorations, but which had not granted them. A general order enforcing the 10 per cent cut had taken the form of a clause in a' finance bill, and similar action could be taker.; in framing a general order for restoration. "Cannot Even Stop There" Referring to the matter to-day, the Prime Minister said it could be taken as definite'that there would be a restoration of all cntsj both inside and outside the Public Service. That was one of the Government's election pledges, and it was bound to give effect to it. "We hold that in ISX3I substantial reduction's were made in wages and, as a result, in the buying power of the people." Sir. Savage said. "Now we are."setting but to restore the position. But we cannot even stop there. Otir objective is to keep lifting the buying power as production increases. There is no earthly use in increasing production unless there is a corresponding increase in incomes." No Peremptory Demands Mr. Savage made it clear that there had- been no peremptory demands from the.; Public - Service for the restoration of the cuts. .The Government had pledged its word, and it intended to redeem that pledge as soon as possible. No-consideration had yet been given by the Cabinet to the question of making the restoration retrospective.

Alterations in civil service salaries pince 1931 were reviewed by Mr. S. Mather, secretary of the Combined Civil Service Committee (Auckland section), last September, when a 7$ per cent increase i;i civil service salaries was announced. "The majority of civil servants received cuts'totalling 20 per cent," he said. "First there was a reduction of 10 #er cent over all se larics in 1931. Iti the following year varying reductions were enforced as fellows: —Five per cent on salaries up to £225; 10 per cent'on salaries between £225 and £720; and' 12J per cent on salaries above £720. Of this a little less than 5 per Cent was restored in 11934;" The 7£ per cent restoration announced in September would leave most civiLservants still minus at least 71 per cer>t, as the majority of those in the service -were si hove the £225 mark, he added. In the case of those receiving smaller salaries there would still be a slight shrinkage. The amount of the increase then announced Was distinctly disappointing, in view of the rising cost of living. Another disappointing feature was the fact that • the restoration dated from October 1 last vear. because it had been expected confidently that any increase would be made retrospective tc April 1.