REDUCTIONS OF SALARIES

Otago Daily Times, Issue 21646, 17 May 1932, Page 10

REDUCTIONS OF SALARIES

TO THE EDZTOIt Sib, —In all phases of public and private life economies are being effected at the present time in order to balance the account between available money and necessary expenditure. The Government has retrenched men and inflicted wage and salary cuts; award workers have suffered reductions of wages; and private concerns have reduced their outlay in various ways. These things cannot ■ be avoided and are accepted in a more or less philosophic spirit, but there is one class of employer—in Oamaru, at least —which has not been called upon to make a sacrifice of any consequence. Of course, there are exceptions. I refer to managers of business concerns. During the first six months f have noticed that a number of firms have dismissed employees, rationed work, and inflicted wage reductions on those remaining in their employ. The plea is lack of work; in other instances it is contended that expenses must be: reduced. Now, these concerns are managed by men who are responsible to either a proprietor, company, or board of directors —they are the middlemen. If no work is offering, and if expenses must be reduced, what are

these men doing to earn their salaries? Personally, I know of plenty of instances, where these men have, from a high sense of duty, reduced their own. salaries in accordance with the cuts inflicted on their employees, and the result has been a closer understanding between all concerned in sharing equally the burden imposed by depression in trade. This class of men is proving itself worthy of commendation in this respect. But there is another side. In the United States there is an order of patriots who have a high reverence for “ Uncle Sam,” but especially his pocket, and that is the patriotism of a number of managers of business concerns in our little community. Loud are the complaints from employees whose wages are cut to the maximum, when they know that the head of the concern is not sharing in the sacrifice. These smug-faced men are ever ready to advance the urgent need’ for economy and present to their directors statements showing how they have saved this and that amount. They are merely petty economists, and if their actual work was paid for on actual performance there would be many surprises to directors of firms. The fault, however, lies with company directors, who should seriously consider whether a manager is necessary, ff trade is dull, let directors manage their own concerns, if at all possible, and the money saved could be put to other uses. On the other hand, if a manager is indispensable, then they should see that he shares equally in the sacrifices imposed on the rest of the employees and that he is really earning his money. Much may be overlooked in prosperous times, but in days of stress figureheads are expensive. The subject, no doubt, is a highly contentious one, but reflection will bring to mind the names of many men who would be better employed planting cabbages and potatoes than indulging their self-conceit as the heads of concerns whose very existence is threatened.—l am, etc., Onmaru, May 16. Axomalt. ,