The Star. WEDNESDAY, MAY 17, 1922. THE BONUS REDUCTION.

Star (Christchurch), Issue 16735, 17 May 1922, Page 6

The Star. WEDNESDAY, MAY 17, 1922. THE BONUS REDUCTION.

It- is evident, from the announcements already made, that the bonus reduction authorised by the judgment of the Arbitration Court will be fairly generally applied throughout the Dominion. The local executive of the Employers’ Association 'has recommended the' observance of the Court’s order, and also that the amount of the reductions should be reflected in the shape of reduced prices of commodities. If the latter recommenda- | tion is as generally observed as the | former tire public should realise some benefit in a slight decline in the cost of living. The saving in wages, it must be. remembered, is a small one when broadly viewed, and no extravagant ideas should be entertained as to the effect which the corresponding decline in retail prices will have on the monthly household bills. A more hopeful augury is contained in the Government Statistician’s figures showing the decline in the index number for the three food groups up to March 10. Prices commenced to fall in January, 1921. and the process has been continuous since that time. It ks satisfactory to observe that coincident with the reductions in. wages the employers are announcing cuts in the prices of goods and materials. In a recent reference to the subject we expressed the opinion that where the saving in wages could not be reflected in the shape of cheaper prices to the consumer the wages should not he reduced, and it is satisfactory to know that that principle is endorsed by the executive of the Employers’ Association. The attitude of local bodies in connection with the authorised reduction will he watched with much interest. A serious division is inevitable in the Christchurch Cjtv Council, and it appears that a. deter mined attempt will he made to retain the present rate of wages for the employees. It is unfortunate that- the merits of the case have been prejudiced to some extent by• precipitate action, which gave the Labour councillors an opportunity to secure the withdrawal of the formal notice of the reduction. The council, at Its next meeting, will he asked not to take advantage of the decision of the Court, and to permit all 'employees now receiving the bonus to retain it. It will be incumbent on those supporting this course to explain why an exception should be made in favour of City Council employees, seeing that some thousands of ratepayers, who hare to find their share of the money, are themselves having their wages reduced. Ir there is a case for the maintenance of the present wages of City Council employees the public has not heard it, and it is not likely to approve of an explanation which merely postulates that Labour does not agree with the decision of the Arbitration Court. Of course it is difficult to get a City Council which will do an unpopular thing, and wages reductions are extremely unpopular. It i-« unlikely that other public bodies will hove any hesitation in making the cut. Tlieir financial positions have not been freo from difficulties during iho past few' years, and they will seize any opportunity that may lead to relief. The -changes in the situation are bringing them chances to put their houses in order. Cheaper money is available and the decline in the prices of materials and the wages bill should enable them to give ratepayers some relief in the next year or two. It is a hopeful tdern that there is evidently a general intention to pass on to the public such benefit as may result from the bonus reduction.