WAGES LEVEL

New Zealand Herald, Volume LXXIII, Issue 22457, 29 June 1936, Page 10

WAGES LEVEL

RESTORING THE CUTS

ANOMALIES LIKELY

GOVERNMENT'S ATTITUDE

FURTHER ACTION INDICATED [BY TELEGRAPH —SPECIAL REPORTER] WELLINGTON, Sunday The* restoration of salaries and wages to the 1931 level will become operative nominally on Wednesday, although it will not bo really effective until the validating legislation has been passed some time after Parliament resumes on July 21. However, in some instances cuts inay be restored even this week, as several business firms have signified their intention of anticipating the legislation and paying the higher salaries as from f July 1, -in order to avoid the necessity for making retrospective payments.

According to statements made by both the Primo Minister, Mr. Savage, and the Minister of Labour, Hon. H. T. Armstrong, the Government is fully aware that numerous anomalies are almost certain to arise from the legislation requiring the restoration of all wage and salary cuts. Even the matter of restoring cuts in the Civil Service is not simple, but in the words of the Prime Minister, the Government proposes to deal with the whole question on a commonsense basis. Scope of Legislation Mr. Savage's original statement regarding the restoration of the cuts was that the Government aimed at bringing back the scale of salaries and wages ! ruling before the general order for a 10 per cent cut was made in 1931. That procedure, he said, would be applied both inside the Civil Service and outside of it. More recently Mr. Armstrong, speaking in Christchurch, stated that the restoration would apply only to civil servants and workers covered by awards of the Arbitration Court or industrial agreements. A further statement on the position has been made by Mr. Savage. The aim of the Government, he said, was to make the restoration as wide as possible. Salaries would definitely bo restored to the 1931 level in the Public Service, and a general order under the Arbitration Court could restore industrial wages just as they were reduced in 1931. It was realised that there were many workers who were not covered by awards or agreements, and it might be difficult to see that the general order was enforced in their cases. However, something in the nature of a statutory minimum wage might overcome that difficulty. " Machine to Serve Man " Such a provision, Mr. Savage added, was not to be confused with the fixing of a basic wage under the Industrial Conciliation and Arbitration Amendment Act, which would refer only to industries covered by awards or industrial agreements. "We are going to see to it that the workers do not suffer," Mr. Savage said. "The cutting of salaries during the depression years reduced the purchasing power of the people and made the position infinitely worse. We want a decent standard of living all round. Only by increased purchasing power and increased leisure can men enjoy the benefits of increased production brought about by machines. "We are going to see to it that the | machine serves man and hot man the machine. The restoration to be made' next month will not be our final word on the subject. It will be only the start of what we intend to do in the future." Dealing with Anomalies

Although the Prime Minister did not discuss the position in detail, it is admitted that anomalies are likely to arise in the case both of civil servants and workers under awards who havp started work since the cuts were imposed in 1931. Against this it is pointed out that grading of salaries is fairly general in the Public Service, and also in rates of pay under awards, and it is suggested that the restorations may be made according to grades. For example, a worker being paid a salary according to grade at present may bo entitled to the salary paid for that grade before the cuts were imposed. Another suggestion is that some provision ma3 r bo made for a tribunal to deal with anomalies in salary restorations, particularly in the civil service. However, no information can be obtained as to whether provision along these lines will bo mode in the new legislation. Increases in pensions and the payment of pensions to invalids will plso date from Wednesday, but here, too, legislative authority will be required before the payments can be made. It is gathered that the legislation will be introduced at an early date after the House resumes.