LOSS OF TRADE

New Zealand Herald, Volume LXXIII, Issue 22497, 14 August 1936, Page 10

LOSS OF TRADE

STAFF ADJUSTMENTS STATEMENT BY MR. SAVAGE [hy tklegraph—sfkcial reporter] WELLINGTON, Thursday The rights of employers to make stuff adjustments when their businesses are affected by a loss of trade was referred to by the Prime Minister, Mr. Savage, in replying to a question by Sir Alfred Hansom (Opposition—Paliiatua) in tlio Hotiso of Representatives to-day. Sir Alfred mentioned tho ease of an employer with a full staff engaged, particularly in a factory, who subsequently experienced a reduction in orders and found it impossible to maintain the staff fully employed. He asked if such an employer could request his employees to take time off instead of relinquishing their employment, and whether their wages could be adjusted accordingly.

"There is nothing 111 the legislation recently passed by Parliament," said Mr. Savage, "to prevent an employer from making any necessary adjustments in his stall' consequent upon a reduction in orders, provided that the minimum rates of wages prescribed in the Factories Act, or any award, if one applies to tho industry, are paid. Tho onus of proof that any such adjustments were not made in contravention of the provisions of tho recent legislation would, of course, rest 011 the employer." Mr. Savage added that if Sir Alfred would supply him with particulars of tho case he had in mind he would be glad to have inquiries made.