BASIC WAGE INCREASE

New Zealand Times, Volume LII, Issue 12248, 21 September 1925, Page 4

BASIC WAGE INCREASE

“JUSTIFIED BY THE OUTLOOK” AWARDS Mi(Y~NOW BE AMENDED IF PARTIES ARE AGREED In making tho announcement (published in the' '‘Times” of Saturday) that tho basic wage would be increased, the President of the Arbitration Court stated: Tho court has had under consideration the matter of re-adjusting the basic rates of wage.* for unskilled, semi-skilled and skilled workers The minimum rales fixed at present for these classes of workers, apart from special considera-* lions, are as follows: Unskilled workers, Is 9d per hour Semi-skilled workers, Is lOd to 2s o£d per hour Skilled workers, 2s 2d per hour It is understood, of course, that these minimum rates are intended to be regarded a© general standard minima and that they are not necessarily applicable in cases where the employment i© of a special nature or regular and constant throughout the year. On the other hand, additional rales are prescribed where work is performed under unpleasant con-, ditions, or where special care or exs*erience is required, or where the circumstances of the employment are unusual. The scale set out above has not however, been closely adhered to in recent yoars, and increases granted by the court or conceded bv the employers have to some extent disturbed the balance between the rates for somewhat similar classes of workers. During the past few years, numerous classes of workers whose rntes previously to 1914 had been on the low side, but _ who were not directly nfleeted bv the general scale of minimum rates, have had their wages considerably increased, and their conditions of eninlnvment im proved This group includes drivers. se«uien. grocers, butchers, general sl.on iv.«hdants. freezing-works employees, and others. Tlmir rales of remuneration are now well above CO per cent, in excess ul

those prescribed in 1914. Among the unskilled workers, whose minimum rates in 1914 were Is lid and Is 2d per hour (and in a few cases Is and le Id), there has been a departure from the general minimum of Is 9d per hour, for a num- I ber of recent awards provide a minimum ; of Is 9id or Is lOd per hour for labouT- I ers and other unskilled workers, w&oee { employment is not subject to any special | or unusual conditions. In other cases, j where an inclusive minimum rate is pro I vided, the marginal allowance over the j basic minimum granted for special con- * ditions of employment has apparently been increased, though tho real increase has been in the basic rote. This is evident from a comparison between tho minimum rates awarded in 1914 and 1925 for unskilled worker© generally ;.nd for the workers in question. The net result is that tho minimum grade unskilled workers, and those unskilled workers whose remuneration is fixed, bjj reference to the basic wage plus a marginal allowance, do not at present have their minimum rale© of remuneration fixed in accordance with a uniform .standard. In the opinion of the court, it is desirable # that a standard should again be established, and that it should .bo arrived at by levelling up rather than i levelling down, j REVIEW OF TRADE In fixing a new standard basic wage, the Court has. to consider a number of factors. The first is the general finnncinl and economic conditions affecting) trade and industry. So far as we are j able to judge, (here does not appear to | be any reason at present to fear any- i . thing in the nature of a depression, at j all events so long as over-importation is avoided. The prices received for wool, | though there has been a drop, are satis- - factory; butter-fat is still at a high level, which appears likely to he maintained for some time to come; and meat j is bringing higher prices than it did a . year ago. The average level of export I prices in July, 1925, was slightly‘.higher l than in July, 1924, in the ratio of 186 G I to 1759, though lower than the January, I 1925, peak. The manufacturing indus- | ■ trios, with throe notable exceptions—the j woollen manufacturing industry and the | iron and leather trades—are in a satis- [ factory position, and retail trade gene- i rally is sound. At the same time, the i unsettled condition of Europe, economically and industrially, is a factor that is ; liable at any lime to upset any cnlcula- ! lions that iu.iv h« made resnecting tho f

future. Then, too, the restoration of the gold standard may tend to a, lowering of price levels, though this will doubtless be offset by a stimulation of trade. On the whole, however, the Court considers that the general finani cinl and economic situation, in so far as I Now Zealand is concerned, is satisfac- { tory. This enables the Court to approach \ the question of an $ improvement in the I standard of wages Without having before it the prospect of a corresponding re- | duction in the near future. It is gene- { rally recognised that it is undesirable that rates of wages should be subject to rapid fluctuations, because these render trade conditions uncertain and have an unsettling eflert on the workers. A reduction in money wages, evefi if only to an amount necessary to offset an increnso grantod t,o moot unusual and temporary conditions, is always misunderstood, and sometimes occasions industrial strife. We arc of the opinion that an increase in the basic rates can now be made without embarrassing industry, raising prices appreciably, or causing unemployment; and, as wo have already mentioned, wo think that the general financial and eeoj nomie outlook justifies the grunting of j increased rates." COST OF LIVING The second factor is the cost of living, j During the past three years the index (figures' for ail groups combined have fluctuated within a few points of 60 per cent, above the level of July, 1914. The figures are as under August, 1922, 59 j per cent.; February, 1923, 57.1 per cent.; | August. 1923, 58.4 per cent.; February, ; 1924. 62.1 per cent.; August 1924, 60.2 per I cent.; February, 1925, 59.7 per cent.; j July, 1925. 61.3 per cent. \ These statistics indicate that the coat j of living has stabilised- for the period J dealt with at a level of approximately • 60 per cent, above that of »July v 1914. In applying this percentage to the minij mum wage fixed in 1914. we are faced / with a difficulty, for on taking out a list of all awards and industrial agreements I made for unskilled workers between Augj ust Ist, 1913. and July 31st, 1914. we find 1 that two different minima were in opera* I tion, for all through that period a rate | of Is H-d alternated with a rate-of Is 2d. 1 A closer analysis of the awards and industrial agreements shows, however, i that, with a few exceptions, the unions vC.th the largest membership, whose , awards and industrial agreements af-j

fected the greater number of unskilled workers, were granted the higher rate of Is -d per hour. A rough weighting of these two minimum rates works out at an average of a fraction* over Is lsd per hour. An increase of 60 per cent, would give a rate, calculated to the nearest farthing, of Is lOd per hour. The third factor is the rate of wages generally paid to unskilled workers. The court has had before it ample evidence to show that in most cases the minimum award rate is regarded by 'employers ns a true minimum, and that in cases where 1; t is regarded as a standard rate the more efficient worker is compensated by being given more constant employment. In such occupations as those covered by the- freezing-workers' and waterside workers awards, a specially high minimum rate liae been granted on account of the notoriously casual or seasonal nature of the employment, which enables those workers who are given fairly constant employment to earn considerably higher wages, though the rates prescribed bv these awards are generally regarded ns ntandard rates. The court is desirohs of fixinc a minimum wage that will, on the one hand, fairly remunerate the worker who comes up to the minimum requirenients for the class of work in which he engaged, but that will not, on the other hand, preclude employers fi*om giving due recognition to‘ workers of greater industry and efficiency. The minimum wage should not. of course bo «o high so to restrict production or to cause unemployment. A« a. number of wards and industrial agreements now provide for a minimum rate of Is 9ld or Is lOd ocr hour for unskilled workers whose employment is not subject to special or unusual conditions, and a? the minimum rates are generally regarded as true minima. The court is of the opinion that it ie desirable to remove existing anomalies and to fx new basic rates, and considers that this can be done without embarrass-ing-industry or causing the minimum wage to bo regarded as a maximum. This does not apply onlv to unskilled workers, for skilled workers, in general, are in receipt of wages in excess of Hie minimum rates proscribed bv their awards and industrial agreements Another factor that weighs with the court is tlie desirability of having definite standards by which employers and workers can he guided in framing industrial agreements, and bv which (Vnciliation Councils may be assisted to settle j disputes*

THE DECISION Th e court; has decided, therefore, that the standard minimum rates of wages ' tor adult male workers that it wilt 1 adopt for the future, in place of the rates already referred to, will be as follows: Unskilled workers, Is lOd per hour Semi-skilled workers, Is lid to Zi IH per hour i Skilled workers, 2s 3d per hour These rates, for the basic-wage worker at Is lOd per hour, work out at £\ Os 8d for a 41-hours week. £ 4 4s 4d for a 46nour s week, and 8s for a IS-hour> week. These sums do not take into ac- | count the improved conditions of work, increased overtime rates, and other bene- ! »ts granted since 1914. all of which have a definite money value. When taken ;n conjunction with the increased basic rate, these concessions bring the total earnings of the basic rate worker well above 60 per cent the 1914 standard 1 It is to be dearly understood that the t adoption of these rates does not mean • that a general increase of Id per hour 1 will be granted in all awards. In many * cases, as we have already mentioned, the 1 awards and industrial agreements now ‘ in force already provide for all or part of the increased rates now decided upon. * The cost of living legislation, by which • the Court was empowered to make gener ral orders increasing or reducing mini- ’ mum rates of wages, has eypired. and , accordingly the new rates will come into ; operation onlv as new awards and influx- ; i! in ' agreements are made. In any > event, this pronouncement could not bo brought into operation by means of a general order, for what has been decided : upon is not in the nature of a general 3 increase of wages, but is rather an adjustment or levelling-up of rates. Where, j in a rn-e to which this decision applie-, the employers and workers bound by an j award nre able to agree on an amendment of the current award, the new > rates can he brought into operation for r the remainder of the term of the award. and tlie Court is empowered to amend I. the award accordingly, ami will do so on I duplication being made for that purpose, j At the seme time, the term of the award . can. if the parties desire, lie extended. provided that the total tei m dr.e- not j exceed Hnee year** from tlie date on which tlie award came into force.