COST-OF-LIVING BONUS.

Star (Christchurch), Issue 17017, 16 April 1923, Page 6

COST-OF-LIVING BONUS.

COURT MAKES NO REDUCTION. (Per Press Association.) AUCKLAND. April 15. The pronouncement of the Court of Arbitration regarding the cost of living lor the six-monthly period, October, 1922 March, 1923, is as follows: As on ail other occasions, the Court has made use of all the groups ot statistics, and has worked on the princip.e of the six-monthly moving average. When prices were rising wages increased for the current hail year m accordance w ith the average increase in the cost of living during the half-year. When prices began to fall, the bonus additions to wages were reduced for the current half year in accordance with the average decrease in the cost of living for the past half-year. We have on former occasions stressed the fact that, on the rising of the price market, the adoption ot the six-monthly moving average operates somewhat to the tit: irimenb of the worker, for his wages tend to keep behind the increasing cost ot living, though this is usually offset by the greater regularity of employment, more overtime, and the tendency on the part of employers to pay more than the award wages to a larger percentage of their employees, while on a falling prioe market it operates in favour of the workers, who then start the half-year with wages some points ahead of the current cost of living, and increases his advantage month by ] month. With the exception of rent, which has increased by 4.60 per cent during the half year, all groups and sub groups show* decreases ranging from 2.32 to 4.55 per cent. The figures for all groups are as follows : Percentage ©f Half-year ended July, 3‘Jl-i. March 31. 3 922 .... 6.7 September 30, 1922 . . . 59,6 March 31, 1923 . - - 56.2 Measured in wages, the decrease in the cost of living is equivalent to a reduction of Jd an hour, or 2s a week, m the male adult wage. It is to be noted that the fall in the cost ol living was smaller for the past half year than it was for the preceding half year. There has been a tendency, too. in a number of lines towards a hardening iri prices 1 during the last few months. This will, lin all probability, not be permanent, j but it may be more than merely seasonal. Kents are still increasing, and are not likely to fall until building costs are reduced and the housing shortage overcome. These circumstances lead us to ths ; conclusion that, if money wages are i diminished by 2s a week for the halfi year May-October, 1923. the result may be a reduction not only in money wages but in purchasing power, which means a reduced standard of living. The Court is required by section ft of the Industrial Conciliation and Arbitration Amendment Act to have regard to a fair standard of living for the workers as well as to the general financial and economical position ol trade and industry in the Dominion. The general position has undoubtedly improved, though at least another good year is necessary to enable us to sav that financial stabi lity lias again been attained. All this, taken with the fact that in manv trades the employers did not find it necessary to put the last reduction : of money wage into operation, leads us ! to conclude that it is unnecessary and j undesirable to make a general order e j ducing money wages for the eu niing 1 h-i !f year in accordance w ith the statis j lical finding quoted above. Furthermore. Mr Scott informs us that he >3 I authorised by employers generally to ! sav that, in the event of the cost of l.vin,c statistics showing only a small ; dof.rentthev wiii not ask for a gen* i oral order reducing the money wages, if 1 the Court, in view of the information it lias at its disposal, considers the j makiiv ■'* n.l’h an order to be umferirFor theee reasons, we do not pro- ! nose to make a general order altering | the rates nf remuneration of the workj <>rs for the period Mav October. 1923. j but carry forward the result of our calculations to the next ball-yearly in ! vestigation. ■ The decision of the Court not to make a general order does not. of j course, operate so as to prevent env Iployers bound by any award or industrial agreement from making application t-o the Court on special grounds fox*

a variation of the rates of remuneration fixed by that award or industrial agreement. Such application may be made to the Court in the ordinary way, and will be considered on ite merits.