WAGES LEVEL

New Zealand Herald, Volume 78, Issue 24133, 27 November 1941, Page 10

WAGES LEVEL

LIVING COSTS FACTOR

WORKERS' APPLICATION

7.8 PER CENT RISE URGED ARGUMENT BEFORE COURT [BT TELEGRAPH —PRESS ASSOCIATION"] WELLINGTON, "Wednesday For the second time since the war began application under the Rates of Wages Emergency Regulations is being made to the Arbitration Court for an increase in wages to cover the increased cost of living. The application by the New Zealand Engine-drivers, River Engineers, Marine Engine - drivers. Greasers, Firemen's and Assistants'

Union • Mr. Justice Tyndall is presiding and with him are Mr. W. Cecil Prime, emplovers' representative, and Mr. A L. . Monteith, workers' representative. Mr. ( A McLagan, president of the tion of Labour, is conducting the case for the applicants. Mr. W. J. Mountiov, secretary of the Wellington Employers' . Association, is acting for the New Zealand Employers' federation. Mr. McLagan said it would be shown that retail prices had been rising, v yhile, apart from the increase granted by general order last year, wage rates had not increased. In other words, only one side of the policy of stabilisation arising from the economic stabilisation conference had been effected. General Economic Position It would be contended that the general economic position was good and that company profits had not declined, continued Mr. McLagan. He quoted tne official index figures to show that, in spite of the 5 per cent increase in wages last year, the relative position of wageearners had been declining. It was submitted. therefore, that the general order last year had not restored the purchasing power of wages to the L level, nor "to the level of three or tour vears previous to the making of that order. , , . .. Dealing with the method of compiling the retail prices index, Mr McLagan argued that of household budgets forming the basis of the statistics an undue' number came from families in the higher income groups and that the index was not applicable to the average wage-earner. The war had further upset the accuracy of the index. Estimated Increase Air McLagan said that because of defects and omissions in the retail price index it was not possible to estimate exactly the additional increase in the cost of living. He submitted that an estimate of 2f per cent was conservative and asked the Court to add that to the official figure of 5.3 shown in the index and grant a 7.8 per cent increase in wages. . Continuing, Mr. McLagan said that, j while there was conclusive proof that ; wage-earners had done their part in providing the increased production necessary to maintain the _ nation s economy, the level of effective wage rates was declining. The rate of production. he said, could only be maintained if the standard of living was protected. Fruit and Vegetables The applicants submitted that, although there were particular shortages and manv goods had increased in price, there was no general shortage of consumer goods and services which would lead to any danger of inflation if the Court granted an increase in wage rates to cover the increase in the cost of living. To illustrate bis submission that the official retail price index had many important omissions, Mr. McLagan said that the list, apart from potatoes and onions, completely excluded fresh fruit and vegetables. _ "Apparently the Government Statistician does not consider these items as essential to the workers' standard of living," he said. "This is a major item of expenditure in the average household and one on which it was not possible for workers to economise in anv substantial degree without affecting the health of themselves and their families." Mr. McLagan quoted a statement by the president of the Price Tribunal, which recently inquired into the prices of vegetables, that prices were outrageous.-