UPWARD TREND

Otago Daily Times, Issue 26541, 16 August 1947, Page 6

UPWARD TREND

WAGE LEVELS BIDDING FOR LABOUR A DISTURBING FACTOR In the earlier part of its judgment the court says that in terms of the application for a standard wage pronouncement it was asked to make an amendment “by adding sixpence to the rates of remuneration and converted to a weekly wage.” Since, however, this would introduce variations in conditions other than remuneration, the court doubts whether it possesses the necessary jurisdiction, and declines to accede to this claim. Dealing with the application to specify standard rates of wages, the court recalls that the. last pronouncement was issued on March 17, 1945. and that the rates then fixed were increased by the general orders of August, 1940, and March, 1942. In effect, the application now before the court was that the minimum hourly rates for adult male workers should be: Skilled workers, 3s 6Jd per hour; semi-skilled workers, 3s 2Jd to 3s 5d per hour; unskilled workers, 3s lid per hour. At this point the judgment says: “It is a matter for comment that, despite the restrictions imposed by the economic stability regulations, the court is faced with claims in the present instance of much greater scope and financial magnitude than any others that have ever been submitted to it in the course of its history.”

“An examination of the extensive list of awards made and industrial agreements approved in the. last 12 months,” the finding continues, “shows a general upward tendency in the minimum wage rates prescribed therein. The amounts of the increases vary considerably, but the bulk of them fall within the range of from ljid to 2£d per hour or from 3s 4d to 8s 4d per week. Preserving a Balance

“In practically all cases where the new rates have been agreed upon by the parties, the court has been assured by the representatives of both sides that the. increases were necessary to restore or preserve a proper relationship with the rates of remuneration of other classes of workers. The court itself has decided to increase rates in a number of cases by ljd per hour, or 5s per week, after hearing representations of a similar character.

“ While we do not doubt the sincerity of the joint submissions made to the court, it appears there is now a measure of general agreement that it is necessary to adjust to some , extent the present standard wage rates so as to restore or preserve a proper relationship between those rates and the rates which have from time to time during the last 12 months been prescribed in a number of awards and' industrial agreements, the latter rates having been inserted, in many instances at the joint request of the parties and with the concurrence of the court, in order to restore or preserve a proper relationship with the rates of remuneration of other workers or classes of workers. “We are satisfied that it is necessary and just that the . present standard rates should be increased, but the applicants have failed? to convince us either by evidence or by argument that the amount of the increase should be as much as

6.3 d per hour. • “ While we express no view upon the submission that the wartime price index is an inadequate indicator of variations in the cost of living,” the court says, “ we are bound to point out that its deficiencies, if they exist, have not resulted in any reflected retardation of wage rates. The weekly wage index has increased since December, 1942, at a much faster rate than the wartime price index, and there is a relatively large margin to compensate for any alleged deficiencies of the latter.”

At the same time, the finding points out that price increases in the near future, attributable to the withdrawal of subsidies, must result in a temporary reduction in the real wages of the workers. It was therefore proposed to make provision for the time lag between increases in prices due to the cancellation of subsidies and possible wage adjustments, as such time lag was to the disadvantage of the workers. Regulations Ignored ,

“A question which gives us concern," the court says, “is the extensive manner in which we believe the Stabilisation Regulations are being ignored by many employers and workers when entering into individual contracts of service. The situation is a reflection of the present labour shortage. The advertisement* columns of the daily press add their mute but convincing testimony as to what is going on. “While it is true that the enforcement of this section of the law is not connected directly with the work of this court, nevertheless, in considering the present application we are bound to examine the rates of remuneration of all classes of workers. Because of the situation we have referred to, it is probable that to-day there is a greater margin between actual average wage rates being paid in industry and the minimum rates prescribed by awards and industrial agreements' than ever before. “A further probable consequence of recent developments is that the rates of wages of some . groups of workers and of certain individual workers who, because of peculiarities of their industry or their occupations, or because of their personal circumstances, are not in as favourable a position as other workers to exercise bargaining power, are lagging behind. If this is occurring, and we believe it is, industrial discontent must arise, and there is no doubt that the court has some responsibility to watch the interests of such workers.

“Another point of interest is that il the average margin of actual rates over minimum rates is greater than ever befbre, then the impact of an increase in standard wage rates on our economy is likely lo be less marked than usual.

“ It is necessary to realise that irresponsible wage bargaining can quite easily lead to inflationary developments. Under the circumstances prevailing to-day it can therefore be seen how important in our economy is the work of the Economic Stabilisation Commission and the Price Investigation Tribunal. It is just as necessary and important as ever to keep inflationary pressures under control if we are to protect the real value of wages, the real incomes of the primary producers, the real value of our social security benefits and pensions, and the real value of the hard-won savings of our workers.

“ Our economy is menaced to-day by two possibilities, first, the possibility that the present prices for our exports will not be maintained, and secondly, the possibility of what is nowadays euphemistically referred to as a recession in the United States. A cautious wage policy such as is envisaged by the Stabilisation Regulations will undoubtedly assist us in meeting the difficulties that would result in the event of either or both of the above Happenings.”