THE COST OF LIVING.

Star (Christchurch), Issue 16260, 29 October 1920, Page 8

THE COST OF LIVING.

EMPLOYERS DISSATISFIED. AMENDING ARBITRATION COURT AWARDS. The operation of danse 18 of the War Legislation and Statute Law Amendment Act, 1918, whereby the Arbitration Court is empowered to amend awards insofar,as they relate to wages and hours of work, is causing a considerable amount of dissatislaction amongst the employers of the Dominion, says the annual report of the New Zealand Employers’ federation. The clause pro vines that, in maxing amendnionts to awards, the Court snail take into consideration; (,a) Any alteration in the conditions in the industry; (b) any increase m the cost of living; (c; all other relevant conditions. “ While the clause appears, and is believed, to bo permissive.” states the report, “ the court, alter careful consideration of all its terms, came to -the conclusion that it was mandatory upon it to increase wages in keeping with the increase in _the cost of living. The position is reviewed every six months, and with the continued rise in the cost of living the court has felt bound to raise wages upon each occasion on which the position has been reviewed. Thus in January a general increase of 4s per week was granted, and this was followed by a further Gs in May. It would bo interesting to ascertain to what extent the May increase of 6s was due to the January rise of 4s. In other words, _it seems essential that expert investigation should be made to arrive at a definite conclusion as to the cx'tont to which increases in wages are redacted in the increase in the cost of living. “It is beyond doubt that a rise in wages without a corresponding increase in production must stilt further increase the cost of living, and that any such movement must bo cumulative in its effects, with the result that all classes, including those who have received the higher rates, must be worse off in consequence. To those with fixed incomes the result is little short of disastrous. If an inquiry such as is hero suggested were made, it should result hi an exemplification of what tho vicious circle ’ really means, and would bring home to all the fact that increased production is what is most greatly needed to check the continual increase in the price of commodities, if not. to reduce tho cost of living generally. “The recent fall in price of important primary products, such as mutton, wool and hides, and the steadying of tho price of wheat, all point to a coming fall in the cost of living. It is a moot question whether that fall would not be expedited if, instead of increasing wages to meet a temporary further rise, the community generally, by economising rigidly in their wants, caused a diminished demand for all commodities. The wool position in New Zealand is a striking object-lesson of how much more speedily the operation of natural bring a fall in prices as compared with any Government regulation.”