FLOUR AND BREAD

New Zealand Herald, Volume LXXIII, Issue 22465, 8 July 1936, Page 17

FLOUR AND BREAD

FIXATION OF PEICES VARIATION SUGGESTED HIGHER LABOUR COSTS In view of the increased labour costs imposed or to be imposed on the industries concerned since the agreement was made with the Government whereby the prices of wheat, flour and bread were fixed, the question is being asked whether" an adjustment of rates to meet the situation will be made. Both the milling and baking industries will shortly he affected by shorter working hours. Before the arrangement with the Government, which operated from February 1, millers agreed to restore the 1931 standard of wages and their manufacturing costs were based on that standard. However, hours were not changed from 48 a week. Bakers' employees work under an award made in 1935, the hours,of which are 46. Mill and Bakery Hours It is also understood that wheat farmers before the agreement wore given to understand through their representatives that they would be expected to pay higher wages on a date to he fixed. Hours for Hour mills and bakeries will now be reduced, conceivably to 40 a week, and the Government intends to do something to improve conditions for the farm worker. Dairy farmers have already been told that, rates of pay are likely to be adjusted in relation to the price of dairy produce. Wheat farmers are, of course, affected by awards and industrial agreements relating to harvesting and threshfng, and while any increase in rates of pay connected with these is largely a problem reserved for next season, they have found, in common with other farmers, that it has been necessary to pay higher rates to labourers now employed. Moreover, in common with other farmers, they anticipate the possibility of a move toward shorter hours for farm workers. Cartage and Other Costs So far as millers fire concerned, labour in the mill does not play such a big part in proportion to output as in some industries, but, together with the other industries included in the agreement, they will be aflected by rises iu cartage and other costs that apiieai to be inevitable. When the Government fixed prices , for wheat, flour and bread it based these on what it considered to be a failreturn to the industries concerned. Government investigation of these industries extending over many years has made the Department of Industries and Commerce familiar with operating costs, so that it was in a position to ensure that margins of profit were not wide With the inevitable rises in costs facing the industries, it is stated that they will have some claim for reconsideration of prices.