IMMEDIATE INCREASE SEEN

Otago Daily Times, Issue 27057, 16 April 1949, Page 8

IMMEDIATE INCREASE SEEN

PA WELLINGTON, Apl. 15. “The decision of the Court of Arbitration relating to the new standard rates of, wages is one which must very quickly increase costs of production in factories where the new rates become operative,” said Mr D. V. Wilson, acting President of the Manufacturers’ Federation in a statement yesterday. Mr Wilson added that the federation was pleased to note that the Price Tribunal hoped shortly after Easter to announce its policy, and his organisation trusted that it would have the opportunity, together with other mainj groups of the community to express its opinion. This, he said, would be consistent with the general understanding which the federation had with the Government, that along with other appropriate national organisations it would be consulted on major issues of this type.

Mr Wilson said he also hoped that there would be an opportunity for each industry automatically to add the actual wage increase involved as a net surcharge on its approved prices from the date on which the new wage rates become operative in each industry. This, he said, would avoid the immediate burden being borne by one section of the community and would allow time for a complete review of prices in each group of commodities affected as the award adjustments- were made. It would also allow time to gauge the extent to which any production or other factors had counter-balanced the increased wage. costs.