WAGES ORDER

New Zealand Herald, Volume 79, Issue 24251, 17 April 1942, Page 6

WAGES ORDER

THE RECENT INCREASE OFFICIAL INTERPRETATION The official interpretation by the Department of Labour of the Arbitration Court's general order increasing _ rates of wages is set out in a circular issued by the secretary and dated April 10, In view of the diversity of opinion which has developed among employers and trade union officials as to the application of the order the terms of the circular are of particular interest. "The Court has increased all rates of remuneration provided in awards and agreements by 5 per cent," reads the circular. "It has, however, under regulation 3A, excluded from the scope of the order a portion of the workers remuneration, for example, any Bum in excess of £5 a week in the case of adult males, £2 10s in the case of adult females, and £1 10s in the case of juniors and apprentices. Clause 2 of regulation 3A provides that the increase provided for in the rates of remuneration shall apply to the unexcluded portion of the remuneration of each worker, irrespective of his total weekly remuneration, and remuneration is defined as meaning actual earnings. "The effect of this, in the department's opinion, is that the 5 per cent increase is payable on the unexcluded portion, namely, £5 in the case of male adults, of the amount actually received by him, and not on the minimum rate provided for by the award, and such increase is payable notwithstanding that the worker is already in receipt of more than the minimum award rate. i "In the case of a worker receiving less than £5 a week he will receive his increase on the amount actually earned by him and not on the minimum rate pro% r ided by the award, for the reason that all amounts' under £5 a week are an unexcluded portion of the earnings, the Court having excluded anything in excess of £5 a week. For example, assume the minimum award rate to be £4 10s a week, the worker actually receiving £4 15s. In such a case the worker would be entitled to £4 19s 9d (under the order)." This circular adds that this also applies to female workers and juniors, including apprentices, in respect of the portion of their earnings stipulated by the order.