THE BASIC WAGE

New Zealand Herald, Volume LXXIII, Issue 22413, 8 May 1936, Page 14

THE BASIC WAGE

CALCULATION METHOD PROVISION FOR CHILDREN BASED ON MORE THAN EXIST In deciding that the basic rate of wages shall be determined on what would b c sufficient to enable a man to maintain a wife and,three children, the Government intends to compel employers to pay for over 200,000 children more than actually exist in New Zealand.

Such is the opinion of an employer who quoted from tho last official figures on population in New Zealand in support of his contention. He said there were 449,980 children of 16 and under in tho Dominion, and 220,256 married men of 45 and under. In the original Industrial Conciliation and Arbitration Amendment Bill the basis of the wage was a wife and two children, which might bo claimed to approximate somewhat to tho statistical position, but the alteration to three children made by the Labour Bills Committee had no relation to statistics or equity. Indeed, the tax on the employers was greater than he had pointed out, for while the basic wage was to be calculated on the married household cost the number of unmarried men was nearly double that of the married. Many Unmarried Men Official figures disclosed 424,466 tinmarried men and 291,106 married Apart from those totals, 2751 were legally separated, 21,540 widowed and 2335 divorced. Of tho unmarried men who would benefit by the basic wage were 45.304 qf 21 years and under 25, 31,914 of 25 years and under 30, and 15,768 of 30 and under 35. In Australia in determining a basic wage it was considered that the average man's obligation was not more than a wife and one child, a condition that emphasised how unfair and extravagant was the New Zealand calculation.

Jt should be explained that under the amending bill the Arbitration Court is to make a general order within three months after the commencement of the Act fixing a basic rate of wages for adult male workers employed in any industry in which any award or industrial agreement relates, and by the same or a similar order lix a basic rate of wages for adult female workers so employed Any general order can make provision for a lower rate to be paid to any workers under special permits. Any general order may, however, be amended at intervals of not less than six months, either by the Court on its own motion, or on an application by any union. Attitude of Employers Under the bill the Arbitration Court apparently has power to fix the basic rate without calling upon industry to give evidence in'any way. The hope that it would give employers the opportunity to be heard was expressed by Mr. J." S. Dawes, president of the Auck-» land Employers' Association. So he said, his association had not decided on what action it would pursue, but it was clear from the determining method given in the bill that a great danger was that the basic wage would be assessed so high that employers would not be able to find the money.

The basic wage was supposed to be the wage the least competent would get, but if the minimum rate were forced too high, the tendency would be to make that the maximum, whereas if the minimum were low, rates generally would have relation to ability and service performed. "With a low minimum, employers can, should and must give men deserving it moce than the inefficient," added Mr. Dawes. Up to now, he said, the Court had fixed a minimum wage Recording to industries; to make a general minimum was unfair.

Mr. Dawes expressed the opinion that unless the Court were relieved of much of the work it now did, such as compensation cases, it was difficult to see how it would be able to deal with the volume of applications for awards and other business entailed by the new legislation. In awards alone it looked as if it would be rushed with work, for every employer would have to see that the position as is affected his industry was placed before the Court He would be very foolish if he did not do so.