WAGES IN OIL BUSINESS

Taranaki Daily News, 6 October 1931, Page 11

WAGES IN OIL BUSINESS

OPERATION OF RECENT CUT APPLICATION FOR EXEMPTION. COURT RESERVES ITS DECISION. By Telegraph—Press Association. Wellington, Last Night. Another application for exemption from the Arbitration Court's general order decreeing a 10 per cent, reduction in wages was before the Court to-day. It was made by the Storemen and Packers’ Union on behalf of oil store employees. The application was made on the grounds that the economic and financial conditions of the oil industry did not justify the application of the general order, and that in the matter of wages the employers had as a general rule observed the minimum as the maximum and had not shared the abnormal prosperity with their workers. For the employers it was contended that the oil companies were not engaged in what might strictly be called the oil industry. They did not produce or refine any oil in New Zealand but carried on business as wholesale dealers. They were feelino- the depression like other trades. Tlie cost of goods to the oil companies had no bearing on the application for exemption. The Court was not empowered by the Finance Act 1 to investigate the landed cost of goods produced outside New Zealand or to determine profits and trading prices. Business had decreased and since the 10 per cent, reduction had been put into effect the companies had retained the services of many workers who would under the present conditions be dispensed with. Owino. to keener competition the companies had recently reduced the price to re-sellers by Id per gallon. Any increase in costs to the companies would, result in increased prices to the consumers. The Court’s decision was reserved.