ADJUSTING WAGE ALLOCATIONS.

Timaru Herald, Volume CXXXIV, Issue 18819, 6 March 1931, Page 13

ADJUSTING WAGE ALLOCATIONS.

To the Editor of the “ Timaru Herald." Sir,—lt appears to me that many members of the civil service and labour generally take a very unjust and indefensible attitude concerning the Premier’s proposed reasonable reduction of wages and costs of production to meet the very unfortunate prevailing economic conditions. Labour leaders loudly assert that this is a raid on wages. They appear to be entirely ignorant or overlook the fact that there has been a raid on the farmers’ and pastoralists’ wages for the past two years. Unfortunately there is only one wage fund in this country, and that is produced by our primary products. If there is any other wage fund, I would like to know where it is. The export value of our primary products in 1929 dropped nine millions; in 1930, eleven millions; and the whole of this heavy loss from our wage fund, namely twenty millions in two years, and probably another fifteen or twenty millions this year, has up to the present, been borne by the farmer and pastoralist. Talk about a raid on wages. Here’s a raid that labour up to the present has not participated in, with the exception that the loss has produced a large number of unemployed throughout our country, and unless there is a reduction of costs of production and wages generally, there will be many more out of employment during the coming winter. We are told by Labour advocates that if wages are reduced, there will be less money in circulation. Nothing of the kind. It will simply mean a more equal distribution from the wage fund, and the cost of production will be lessened; and the cost of living reduced. The purchasing power of reduced wages will b£ increased, therefore Labour has nothing to lose. The Arbitration Court, in the past has fixed wages by the cost of living. The cost of living has been generally ruled by the price of primary products. Therefore several years have been upon a high level. Hence, wages are upon a high level. Therefore, it is only reasonable and fair, if theie is a fall in values of our primary products, that there should be a fall of wages and costs of production generally. I fully agree that all honest labour is entitled to good conditions—the best the country, can give, but I fail to see where the high wages are to come from, seeing the country wage fund has so enormously decreased, and the economic conditions are generally very bad. Wage reduction should be on a sliding scale; it would be more just. Also, a considerable reduction of rents and interest must take place, with th® fall in wages. It is only fair that all sections of the community should bear a fail- share of the burden, so that our country may steadily recover from the present economic depression.—l am, etc., ALFRED WALKER. Waimate, March 5.