THE WAGES PROBLEM.

Otago Witness, Issue 3994, 30 September 1930, Page 51

THE WAGES PROBLEM.

PROPOSAL FOR REDUCTION.

LABOUR EXPRESSES RESENTMENT.

WELLINGTON, September 26. Strong resentment was expressed at a meeting of the Trades Council last night at the proposal made by the employers to the Acting-Prime Minister (Mr E. A. Ransom) that legislation should be introduced to give the Arbitration Court power to reduce wages by general order. A resolution was carried to this effect. It was added that the council was fully alive to the hardship which had befallen the primary producer, due to the sharp fall in the value of his products in the world market. The reduction in the wages of the workers who were under the awards of the court would, however, not afford the primaray producer any relief, and his difficulties were being used by the Employers’ Federation as an excuse to reduce wages. If real relief were to be found, attention must be directed to the-very serious over-capitalisation in in--dustries; and the writing down of values which were written nn whilst high prices for our primary products were obtaining would go much further in the direction of relief. .This should certainly precede any reduction in the wages of workers, who by such reduction would be less able to assist the primary producers in the local markets.

QUESTION RAISED IN HOUSE. WELLINGTON, September 26. '' Will the Acting-Prime Minister give the House an assurance that the Government will not adopt a wage-reducing policy? ” asked the Leader of the Labour Party (Mr H. E. Holland) in an urgent question to Mr E. A. Ransom to-day. Mr Holland also asked that before any of the wages of the lowest-paid workers were attacked those with high incomes should be subjected to a substantial levy. Mr Holland’s question was the outcome of the deputation which waited upon the Government on Thursday to ask for legislation to give power to the Arbitration Court to reduce wages by general order. Mr Ransom said that the Leader of the Labour Party would recognise that he could not answer such an important question off-hand.

Mr P. Fraser (Labour member for Wellington Central): Why not? “ There will be no departure from the policy stated by myself and other Ministers,” said Mr Ransom. “ The questions raised by Thursday’s deputation have not yet been considered by Cabinet, and I am not in a position to make any policy announcement.”