COST OF LIVING BONUS.

Wanganui Chronicle, Volume LXXVI, Issue 18206, 17 June 1921, Page 4

COST OF LIVING BONUS.

ARBITRATION COURT’S JUDGMENT.

PREVIOUS PRONOUNCEMENT ADHERED TO. (Per Press Association, PALMERSTON N., June 16.

The judgment of the Arbitration Court in connection with the application for reconsideration of the cost of living bonus pronouncement of 14th May, 1921, has been given. It states: We recognise that the withholding.of the present cash bonus has been disappointing to the workers. We realise, however, that we must take a broad, national view of the whole question of wages, and are satisfied that to grant a cash bonus at the present time would be disadvantageous to the workers and the community generally. It would at once increase unemployment to an alarming extent, and seriously hamper industry. As we stated in our pronouncement, the workers at present rates, are now receiving higher wages, measured in purchasing power than for several months past. Further, when the Court made new awards it had continued its practice of bringing rates below the standard up to the present standard wherever possible. Apart from the question of bonus, apart from the question of of bonus, this fact appears to have been lost sight of by those who contend that there has been no improvement in wages and conditions. Th* suggestion that the Court has not adhered to what is regarded as a promise is refuted by the obvious answer that the Court cannot control financial and economic conditions, but only indicate the policy it wishes to carry out if circumstances permit. Without being unduly pessimistic, we are inclined to the view that the present depression has not yet reached its lowest point, and it behoves us to move warily. We cannot ignore the fact that in Europe and America wages have fallen, and our manufacturers have to face competition from those countries. We are forced to recognise unemployment is already in evidence in New Zealand, and any increase in labour costs are certain to be reflected in increased unemployment. The granting of even a portion of the withheld bonus would tax many Industries beyond breaking point. Numbers of manufacturers and traders are still keeping workers employed though their businesses are not showing profit. The present application, which is in the nature of a test case, is accordingly refused for the above reasons, and the Court adheres to its original pronouncement.