WAGES CUT.

Wanganui Chronicle, Volume LXXVI, Issue 18442, 28 March 1922, Page 6

WAGES CUT.

THE ANTICIPATED REDUCTION APPEAL TO BUSINESS MEN TO CUT PRICES. AIM OF EMPLOYERS’ FEDERATION. “It is the wish of the Employers’ Federation of New Zealand that if the Arbitration Court next month orders a reduction in wages that there shall be a simultaneous reduction in tile price of goods sold by business men throughout New Zealand.”

This wish was conveyed to the local employers last evening by Mr Shailer Weston, President of the New Zeaalnd Employers’ Federation. At a reertnt meeting of the Advisory Board, he said, an important matter considered was the reduction of prices simultaneously with w r ages. The stabilisation period as ordered by the Arbitration Court had been an excellent thing for the Dominion. The cost of living had been falling since last April, in the two years since the Armistice the cost of living had gone up as much as during the previous four years, and the fall in the last year had been as much as tne rise ia tne previous two years. The gain to Labour by the stabilisation hau been great. There now had to be a fall in wages, whether by the court’s decision or by the force of clrcumstancee. A reduction by the court would be absolutely fair because the cost of living would be brought down too. If this were done by the employers, Labour would be treated very fairly, in view of the heavy losses suffered by farmers and business men. If Labour accepted this without industrial disturbance, it would be a great gain to the country. If the employee In cooperation witn the employer—not with the capitalist, for the employer had to borrow the money from the capitalist— agreed to this everyone would benefit. If in New Zealand we could avoid the industrial disturbances as in South Africa, Britain’ and the world generally, New Zealand would have something to be proud of. The employers wanted to show Labour that they would be doing other than putting the money tut from wages into their own pockets. A lead had been given bythe coal owners, who on Friday passed a resolution that it be a recommendation to the owners that a reduction be made in the price of coal to correspond with the reduction in wages. The price of coal at the pit head was, however, very small. The high costs came in the subsequent charges. Seamen’s wages now ran up to £3O and £35 a month for ordinary seamen. Mr Weston digressed for a moment to refer to the absurdities of _some present Labour laws, which' had made costs to go up. Reverting to coal, he said that a 10 per cent, reduction jn miners’ wages would be only about 1/ a ton at the pithead, but the reduction bad to be universal and simultaneous. There would have to be reductions in freight and in the cost of handling. He asked all members of the Association not to be afraid to make a reduction because it was ■■mall. Labour, he thought, would be prepared to take the reduction if all employers were fair, and reduced the price of goods. Employers would make a loss on recently purchased goods, but if they could save industrial trouble and thus help to get back to bedrock, it would be worth while. As soon as the people realised the bottom of the slump had been reached there would be a boom. Mr Weston instanced what one big mining company proposed. He was told the company could employ more miners if there were houses. The company was prepared to build thousands of houses, but, as it would want to sell them to the miners later on, the loss would be heavy if the houses were built under present conditions. Therefore, as soon as rock bottom had been reached, there would be a big impetus given to all building and every other trade. The case of the mining company showed that. The desire to get to bedrock was shown by English firms, who were quoting much below cost. They wanted to stabilise the markets. Mr Shailer Weston hoped that all the employers would be loyal to themselves to Labour a.nd to the country, by backing up the Federation in reducing prices as soon as wages were reduced.