FREEZING WORKS CHARGES

Southland Times, Issue 23406, 13 January 1938, Page 6

FREEZING WORKS CHARGES

Increase Expected In Auckland HIGHER WAGES UNDER NEW AWARD WEAKENING DEMAND FOR BY-PRODUCTS (United Press Association) AUCKLAND, January 12. With wages increased under the new award for freezing works employees by between 10 and 12g per cent., new schedules setting out higher charges for killing, freezing and handling are expected to be issued by the companies. It was stated today by one authority that the costs of freezing had risen by 3 per cent, and those of killing by 6} per cent., these advances representing about 4 per cent, of the charges that were at present levied. During the hearing of the award claims by the Arbitration Court, it was suggested by the employers’ representatives that if the workers’ contentions were upheld the industry would have to find an additional £500,000 annually. In its judgment the Court effected, a compromise, but the concessions S au J" ed by the workers are expected to prove costly. It was stated that the companies were operating only on working profits, although several had built up reserves, and it was considered inevitable that the added expense would be passed on to the producer. “There is no question about the advances having to be met, as always before by the farmers,” the principal of one firm said. “The freezing industry cannot absorb the additional 3d an hour which it is now required to pay its labour and no doubt new scales ot charges will be issued very shortly, 10 a certain extent the companies will collaborate in this work.” • Because of the falling market for freezing by-products, it was agreed that the burden of higher wages had been imposed at an unfortunate .time. When the wage advances, estimated at £450,000, were made in 1936 the upward movement of overseas prices had reduced the shock of the new conditions but on the present occasion a weakening demand for such commodities as tallow, fat and pelts was likOly to accentuate the difficulties.

“SORRY READING FOR FARMERS” INCREASE COMPARED WITH GUARANTEED PRICE (United Press Association) WELLINGTON, January 12. Commenting today on the new freezing workers’ award, Mr A. P. O Shea, Dominion secretary of the New Zealand Farmers’ Union, stated that while the award might receive the very favourable reception by freezing workers that the secretary of the Canterbury Union expected it would make sorry reading for the farmers of New Zealand. The rates were the highest in the history of the industry, and prices were nowhere near the level they had been on occasions in the past. It should also be remembered that wholesale prices overseas were falling. , When the dairy farmer compared the treatment the freezing worker had received vitb- the increase in the guaranteed price, he would have just cause for complaint, said Mr O’Shea. It should be further remembered that farmers’ costs were increasing and the award would assist in further increasing these costs. The farming industries were not in the position they had been previous to the depression, but their costs were amounting to levels beyond all previous peaks.

ADDITION TO WAGES BILL OF £lBO,OOO

INDUSTRY IN DOMINION (United Press Association) . CHRISTCHURCH, January 12. Commenting on the new Dominion award covering the freezing industry, Mr C. G. Wilkin, secretary of the North and South Island Freezing Companies’ Associations, said he estimated that the increased wages and extra payments, etcetera, granted by the court amounted to more than 11 per cent, over the last award and were equal to an increase of .08 pound weight on all meat exported. On the total wages bill of the Dominion industry this represented an additional wages cost of approximately £lBO,OOO, which would be a further heavy charge on the meat export industry. .