SLIDING SCALE IN WAGES.

Timaru Herald, Volume CXXXIII, Issue 18763, 30 December 1930, Page 4

SLIDING SCALE IN WAGES.

GENERAL PRINCIPLE UNSOUND. VIEWS OP MR JUSTICE FRAZERf “With' this conception of a minimum wage in mind, one recognises that the general adoption of sliding scales, correlating the wages paid in an industry with the ruling prices obtainable for the products of that industry, is unsound, though in particular cases a sliding scale may be a desirable expedient, if it is worked out so aa to keep wage fluctuations within definite limits, and is limited in its operation to a comparatively short period.” That observation was made by his Honour Mr Justice Frazer in an order of the Arbitration Court amending the Wellington Flaxmill Employees’ Award so as to provide a 33 1-3 per cent, reduction in wages. “In periods of fairly stable prices, when market fluctuations upwards and downwards tend to balance one another over a number of years, a sliding scale correlating wages with prices may sometimes be advantageously adopted,” said his Honour. “In general, however, it is more desirable, in the public interest, that award rates of wages should remain stable over long periods. The Court’s minimum rates are so adjusted that in fairly normal times it will not be necessary to make frequent alterations, whcih are disturbing to employers and workers alike. “My own theory is that in normal times the minimum rates of wages should In general give the minimumgrade worker in an industry a wage that is fair and reasonable, having regard to the nature and conditions of his work, the degree of skill and experience required of him, the general standards of diving prevailing in the community, the cost of living, the general financial and economic condition of the country, and the circumstances of the particular trade or industry. “Such a minimum rate should not be so high as to be oppressive to employers, in the industry in times of temporary depression, and it should leave a margin sufficient to enable an employer to pay higher rates to his more industrious and deserving workers when trade is moderately prosperous, and to pay higher rates to his workers generally in times of trade activity.

“It is certain that, having regard to the economic position ol the average worker, his wages rates cannot fluctuate so violently or so rapidly as do the prices of our primary products, more particularly when it is borne in mind that those prices do not all always move to the same extent, or in the same direction, or at the same time. The general level of prices muse be a factor in determining wages standards generally, and it cannot be entirely disregarded in favour of the prices olf the products of an individual industry.

“Applying these considerations to the circumstances of the present case. I do not think it is advisable to prescribe a sliding scale. It would only delude the workers into hoping for compensating benefits in the future, and, on the analysis of costs submitted to the Court, and on the view I take of the possible movements in the price of fibre in the near future, and of the probable movement of prices generally, I do not think that it would be either wise or lust to encourage hopes that are unlikely to be fulfilled. The original term of the award has expired, and it seems to me that the sounder course is to decide on a definite reduction of 33 1-3 per cent, for a limited period, and to leave it o' H€> m to the parties to apply for a review after the expiration of that period, when it mav be possible to estimate future conditions more accurately than it is at present.’*