THE BASIC WAGE

Southland Times, Issue 19658, 7 October 1922, Page 5

THE BASIC WAGE

ANNOUNCEMENT BY THE COURT DECISION DEFERRED TILL NEXT MONTH FURTHER FALL IN COST OF LIVING. (Per United Press Association.) * WELLINGTON, October 6. His Honour Mr Justice Frazer, delivered the following pronouncement of the Arbitra tion Court to-day in regard to the fall in the cost, of living and its effect on wages: “The Court, in pursuance of the provisions of the Industrial Conciliation and Arbitration Amendment Act, 1921-22, has investigated the movement in the cost of living between the. six-monthly period ended March 31, 1922, and the six-monthly period ended September 30, 1922. Our investign tion covered the whole field of the cost of living items comprising the different groups and sub-groups. The weighting allotted to each item, sub-group and groui', and the method «£..treatment were the same as for the former investigation and were described in detail in our pronouncement of April 5 last. As on other occasions the Court, worked on the principle of a sixmonthly moving average; that is, the average increase or decrease- in the cost of living for the past six months taken as the index of increase or reduction in w;.ges for the ensuing six months. As has been pointed out in the past this system operates againt the workers on a rising market but is in their favour on a faiilng market.' In the former case their wage, keep faffing behind the increasing co.-: of living, though this is usually offset by the greater regularity of employment, more overtime and the tendency on the part of the employers to pay more than Avan! wages to a larger percentage of their employees, while in the latter case they start for the half year with wages on .some points ahead of the current cost of living, and the advantage increases month by month. “With the exception of rent all groups and subgroups show a decrease from the figures of the preceding half-year. Crockery heads the list with a drop of 16.72 |x*r cent., followed closely by household ironmongery with 15.06 i>er cent. Fuel an:! light have fallen by 11.55 per cent., furnishings 6.88 per cent., clothing and drapery 6.74 per cent., newspapers and periodicals 2.20 per cent., and train and tram fares 0.33 per cent. Rent shows an increase of 2.06 per cent. “Giving each group and sub-group its proper weighting we find that all groups combined show a decrease of 3.73 per cent, for the six months. Compared with July 1914, figures, the average figures for the past six months are slightly under 60 per cent, above the standard, as against the 67 per cent, of the preceding half year. “Measured in wages the cost of living has fallen during ihe past half year to an extent that would reduce the adult male wage by 3/- per week. If the principle adopted in former wage revisions is followed the corresponding reductions for adult females and juniors arc 1/6 and 1/per week respectively. “This pronouncement is not a judgment or order of the Court, but is simply a statement of the movement in the cost of living as represented in wages. We will hold a sitting in Wellington during November at which we will hear representatives of employers and workers if they desire to be heard in regard to other considerations that should weigh with the. Court in determining whether wages are to be reduced, and if so, by what amount. The date of the sitting will be announced as soon as we are in a position to determine the approximate duration of the forthcoming Auckland session.” LABOUR’S ATTITUDE. PUBLIC MEETING CALLED. WELLINGTON, October 6. The conference convened by the Trades and Labour Council to discuss what action should be taken with reference to the possible Arbitration Court pronouncement, on a reduction of wages decided to hold a public meeting on Sunday week to discuss the pronouncement on the cost of living variation, and that of any reduction in wages is foreshadowed steps be taken to prevent the enforcement of such reduction on the ground that wages are at present insufficient to provide a fair stand ard of living, especially as unemployment is so rife. A committee was set up to confer with the Alliance of Labour on the matter of arranging for an advocate to contest Labour's case against a reduction before the Arbitration Court.