AN IMPORTANT POINT

New Zealand Times, Volume XLVI, Issue 10660, 5 August 1920, Page 5

AN IMPORTANT POINT

iWHAT IS A BASIC WACE ? MINIMUM RATE v. ORDINARY RATE. A most important point to both employers and employees alike oamo beforo the Court of Arbitration yesterday, when Mr 11. T. Bailey, on behalf of tho Department' of Labour, asked for the court's ruling on what constitutes a basic vf.ge—the minimum rates provided for hi an award or the actual rates paid? The application arose out of a question of interpretation of a clauso in the "Wellington United Furniture Trade Award, which rends "Overtime for work done before tho ordinary hour for commencing work or after the ordinary hour for "ceasing work shall bo paid on basic wago as follows: Time and a-half for the first three hours, thereafter double time until the ordinary time for commencing work next day if worked continuously." The facts were that during tho month of March. 1920, several men worked twenty-four hours overtime and were only paid at the rate of tuna and a-quarter on the rate received, viz., £o 10s and £6 pe r ™>ek. Tho employers contended that the clauso read that overtime should only be paid on Is lOid per hour—tho award rate—making 2s 9Jd nn hour. As the men concerned received 2s 6d and 2s 83d t>er hour ordinary time, it followed that, if the employers' contention were sound, thev would receive but 2s 93d an hour for working overtime. Mr Bailey said that surely such a thing could not have been contemplated by the Court of Arbitration. Tho question to bo determined was what construction should be nlaced on the words "basic wage." The- dictionary definition of tho word "basic '}- was "Of or pertaining to the base of esflance—rundamential." Therefore;, in the case of an employee receiving *s 6d an hour, that was his basic wage, and overtime should be paid on that) Mr W. A. Grenfell, advocate for tho eniplovers. argued that tho basic wage was the wage provided for m . the award, and he went on to point out that when the dispute was the subject of conciliation, the employers ottered to pav iimo and a : ouarter on the actual wages paid or time and a-nalt on the basic wage, and the employees accepted the latter. Air Justice Stringer remarked ,that usually it was the smart man, or most hi<_lv'-paid worker, who was employed on. overtime, so therefore it followed that if the basic wage were the rate provided for in an award, he would bo penalised and that only the inferior worker would receive the benefit of the overtime rate. He added that* the issue was of such importance that the court would consider its de.ci _on and give a written judgment.