COST OF LIVING BONUS

Otago Witness, Issue 3510, 21 June 1921, Page 5

COST OF LIVING BONUS

ARBITRATION COURT’S DECISION. PALMERSTON N., June 16. The judgment of the Arbitration Court in connection with the application for tho reconsideration of the cost of living pronouncement) of May 14, 1921, lias been given. It states: “We recognise that the withholding of the present cash bonus has been disappointing to the workers. We realise, however, that we must take a broad national view of the whole question of wages, and we are satisfied that to grant a cash, bonus at the present time would be disadvantageous to workers and to the community generally. It would at once increase unemployment at an alarming extent, and would seriously hamper industry. As we stated in our pronouncement, tho workers at the present rates are now receiving higher wages, measured in purchasing power, than for several months past. Further, when tho court made new awards iii had continued its practice of bringing the rates below the standard up to the present standard wherever possible, apart from the question of bonus. This fact appears to have been lost sight of by those who contend there has been no improvement in wages and conditions. The suggestion that the court had not adhered to what was regarded as a promise is refuted by the obvious answer that the court cannot control financial and economic conditions, but can only indicate the policy it wishes to carry out, if circumstances permit. Without being unduly pessimistic, we are inclined to the view that the present depression has not yet reached the lowest point, and it behoves us to move warily. We cannot ignore the fact that in Europe and America wages have fallen, and our manufacturers have to face competition from those countries. We are forced to recognise that unemployment is already in evidence in New Zealand, and that any increase in labour costs is certain to be reflected in increased unemployment. The granting of even a portion of the withheld bonus would tax many industries beyond breaking point. Numbers of manufacturers and trades are still keening their workers employed, though tho businesses are not showing a profit. The present application, which is in the nature of a test case, is accordingly refused for the above reasons, and tho court adheres to its original pronouncement.”