The Star. SATURDAY, MAY 13, 1922. THE BONUS CUT.

Star (Christchurch), Issue 16732, 13 May 1922, Page 8

The Star. SATURDAY, MAY 13, 1922. THE BONUS CUT.

The reception given to the Arbitration Court’s bonus decision has been precisely what was expected. On the one hand employers are declaring that the reduction is rot largo enough, while the workers assert that nothiug at all should have been deducted. When both the interested parties are complaining the onlooker will probably conclude that the decision represents the happy mean between two extremes, and that reasonable justice has been done. A question of much, more interest is; What is going to happen now that the Court has given its decision? Already the employers in gome industries have announced that they will give effect to the Court’s pronouncement, and. deduct the five shillings. Steps are being taken by the representatives of Tnbour to endeavour to secure the workers in the employ of public bodies against the operation of the cut, on the ground that it will bring wages below the amount necessay to maintain a fair standard of living. A statement issued by the Wellington unions is to the effect that the reduction will take approximately £1,000.000 annually out of the pockets of the worker. That contention, of course. is a mere rhetorical flourish, based on the assumption that the workers are not. going to secure any reduction in the cost of living, while the saving will be put into the pockets of the employers- We believe that there is some justification for the opinion, which has been expressed by both workers* and employers* representatives, that it will not he easy to express the bonus cut in a perceptible reduction in the cost- of living. There is no reason, however, wlhy the consumers should not he given the benefit wherever that is possible, and the subject of decreasing prices should not he ignored simply because it presente some difficulties. Tlie reduction in wages costs is on the average more than 5 per cent, and in some industries that reduction is capable of being reflected in wholesale and retail prices. The local engineering firms, which have decided to give effect to the cut, claim that they have already reduced prices to an extent* equivalent to a 10s per week reduction in wages as from March 1, and it will bo agreed that that represents a suhstnntial saving to customers. The saving may also be reflected by means of discounts on purchases where it cannot he applied to selling prices. It would he a pound principle to adopt that where the bonus cut cannot be passed on to the public bv means of lower prices or the granting of discounts, the wages paid should not be subject to reduction- Employers who reduce wages and at the same time maintain high prices will he open to the criticism that they are not enabling the benefit of the cut, small thouSi it might he. to reach the community. It was not the intention of the Court to reduce the wages bill in order that the profit of business concerns should be correspondingly enlarged. Rome industries, we hare no doubt, really need the relief which has been granted, hut as a general rule the extra five shillings will not make nn appreciable difference to the stability of the industries concerned. It should be realised on all sides that the public is keenly interested in the ultimate destination of the amount of the wages reduction, and that there is strong support for the claim that it should he passed on to the public where it is at all possible. The simple appropriation of the saving •would he resented by public opinion, and would give a strong colour of right to the complaints of the ’workers.