STANDARD WAGES

New Zealand Herald, Volume LXXVI, Issue 23284, 1 March 1939, Page 13

STANDARD WAGES

RELATION TO EXPOETS ARGUMENT FOR REDUCTION AHEAD OF LIVING COSTS £BY TELEGRAPH —OWN correspondent] WELLINGTON, Tuesday The contention that if the factors which prompted the Court to increase wages in 1937 were examined to-day they would justify a reduction was made by Mr. H. E. Otley, a timber merchant, of Christchurch, in giving evidence before the Court of Arbitration to-day in the Dominion enginedrivers' dispute. He appeared on behalf of kiln operators in the Dominion. Mr. Otley recalled that when pronouncing standard rates of wages for casual workers on September 8, 1937, Mr. Justice O'Regan had- said: "The position of New Zealand's exports is quite healthy. Wool prices have increased substantially and should be maintained if not further increased." Trade Position "If the rates were based on that assumption," said Mr. Otley, "the present position would justify a reduction in the casual hourly rate. For the year ended December, 1938, the value of the Dominion's exports decreased by 12.5 per cent from the previous year, the figures being £66,713,379 and £58,376,283. Imports over the same period dropped by 1.3 per cent from £56,160,695 to £55,422,189. The excess of exports showed a substantial drop. For 1937 the excess was £10,552,684, and for .1938 £2,954,094, a drop of £7.598,590, or 72 per cent." Mr. Otley added that wool sold during 1936-37 was valued at £14,900,000, Or 15.82 d per lb., for . 1937-38 £8,800,000, or 10.04 d per lb. The net drop was £6,100,000, or 36,5 per cent. Cost of living statistics were, quoted by Mr. Otley, wjio said tha,t from 1928 to 1935 wages were slightly ahead of the cost of living, but from that period on they had increased rapidly, forcing up cost of living, although remaining substantially above it. Between 1935 and 1938 the increase in the nominal wage index was 27.7 per cent and the increase in the cost of living retail prices (all groups) was 15.5 per cent. In 1936 wages were 9.9 per cent ahead of the cost of living, in 1937 12.2 per cent, and in 1938 13.3 per cent. Cost to Employers

Mr. Otley -made the point that there i was no particular reason for wages to be so substantially above the cost of living, more so as they increased all other costs. Commenting on the claims and counter-claims in the enginedrivers' dispute, Mr. Otley, taking as his basis tlie present wages of four uncertificated shift workers under the Canterbury award, plus holidays, pointed out that the annual cost would be £IOB6 10s. The workers' claims for the same four men totalled £1534 5s lid, an increase' of 41.2 per cent. The employers' offer totalled £1284 15s sd, or an increase of 18.2' per cent. "We are unable to absorb any additional expense,'' said Mr. Otley. "That the industry is essential has been made clear by the Minister of Housing, the Hon. H. T. Armstrong, who has remarked that there is a need for more plant for the kiln drying of timber. If the industry is to be further saddled with increased labour costs there is little inducement for private enterprise to venture into such a costly method of seasoning timber."