WAGE RATES

Otago Daily Times, Issue 23365, 3 December 1937, Page 10

WAGE RATES

INCREASE NOT JUSTIFIED FALL IN WOOL PRICES COURT’S EXPECTATION FALSIFIED (Special ro Daily Times) AUCKLAND, Dec. 2. “ I submit that the position of the particular industry undei consideration is not such as to justify any increase in wages,” said Mr G 1 Macdonald secretary of the Canterbury Employers’ Association, in stating thr employers’ case at the hearing of wool grain, hide and manure stores employees claims before the Second Arbitration Court to-day. *■ Moreover, the general outlook for New Zealand or, for that matter, for the world is not one which can justify an increase.” World prices foi stablt commodities such as metals, cotton wheat and wool were all failing, he added and it was obvious that the peak prices of May, 1937, were not being maintained and that lower prices generally could be looked forward to. There was no need to emphasise at the moment what that meant to a country so dependent on its income from its exnorts -is was New Zealand. “I would like to point out,” Mr Macdonald continued, “ that the recent judgment of the Court of Arbitration on standard wages indicates that the court contemplated ' a bright future.’ No doubt this influenced the members of the court who favoured the substantial increase in wages granted to casual workers by that judgment.’ The following extract from the judgment was quoted by Mr Macdonald:—“The future is not less bright. Wool prices have increased substantially and should be maintained, if not further increased. “How unfortunate it is for New Zealand that we know that this is not the case,” he said. “ The recent wool sale indicated that prices in New Zealand this year will probably be from 30 to 40 per cent, lower than last year. How, then, can we look forward with any great spirit of confidence, and how can any court today justify any increase in wages? I therefore submit that, in so far as permanent hands are concerned, there L no justification for an increase.”

Further reference to wool prices was made by a witness called by Mr Macdonald, Arthur Emerson Mabin, manager of Messrs Levin and Co., and a former president of the New Zealand Woolbrokers’ Association. Mr Mabin said he had had 49 years’ association with the industry, and he considered that the prospects for the wool industry were far from “ bright.” The information obtained by witness was that the recent Auckland sale prices did not indicate the prices for the whole of the season. They were likely to be worse, looking at world prospects. Japan was not financial and the China market was eliminated owing to the damage to machinery in China, which bought huge quantities of “ tops ” from Bradford. The United States market was in a parlous position, which meant that the market was thrown on to Bradford and the Continent.

“ The fall in prices in Auckland last Saturday represents nearly 4Jd per lb, which means £4,500,000 less than last year if the fall continues,” Mr Mabin added.