COST OF LIVING

Southland Times, Issue 19518, 18 May 1922, Page 5

COST OF LIVING

THE BONUS REDUCTION EFFECT ON RETAIL PRICES WELLINGTON SLOW TO MOVE. (Special to the Times). WELLINGTON, May 17. Beyond the announcement already made there are few signs of an immediate fall in prices in Wellington following on the cost of 5/- per week in the wages bonus. It would appear that the resolutions of the New Zealand Employers’ Federation affirming the need for a reduction in prices following the reduction in the bonus had in mind a greater cut in wages than the Court made. It is argued in many quarters that “it is absolutely impracticable to pass on the recent 5/- cut in wages.” It was gathered to-day that some trades, therefore, are not making the cut in wages, and instead are awaiting an opportunity to make new agreements with their employees. Others are making the cut and expect it to have “a tendency to bring down prices.” This is the position in regard to bread, one of the items in which every household is vitally interested. Asked to-day whether there was any prospect of a reduction in bread prices, the secretary of the Wellington Master Bakers’ and Pastry Cooks’ Industrial union of Employers (Mr A. W. Parton) said that at a meeting of the Master’Bakers’ Association it was agreed that it w’as absolutely impracticable to pass on the present 5/- cut in wages. The provisions of a new award were to be considered by the Arbitration Court next month, when the employers hoped to present a sufficiently strong case to justify a considerable alteration in wages and conditions, and then the bakers might find themselves in a position to arrange new prices. It was decided not to reduce wages and to take advantage of the reduction until it could be passed on to the public. Regarding the prices of small goods, a considerable reduction was made last November , and many lines were being sold at approximately pre-war prices, consideration having been then given, to the possible reduction of manufacturing cost. The president of the Wellington Master Grocers’ Association (Mr R. Jansen) stated the position thus : “We intend to give the assistants written notice of the 5/- reduction in the bonus. The assistants know that it is to come, and there will be-no friction. It will have a tendency to bring down the price of groceries and of foodstuffs connected with the trade. Speaking generally, the reduction, of the bonus on wages as it will effect the transport and handling of goods on the wharf and in shipping, as well as our bonus reduction, will have a beneficial result to the public in general as far as prices are concerned.” Another commodity which plays a large part in the household is gas. The general manager of the Wellington Gas Company (Mr M. J. Kennedy) explained that the agreement with the company’s employees expired this month and that any question of reduction in price would depend upon the terms of the new agreement. No official information is yet available in regard to clothing and drapery, but just at present the indications are that the bonus cut will have little direct effect. The head of one business said that the cut would apply to a comparatively few of the employees. That big reductions in prices had already taken place, and that competition was so keen as to regulate prices automatisally. PASSING ON THE REDUCTION. RETAIL PRICES LOWERED. (Per United Press Association.) CHRISTCHURCH, May 17. The master butchers decided to observe their Court’s general orders regarding wages and to see that the amount of the wage reduction is reflected in retail prices. Tho New Zealand Motor Traders’ Association decided to give effect to the Court's pronouncement, and that wages of all other employee# not governed by awards be reduced 5 per cent. It was further decided that there be a corresponding reduction. in charges. TOKOMARU FREEZING WORKS CLOSED. GISBORNE, May 17. The Tokomaru works of the Gisborne Sheep-farmers’ Company closed down today for the winter. The decision was the result of tho action of the employees in refusing to work at the reduced scale of pay authorised by the Arbitration Court.

SOFT GOODS WAREHOUSEMEN. (Special to the Times.) CHRISTCHURCH, May 16. The wages of soft goods warehousemen are expected to be reduced by 5s a week, although this class of employee is not working under an award of the Arbitration Court. The employees in Christchurch are organised as a guild, and not as an industrial union. However, a reporter was informed’ that wages had been based on those paid to soft- goods warehousemen at Dunedin, who have a union and work under an award. As the wages would be adjusted in Dunedin to meet the pronouncement by the Arbitration Court of the reduction in the bonus, a corresponding adjustment is expected in Christchurch. It is unlikely, according to the head of a large concern, that the expected reduction will have any effect on the prices of soft goods. Soft goods warehouses, it was stated, are facing a big shrinkage in turnover, while the overhead expenses are very high. Many concerns have not paid dividends to ordinary shareholders for two years, and tho shareholder are therefore entitled if any small saving can be made in overhead expenses, to the benefit thereof. In any case the saving on wages would be so small that it would make very little difference in the matter of prices.